AVVISO n.9021 13 Giugno 2006 SeDeX − PLAIN VANILLA

AVVISO n.9021 13 Giugno 2006 SeDeX − PLAIN VANILLA

Mittente del comunicato : Borsa Italiana

Societa' oggetto dell'Avviso

: UBS

Oggetto : Inizio negoziazione Covered Warrant Plain Vanilla "UBS AG" emessi nell'ambito di un Programma

Testo del comunicato

Si veda allegato.

Disposizioni della Borsa

Strumenti finanziari: A) “Call Warrants su azioni italiane”

B) “Call Warrants su indici azionari”

Emittente:	UBS AG
Rating Emittente:	Società di Rating	Long Term	Data Report
	Moody’s	Aa2	Agosto 2004
	Standard & Poor’s	AA+	26/01/2006
	Fitch	AA+	22/12/2004

Oggetto: INIZIO NEGOZIAZIONI IN BORSA

Data di inizio negoziazioni: 15 giugno 2006

Mercato di quotazione: Borsa - Comparto SEDEX

“segmento covered warrant plain vanilla”

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: UBS Limited

Codice specialist: 0559

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

A) “Call Warrants su azioni italiane”

B) “Call Warrants su indici azionari”

Quantitativo minimo di

negoziazione di ciascuna serie: vedasi scheda riepilogativa delle caratteristiche

dei covered warrant (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 covered warrant (colonna “X.Xxxxx M.M.”)

Tipo di liquidazione: monetaria

Modalità di esercizio: americano

DISPOSIZIONI DELLA BORSA ITALIANA

Dal giorno 15 giugno 2006 i “Call Warrants su azioni italiane” e i “Call Warrants su indici azionari” verranno inseriti nel Listino Ufficiale, sezione Securitised Derivatives.

Allegati:

- Schede riepilogative delle caratteristiche dei covered warrant;

- Estratti dei Final Terms dei covered warrant.

Serie Isin Sigla SIA Descrizione Sottostante Facoltà Strike Scad. Multiplo Ammontare Lotto Neg. X.Xxxxx MM

1	CH0025557965	W55796	393579	UBS ENEL C6,8	GN07	Enel	Call	6,8	08/06/2007	0,1	10000000	100	700
2	CH0025558104	W55810	393580	UBS ENEL C7	GN07	Enel	Call	7	08/06/2007	0,0	00000000	000	0000
3	CH0025558260	W55826	393581	UBS ENEL C7,2	GN07	Enel	Call	7,2	08/06/2007	0,1	10000000	100	1500
4	CH0025558351	W55835	393582	UBS ENEL C7,6	GN07	Enel	Call	7,6	08/06/2007	0,1	10000000	100	2000
5	CH0025558385	W55838	393583	UBS ENEL C8	GN07	Enel	Call	8	08/06/2007	0,0	00000000	000	0000
6	CH0025558021	W55802	393584	UBS ENEL C6,8	MZ07	Enel	Call	6,8	09/03/2007	0,1	10000000	100	1000
7	CH0025558161	W55816	393585	UBS ENEL C7	MZ07	Enel	Call	7	09/03/2007	0,0	00000000	000	0000
8	CH0025558252	W55825	393586	UBS ENEL C7,2	MZ07	Enel	Call	7,2	09/03/2007	0,1	10000000	100	1500
9	CH0025558302	W55830	393587	UBS ENEL C7,6	MZ07	Enel	Call	7,6	09/03/2007	0,1	10000000	100	3000
10	CH0025558369	W55836	393588	UBS ENEL C8	MZ07	Enel	Call	8	09/03/2007	0,0	00000000	000	0000
11	CH0025558419	W55841	393589	UBS ENI C23	GN07	ENI	Call	23	08/06/2007	0,1	10000000	100	150
12	CH0025558476	W55847	393590	UBS ENI C24	GN07	ENI	Call	24	08/06/2007	0,1	10000000	100	200
13	CH0025558583	W55858	393591	UBS ENI C25	GN07	ENI	Call	25	08/06/2007	0,1	10000000	100	300
14	CH0025558666	W55866	393592	UBS ENI C26	GN07	ENI	Call	26	08/06/2007	0,1	10000000	100	400
15	CH0025558724	W55872	393593	UBS ENI C27	GN07	ENI	Call	27	08/06/2007	0,0	00000000	000	000
16	CH0025558435	W55843	393594	UBS ENI C23	MZ07	ENI	Call	23	09/03/2007	0,1	10000000	100	200

Serie Isin Sigla SIA Descrizione Sottostante Facoltà Strike Scad. Multiplo Ammontare Lotto Neg. X.Xxxxx MM

17	CH0025558542	W55854	393595	UBS ENI C24	MZ07	ENI	Call	24	09/03/2007	0,1	10000000	100	300
18	CH0025558617	W55861	393596	UBS ENI C25	MZ07	ENI	Call	25	09/03/2007	0,1	10000000	100	400
19	CH0025558633	W55863	393597	UBS ENI C26	MZ07	ENI	Call	26	09/03/2007	0,1	10000000	100	600
20	CH0025558682	W55868	393598	UBS ENI C27	MZ07	ENI	Call	27	09/03/2007	0,1	10000000	100	1000
21	CH0025558849	W55884	393599	UBS G C28	GN07	Generali	Call	28	08/06/2007	0,1	10000000	100	100
22	CH0025558963	W55896	393600	UBS G C30	GN07	Generali	Call	30	08/06/2007	0,1	10000000	100	150
23	CH0025559045	W55904	393601	UBS G C32	GN07	Generali	Call	32	08/06/2007	0,1	10000000	100	200
24	CH0025559110	W55911	393602	UBS G C34	GN07	Generali	Call	34	08/06/2007	0,1	10000000	100	300
25	CH0025559169	W55916	393603	UBS G C36	GN07	Generali	Call	36	08/06/2007	0,0	00000000	000	000
26	CH0025558914	W55891	393604	UBS G C28	MZ07	Generali	Call	28	09/03/2007	0,1	10000000	100	100
27	CH0025558989	W55898	393605	UBS G C30	MZ07	Generali	Call	30	09/03/2007	0,1	10000000	100	150
28	CH0025559029	W55902	393606	UBS G C32	MZ07	Generali	Call	32	09/03/2007	0,1	10000000	100	300
29	CH0025559060	W55906	393607	UBS G C34	MZ07	Generali	Call	34	09/03/2007	0,1	10000000	100	400
30	CH0025559136	W55913	393608	UBS G C36	MZ07	Generali	Call	36	09/03/2007	0,1	10000000	100	700
31	CH0025564011	W56401	393609	UBS TIT C2	GN07	Telecom Italia	Call	2	08/06/2007	0,0	00000000	000	0000
32	CH0025564052	W56405	393610	UBS TIT C2,2	GN07	Telecom Italia	Call	2,2	08/06/2007	0,1	10000000	100	1500
33	CH0025564243	W56424	393611	UBS TIT C2,4	GN07	Telecom Italia	Call	2,4	08/06/2007	0,1	10000000	100	2500

Serie Isin Sigla SIA Descrizione Sottostante Facoltà Strike Scad. Multiplo Ammontare Lotto Neg. X.Xxxxx MM

34	CH0025564334	W56433	393612	UBS TIT C2,6	GN07	Telecom Italia	Call	2,6	08/06/2007	0,1	10000000	100	5000
35	CH0025564409	W56440	393613	UBS TIT C2,8	GN07	Telecom Italia	Call	2,8	08/06/2007	0,1	10000000	100	9000
36	CH0025564110	W56411	393614	UBS TIT C2	MZ07	Telecom Italia	Call	2	09/03/2007	0,0	00000000	000	0000
37	CH0025564177	W56417	393615	UBS TIT C2,2	MZ07	Telecom Italia	Call	2,2	09/03/2007	0,1	10000000	100	1500
38	CH0025564219	W56421	393616	UBS TIT C2,4	MZ07	Telecom Italia	Call	2,4	09/03/2007	0,1	10000000	100	2500
39	CH0025564300	W56430	393617	UBS TIT C2,6	MZ07	Telecom Italia	Call	2,6	09/03/2007	0,1	10000000	100	5000
40	CH0025564367	W56436	393618	UBS TIT C2,8	MZ07	Telecom Italia	Call	2,8	09/03/2007	0,1	10000000	100	13000
41	CH0025564458	W56445	393619	UBS UC C6	GN07	UNICREDITO	Call	6	08/06/2007	0,0	00000000	000	000
42	CH0025564623	W56462	393620	UBS XX X0,0	XX00	UNICREDITO	Call	6,2	08/06/2007	0,0	00000000	000	000
43	CH0025564706	W56470	393621	UBS XX X0,0	XX00	UNICREDITO	Call	6,6	08/06/2007	0,1	10000000	100	700
44	CH0025564755	W56475	393622	UBS UC C7	GN07	UNICREDITO	Call	7	08/06/2007	0,0	00000000	000	0000
45	CH0025564896	W56489	393623	UBS XX X0,0	XX00	UNICREDITO	Call	7,4	08/06/2007	0,1	10000000	100	2000
46	CH0025564516	W56451	393624	UBS UC C6	MZ07	UNICREDITO	Call	6	09/03/2007	0,0	00000000	000	000
47	CH0025564672	W56467	393625	UBS UC C6,2	MZ07	UNICREDITO	Call	6,2	09/03/2007	0,1	10000000	100	600
48	CH0025564698	W56469	393626	UBS UC C6,6	MZ07	UNICREDITO	Call	6,6	09/03/2007	0,1	10000000	100	1000
49	CH0025564722	W56472	393627	UBS UC C7	MZ07	UNICREDITO	Call	7	09/03/2007	0,0	00000000	000	0000
50	CH0025564854	W56485	393628	UBS UC C7,4	MZ07	UNICREDITO	Call	7,4	09/03/2007	0,1	10000000	100	2500

Serie Isin Sigla SIA Descrizione Sottostante Facoltà Strike Scad. Multiplo Ammontare Lotto Neg. X.Xxxxx MM

1	CH0025557445	W55744	393549	UBS DAX C5800	GN07	DAX	Call	5800	08/06/2007	0,01	10000000	100	5
2	CH0025557718	W55771	393550	UBS DAX C6000	GN07	DAX	Call	6000	08/06/2007	0,01	10000000	100	10
3	CH0025557809	W55780	393551	UBS DAX C6200	GN07	DAX	Call	6200	08/06/2007	0,01	10000000	100	10
4	CH0025557874	W55787	393552	UBS DAX C6400	GN07	DAX	Call	6400	08/06/2007	0,01	10000000	100	20
5	CH0025557916	W55791	393553	UBS DAX C6600	GN07	DAX	Call	6600	08/06/2007	0,01	10000000	100	20
6	CH0025557619	W55761	393554	UBS DAX C5800	MZ07	DAX	Call	5800	09/03/2007	0,01	10000000	100	10
7	CH0025557742	W55774	393555	UBS DAX C6000	MZ07	DAX	Call	6000	09/03/2007	0,01	10000000	100	10
8	CH0025557783	W55778	393556	UBS DAX C6200	MZ07	DAX	Call	6200	09/03/2007	0,01	10000000	100	20
9	CH0025557825	W55782	393557	UBS DAX C6400	MZ07	DAX	Call	6400	09/03/2007	0,01	10000000	100	20
10	CH0025557882	W55788	393558	UBS DAX C6600	MZ07	DAX	Call	6600	09/03/2007	0,01	10000000	100	30
11	CH0025559565	W55956	393559	UBS DJES50 C3600GN07		DOW XXXXX EURO STOXX 50	Call	3600	08/06/2007	0,01	10000000	100	10
12	CH0025559631	W55963	393560	UBS DJES50 C3800GN07		DOW XXXXX EURO STOXX 50	Call	3800	08/06/2007	0,01	10000000	100	20
13	CH0025559680	W55968	393561	UBS DJES50 C4000GN07		DOW XXXXX EURO STOXX 50	Call	4000	08/06/2007	0,01	10000000	100	30
14	CH0025559714	W55971	393562	UBS DJES50 X0000XX00		DOW XXXXX EURO STOXX 50	Call	4200	08/06/2007	0,01	10000000	100	50

Serie Isin Sigla SIA Descrizione Sottostante Facoltà Strike Scad. Multiplo Ammontare Lotto Neg. X.Xxxxx MM

15	CH0025559730	W55973	393563	UBS DJES50 C4400GN07	DOW XXXXX EURO STOXX 50	Call	4400	08/06/2007	0,01	10000000	100	100
16	CH0025559623	W55962	393564	UBS DJES50 C3600MZ07	DOW XXXXX EURO STOXX 50	Call	3600	09/03/2007	0,01	10000000	100	10
17	CH0025559656	W55965	393565	UBS DJES50 X0000XX00	DOW XXXXX EURO STOXX 50	Call	3800	09/03/2007	0,01	10000000	100	20
18	CH0025559664	W55966	393566	UBS DJES50 C4000MZ07	DOW XXXXX EURO STOXX 50	Call	4000	09/03/2007	0,01	10000000	100	30
19	CH0025559706	W55970	393567	UBS DJES50 C4200MZ07	DOW XXXXX EURO STOXX 50	Call	4200	09/03/2007	0,01	10000000	100	100
20	CH0025559722	W55972	393568	UBS DJES50 C4400MZ07	DOW XXXXX EURO STOXX 50	Call	4400	09/03/2007	0,01	10000000	100	150
21	CH0025559201	W55920	393569	UBS SPMIB C36000GN07	S&P/MIB	Call	00000	00/06/2007	0,0001	10000000	100	100
22	CH0025559284	W55928	393570	UBS SPMIB C38000GN07	S&P/MIB	Call	00000	00/06/2007	0,0001	10000000	100	200
23	CH0025559375	W55937	393571	UBS SPMIB C40000GN07	S&P/MIB	Call	00000	00/06/2007	0,0001	10000000	100	300
24	CH0025559417	W55941	393572	UBS SPMIB C42000GN07	S&P/MIB	Call	00000	00/06/2007	0,0001	10000000	100	600
25	CH0025559490	W55949	393573	UBS SPMIB C44000GN07	S&P/MIB	Call	00000	00/06/2007	0,0001	10000000	100	1500
26	CH0025559268	W55926	393574	UBS SPMIB C36000MZ07	S&P/MIB	Call	00000	00/03/2007	0,0001	10000000	100	150
27	CH0025559300	W55930	393575	UBS SPMIB C38000MZ07	S&P/MIB	Call	00000	00/03/2007	0,0001	10000000	100	200
28	CH0025559334	W55933	393576	UBS SPMIB C40000MZ07	S&P/MIB	Call	00000	00/03/2007	0,0001	10000000	100	400
29	CH0025559409	W55940	393577	UBS SPMIB C42000MZ07	S&P/MIB	Call	00000	00/03/2007	0,0001	10000000	100	800

Serie Isin Sigla SIA Descrizione Sottostante Facoltà Strike Scad. Multiplo Ammontare Lotto Neg. X.Xxxxx MM

30 CH0025559474 W55947 393578 UBS SPMIB C44000MZ07 S&P/MIB Call 00000 00/03/2007 0,0001 10000000 100 2000

RISK FACTORS RELATING TO THE ISSUER AND THE SECURITIES

The different risk factors associated with investment in the Securities issued within the framework of this Prospectus are outlined below. Which of these are relevant to the Securities described in this Prospectus depends upon a number of interrelated factors, especially the type of Securities and Underlyings. Investments in the Securities should not be made until all the factors relevant to the Securities have been acknowledged and carefully considered. Terminology and expressions defined in the Terms and Conditions shall have the same meaning when used herein. When making decisions relating to investments in the Securities, potential buyers should consider all information contained in the Prospectus and, if necessary, consult their legal, tax, financial or other advisor.

I. ISSUER-SPECIFIC RISKS

As a global financial services provider, the business activities of UBS are affected by the prevailing market situation. Different risk factors can impair the Company’s ability to implement business strategies and have a direct, negative impact on earnings. Accordingly, UBS’ revenues and earnings are and have been subject to fluctuations. The revenues and earnings figures from a specific period, thus, are not evidence of sustainable results. They can change from one year to the next and affect UBS’ ability to achieve its strategic objectives. A more comprehensive description of the risk factors, in the English language, can be found on pages 43-70 (inclusive) of the UBS Handbook 2004/2005, and on pages 16-17 (inclusive) of the UBS Financial Report 2004.

General insolvency risk

Each investor bears the general risk that the financial situation of the Issuer could deteriorate. The Securities constitute direct, unsecured and unsubordinated obligations of the Issuer, which – even in the event that the Issuer is declared insolvent - 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.

Effect of downgrading of the Issuer rating

The general assessment of the Issuer’s creditworthiness may affect the value of the Securities. This assessment generally depends on the ratings assigned to the Issuer or its affiliated companies by rating agencies such as Moody’s, Fitch and S&P.

Potential conflicts of interest

The Issuer and affiliated companies may participate in transactions related to the Securities in some way, for their own account or for account of a client. Such transactions may not serve to benefit the Securityholders and may have a positive or negative effect on the value of the Underlying and consequently on the value of the Securities. Furthermore, companies affiliated with the Issuer may become counterparties in hedging transactions relating to obligations of the Issuer stemming from the Securities. As a result, conflicts of interest can arise between the companies affiliated with the Issuer, as well as these companies and investors, in relation to obligations regarding the calculation of the price of the Securities and other associated determinations. In addition, the Issuer and its affiliates may act in other capacities with regard to the Securities, such as calculation agent, paying agent and administrative agent and/or index sponsor.

Furthermore, the Issuer and its affiliates may also issue other derivative instruments relating to the respective Underlying; introduction of such competing products may affect the value of the Securities. The Issuer and its affiliated companies may receive non-public information relating to the Underlying, and neither the Issuer nor any of its associated companies undertakes to make this information available to Securityholders. In addition, one or more of the Issuer’s affiliated companies may publish research reports on the Underlying. Such activities could present conflicts of interest and may affect the value of the Securities.

Within the context of the offering and sale of the Securities, the Issuer or any of its affiliated companies may directly or indirectly pay fees in varying amounts to third parties, such as distributors or investment advisors, or receive payment of fees in varying amounts, including those levied in association with the distribution of the Securities from third parties. Potential investors should be aware that the Issuer may retain fees in part or in full.

II. SECURITY-SPECIFIC RISKS

Investing in the Securities involves certain risks. Among others, these risks may take the form of equity market, bond market, foreign exchange, interest rate, market volatility and economic and political risks and any combination of these and other risks. Some of these are presented briefly below. Prospective investors should be experienced with regard to transactions in instruments such as the Securities and in the Underlying. Prospective buyers should understand the risks associated with an investment in the Securities and shall only reach an investment decision, after carefully considerations with their legal, tax, financial and other advisers of (i) the suitability of an investment in the Securities in the light of their own particular financial, fiscal and other circumstances; (ii) the information set out in this document and

(iii) the Underlying. An investment in the Securities should only be made after assessing the direction, timing and magnitude of potential future changes in the value of the Underlying, as the return of any such investment will be dependent, inter alia, upon such changes. More than one risk factor may have simultaneous effects with regard to the Securities, so that the effect of a particular risk factor is not predictable. In addition, more than one risk factor may have a compounding effect which may not be predictable. No assurance can be given with regard to the effect that any combination of risk factors may have on the value of the Securities.

Prospective purchasers of the Securities should recognise that the Securities may decline in value and should be prepared to sustain a total loss of their investment in the Securities. This risk is independent of the financial strength of the Issuer. The shorter the remaining term of the Securities is, the higher the risk of decline in value of the Securities. Moreover, one of the key features of the Securities as warrants is their so-called “Leverage” Effect: Any change in the value of the Underlying may result in a disproportionate change in the value of the Warrant. The Warrant therefore offers profit opportunities which are potentially better than those of other investments. At the same time, the Warrant also involves disproportionate loss exposure. The reason for this is that the leverage effect of the Warrant works both ways – i.e. not only to the investor’s benefit if the price of the Underlying moves in their favour, but also to their disadvantage, if price development is unfavourable. Therefore, when buying a certain Warrant, it should be noted that the higher the leverage effect of a Warrant, the higher the loss exposure involved. In addition, it should be noted that, typically, the shorter the (remaining) term of the Warrant, the higher the leverage effect. Potential investors must therefore be prepared and able to sustain a partial or even a total loss of the invested capital. A Warrant represents neither a claim for the payment of interest nor for the payment of dividends and thus does not generate any regular income. Therefore, potential reductions in the value of the Warrant cannot be offset by any other income from the Warrant.

It is expressly recommend that potential investors familiarise themselves with the specific risk profile of the product type described in this Prospectus and seek the advice of a professional if necessary.

1. General risks of Call and Put Warrants

Call/Put Warrants based on the Underlying are call/put warrants for which the investor receives a certain Settlement Amount in the Settlement Currency, pursuant to section 1 of the Terms and Conditions of the Securities. The Option Right to demand payment of the Settlement Amount by the Issuer under certain conditions differs in relation to call and put warrants: In the case of call warrants, as provided for by the Terms and Conditions of the Securities, this right depends on the difference by which the Price of the Underlying exceeds the Strike Price on the Valuation Date (the “Settlement Price”) . In the case of put warrants, the decisive difference is that by which the Settlement Price of the Underlying is below the Strike Price. The Warrant performs accordingly during the Term of the Securities: As a rule (disregarding other factors critical to the pricing of the warrants), the value of a call warrant drops if the price of the Underlying falls. The opposite is true of put warrants, which decline in value if the Price of the Underlying rises.

2. Features of Warrants on Currencies and Exchange Rates

In cases where the Underlyings are exchange rates or precious metals, it should also be noted that foreign currencies and precious metals are traded 24 hours/day through the time zones of Australia, Asia, Europe and America (starting 5.00 am Monday, Sydney time, and ending 5.00 pm Friday, New York time). It is therefore possible for a HIT Threshold, Lock Out Threshold, Upper or Lower Threshold, or Knock Out Threshold, pursuant to the Terms and Conditions of the Securities, to be reached, or passed above or below outside of local business hours or those of the Offeror.

3. Minimum Exercise

If so indicated in the Terms and Conditions of the Securities exercisable by the Holders, the Securityholder must tender a specified minimum number of the Securities, in order to exercise the Securities. Holders with fewer than the specified minimum number of Securities will, therefore, either have to sell their Securities or purchase additional Securities (incurring transaction costs in each case). Prospective buyers should review the Terms and Conditions to ascertain whether and how such provisions apply to the Securities.

4. Limitation of Exercise

If so indicated in the Terms and Conditions for any Securities that are exercisable by the holders thereof, and are based directly or indirectly on German equities as their underlying asset, the Option Right vested in the Securities may not be exercised on certain days. These include days, such as the date upon which the company issuing the German equities underlying the Securities holds its Annual General Meeting, as well as the immediately preceding banking day (ex dividend day). For certain Securities, the Terms and Conditions state that exercise is limited to certain dates. In the event that the exercise notice is not submitted by this exercise date, the Securities cannot be exercised until the next date stated in the Terms and Conditions.

5. Other factors affecting value

The value of a Security is determined not only by changes in the price of the Underlying, but also a number of other factors. More than one risk factor may have simultaneous effect with regard to the Securities such that the effect of a particular risk factor may not be predictable. In addition, more than

one risk factor may have a compounding effect which may not be predictable. No assurance can be given with regard to the effect that any combination of risk factors may have on the value of the Securities.

These factors include, inter alia: the maturity of the Security, the frequency and intensity of price fluctuations (volatility) in the Underlying, as well as the prevailing interest rate and dividend levels. A decline in the value of the Security may therefore occur even if the price of the Underlying remains constant.

Prospective buyers of the Securities should be aware that an investment in the Securities involves a valuation risk with regard to the Underlying. They should have experience with transactions in securities with a value derived from an underlying. The value of the Underlying may vary over time and may increase or decrease by reference to a variety of factors which may include corporate actions, macro economic factors and speculation. If the Underlying comprises a basket of various assets, fluctuations in the value of any one asset may be offset or intensified by fluctuations in the value of other basket components. In addition, the historical performance of the Underlying is not an indication of its future performance. The historical price of the Underlying does not indicate the future performance of the Underlying. Changes in the market price of the Underlying will affect the trading price of the Securities, and it is impossible to predict whether the market price of the Underlying will rise or fall.

If the Securityholder’s right vested in the Security is determined on the basis of a foreign currency, currency unit or calculation unit, or if the value of the Underlying is determined in such a foreign currency, currency unit or calculation unit, potential investors should be aware that investments in these Securities could entail risks due to fluctuating exchange rates, and that the loss risk does not depend solely on the performance of the Underlying, but also on unfavourable developments in the value of the foreign currency, currency unit or calculation unit. Such unfavourable developments may increase the Securityholder’s risk of loss, in such a way that

- the value of the acquired Securities diminishes accordingly, or

- any possible settlement amount diminishes accordingly.

6. Effect of ancillary costs

Commissions and other transaction costs incurred in connection with the purchase or sale of Securities may result in charges, particularly in combination with a low order value, which can substantially reduce the potential for gains relating to the Security. Before acquiring a Security, prospective buyers should therefore inform themselves of all costs incurred through the purchase or sale of the Security, including any costs charged by their custodian banks upon purchase and maturity of the Securities.

7. Transactions to offset or limit risk

Potential purchasers of the Securities should not rely on the ability to conclude transactions at any time during the term of the Securities that will allow them to offset or limit relevant risks. This depends on the market situation and the prevailing conditions. Transactions designed to offset or limit risks might only be possible at an unfavourable market price that will entail a loss for investors.

8. Trading in the Securities / Liquidity

It is not possible to predict if and to what extent a secondary market may develop in the Securities or at what price the Securities will trade in the secondary market or whether such market will be liquid or illiquid.

If so specified in this Prospectus, applications will be or have been made to the stock exchange(s) specified for admission or listing of the Securities. If the Securities are admitted or listed, no assurance is given that any such admission or listing will be maintained. The fact that any Securities are admitted to trading or listed does not necessarily denote greater liquidity than if this were not the case. If the Securities are not listed or traded on any exchange, pricing information for the Securities may be more difficult to obtain and the liquidity of the Securities may be adversely affected. The liquidity of the Securities may also be affected by restrictions on purchase and sale of the Securities in some jurisdictions. Additionally, the Issuer has the right (but no obligation) to purchase Securities at any time and at any price in the open market or by tender or private agreement. Any Securities so purchased may be held or resold or surrendered for cancellation.

The Offeror intends, under normal market conditions, to provide bid and offer prices for the Securities of an issue on a regular basis. However, the Offeror makes no firm commitment to the Issuer to provide liquidity by means of bid and offer prices for the Securities, and assumes no legal obligation to quote any such prices or with respect to the level or determination of such prices. Potential buyers therefore should not rely on the ability to sell Securities at a specific time or at a specific price.

9. Borrowed funds

If the purchase of Securities is financed by borrowed funds and investors’ expectations are not met, they not only suffer the loss incurred but also have to pay interest on and redeem the loan. This produces a substantial increase in investors’ risk of loss. Buyers of Securities should never rely on being able to redeem and pay interest on the loan through gains from a securities transaction. Rather, before financing the purchase of a security with borrowed funds, the investors’ financial situations should be assessed, as to their ability to pay interest on or redeem the loan immediately, even if they incur losses instead of the expected gains.

10. The effect on the Securities of hedging transactions by the Issuer

The Issuer may use all or some of the proceeds received from the sale of the Securities to enter into hedging transactions relating to the risks incurred in issuing the Securities. In such a case, the Issuer or one of its affiliated companies may conclude transactions that correspond to the Issuer’s obligations arising from the Securities. Generally speaking, this type of transaction will be concluded before or on the day of issue of the Securities, although these transactions can also be concluded after the Securities have been issued. The Issuer or one of its affiliated companies may take the necessary steps for the closing out of any hedging transactions, on or prior to the valuation date. Although the Issuer does not consider these types of transaction to have a massive impact on the value of the Securities, it cannot be ruled out that the price of the Underlying might, in certain cases, be affected by these transactions. In the case of securities whose value depends on the occurrence of a specific event in relation to the Underlying, entering into or closing out such hedging transactions may affect the likelihood of this event occurring or not occurring.

11. Expansion of the spread between bid and offer prices

In special market situations, where the issuer is completely unable to conclude hedging transactions, or where such transactions are very difficult to conclude, the spread between the bid and offer prices may be temporarily expanded, in order to limit the economic risks to the Issuer.

12. Changes in the tax treatment of the Securities

The tax considerations set forth in this Prospectus reflect the views of the Issuer based on the legislation applicable at the date of this Prospectus. It cannot, however, be ruled out that the tax treatment by the tax authorities and tax courts will be otherwise. Additionally, the tax considerations set forth herein may not be used as the sole basis for the decision to invest in the Securities from a tax perspective, since the individual situation of each investor must also be taken into account. The considerations with regard to taxation contained in this Prospectus, thus, do not constitute any sort of material information or tax advice nor are they in any way to be construed as a representation or warranty with respect to specific tax consequences. Accordingly, investors should consult their personal tax advisors before any decision to purchase the Securities.

Neither the Issuer nor the Offeror accepts any liability for the tax consequences of an investment in the Securities.

RESPONSIBILITY

UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxxxxxx, and Xxxxxxxxxxxxxxx 0, 0000 Xxxxx, Xxxxxxxxxxx, acting through its Xxxxxx Xxxxxx, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, as Issuer and UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, as Offeror of the Securities described in this Prospectus, assume responsibility for the content of this Prospectus pursuant to section 5 (4) of the WpPG.

The Issuer and the Offeror declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of their knowledge, in accordance with the facts and contains no omissions likely to affect its import.

Neither the Issuer nor the Offeror may be held liable on the basis of the Summary contained in this Prospectus alone, nor in any translation hereof, unless the Summary is misleading, inaccurate or contradictory if read in conjunction with other parts of the Prospectus.

In reference to the information in the “Information about the Underlying” section beginning on page 54 of this Prospectus, which obviously stems from third parties rather than from the Issuer or the Offeror, the Issuer and the Offeror confirm only that such information has been carefully prepared and correctly conveyed. To the extent apparent and verifiable for the Issuer and Offeror, no facts have been omitted that could lead to information being reproduced incompletely or incorrectly.

DESCRIPTION OF THE SECURITIES

I. GENERAL INFORMATION ABOUT THE PROSPECTUS AND THE ISSUE

1. Base Prospectus / To be supplemented by final terms / Availability of documentation

This document comprises the Final Terms of the offer to the Base Prospectus within the meaning of Directive 2003/71/EC of 4 November 2003 (the “Prospectus Directive“) and the corresponding German implementation legislation in the form of the Securities Prospectus Act (Wertpapierprospektgesetz). The Base Prospectus has been approved by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), as the competent authority in the (selected) home Member State of UBS within the meaning of the Prospectus Directive and the German Securities Prospectus Act (Wertpapierprospektgesetz), as UBS’s offering programme. “Approval” means the positive act at the outcome of the scrutiny of the completeness of the prospectus by XxXxx, including the consistency of the information given and its comprehensibility.

Printed copies of the Base Prospectus and the Final Terms of the offer are available free of charge both from the Issuer or at UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 - 00, X-00000 Xxxxxxxxx/Xxxx, Xxxxxxx Xxxxxxxx of Germany. Additionally, the Base Prospectus is published on the website xxx.xxx.xxx/xxxxxxxxx, or a successor website.

The specific terms and conditions relating to the respective securities offering are contained in the final terms of the offer. The final terms of the offer shall be presented by incorporation in the Base Prospectus essentially by way of deletion, particularly of square brackets incorporated in this Base Prospectus, or by way of completing of placeholder in square brackets as displayed. It is therefore only possible to gain a comprehensive impression of the Issuer and the Securities through examination of the Base Prospectus together with the corresponding final terms of the offer.

The final terms of the offer shall be filed with BaFin and communicated to investors on the day of the public offer at the latest:

a) by publication in one or more newspapers circulated throughout, or widely circulated in, the Member States of the European Economic Area in which the offer to the public is made; or

b) in a printed form to be made available, free of charge at the Issuer’s registered office or at UBS Deutschland AG, Xxxxxxxxxxxxx 00 - 00, X-00000 Xxxxxxxxx / Xxxx; or

c) in an electronic form on the website xxx.xxx.xxx/xxxxxxxxx, or a successor website.

If the final terms are published in electronic form, the Issuer and the Offeror shall also provide a paper version free of charge upon request.

The Issuer will also communicate to investors how the final terms of the offer are to be published and where they are available by publication in one or more newspapers circulated throughout, or widely circulated in, the Member States in which the offer to the public is made.

2. General Note on the Prospectus

No dealer, salesman or other person is authorised to give any information or to make any representation other than those contained in this Prospectus in connection with the offering or sale of the Securities. If given or made, such information or representation must not be relied upon as having been authorised by the Issuer or Offeror. 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. Potential investors who are contemplating purchasing Securities should conduct their own independent investigation of the risks involved in an investment in the Securities. Neither this Prospectus, nor other information relating to the Securities represents an offer (in the legal sense) on the part of or on behalf of the Issuer or other persons i.e. a subscription or purchase agreement relating to the Securities will not be effectively concluded with a unilateral declaration made on the part of or on behalf of the subscriber or buyer to the Issuer or Offeror.

3. Object of the Prospectus

The object of this Prospectus are the Call Warrants, in bearer form, with the International Security Identification Number (both as defined in the section “Summary of the Key Terms of the Securities”), issued by UBS AG, acting through its London Branch, as Issuer in accordance with German law, and issued in the amount of the Aggregate Amount of the Issue (as defined in the “Summary of the Key Terms of the Securities”). All payments relating to the Securities are made in the Settlement Currency (as defined in the section “Summary of the Key Terms of the Securities”.)

These Securities are each based on the listed Underlying, as detailed in the sections “Summary of the Key Terms of the Securities” and “Information about the Underlying”.

The Securities expire on the Expiration Date (as defined in the section entitled “Summary of the Key Terms of the Securities”).

4. Issue and Sale of the Securities

The Issuer intends to employ this Prospectus – following any necessary notification of the relevant member state of the European Economic Area by Germany’s Federal Financial Supervisory Authority, as the competent authority in the (selected) home Member State of UBS within the meaning of the Prospectus Directive and the German Securities Prospectus Act – for the public offer of the Securities in different member states of the European Economic Area. Since, however, the Securities will not be admitted to public offer / registered in all Member States, distribution of this Prospectus and the offer of the Securities may be subject to certain legal restrictions in some countries. Neither the Issuer nor the Offeror represent that this document may be lawfully distributed, or that the Securities may be lawfully offered, in compliance with any applicable registration or other requirements in any jurisdiction, or pursuant to an exemption available thereunder, or assumes any responsibility for facilitating any distribution or offering. Potential investors can find further information in the section entitled “Selling Restrictions” beginning on page 56 of this Prospectus.

5. Underwriting and Issue Price

It has been agreed that, on or after the respective Issue Date of the Securities (as defined in the section entitled “Summary of the Key Terms of the Securities”), UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, (the “Offeror”) shall underwrite the Securities by means of an underwriting agreement and shall place them for sale at the Issue Price as defined in the section entitled “Summary of the Key Terms of the Securities” under terms subject to change. The Issue Price shall be set at the Fixing Date (as defined in the section entitled “Summary of the Key Terms of the Securities”) based on the prevailing market situation and the price of the Underlying, and then be

published in accordance with the Terms and Conditions of the Securities. The selling price will then be adjusted on a continual basis to reflect the prevailing market situation.

The Offeror shall be responsible for coordinating the entire Securities offering. The total commission due for the respective underwriting and/or placement service relating to the underwriting of the Securities amounts to the Aggregate amount of underwriting and/or placing fees (as defined in the section entitled “Summary of the Key Terms of the Securities”).

6. Form and status of the Securities

The Securities issued by the Issuer are represented by one or more permanent global bearer certificate(s) and are deposited for clearing and settlement at the Clearing Systems(s) (as defined in the section entitled “Definitions”). Definitive securities will not be issued.

The Securities constitute direct, unsecured and unsubordinated 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.

7. Admission to Trading

The Offeror intends to apply for inclusion of the Securities to trading on the Stock Exchange(s) (as defined in the section entitled “Summary of the Key Terms of the Securities”). The Securities shall be delisted three trading days prior to the Expiration Date. As of this point until the Expiration Date, trading may only take place off exchange with the Offeror.

8. Subscription and Delivery of the Securities

The Securities may be purchased from the Offeror during normal banking hours. There is no subscription period. The Issue Price per Security is due for payment on the Initial Payment Date (as defined in the section entitled “Summary of the Key Terms of the Securities”).

After the Initial Payment Date, the appropriate number of Securities shall be credited to the buyer’s account in accordance with the rules of the corresponding Clearing System(s) (as defined in the section entitled “Definitions”).

9. Authorisation/Resolution for the Issue of the Securities

The Issuer does not need to obtain (individual) authorisation from its Management Board to issue the Securities. There exists a general resolution for the issue of the Securities.

10. Use of Proceeds

The net proceeds from the sale of the Securities will be used for funding purposes of the UBS Group and shall not be employed by the Issuer within Switzerland. The net proceeds from the issue shall be employed by the Issuer for general business purposes. A separate (“special purpose”) fund will not be established.

If, in the normal course of business, the Issuer trades in the Underlyings, or - if the Underlying is an index – in the individual index components, or in options and futures contracts on or related to the index, or xxxxxx the financial risks associated with the Securities by means of hedging transactions in

the corresponding shares or other underlying assets or in options or futures contracts on or related to the index, the Securityholders have no rights to or interests in the respective shares or other underlyings or options or futures contracts on or relating to the index.

II. SUMMARY OF THE KEY TERMS OF THE SECURITIES

This following section contains the key terms of the Securities. This summary does not represent a comprehensive description of the Securities, and is subject to and should be read in conjunction with the Terms and Conditions of the Securities, the general offering terms of the Securities and all other sections of this Prospectus. 3

3 The notation of the Securities will be different for each series of the securities and also the key terms can be different for each series of the Securities.

THE KEY TERMS OF CALL WARRANTS

Subject to an adjustment according to the Terms and Conditions of the Securities, the Call Warrants have the key terms as described below:

Emittentin / UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxx, und Xxxxxxxxxxxxxxx 0, 0000 Xxxxx, Xxxxxxx, handelnd durch ihre Niederlassung London, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Vereinigtes Königreich. /

Issuer: UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxxxxxx, and Xxxxxxx- xxxxxxxx 0, 0000 Xxxxx, Xxxxxxxxxxx, acting through its Xxxxxx Xxxxxx, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx.

Anbieterin / UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Vereinigtes Königreich. /

Offeror: UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx.

Zahlstelle / UBS Limited c/o UBS Deutschland AG, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. BNP Paribas, Xxxxxx X. Xxxxxx, 00000 Xxxxxxx, Xxxxxxx. Der Begriff „Zahlstelle“ umfasst in diesem Fall sämtliche Zahlstellen. /

Paying Agent: UBS Limited c/o UBS Deutschland AG, Xxxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx xx Xxxxxxx. BNP Paribas, Xxxxxx X. Xxxxxx, 00000 Xxxxx, Xxxxx. The term “Paying Agent” shall also refer to all Paying Agents.

Berechnungsstelle / UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx

Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. /

Calculation Agent: UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx of Germany.

Emissionsvolumen / Je Serie 10.000.000 Wertpapiere /

Issue Size: Each Series 10,000,000 Securities

Gesamtsumme der Emission / Je Serie Emissionspreis x Emissionvolumen /

Aggregate Amount of the Issue: Each series Issue Price x Issue Size

Gesamtbetrag der Übernahme- und/oder Platzierungsprovision / Aggregate amount of underwriting

and/or placing fee:

Keine /

None

Beginn des öffentlichen Angebots der Wertpapiere /

nach Genehmigung durch Borsa Italiana S.p.A. /

Start of public offer of the Securities:

after approval by Borsa Italiana S.p.A. l

Basiswert(e) / Siehe Tabelle. /

Underlying(s): See table below.

Basiswährung / Euro („EUR“) /

Underlying Currency: Euro (“EUR“)

Auszahlungswährung / Euro („EUR“) /

Settlement Currency: Euro (“EUR“)

Emissionspreis / Der Emissionspreis wird am Festlegungstag von der Berechungsstelle festgelegt. /

Issue Price: The Issue Price will be fixed by the Calculation Agent on the Fixing Date.

Emissionstag / 24. Mai 2006 /

Issue Date: 24 May 0000

Xxxxxxxxxxxxxxxx(xx) / 10 : 1 bzw. als Dezimalzahl ausgedrückt 0,1 ; das heißt 10 Wertpapiere

beziehen sich auf 1 Basiswert. /

Ratio(s): 10 : 1, or expressed as a decimal number 0.1, i.e. 10 Securities relate to 1 Underlying.

Zahltag bei Emission / 26. Mai 2006 /

Initial Payment Date: 26 May 2006

Festlegungstag / 24. Mai 2006 /

Fixing Date: 24 May 2006

Basispreis / Siehe Tabelle. /

Strike Price: See table below.

Mindestausübungsanzahl / 100 bzw. ein ganzzahliges Vielfaches davon. /

Minimum Exercise Size: 100 or an integral multiple thereof.

Kleinste handelbare Einheit / 100 bzw. ein ganzzahliges Vielfaches davon. /

Minimum Trading Size: 100 or an integral multiple thereof.

Verfalltag / Siehe Tabelle.

Falls dieser Tag kein Basiswert-Berechnungstag ist, dann gilt der unmittelbar darauf folgende Basiswert-Berechnungstag als der

Verfalltag. /

Expiration Date: See table below.

If this day is not an Underlying Calculation Date, the immediately succeeding Underlying Calculation Date is deemed to be the Expiration Date.

Abwicklung / Barausgleich innerhalb von fünf Bankgeschäftstagen nach (i) dem maßgeblichen Bewertungstag und (ii) im Fall einer Kündigung durch die Xxxxxxxxxx xxxx § 0 xxx Xxxxxxxxxxxxxxxxxxxxx xxxx xxx Xxxxxxxxxxxxx (xxx „Rückzahlungstag“).

Der „Bewertungstag“ entspricht, im Fall eines Xxxxxxxxxxxxxxxxxx xxx Xxxxxxxxxxxxxxxxxxxx xxxx § 0 xxx Xxxxxxxxxxxxxxxxxxxxx, dem maßgeblichen Xxxxxxxxxxxx xxx. xx Xxxx xxx Xxxxxxxxxxxxx Xxxxxxxx xxxx § 0 xxx Xxxxxxxxxxxxxxxxxxxxx, dem dem Verfalltag unmittelbar vorangehenden Tag.. Falls dieser Tag kein Basiswert- Berechnungstag ist, dann gilt der unmittelbar darauf folgende Basiswert-Berechnungstag als Bewertungstag.

Der „Ausübungstag“ steht für den Bankgeschäftstag innerhalb der Ausübungsfrist, an dem bis spätestens zur Ausübungszeit sämtliche erforderlichen Ausübungsbedingungen erfüllt sind. Falls die erforderlichen Ausübungsbedingungen an einem Tag erfüllt sind, der kein Bankgeschäftstag ist, oder erst nach Ablauf der Ausübungszeit an einem Ausübungstag, gilt der nächstfolgende Bankgeschäftstag als der Ausübungstag, vorausgesetzt, dass dieser Tag in die Ausübungsfrist fällt. Die in den Wertpapieren verbrieften Optionsrechte gelten als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxxxxxxxxxxx, xxx Xxxxxxxxxxx xxx Xxxxxxxxxxx oder der Erfüllung sonstiger Voraussetzungen bedarf.

/

Settlement: Cash Settlement within five Banking Days after (i) the relevant Exercise Date and (ii) in case of a Termination by the Issuer in accordance with

§ 7 of the Conditions of the Securities, after the Termination Date (the “Settlement Date”).

The “Valuation Date” means, in case of an Exercise Procedure by the Securityholder in accordance with § 2 of the Conditions of the Securities, the relevant Exercise Date, and in case of an Automatic Exercise in accordance with § 3 of the Conditions of the Securities, the day immediately preceeding the Expiration Date. If this day is not an Underlying Calculation Date, the immediately succeeding Underlying Calculation Date is deemed to be the Valuation Date.

The “Exercise Date” means the Banking Day within the Exercise

Period, on which at the latest at the Exercise Time all of the conditions required for the exercise are met. If the conditions required for the exercise are met on a day that is not a Banking Day or after lapse of the Exercise Time on an Exercise Date, the following Banking Day is deemed to be the Exercise Date provided that such day falls within the Exercise Period. The option rights certified in the Securities are deemed to be exercised without requiring the submission of an exercise notice, the transfer of the Securities or the fulfilment of further special preconditions on the Expiration Date (also the “Exercise Date”).

Maßgebliche Börse / Borsa Italiana S.p.A. Mailand /

Relevant Stock Exchange: Borsa Italiana S.p.A Mila

Maßgebliche Terminbörse / Italian Derivative Market (IDEM). /

Relevant Futures and Options Exchange:

Italian Derivative Market (IDEM).

Optionsstelle / UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. /

Warrant Agent: UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, D-60313 Frankfurt am Main, Federal Republic of Germany.

Wertpapier-Kenn-Nummern / ISIN: Siehe Tabelle /

Security Identification Codes: ISIN: See table below

Wertpapier-Börse(n) / Wertpapierbörse Mailand /

Relevant Security Stock Exchange(s): Milan Stock Exchange

Anwendbares Recht / Deutsches Recht /

Governing Law: German Law

Tabellarische Darstellung der wichtigsten Ausstattungsmerkmale /

Table of the Key Terms

ISIN der Optionsscheine / ISIN of Warrants	Optionstyp / Option Type	Basiswert / Underlying	Basispreis / Strike Price	Basiswährung / Underlying Currency	Verfalltag / Expiration Date
CH0025558021	Call	Enel	6.80	EUR	09.03.2007
CH0025557965	Call	Enel	6.80	EUR	08.06.2007
CH0025558161	Call	Enel	7.00	EUR	09.03.2007
CH0025558104	Call	Enel	7.00	EUR	08.06.2007
CH0025558252	Call	Enel	7.20	EUR	09.03.2007
CH0025558260	Call	Enel	7.20	EUR	08.06.2007
CH0025558302	Call	Enel	7.60	EUR	09.03.2007
CH0025558351	Call	Enel	7.60	EUR	08.06.2007
CH0025558369	Call	Enel	8.00	EUR	09.03.2007
CH0025558385	Call	Enel	8.00	EUR	08.06.2007
CH0025558435	Call	Eni	23.00	EUR	09.03.2007
CH0025558419	Call	Eni	23.00	EUR	08.06.2007
CH0025558542	Call	Eni	24.00	EUR	09.03.2007
CH0025558476	Call	Eni	24.00	EUR	08.06.2007
CH0025558617	Call	Eni	25.00	EUR	09.03.2007
CH0025558583	Call	Eni	25.00	EUR	08.06.2007
CH0025558633	Call	Eni	26.00	EUR	09.03.2007
CH0025558666	Call	Eni	26.00	EUR	08.06.2007
CH0025558682	Call	Eni	27.00	EUR	09.03.2007
CH0025558724	Call	Eni	27.00	EUR	08.06.2007
CH0025558914	Call	Generali	28.00	EUR	09.03.2007

CH0025558849	Call	Generali	28.00	EUR	08.06.2007
CH0025558989	Call	Generali	30.00	EUR	09.03.2007
CH0025558963	Call	Generali	30.00	EUR	08.06.2007
CH0025559029	Call	Generali	32.00	EUR	09.03.2007
CH0025559045	Call	Generali	32.00	EUR	08.06.2007
CH0025559060	Call	Generali	34.00	EUR	09.03.2007
CH0025559110	Call	Generali	34.00	EUR	08.06.2007
CH0025559136	Call	Generali	36.00	EUR	09.03.2007
CH0025559169	Call	Generali	36.00	EUR	08.06.2007
CH0025564110	Call	Telecom Italia	2.00	EUR	09.03.2007
CH0025564011	Call	Telecom Italia	2.00	EUR	08.06.2007
CH0025564177	Call	Telecom Italia	2.20	EUR	09.03.2007
CH0025564052	Call	Telecom Italia	2.20	EUR	08.06.2007
CH0025564219	Call	Telecom Italia	2.40	EUR	09.03.2007
CH0025564243	Call	Telecom Italia	2.40	EUR	08.06.2007
CH0025564300	Call	Telecom Italia	2.60	EUR	09.03.2007
CH0025564334	Call	Telecom Italia	2.60	EUR	08.06.2007
CH0025564367	Call	Telecom Italia	2.80	EUR	09.03.2007
CH0025564409	Call	Telecom Italia	2.80	EUR	08.06.2007
CH0025564516	Call	UniCredito Italiano	6.00	EUR	09.03.2007
CH0025564458	Call	UniCredito Italiano	6.00	EUR	08.06.2007
CH0025564672	Call	UniCredito Italiano	6.20	EUR	09.03.2007
CH0025564623	Call	UniCredito Italiano	6.20	EUR	08.06.2007
CH0025564698	Call	UniCredito Italiano	6.60	EUR	09.03.2007
CH0025564706	Call	UniCredito Italiano	6.60	EUR	08.06.2007
CH0025564722	Call	UniCredito Italiano	7.00	EUR	09.03.2007

CH0025564755	Call	UniCredito Italiano	7.00	EUR	08.06.2007
CH0025564854	Call	UniCredito Italiano	7.40	EUR	09.03.2007
CH0025564896	Call	UniCredito Italiano	7.40	EUR	08.06.2007

III. WERTPAPIERBEDINGUNGEN III. TERMS AND CONDITIONS OF THE

SECURITIES

Diese nachfolgenden Wertpapierbedingungen, bestehend aus den produktspezifischen Besonderen Wertpapierbedingungen und den Allgemeinen Wertpapierbedingungen, gelten für jeweils eine Serie von Wertpapieren und sind in Zusammenhang mit und nach Maßgabe der „Zusammenfassung der wichtigsten Ausstattungsmerkmale” und den

„Definitionen” (die „Bedingungen”) zu lesen.

The following terms and conditions of the Securities, comprising the Special Conditions of the Securities and the General Conditions of the Securities, in each case apply to one series of Securities and shall be read in conjunction with, and are subject to, the “Summary of Key Terms” and the “Definitions” (the “Conditions”).

Die nachstehenden Bedingungen der Wertpapiere sind gegliedert in

The following Conditions of the Securities are composed of

Teil 1: Definitionen Part 1: Definitions

Teil 2: Besondere Wertpapierbedingungen Part 2: Special Conditions of the Securities

Teil 3: Allgemeine Wertpapierbedingungen Part 3: General Conditions of the Securities

TEIL 1: DEFINITIONEN PART 1: DEFINITIONS

„Ausübungsfrist“ beginnt am 29. Mai 2006 und endet am (einschließlich) Verfalltag.

„Ausübungszeit“ entspricht 10:00 Uhr (Orts- zeit Mailand).

„Bankgeschäftstag” steht für jeden Tag, an dem die Banken in Frankfurt am Main, Bundesrepublik Deutschland und in Mailand, Italien, für den Geschäftsverkehr geöffnet sind und die Clearingstelle Wertpapiergeschäfte abwickelt.

„Basiswert-Berechnungstag“ steht für jeden Tag, an dem die Maßgebliche Börse für den Handel geöffnet ist, und der Kurs des Basiswerts in Übereinstimmung mit den maßgeblichen Regeln bestimmt wird.

„Bewertungszeit“ entspricht gewöhnlich 17:35 Uhr Ortszeit Mailand, wenn der Abrechungskurs des Basis- xxxxx, in Übereinstimmung mit den maßgeblichen Regeln von der Maßgeblichen Börse am Bewertungstag ermittelt wird.

„Clearingstelle“ steht für für Clearstream Banking AG, Frankfurt am Main (Neue Xxxxxxxxxxxx 0, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx), Monte Titoli S.p.A. oder jeden Nachfolger.

„Kurs des Basiswerts“ entspricht dem an der Maßgeblichen Börse ermittelten Kurs des Basiswerts.

„Wertpapiere“ steht für die von der Emittentin im Umfang von des Emissionsvolumens begebenen Call Optionsscheine, die auf den Inhaber lauten.

„Wertpapiergläubiger“ steht für die nach deutschem Recht als Eigentümer der Wertpapiere anerkannten Personen. Der Wertpapiergläubiger wird in jeder Hinsicht seitens (i) der Emittentin, (ii) der Optionsstelle, (iii) der Berechnungsstelle, (iv) der Zahlstelle und (v) aller sonstigen Personen als Berechtigter und Begünstigter bezüglich der in den Wertpapieren repräsentierten Rechte behandelt. Wertpapiergläubiger ist in jedem Fall die Person, die bei ihrer Depot führenden Stelle, für die (unmittelbar oder mittelbar) bei der Clearingstelle ein Konto geführt wird, auf dem die Wertpapier verbucht sind, als Berechtigte geführt wird.

“Exercise Period” starts on 29 May 2006 and ends on (including) the Expiration Date.

“Exercise Time” means 10 :00 hrs (local time Milan).

“Banking Day” means each day on which the banks in Frankfurt am Main, Federal Republic of Germany, and in Milan, Italy, are open for business and the Clearing System settles securities dealings.

“Underlying Calculation Date” means each day on which the Relevant Stock Exchange is open for trading and the Price of the Underlying is determined in accordance with the relevant rules.

“Valuation Time” means usually 17:35 hrs local time Milan, when the Settlement Price is determined by the Relevant Stock Exchange in accordance with the relevant rules.

“Clearing System(s)” means Clearstream Banking AG, Frankfurt am Main (Neue Xxxxxxxxxxxx 0, X-00000 Xxxxxxxxx am Main, Federal Republic of Germany), Monte Titoli S.p.A. or any successor in this capacity.

“Price of the Underlying” means the price of the Underlying as determined on the Relevant Stock Exchange.

“Securities” means Call Warrants, issued in bearer form by the Issuer in the Issue Size.

“Securityholder” means the persons acknowledged by German laws as legal owner of the Security. The Securityholder shall, for all purposes, be treated by

(i) the Issuer, (ii) the Warrant Agent, (iii) the Calculation Agent, (iv) the Paying Agent and (v) all other persons as the person entitled to such Securities and the person entitled to receive the benefits of the rights represented by such Securities. Securityholder is, in any case, the person appearing as entitled in the books of the depositary bank, for which, directly or indirectly, the account, on which the Securities are deposited, is held by the Clearing System.

TEIL 2: BESONDERE WERTPAPIER- BEDINGUNGEN

PART 2: SPECIAL CONDITIONS OF THE SECURITIES

CALL OPTIONSSCHEINE CALL WARRANTS

§ 1

Optionsrecht

§ 1

Option Right

(1) Die Emittentin gewährt hiermit dem Wertpapier- gläubiger von je einem (1) Call Optionsschein bezogen auf den Kurs des Basiswerts nach Maßgabe dieser Bedingungen das Recht (das

„Optionsrecht“), bei Ausübung des Optionsscheins gemäß § 2 den Abrechnungs- betrag (§ 1 (2)), multipliziert mit dem Bezugsver- hältnis und anschließend auf zwei Dezimalstellen kaufmännisch gerundet, zu beziehen (der

„Auszahlungsbetrag“).

(2) Der „Abrechnungsbetrag“ entspricht der Differenz, um die der Abrechnungskurs des Basis- xxxxx (§ 1 (3)) den Basispreis überschreitet, kauf- männisch auf zwei Dezimalstellen gerundet.

(3) Der „Abrechnungskurs“ des Basiswerts ent- spricht dem Referenzkurs des Basiswerts, wie er in Übereinstimmung mit den maßgeblichen Regeln von der Maßgeblichen Börse am Bewertungstag ermittelt wird.

(1) The Issuer hereby grants the Securityholder of each (1) Call Warrant relating to the Price of the Underlying under these Conditions the right (the “Option Right”) to receive upon exercise of the warrant in accordance with § 2 the Redemption Amount (§ 1 (2)) multiplied by the Ratio and afterwards commercially rounded to two decimal points (the “Settlement Amount”).

(2) The “Redemption Amount” equals the difference at which the Settlement Price of the Underlying (§ 1 (3)) exceeds the Strike Price, commercially rounded to two decimal points.

(3) The “Settlement Price” of the Underlying is the reference price of the Underlying on the Valuation Date as determined by the Relevant Stock Exchange in accordance with the relevant rules.

§ 2

Ausübungsverfahren; Ausübungserklärung; Ausübungstag

§ 2

Exercise Procedure; Exercise Notice; Exercise Date

(1) Das Optionsrecht kann durch den Wertpapiergläubiger jeweils nur bis zur Aus- übungszeit an einem Bankgeschäftstag, der zugleich ein Basiswert-Berechnungstag ist, innerhalb der Ausübungsfrist (der „Ausübungs- tag“) und in Übereinstimmung mit dem nach- folgend beschriebenen Ausübungsverfahren ausgeübt werden:

(2) Außer im Fall der Automatischen Ausübung können die Optionsrechte jeweils nur in der Mindestausübungsanzahl ausgeübt werden. Eine

(1) The Option Right may in each case only be exercised by the Securityholder until the Exercise Time on a Banking Day, which also is an Underlying Calculation Date, within the Exercise Period (the “Exercise Date”) and in accordance with the exercise procedure described below:

(2) Except when Automatic Exercise applies, the Option Rights may, only be exercised in a number equal to the Minimum Exercise Size. An

Ausübung von weniger als der Mindestaus- übungsanzahl von Wertpapieren ist ungültig und entfaltet keine Wirkung. Eine Ausübung von mehr als der Mindestausübungsanzahl von Wert- papieren, deren Anzahl kein ganzzahliges Vielfaches derselben ist, gilt als Ausübung der nächstkleineren Anzahl von Wertpapieren, die ein ganzzahliges Vielfaches der Mindest- ausübungsanzahl ist.

(3) Zur wirksamen Xxxxxxxx xxx Xxxxxxxxxxxxx xxxxxx xx xxxxxxxxxxxx Xxxxxxxxxxxx xxx xxx Xxxxxxxxxxxxx die folgenden Bedingungen erfüllt sein:

(i) Bei der Optionsstelle muss eine schriftliche und rechtsverbindlich unterzeichnete Erklärung des Wertpapiergläubigers, dass er das durch das Wertpapier verbriefte Optionsrecht ausübt (die „Ausübungs- erklärung“), eingegangen sein. Die Ausübungserklärung ist unwiderruflich und bindend und hat unter anderem folgende Angaben zu enthalten: (a) den Namen des Wertpapiergläubigers, (b) die Bezeichnung und die Anzahl der Wertpapiere, deren Optionsrechte ausgeübt werden und (c) das Konto des Wertpapiergläubigers bei einem Kreditinstitut, auf das der gegebenenfalls zu zahlende Auszahlungsbetrag überwiesen werden soll;

(ii) die erfolgte Übertragung der betreffenden Wertpapiere auf die Optionsstelle, und zwar entweder (a) durch eine unwiderrufliche An- weisung an die Optionsstelle, die Wert- papiere aus dem gegebenenfalls bei der Optionsstelle unterhaltenen Wertpapier- depot zu entnehmen oder (b) durch Gutschrift der Wertpapiere auf das Konto der Optionsstelle bei der Clearingstelle.

Falls diese Bedingungen erst nach Ablauf der Ausübungszeit an einem Ausübungstag erfüllt sind, gilt das Optionsrecht als zum nächstfolgenden Ausübungstag ausgeübt, vorausgesetzt, dass dieser Tag in die Ausübungsfrist fällt.

(4) Nach Ausübung der Optionsrechte sowie der Feststellung des Abrechnungskurses des Basis- xxxxx berechnet die Berechnungsstelle (§ 9) den gegebenenfalls zu zahlenden Auszahlungsbetrag

exercise of less than the Minimum Exercise Size of the Securities will be invalid and ineffective. An exercise of more than the Minimum Exercise Size of the Securities that is not an integral multiple thereof will be deemed to be an exercise of a number of Securities that is equal to the next lowest integral multiple of the Minimum Exercise Size.

(3) For a valid exercise of the Option Rights the following conditions have to be met on the relevant Exercise Date until the Exercise Time:

(i) The Warrant Agent must receive written and legally signed notice by the Securityholder stating his intention to exercise the Option Right securitised in the Security (the “Exercise Notice”). The Exercise Notice is irrevocable and binding and shall contain among others (a) the name of the Securityholder, (b) an indication of the number of Securities to be exercised and (c) the account of the Securityholder with a credit institution, to which the transfer of the Settlement Amount, if any, shall be effected.

(ii) the effected transfer of the respective Securities to the Warrant Agent either (a) by an irrevocable order to the Warrant Agent to withdraw the Securities from a deposit maintained with the Warrant Agent or

(b) by crediting the Securities to the account maintained by the Warrant Agent with the Clearing System.

If these conditions are met after lapse of the Exercise Time on the Exercise Date, the Option Right shall be deemed to be exercised on the immediately succeeding Exercise Date provided that such day falls within the Exercise Period.

(4) Upon exercise of the Option Rights as well as determination of the Settlement Price of the Underlying the Calculation Agent (§ 9) shall calculate the Settlement Amount payable, if any,

entweder xxxx xxx Xxxxxx xxx xxxxxxxxxxx xxxxxxxxxxx Xxxxxxxxxxx xxxx xxxx xxx xx xxx Xxxxxxxxxxxxxxxxxx xxxxxxxxx Anzahl von Wertpapieren, je nachdem, welche Zahl niedriger ist. Ein etwa verbleibender Überschuss bezüglich der gelieferten Wertpapiere wird an den maßgeblichen Wertpapiergläubiger auf dessen Kosten und Gefahr zurückgewährt.

(5) Die insoweit von der Berechnungsstelle getroffenen Berechnungen sind, außer in Fällen offensichtlichen Irrtums, abschließend und für alle Beteiligten bindend.

either corresponding to the number of Securities actually delivered or to the number of Securities specified in the Exercise Notice, whichever is lower. Any remaining excess amount with respect to the Securities delivered will be returned to the relevant Securityholder at his cost and risk.

(5) Calculations made in this respect by the Calculation Agent are final and binding for all participants except in the event of manifest error.

§ 3

Automatische Ausübung; Ausübungstag

§ 3

Automatic Exercise; Exercise Date

(1) Optionsrechte, die innerhalb der Ausübungsfrist nicht oder nicht wirksam ausgeübt wurden, gelten vorbehaltlich von § 3 (2) dieser Bedingungen als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxx- xxxxxxxxx, xxx Xxxxxxxxxxx xxx Xxxxxxxxxxx oder der Erfüllung sonstiger Voraussetzungen bedarf (die „Automatische Ausübung“).

(2) Jeder Wertpapiergläubiger hat das Recht, durch schriftliche und rechtsverbindlich unterzeichnete Erklärung gegenüber der Emittentin am Verfalltag bis spätestens 10:00 Uhr auf die Automatische Ausübung am Verfalltag zu verzichten.

Optionsrechte, die innerhalb der Ausübungsfrist nicht oder nicht wirksam ausgeübt wurden, gelten als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxxxxxxxxxxx, xxx Xxxx- tragung der Wertpapiere oder der Erfüllung sonstiger Voraussetzungen bedarf (die

„Automatische Ausübung“).

(1) Option Rights, which have not been or have not been validly exercised, are, subject to § 3 (2) of these Conditions, deemed to be exercised without requiring the submission of an Exercise Notice, the transfer of the Securities or the fulfilment of further special preconditions (also the “Automatic Exercise”) on the Expiration Date (the “Exercise Day”).

(2) Each Securityholder shall have the right to waive the Automatic Exercise on the Expiration Date by giving written and legally signed notice to the Issuer latest by 10:00 hrs on the Expiration Date.

Option Rights, which have not been or have not been validly exercised, are deemed to be exercised without requiring the submission of an Exercise Notice, the transfer of the Securities or the fulfilment of further special preconditions (also the “Automatic Exercise”) on the Expiration Date (the “Exercise Date”).

TEIL 3: ALLGEMEINE WERTPAPIER- BEDINGUNGEN

PART 3: GENERAL CONDITIONS OF THE SECURITIES

§ 4

Form der Wertpapiere; Verzinsung und Dividenden; Dauerglobalurkunde; Übertragbarkeit; Status

§ 4

Form of Securities; Interest and Dividends; Permanent Global Note; Transfer; Status

(1) Die von der Emittentin begebenen auf den Inhaber lautenden Wertpapiere sind durch eine oder mehrere Dauer-Inhaber-Sammelurkunde(n) (die

„Dauerglobalurkunde“) verbrieft. Effektive Wertpapiere werden nicht ausgegeben. Der Anspruch auf Lieferung effektiver Wertpapiere ist ausgeschlossen.

Auf die Wertpapiere werden weder Zinsen noch Dividenden gezahlt.

(2) Die Dauerglobalurkunde ist bei der Clearingstelle hinterlegt. Die Wertpapiere sind als Miteigentumsanteile an der Dauerglobalurkunde übertragbar und sind im Effektengiroverkehr ausschließlich in der kleinsten handelbaren Einheit übertragbar. Die Übertragung wird mit Eintragung der Übertragung in den Büchern der Clearingstelle wirksam.

(3) Die Wertpapiere begründen unmittelbare, unbesicherte und nicht nachrangige Verbind- lichkeiten der Emittentin, die untereinander und mit xxxxx sonstigen gegenwärtigen und künftigen unbesicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, ausgenommen solche Verbindlichkeiten, denen aufgrund zwingender gesetzlicher Vorschriften Vorrang zukommt.

(1) The bearer Securities issued by the Issuer are represented in one or more permanent global bearer document(s) (the “Permanent Global Note”). No definitive Securities will be issued. The right to request the delivery of definitive Securities is excluded.

No interest and no dividends are payable on the Securities.

(2) The Permanent Global Note is deposited with the Clearing System. The Securities are transferable as co-ownership interests in the Permanent Global Note and may be transferred within the collective securities settlement procedure in the Minimum Trading Size only. Such transfer becomes effective upon registration of the transfer in the records of the Clearing System.

(3) The Securities constitute direct, unsecured and unsubordinated obligations of the Issuer, ranking pari passu among themselves and with all other present and future unsecured and unsubordinated obligations of the Issuer, other than obligations preferred by mandatory provisions of law.

§ 5

Tilgung; Vorlegungsfrist

§ 5

Settlement; Period of Presentation

(1) Die Emittentin wird, vorbehaltlich einer Markt- störung (§ 8 (3)) bis zum Rückzahlungstag (keines- falls aber vor dem Rückzahlungstag), die Überweisung des Xxxxxxxxxxxxxxxxxx xxx. xxx Xxxxxxxxxxx Xxxxxxxxxxxxxxxxxx (§ 0 (0)) xx xxx Xxx- zahlungswährung über die Zahlstelle zur Gutschrift auf das Konto des jeweils maßgeblichen Wert- papiergläubigers über die Clearingstelle veranlassen.

(1) The Issuer will, subject to a Market Disruption (§ 8 (3)), procure until the Settlement Date (in any case not before the Settlement Date) the payment of the Settlement Amount or the Early Redemption Amount (§ 7 (3)), as the case may be, in the Settlement Currency to be credited via the Paying Agent to the account of the relevant Securityholder via the Clearing System.

(2) Die Emittentin wird von ihrer Verpflichtung unter diesen Wertpapieren durch Zahlung des Auszahlungsbetrags, des Vorzeitigen Auszahlungsbetrags oder der sonstigen Zahlungs- beträge unter diesen Bedingungen an die Clearingstelle zur Weiterleitung an den jeweiligen Wertpapiergläubiger befreit.

(3) Alle im Zusammenhang mit (i) der Ausübung der Wertpapiere und/oder (ii) der Zahlung des Aus- zahlungsbetrags, des Vorzeitigen Auszahlungs- betrags oder der sonstigen Zahlungsbeträge unter diesen Bedingungen anfallenden Steuern, Abgaben und/oder Kosten sind von dem jeweiligen Wert- papiergläubiger zu tragen und zu zahlen. Die Emittentin und die Zahlstelle sind berechtigt, jedoch nicht verpflichtet, von den an den Wertpapier- gläubiger zahlbaren Xxxxxxxx xxx Xxxxxxxxxxx xxx Xxxxxxx, Xxxxxxx, Xxxxxxxx, Xxxxxxx oder sonstigen Zahlungen den erforderlichen Betrag einzubehalten oder abzuziehen. Jeder Wertpapiergläubiger hat die Emittentin bzw. die Zahlstelle von Verlusten, Kosten oder sonstigen Verbindlichkeiten, die ihr in Verbindung mit derartigen Steuern, Abgaben, Gebühren, Abzügen oder sonstigen Zahlungen im Hinblick auf die Wertpapiere des jeweiligen Wertpapiergläubigers entstehen, freizustellen.

(4) Die Vorlegungsfrist gemäß § 801 Absatz 1 Satz 1 BGB wird auf zehn Jahre verkürzt.

(2) The Issuer will be discharged from its obligations under the Securities by payment of the Settlement Amount, the Early Redemption Amount, as the case may be, or of any other amount payable under these Conditions to the Clearing System for further credit to the relevant Securityholder.

(3) All taxes, charges and/or expenses incurred in connection with (i) the exercise of the Securities and/or (ii) the payment of the Settlement Amount, the Early Redemption Amount or of any other amount payable under these Conditions, as the case may be, shall be borne and paid by the Securityholder. The Issuer and the Paying Agent, as the case may be, are entitled, but not obliged, to withhold or deduct, as the case may be, from any amount payable to the Securityholder such amount required for the purpose of settlement of taxes, charges, expenses, deductions or other payments. Each Securityholder shall reimburse the Issuer or the Paying Agent, as the case may be, from any losses, costs or other debts incurred in connection with these taxes, charges, expenses, deductions or other payments related to the Security of the relevant Securityholder.

(4) The period of presentation as established in

§ 801 section 1 sentence 1 of the BGB is reduced to ten years.

§ 6

Anpassungen; Optionskontrakte; Potenzielles Anpassungsereignis; Ersatz- Handelssystem; Ersatz-Börse

§ 6

Adjustments; Option Contracts; Potential Adjustment Event; Substitute Trading

System; Substitute Stock Exchange

(1) Die Emittentin ist bei Vorliegen eines Potenziellen Anpassungsereignisses (§ 6 (2)) berechtigt, Anpas- sungen dieser Bedingungen in der Weise und in dem Verhältnis vorzunehmen, wie entsprechende Anpassungen im Hinblick auf die an der Maß- geblichen Terminbörse gehandelten Options- kontrakte auf den Basiswert (die „Options- kontrakte“) vorgenommen werden, sofern der nachstehend bezeichnete Stichtag vor oder auf den Bewertungstag fällt. Werden an der Maßgeblichen Terminbörse keine Optionskontrakte gehandelt, so wird die Emittentin die Anpassung in der Weise

(1) In case of the occurrence of a Potential Adjustment Event (§ 6 (2)), the Issuer shall be entitled to effect adjustments to these Conditions in a manner and relation corresponding to the relevant adjustments made with regard to option contracts on the Underlying traded on the Relevant Futures and Options Exchange (the “Option Contracts”) provided that the Record Date (as defined below) is prior to or on the Valuation Date, as the case may be. If no such Option Contracts are being traded on the Relevant Futures and Options

vornehmen, wie die Maßgebliche Terminbörse sie vornehmen würde, wenn entsprechende Options- kontrakte dort gehandelt werden würden.

Der „Stichtag“ ist der erste Handelstag an der Maßgeblichen Terminbörse, an dem die Optionskontrakte unter Berücksichtigung der erfolgten Anpassung gehandelt werden oder gehandelt werden würden, wenn entsprechende Optionskontrakte dort gehandelt werden würden.

(2) Ein „Potenzielles Anpassungsereignis“ bezeichnet jede Maßnahme in Bezug auf den Basiswert, durch die sich die Maßgebliche Terminbörse zu einer Anpassung des Basispreises, der Kontraktgröße des Basiswerts oder der Bezug- nahme des für die Bestimmung des Kurses des Basiswerts zuständigen Börse veranlasst sieht oder veranlasst sähe, wenn Optionskontrakte auf den Basiswert gehandelt werden würden. Bei den Potenziellen Anpassungsereignissen handelt es sich insbesondere, aber nicht abschließend, um folgende Maßnahmen, wobei, vorbehaltlich von § 6 (3), jedoch die tatsächliche oder hypothetische Entscheidung der Maßgeblichen Terminbörse maßgeblich ist:

Exchange, the adjustments may be effected by the Issuer in a manner as relevant adjustments would be made by the Relevant Futures and Options Exchange if those Option Contracts were traded on the Relevant Futures and Options Exchange.

The “Record Date” will be the first trading day on the Relevant Futures and Options Exchange on which the adjusted Option Contracts on the Underlying are traded on the Relevant Futures and Options Exchange or would be traded if those Option Contracts were traded on the Relevant Futures and Options Exchange.

(2) A “Potential Adjustment Event” means any measure in relation to the Underlying, which gives reason, or would give reason, if the Option Contracts on the share(s) of the Company were traded on the Relevant Futures and Options Ex- change, as the case may be, to the Relevant Futures and Options Exchange for an adjustment to the strike price, the contract volume of the Underlying or to the quotation of the stock exchange relevant for the calculation and determination of the Price of the Underlying. Potential Adjustment Events are, in particular, but not limited to, the following measures, whereas, however, subject to § 6 (3), the de facto or hypothetical decision of the Relevant Futures and Options Exchange is decisive:

(i) Kapitalerhöhung der Aktiengesellschaft, deren Aktie(n) den Basiswert bilden (die

„Gesellschaft“) durch Ausgabe neuer Aktien gegen Einlage unter Einräumung eines unmittelbaren oder mittelbaren Bezugsrechts an ihre Aktionäre, Kapitalerhöhung der Xxxxxx- schaft aus Gesellschaftsmitteln, Ausgabe von Schuldverschreibungen oder sonstigen Wert- papieren mit Options- oder Wandelrechten auf Aktien unter Einräumung eines unmittelbaren oder mittelbaren Bezugsrechts an ihre Aktionäre.

(ii) Kapitalherabsetzung der Gesellschaft durch Einziehung oder Zusammenlegung von Aktien der Gesellschaft. Kein Potenzielles Anpassungsereignis liegt vor, wenn die Kapital- herabsetzung durch Herabsetzung des Nennbetrages der Aktien der Gesellschaft

(i) The stock corporation, the share(s) of which is/are used as the Underlying (the “Company”) increases its share capital against deposits/contributions granting a direct or indirect subscription right to its shareholders, capital increase out of the Company’s own funds, through the issuance of new shares, directly or indirectly granting a right to its shareholders to subscribe for bonds or other Securities with option or conversions rights to shares.

(ii) The Company decreases its share capital through cancellation or combination of shares of the Company. No Potential Adjustment Event shall occur, if the capital decrease is effected by way of reduction of the nominal amount of the shares of the

erfolgt. Company.

(iii) Ausschüttung außergewöhnlich hoher Dividenden, Boni oder sonstige Bar- oder Sachausschüttungen („Sonderaus- schüttungen“). Die Ausschüttungen von normalen Dividenden, die keine Sonder- ausschüttungen sind, begründen kein Potenzielles Anpassungsereignis. Hinsichtlich der Abgrenzung zwischen normalen Dividenden und Sonderausschüttungen ist die von der Maßgeblichen Terminbörse vorge- nommene Abgrenzung maßgeblich.

(iv) Durchführung eines Aktiensplits (Herabsetzung des Nennbetrags und entsprechende Vergrößerung der Anzahl der Aktien ohne Kapitalveränderung) oder einer ähnlichen Maßnahme.

(v) Angebot gemäß dem Aktien- oder Umwand- lungsgesetz oder gemäß einer vergleichbaren Regelung des für die Gesellschaft anwendbaren Rechts an die Aktionäre der Gesellschaft, die Aktien der Gesellschaft in Aktien einer anderen Aktiengesellschaft oder Altaktien der Gesellschaft in neue Aktien umzutauschen.

(vi) Die nach Abgabe eines Übernahmeangebots gemäß Wertpapiererwerbs- und Über- nahmegesetz erfolgte Übernahme der Aktien der Gesellschaft durch einen Aktionär (Hauptaktionär) in Höhe von mindestens 95% des Grundkapitals.

(vii) Ausgliederung eines Unternehmensteils der Gesellschaft in der Weise, dass ein neues rechtlich selbstständiges Unternehmen entsteht, oder der Unternehmensteil von einem dritten Unternehmen aufgenommen wird, den Aktionären der Gesellschaft unentgeltlich oder zu einem geringeren Preis als dem Marktpreis Anteile entweder an dem neuen Unternehmen oder an dem aufnehmenden Unternehmen gewährt werden, und für die den Aktionären gewährten Anteile ein Markt- oder Börsenpreis festgestellt werden kann.

(viii) Endgültige Einstellung der Notierung oder des Handels der Aktien an der Maßgeblichen Börse

(iii) The Company grants exceptionally high dividends, boni or other cash or non-cash distributions (“Special Distributions”) to its shareholders. The distributions of regular dividends, which do not constitute Special Distributions, do not create any Potential Adjustment Event. With regard to the differentiation between regular dividends and Special Distributions the differentiation made by the Relevant Futures and Options Exchange shall prevail.

(iv) In case of a stock split (reduction of the nominal amount and corresponding increase in the number of shares without a change in the share capital) or a similar measure.

(v) Offer to the shareholders of the Company pursuant to the German Stock Corporation Act (Aktiengesetz), the German Law regulating the transformation of Companies (Umwandlungsgesetz) or any other similar proceeding under the jurisdiction applicable to and governing the Company to convert existing shares of the Company to new shares or to shares of another stock corporation.

(vi) Take-over of shares of the Company in the amount of at least 95% of the share capital of the Company by a shareholder (Principal Shareholder) in course of a tender offer in accordance with the German Securities Acquisition and Take-over Act (Wert- papiererwerbs- und Übernahmegesetz).

(vii) The Company spins off any part of the Company so that a new independent enterprise is created or any part of the Company is absorbed by a third company, the Company’s shareholders are granted shares in the new company or the absorbing company free of charge or at a price below the market price and so that a market price or price quotation may be determined for the shares granted to shareholders.

(viii) The quotation of or trading in the shares of the Company on the Relevant Stock

aufgrund einer Verschmelzung durch Aufnahme oder Neubildung oder aus einem sonstigen vergleichbaren Grund, insbesondere als Folge eines Delistings der Gesellschaft. Das Recht der Emittentin zur Kündigung gemäß § 7 dieser Bedingungen bleibt hiervon unberührt.

Auf andere als die in dem § 6 (2) bezeichneten Ereignisse, die jedoch in ihren werterhöhenden oder verwässernden Auswirkungen diesen Ereignissen vergleichbar sind, sind die beschriebenen Regeln entsprechend anzuwenden.

(3) Die Emittentin ist berechtigt, gegebenenfalls von den durch die Maßgebliche Terminbörse vorgenommenen Anpassungen abzuweichen, sofern sie dies für erforderlich hält, um Unterschiede zwischen diesen Wertpapieren und den an der Maßgeblichen Terminbörse gehandelten Options- kontrakten zu berücksichtigen. Unabhängig davon, ob und welche Anpassungen zu welchem Zeitpunkt tatsächlich an der Maßgeblichen Terminbörse erfolgen, kann die Emittentin Anpassungen mit dem Ziel vornehmen, die Wertpapiergläubiger wirtschaftlich soweit wie möglich so zu stellen, wie sie vor den Maßnahmen nach § 6 (2) standen.

(4) Im Fall der endgültigen Einstellung der Notierung oder des Handels des Basiswerts an der Maßgeblichen Börse und des gleichzeitigen Bestehens oder des Beginns der Notierung oder des Handels an einer anderen Börse ist, sofern die Emittentin die Xxxxxxxxxxx xxxxx xxxxx § 0 xxxxxx Xxxxxxxxxxx xxxxxxxxx hat, die Emittentin berechtigt, eine solche andere Börse durch Bekannt- machung gemäß § 11 dieser Bedingungen als neue maßgebliche Börse (die „Ersatz-Börse“) zu bestimmen. Im Fall einer solchen Ersetzung gilt jede in diesen Bedingungen enthaltene Bezugnahme auf die Maßgebliche Börse fortan als Bezugnahme auf die Ersatz-Börse. Die vorgenannte Anpassung wird spätestens nach Ablauf eines Monats nach der endgültigen Einstellung der Notierung des Basiswerts an der Maßgeblichen Börse gemäß § 11 bekannt gemacht.

(5) Jede Anpassung wird von der Emittentin nach billigem Xxxxxxxx xxxxx § 000 XXX, xxxxx Xxxxxxxxxxxxxxxx xxx xxxxxxxxxxxx Markt- gegebenheiten und unter Wahrung des bisherigen

Exchange is permanently discontinued due to a merger or a new company formation, or for any other comparable reason, in particular as a result of a delisting of the Company. The Issuer’s right for termination in accordance with § 7 of these Conditions remains unaffected.

The provisions set out above shall apply mutatis mutandis to events other than those mentioned in § 6 (2), if the concentrative or dilutive effects of these events are comparable.

(3) The Issuer shall be entitled to deviate from the adjustments made by the Relevant Futures and Options Exchange, should this be considered by the Calculation Agent as being necessary in order to account for existing differences between the Securities and the Options Contracts traded on the Relevant Futures and Options Exchange. Disregarding, whether or how adjustments are de facto effected by the Relevant Futures and Options Exchange, the Issuer is entitled to effect adjustments for the purpose to reconstitute to the extent possible the Securityholders’ economic status prior to the measures in terms of § 6 (2).

(4) If the quotation of or trading in the Underlying on the Relevant Stock Exchange is permanently discontinued, however, a quotation or trading is started up or maintained on another stock exchange, the Issuer shall be entitled to stipulate such other stock exchange as new relevant stock exchange (the “Substitute Stock Exchange”) through publication in accordance with § 11 of these Conditions, provided that the Issuer has not terminated the Securities in accordance with

§ 7 of these Conditions. In case of such a substitution any reference in these Conditions to the Relevant Stock Exchange thereafter shall be deemed to refer to the Substitute Stock Exchange. The adjustment described above shall be published in accordance with § 11 upon the expiry of one month following the permanent discontinuation of the quotation of the Underlying on the Relevant Stock Exchange, at the latest.

(5) Any adjustment shall be done at the Issuer‘s reasonable discretion pursuant to § 315 of the German Civil Code (“BGB”), under consideration of the market conditions then prevailing and

wirtschaftlichen Ergebnisses des Basiswerts vorgenommen. In Zweifelsfällen über (i) die Anwendung der Anpassungsregeln der Maßgeblichen Terminbörse und (ii) die vorzunehmende Anpassung entscheidet die Emittentin über die Xxxxxxxxx xxx Xxxxxxxxxx- xxxxxx xxxxx § 000 XXX nach billigem Ermessen, unter Berücksichtigung der herrschenden Markt- gegebenheiten.

(6) Anpassungen und Festlegungen nach den vorstehenden Absätzen werden durch die Emittentin vorgenommen und von der Emittentin nach § 11 bekannt gemacht. Anpassungen und Festlegungen sind (sofern nicht ein offensichtlicher Fehler vorliegt) für alle Beteiligten endgültig und bindend.

(7) Anpassungen und Festlegungen treten zu dem Zeitpunkt in Kraft, zu dem entsprechende Anpassungen an der Maßgeblichen Terminbörse in Kraft treten oder in Kraft treten würden, wenn entsprechende Optionskontrakte dort gehandelt werden würden.

protecting the previous economic development of the Underlying. The Issuer reserves the right to determine in cases of doubt (i) the applicability of the adjustment rules of the Relevant Futures and Options Exchange and (ii) the required adjustment. Such determination shall be done at the Issuer‘s reasonable discretion pursuant to

§ 315 of the BGB, considering the market conditions then prevailing.

(6) The adjustments and determinations of the Issuer pursuant to the paragraphs above shall be effected by the Issuer and shall be published by the Issuer in accordance with § 11. Any adjustment and determination shall be final, conclusive and binding on all parties, except where there is a manifest error.

(7) Any adjustment and determination will become effective as of the time at which the relevant adjustments become effective on the Relevant Futures and Options Exchange or would become effective, if the Option Contracts were traded on the Relevant Futures and Options Exchange, as the case may be.

§ 7

Kündigung

§ 7

Termination

(1) Bei Vorliegen eines der nachstehend beispielhaft beschriebenen „Kündigungsereignisse“ ist die Emittentin berechtigt, aber nicht verpflichtet, die Wertpapiere durch Xxxxxxxxxxxxxx xxxxx § 00 xxxxx Xxxxxx xxx Xxxxxxxxxxxxxxxxxxxxx xx xxxxxxxx (die „Kündigung“):

(i) Die Ermittlung und/oder Veröffentlichung des Kurses des Basiswerts wird endgültig eingestellt oder der Emittentin oder der Berechnungsstelle wird eine entsprechende Absicht bekannt.

(ii) Die Emittentin und die Berechnungsstelle sind nach Ausübung billigen Ermessens gemäß

§ 315 BGB der Ansicht, dass eine Anpassung dieser Bedingungen, aus welchen Xxxxxxx auch immer, nicht möglich sei.

(iii) Die Emittentin und die Berechnungsstelle sind nach Ausübung billigen Ermessens gemäß

§ 315 BGB der Ansicht, dass eine sonstige erhebliche Änderung der Marktbedingungen

(1) If any of the following “Termination Events”, as described below, occurs at any time, the Issuer shall be entitled, but not obliged, to terminate the Securities by way of publication pursuant to

§ 11 specifying the Termination Event (the “Termination”):

(i) The determination and/or publication of the Price of the Underlying is discontinued permanently or the Issuer or the Calculation Agent obtains knowledge about the intention to do so.

(ii) It is, in the opinion of the Issuer and of the Calculation Agent at their reasonable discretion pursuant to § 315 of the BGB, not possible, for whatever reason, to make adjustments to these Conditions.

(iii) In the opinion of the Issuer and of the Calculation Agent at their reasonable discretion pursuant to § 315 of the BGB, another material change in the market

an der für die Bestimmung des Kurses des Basiswerts zuständigen Maßgeblichen Börse eingetreten ist.

(iv) Der Emittentin wird die Absicht, die Notierung der Aktien der Gesellschaft an der Maßgeblichen Börse aufgrund einer Verschmelzung durch Aufnahme oder durch Neubildung, einer Umwandlung in eine Rechtsform ohne Aktien oder aus irgendeinem sonstigen vergleichbaren Grund, insbesondere in Folge eines Delistings der Gesellschaft, endgültig einzustellen, bekannt.

(v) Die Beantragung des Insolvenzverfahrens oder eines vergleichbaren Verfahrens über das Vermögen der Gesellschaft nach dem für die Gesellschaft anwendbaren Rechts.

(vi) Die Übernahme der Aktien der Gesellschaft durch einen Aktionär in Höhe von mindestens 75% des Grundkapitals, wodurch die Liquidität der Aktie im Handel nach Ansicht der Emittentin maßgeblich beeinträchtigt wird.

(vii) Das Angebot gemäß dem Aktien- oder Umwandlungsgesetz oder gemäß einer ver- gleichbaren Regelung des für die Gesellschaft anwendbaren Rechts an die Aktionäre der Gesellschaft, die Altaktien der Gesellschaft gegen Barausgleich, andere Wertpapiere als Aktien oder andere Rechte, für die keine Notierung an einem Handelssystem besteht, umzutauschen.

(2) Die Kündigung hat innerhalb von einem Monat nach dem Vorliegen des Kündigungsereignisses und unter Angabe des Kalendertags, zu dem die Kündigung wirksam wird (der „Kündigungstag“), zu erfolgen. In Zweifelsfällen über das Vorliegen des Kündigungsereignisses entscheidet die Xxxxxxxxxx xxxxx § 000 XXX nach billigem Ermessen.

(3) Im Fall der Kündigung zahlt die Emittentin an jeden Wertpapiergläubiger bezüglich jedes von ihm gehaltenen Wertpapiers einen Geldbetrag in der Auszahlungswährung, der von der Emittentin

conditions occurred in relation to the Relevant Stock Exchange relevant for the calculation and determination of the Price of the Underlying.

(iv) The Issuer obtains knowledge about the intention to discontinue permanently the quotation of the shares of the Company on the Relevant Stock Exchange due to a merger or a new company formation, due to a transformation of the Company into a legal form without shares, or due to any other comparable reason, in particular as a result of a delisting of the Company,

(v) An insolvency proceeding or any other similar proceeding under the jurisdiction applicable to and governing the Company is initiated in regard to the assets of the Company.

(vi) Take-over of the shares of the Company in the amount of at least 75% of the share capital of the Company’s by a shareholder, resulting in, in the Issuer opinion, a massive impact on the liquidity of such shares in the market.

(vii) Offer to the shareholders of the Company pursuant to the German Stock Corporation Act (Aktiengesetz), the German Law regulating the Transformation of Companies (Umwandlungsgesetz) or any other similar proceeding under the jurisdiction applicable to and governing the Company to convert existing shares of the Company to cash settlement, to Securities other than shares or rights, which are not quoted on a stock exchange.

(2) The Termination has to be effected within one month following the occurrence of the Termination Event and shall specify the calendar day, on which the Termination becomes effective (the “Termination Date”). The Issuer reserves the right to determine in cases of doubt the occurrence of a Termination Event. Such deter- mination shall be done at the Issuer‘s reasonable discretion pursuant to § 315 of the BGB.

(3) In case of Termination the Issuer shall pay to each Securityholder an amount in the Settlement Currency with respect to each Certificate held by him, which is stipulated by the Issuer at its

gemäß § 315 BGB nach billigem Ermessen, gegebenenfalls unter Berücksichtigung des dann maßgeblichen Kurses des Basiswerts und der durch die Kündigung bei der Emittentin angefallenen Kosten, als angemessener Marktpreis eines Wert- papiers bei Kündigung festgelegt wird (der

„Vorzeitige Auszahlungsbetrag“).

reasonable discretion and, if applicable, considering the Price of the Underlying then prevailing and the expenses of the Issuer caused by the Termination, pursuant to § 315 of the BGB as fair market price at occurrence of termination (the “Early Redemption Amount”).

§ 8

Marktstörungen

§ 8

Market Disruptions

(1) Sind die Emittentin und die Berechnungsstelle nach Ausübung billigen Ermessens gemäß § 315 BGB der Ansicht, dass an dem Bewertungstag bzw. dem Festlegungstag eine Marktstörung (§ 8 (3)) vorliegt, dann wird der Bewertungstag oder der Festlegungstag auf den unmittelbar darauf folgenden Basiswert-Berechnungstag, an dem keine Marktstörung mehr vorliegt, verschoben. Die Emittentin wird sich bemühen, den Beteiligten unverzüglich gemäß § 11 mitzuteilen, dass eine Marktstörung eingetreten ist. Eine Pflicht zur Mitteilung besteht jedoch nicht.

(2) Wenn der Bewertungstag aufgrund der Be- stimmungen des § 8 (1) um acht Basiswert- Berechnungstage nach dem Bewertungstag verschoben worden ist und auch an diesem Tag die Marktstörung fortbesteht, dann gilt dieser Tag als der Bewertungstag; eine weitere Verschiebung des Bewertungstags findet nicht statt.

Die Emittentin und die Berechnungsstelle werden dann nach Ausübung billigen Xxxxxxxxx xxxxx

§ 000 XXX sowie unter Berücksichtigung (i) der dann herrschenden Marktgegebenheiten, (ii) eines geschätzten Kurses des Basiswerts, ermittelt auf Grundlage der zuletzt erhältlichen Kurse des Basiswerts und (iii) sämtlicher sonstiger Konditionen bzw. Faktoren, die die Emittentin und die Berechnungsstelle angemessenerweise für bedeut- sam halten, bestimmen, ob, und gegebenenfalls in welcher Höhe, die Emittentin einen Geldbetrag in der Auszahlungswährung zahlen wird. Auf diesen Geldbetrag finden die in diesen Bedingungen enthaltenen Bestimmungen über den Auszahlungs- betrag entsprechende Anwendung.

(1) If, in the opinion of the Issuer and of the Calculation Agent at their reasonable discretion pursuant to § 315 of the BGB, a Market Disruption (§ 8 (3)) prevails on the Valuation Date or the Fixing Date, the Valuation Date or the Fixing Date shall be postponed to the next succeeding Underlying Calculation Dates on which no Market Disruption prevails. The Issuer shall endeavour to notify the parties pursuant to

§ 11 without delay of the occurrence of a Market Disruption. However, there is no notification obligation.

(2) If the Valuation Date has been postponed, due to the provisions of § 8 (1), by eight Underlying Calculation Dates following the Valuation Date and if the Market Disruption continues to prevail on this day, this day shall be deemed the Valuation Date and the Valuation Date shall not be further postponed.

The Issuer and the Calculation Agent will then, at their reasonable discretion pursuant to § 315 of the BGB and taking into account (i) the market conditions then prevailing, (ii) a Price of the Underlying estimated on the basis of last announced Prices of the Underlying and (iii) such other conditions or factors as the Issuer and the Calculation Agent reasonably consider to be relevant, determine whether and in which amount, if applicable, the Issuer will make payment of an amount in the Settlement Currency. The provisions of these Conditions relating to the Settlement Amount shall apply mutatis mutandis to such payment.

(3) Eine „Marktstörung“ bedeutet (3) A “Market Disruption” shall mean

die Suspendierung der Bekanntgabe des a suspension of the annoucement of the Price of

maßgeblichen Kurs des Basiswerts an einem für die Berechung eines Auszahlungsbetrags bzw. eines Vorzeitigen Auszahlungsbetrags maßgeblichen Basiswert-Berechnungstag oder

die Suspendierung oder eine nach Auffassung der Emittentin und der Berechnungsstelle wesentliche Einschränkung des Handels

the Underlying on any Underlying Calculation Date relevant for determining the Settlement Amount or the Early Redemption Amount, as the case may be, or

a suspension or a restriction, the latter of which is in the Issuer’s and Calculations Agent’s opinion significant, imposed on trading

(i) an der Maßgeblichen Börse, allgemein, oder (i) on the Relevant Stock Exchange in general,

or,

(ii) in dem Basiswert an der Maßgeblichen Börse, oder

(iii) in Options- oder Terminkontrakten in Bezug auf den Basiswert an der Maßgeblichen Terminbörse, falls solche Options- oder Terminkontrakte dort gehandelt werden, oder

(iv) aufgrund einer Anordnung einer Behörde oder der Maßgeblichen Börse bzw. aufgrund eines Moratoriums für Bankgeschäfte in dem Land, in dem die Maßgebliche Börse ansässig ist, oder aufgrund sonstiger Umstände.

(4) Eine Beschränkung der Stunden oder Anzahl der Tage, an denen ein Handel stattfindet, gilt nicht als Marktstörung, sofern die Einschränkung auf einer Änderung der regulären Geschäftszeiten der Maß- geblichen Börse beruht, die mindestens eine

(1) Stunde vor (i) entweder dem tatsächlichen regulären Ende der Geschäftszeiten an der Maß- geblichen Börse oder (ii) dem Termin für die Abgabe von Handelsaufträgen zur Bearbeitung an dem betreffenden Tag an der Maßgeblichen Börse, je nachdem welcher Zeitpunkt früher ist, angekündigt worden ist. Eine im Laufe eines Tages auferlegte Beschränkung im Handel aufgrund von Preis- bewegungen, die bestimmte vorgegebene Grenzen überschreiten, gilt nur dann als Marktstörung, wenn diese Beschränkung bis zum Ende der Handelszeit an dem betreffenden Tag fortdauert.

(ii) in the Underlying on the Relevant Stock Exchange, or

(iii) in option or futures contracts with respect to the Underlying on the Relevant Futures and Options Exchange, if such option or futures contracts are traded there, or

(iv) due to a directive of an authority, of the Relevant Stock Exchange or due to a moratorium, which is declared in respect of banking activities in the country, in which the Relevant Stock Exchange is located, or due to other whatsoever reasons.

(4) A restriction of the hours or the number of days during which trading takes place is not deemed a Market Disruption, if the restriction is based on a change in regular trading hours at the Relevant Stock Exchange announced in advance at least one (1) hour prior to the earlier of (i) the actual closing time for the regular trading hours of the Relevant Stock Exchange or (ii) the submission deadline for orders entered into the Relevant Stock Exchange for execution on the relevant day. A restriction of trading which is levied during the course of any day due to price developments exceeding certain prescribed limits shall only be deemed a Market Disruption, if such restriction continues until the end of trading hours on the relevant day.

§ 9

Berechnungsstelle; Optionsstelle;

Zahlstelle

§ 9

Calculation Agent; Warrant Agent; Paying Agent

(1) Die Berechnungsstelle, die Optionsstelle und die Zahlstelle (die „Wertpapierstellen“) übernehmen diese Funktion jeweils in Übereinstimmung mit diesen Bedingungen. Jede der Wertpapierstellen

(1) The Calculation Agent, the Warrant Agent and the Paying Agent (the “Security Agents”) shall assume such role in accordance with the Conditions. Each of the Security Agents shall be

haftet dafür, dass sie im Zusammenhang mit den Wertpapieren Handlungen bzw. Berechnungen vornimmt, nicht vornimmt oder nicht richtig vornimmt oder sonstige Maßnahmen trifft oder unterlässt nur, wenn und soweit sie jeweils die Sorgfalt eines ordentlichen Kaufmanns verletzt hat.

(2) Jede der Wertpapierstellen handelt ausschließlich als Erfüllungsgehilfin der Emittentin und hat keinerlei Pflichten gegenüber dem Wertpapiergläubiger. Die Wertpapierstellen sind xxxxxxx xxx xxx Xxxxxxxxxxxxxx xxx § 000 XXX befreit.

(3) Die Emittentin ist berechtigt, jederzeit jede oder alle der Wertpapierstellen durch ein anderes Finanzinstitut zu ersetzen, eine oder mehrere zusätzliche Wertpapierstellen zu bestellen und deren Bestellung zu widerrufen. Ersetzung, Bestellung und Xxxxxxxx xxxxxx xxxxx § 00 xxxxxxx gemacht.

(4) Jede der Wertpapierstellen ist berechtigt, durch schriftliche Anzeige gegenüber der Emittentin jederzeit ihr Amt niederzulegen. Die Niederlegung wird nur wirksam mit der Bestellung einer anderen Gesellschaft als Berechnungsstelle, Optionsstelle bzw. als Zahlstelle durch die Emittentin. Nieder- legung und Bestellung werden gemäß § 11 bekannt gemacht.

liable for making, failing to make or incorrectly making any measure or calculations, as the case may be, or for taking or failing to take any other measures only if and insofar as they fail to exercise the due diligence of a prudent businessman.

(2) Each of the Security Agents acts exclusively as vicarious agent of the Issuer and has no obligations to the Securityholder. Each of the Security Agents is exempt from the restrictions under § 181 of the BGB.

(3) The Issuer is entitled at any time to replace any of or all the Security Agents by another financial institution, to appoint one or several additional Security Agents, and to revoke their appointment. Such replacement, appointment and revocation shall be published in accordance with § 11.

(4) Each of the Security Agents is entitled to resign at any time from their function upon prior written notice to the Issuer. Such resignation shall only become effective if another company is appointed by the Issuer as Calculation Agent, Warrant Agent or as Paying Agent, as the case may be. Resignation and appointment are pub- lished in accordance with § 11.

§ 10

Xxxxxxxxx xxx Xxxxxxxxxx

§ 00

Substitution of the Issuer

(1) Die Emittentin ist jederzeit berechtigt, ohne Zustimmung der Wertpapiergläubiger eine andere Gesellschaft der UBS Gruppe als Emittentin (die

„Neue Emittentin“) hinsichtlich aller Verpflichtungen aus oder in Verbindung mit den Wertpapieren an die Stelle der Emittentin zu setzen, sofern

(i) die Neue Emittentin alle Verpflichtungen der Emittentin aus oder in Verbindung mit den Wertpapieren übernimmt,

(ii) die Neue Emittentin alle etwa notwendigen Genehmigungen von den zuständigen Behörden erhalten hat, wonach die Neue Emittentin alle sich aus oder in Verbindung mit den Wertpapieren ergebenden Verpflichtungen erfüllen kann und Zahlungen ohne Einbehalt oder Abzug von irgendwelchen Steuern,

(1) The Issuer is entitled at any time, without the consent of the Securityholders, to substitute another company within the UBS Group as issuer (the “New Issuer”) with respect to all obligations under or in connection with the Securities, if

(i) the New Issuer assumes all obligations of the Issuer under or in connection with the Securities,

(ii) the New Issuer has obtained all necessary authorisations, if any, by the competent authorities, under which the New Issuer may perform all obligations arising under or in connection with the Securities and transfer payments to the Paying Agent without withholding or deduction of any

Abgaben oder Gebühren an die Zahlstelle transferieren darf, und

(iii) die Emittentin unbedingt und unwiderruflich die Verpflichtungen der Neuen Emittentin garantiert.

(2) Im Falle einer solchen Ersetzung der Emittentin gilt jede in diesen Bedingungen enthaltene Bezugnahme auf die Emittentin fortan als auf die Neue Emittentin bezogen.

(3) Die Ersetzung der Emittentin ist für die Wertpapiergläubiger endgültig und bindend und wird den Wertpapiergläubigern unverzüglich gemäß

§ 11 bekannt gemacht.

taxes, charges or expenses, and

(iii) the Issuer unconditionally and irrevocably guarantees the obligations of the New Issuer.

(2) In case of such a substitution of the Issuer any reference in these Conditions to the Issuer shall forthwith be deemed to refer to the New Issuer.

(3) The substitution of the Issuer shall be final, binding and conclusive on the Securityholders and will be published to the Securityholders without undue delay in accordance with § 11 of these Conditions.

§ 11

Bekanntmachungen

§ 11

Publications

(1) Bekanntmachungen, die die Wertpapiere betreffen, werden in einer oder mehreren Zeitungen veröffentlicht, die in den Mitgliedstaaten des Europäischen Wirtschaftsraums, in denen das öffentliche Angebot unterbreitet wird, gängig sind oder in großer Auflage verlegt werden, und, sofern rechtlich erforderlich, im elektronischen Bundes- anzeiger veröffentlicht bzw. in einer der jeweils maßgeblichen Rechtsordnung entsprechenden Form veröffentlicht. Soweit rechtlich zulässig werden die Bekanntmachungen den Wertpapiergläubigern ausschließlich durch Mitteilung der Emittentin an die Clearingstelle zur Benachrichtigung der Wertpapiergläubiger übermittelt.

(2) Bekanntmachungen sind mit Veröffentlichung bzw. mit Mitteilung an die Clearingstelle durch die Emittentin den Wertpapiergläubigern gegenüber wirksam abgegeben.

(3) Bekanntmachungen sind, falls sie der Clearingstelle zugehen, am dritten Tag nach Zugang bei der Clearingstelle den Wertpapiergläubigern wirksam zugegangen oder, falls sie veröffentlicht werden (unabhängig davon, ob dies zusätzlich geschieht), am Tag der Veröffentlichung oder, falls sie mehr als einmal veröffentlicht werden, am Tag der ersten Veröffentlichung, oder falls Veröffentlichungen in mehr als einem Medium erforderlich sind, am Tag der ersten Veröffentlichung in xxxxx erforderlichen Medien. Im Fall der Bekanntmachung sowohl durch

(1) Publications relating to the Securities will be published by insertion in one or more newspapers circulated throughout, or widely circulated in, the Member States of the European Economic Area, in which the offer to the public is made and, to the extent required by law, in the online German Federal Gazette (Bundes- anzeiger) or, as the case may be, in the way required by the relevant jurisdiction, respectively. To the extent legally possible, the publications will be published by way of Issuer’s notification to the Clearing System for the purpose of notifying the Securityholders.

(2) All publications have been validly given to the Securityholders with their publication or with the Issuer’s notification to the Clearing System, as the case may be.

(3) Each publication shall, in case of the Issuer’s notification to the Clearing System, be effectively given to the Securityholders on the third day after their receipt by the Clearing System or, if published (whether or not such publication occurs in addition to a notification to the Clearing System) on the date of their publication, or, if published more than once, on the date of their first publication, or, if a publication is required in more than one medium, on the date of the first publication in all required media. In

Veröffentlichung als auch durch Erklärung gegenüber der Clearingstelle ist die zeitlich vorangehende Bekanntmachung bzw. Erklärung maßgeblich.

case of announcement by both, publication and Issuer’s notification to the Clearing System, the publication becomes effective on the date of the first of such publication or Issuer’s notification, as the case may be.

§ 12

Begebung weiterer Wertpapiere; Ankauf; Einziehung; Entwertung

§ 12

Issue of further Securities; Purchase; Call;

Cancellation

(1) Die Emittentin ist berechtigt, ohne Zustimmung der Wertpapiergläubiger, jederzeit weitere Wertpapiere mit gleicher Ausstattung in der Weise zu begeben, dass sie mit diesen Wertpapieren eine einheitliche Serie bilden, wobei in diesem Fall der Begriff

„Wertpapier“ entsprechend auszulegen ist.

(2) Die Emittentin ist berechtigt, ohne Zustimmung der Wertpapiergläubiger, jederzeit Wertpapiere im Markt oder anderweitig zu jedem beliebigen Preis zu kaufen. Sofern diese Käufe durch öffentliches Angebot erfolgen, muss dieses Angebot xxxxx Wertpapiergläubigern gegenüber erfolgen. Die von der Emittentin erworbenen Wertpapiere können nach Xxxx der Emittentin von ihr gehalten, weiterverkauft oder entwertet werden.

(3) Die Emittentin ist berechtigt, ohne Zustimmung der Wertpapiergläubiger, jederzeit ausstehende Wertpapiere einzuziehen und damit ihre Anzahl zu reduzieren.

(4) Aufstockung bzw. Xxxxxxxxxxx xxx Xxxxxxxxxxx xxxxxx xxxxxxxxxxxx xxxxx § 00 xxxxxx Xxxxxxxxxxx xxxxxxx gemacht.

(5) Sämtliche vollständig zurückgezahlten Wertpapiere sind unverzüglich zu entwerten und können nicht wiederbegeben oder wiederverkauft werden.

(1) The Issuer is entitled at any time to issue, without the consent of the Securityholders, further securities having the same terms and conditions as the Securities so that the same shall be consolidated and form a single series with such Securities, and references to “Securities” shall be construed accordingly.

(2) The Issuer is entitled at any time to purchase, without the consent of the Securityholders, Securities at any price in the open market or otherwise. If purchases are made by public tender, public tenders must be available to all Securityholders alike. Such Securities may be held, reissued, resold or cancelled, all at the option of the Issuer.

(3) The Issuer is entitled at any time to call, without the consent of the Securityholders, outstanding Securities and to reduce their number.

(4) Increase or reduction of Securities shall be published without undue delay in accordance with § 11 of these Conditions.

(5) All Securities redeemed in full shall be cancelledforthwith and may not be reissued or resold.

§ 13

Sprache

§ 13

Language

Diese Bedingungen sind in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die englische Sprache ist unverbindlich.

These Conditions are written in the German language and provided with an English language translation. The German text shall be controlling and binding. The English language translation is provided for convenience only.

§ 14

Anwendbares Recht; Erfüllungsort; Gerichtsstand; Zustellungsbevollmächtigte; Korrekturen; Teilunwirksamkeit

§ 14

Governing Law; Place of Performance;

Place of Jurisdiction; Agent of Process; Corrections; Severability

(1) Form und Inhalt der Wertpapiere sowie alle Rechte und Pflichten aus den in diesen Bedingungen geregelten Angelegenheiten bestimmen sich in jeder Hinsicht nach dem Recht der Bundesrepublik Deutschland.

(2) Erfüllungsort und Gerichtsstand für alle Klagen oder sonstigen Verfahren aus oder im Zusammenhang mit den Wertpapieren ist, soweit rechtlich zulässig, Frankfurt am Main, Bundesrepublik Deutschland.

(3) Die UBS AG, Niederlassung London, in ihrer Funktion als Emittentin und die UBS Limited in ihren Funktionen als Anbieterin und Zahlstelle ernennen hiermit die UBS Deutschland AG, Xxxxxxx- straße 14 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx, als deutsche Bevollmächtigte, an die innerhalb der Bundesrepublik Deutschland im Rahmen jedes Verfahrens aus oder im Zusammenhang mit den Wertpapieren die Zustellung bewirkt werden kann (die „Zustellungsbevollmächtigte“). Falls, aus welchem Grund auch immer, die Zustellungsbevollmächtigte diese Funktion nicht mehr ausübt oder keine Anschrift innerhalb der Bundesrepublik Deutschland mehr hat, verpflichten sich die UBS AG, Niederlassung London, und die UBS Limited, eine Ersatz-Zustellungsbevollmächtigte in der Bundesrepublik Deutschland zu ernennen. Hiervon unberührt bleibt die Möglichkeit, die Zustellung in jeder anderen gesetzlich zulässigen Weise zu bewirken.

(4) Die Emittentin ist berechtigt, in diesen Bedingungen

(i) offensichtliche Schreib- oder Rechenfehler oder ähnliche offenbare Unrichtigkeiten sowie (ii) wider- sprüchliche oder lückenhafte Bestimmungen ohne Zustimmung der Wertpapiergläubiger zu ändern bzw. zu ergänzen, wobei in den unter

(ii) genannten Fällen nur solche Änderungen bzw. Ergänzungen zulässig sind, die unter Berücksichtigung der Interessen der Emittentin für die Wertpapiergläubiger zumutbar sind, das heißt die die finanzielle Situation der Inhaber nicht wesentlich verschlechtern. Änderungen bzw.

(1) The form and content of the Securities as well as all rights and duties arising from the matters provided for in these Conditions shall in every respect be governed by the laws of the Federal Republic of Germany.

(2) The place of performance and place of jurisdiction for all actions or other procedures under or in connection with the Securities shall, to the extent legally possible, be Frankfurt am Main, Federal Republic of Germany.

(3) Each of UBS AG, London Branch, in its role as Issuer and UBS Limited in its roles as Offeror, and Paying Agent hereby appoints UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx of Germany, as its agent in the Federal Republic of Germany to receive service of process in any proceedings under or in connection with the Securities in the Federal Republic of Germany (the “Agent of Process”). If, for any reason, such Agent of Process ceases to act as such or no longer has an address in the Federal Republic of Germany, UBS AG, London Branch, and UBS Limited agree to appoint a substitute agent of process in the Federal Republic of Germany. Nothing herein shall affect the right to serve the process in any other manner permitted by law.

(4) The Issuer is entitled to change or amend, as the case may be, in these Conditions of Securities

(i) any manifest writing or calculation errors or other manifest incorrectness as well as (ii) any conflicting or incomplete provisions without the consent of the Securityholders, provided that in the cases referred to under (ii) only such changes or amendments shall be permissible which are acceptable to the Securityholders taking into account the interests of the Issuer, i.e. which do not materially impair the financial situation of the relevant Securityholder. Any changes or

Xxxxxxxxxxx xxxxxx Xxxxxxxxxxx xxxxxx xxxxx

§ 00 xxxxxxx gemacht.

(5) Sollte eine Bestimmung dieser Bedingungen ganz oder teilweise unwirksam sein oder werden, so bleiben die übrigen Bestimmungen wirksam. Die unwirksame Bestimmung ist durch eine wirksame Bestimmung zu ersetzen, die den wirtschaftlichen Zwecken der unwirksamen Bestimmung so weit wie rechtlich möglich entspricht. Entsprechendes gilt für etwaige Xxxxxx in den Bedingungen.

amendments of these Conditions shall be published in accordance with § 11.

(5) If any of the provisions of these Conditions is or becomes invalid in whole or in part, the remaining provision(s) shall remain valid. The invalid provision shall be replaced by a valid provision, which, to the extent legally possible, serves the economic purposes of the invalid provision. The same applies to gaps, if any, in these Conditions.

RISK FACTORS RELATING TO THE ISSUER AND THE SECURITIES

The different risk factors associated with investment in the Securities issued within the framework of this Prospectus are outlined below. Which of these are relevant to the Securities described in this Prospectus depends upon a number of interrelated factors, especially the type of Securities and Underlyings. Investments in the Securities should not be made until all the factors relevant to the Securities have been acknowledged and carefully considered. Terminology and expressions defined in the Terms and Conditions shall have the same meaning when used herein. When making decisions relating to investments in the Securities, potential buyers should consider all information contained in the Prospectus and, if necessary, consult their legal, tax, financial or other advisor.

I. ISSUER-SPECIFIC RISKS

As a global financial services provider, the business activities of UBS are affected by the prevailing market situation. Different risk factors can impair the Company’s ability to implement business strategies and have a direct, negative impact on earnings. Accordingly, UBS’ revenues and earnings are and have been subject to fluctuations. The revenues and earnings figures from a specific period, thus, are not evidence of sustainable results. They can change from one year to the next and affect UBS’ ability to achieve its strategic objectives. A more comprehensive description of the risk factors, in the English language, can be found on pages 43-70 (inclusive) of the UBS Handbook 2004/2005, and on pages 16-17 (inclusive) of the UBS Financial Report 2004.

General insolvency risk

Each investor bears the general risk that the financial situation of the Issuer could deteriorate. The Securities constitute direct, unsecured and unsubordinated obligations of the Issuer, which – even in the event that the Issuer is declared insolvent - 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.

Effect of downgrading of the Issuer rating

The general assessment of the Issuer’s creditworthiness may affect the value of the Securities. This assessment generally depends on the ratings assigned to the Issuer or its affiliated companies by rating agencies such as Moody’s, Fitch and S&P.

Potential conflicts of interest

The Issuer and affiliated companies may participate in transactions related to the Securities in some way, for their own account or for account of a client. Such transactions may not serve to benefit the Securityholders and may have a positive or negative effect on the value of the Underlying and consequently on the value of the Securities. Furthermore, companies affiliated with the Issuer may become counterparties in hedging transactions relating to obligations of the Issuer stemming from the Securities. As a result, conflicts of interest can arise between the companies affiliated with the Issuer, as well as these companies and investors, in relation to obligations regarding the calculation of the price of the Securities and other associated determinations. In addition, the Issuer and its affiliates may act in other capacities with regard to the Securities, such as calculation agent, paying agent and administrative agent and/or index sponsor.

Furthermore, the Issuer and its affiliates may also issue other derivative instruments relating to the respective Underlying; introduction of such competing products may affect the value of the Securities. The Issuer and its affiliated companies may receive non-public information relating to the Underlying, and neither the Issuer nor any of its associated companies undertakes to make this information available to Securityholders. In addition, one or more of the Issuer’s affiliated companies may publish research reports on the Underlying. Such activities could present conflicts of interest and may affect the value of the Securities.

Within the context of the offering and sale of the Securities, the Issuer or any of its affiliated companies may directly or indirectly pay fees in varying amounts to third parties, such as distributors or investment advisors, or receive payment of fees in varying amounts, including those levied in association with the distribution of the Securities from third parties. Potential investors should be aware that the Issuer may retain fees in part or in full.

II. SECURITY-SPECIFIC RISKS

Investing in the Securities involves certain risks. Among others, these risks may take the form of equity market, bond market, foreign exchange, interest rate, market volatility and economic and political risks and any combination of these and other risks. Some of these are presented briefly below. Prospective investors should be experienced with regard to transactions in instruments such as the Securities and in the Underlying. Prospective buyers should understand the risks associated with an investment in the Securities and shall only reach an investment decision, after carefully considerations with their legal, tax, financial and other advisers of (i) the suitability of an investment in the Securities in the light of their own particular financial, fiscal and other circumstances; (ii) the information set out in this document and

(iii) the Underlying. An investment in the Securities should only be made after assessing the direction, timing and magnitude of potential future changes in the value of the Underlying, as the return of any such investment will be dependent, inter alia, upon such changes. More than one risk factor may have simultaneous effects with regard to the Securities, so that the effect of a particular risk factor is not predictable. In addition, more than one risk factor may have a compounding effect which may not be predictable. No assurance can be given with regard to the effect that any combination of risk factors may have on the value of the Securities.

Prospective purchasers of the Securities should recognise that the Securities may decline in value and should be prepared to sustain a total loss of their investment in the Securities. This risk is independent of the financial strength of the Issuer. The shorter the remaining term of the Securities is, the higher the risk of decline in value of the Securities. Moreover, one of the key features of the Securities as warrants is their so-called “Leverage” Effect: Any change in the value of the Underlying may result in a disproportionate change in the value of the Warrant. The Warrant therefore offers profit opportunities which are potentially better than those of other investments. At the same time, the Warrant also involves disproportionate loss exposure. The reason for this is that the leverage effect of the Warrant works both ways – i.e. not only to the investors benefit if the price of the Underlying moves in their favour, but also to their disadvantage, if price development is unfavourable. Therefore, when buying a certain Warrant, it should be noted that the higher the leverage effect of a Warrant, the higher the loss exposure involved. In addition, it should be noted that, typically, the shorter the (remaining) term of the Warrant, the higher the leverage effect. Potential investors must therefore be prepared and able to sustain a partial or even a total loss of the invested capital. A Warrant represents neither a claim for the payment of interest nor for the payment of dividends and thus does not generate any regular income. Therefore, potential reductions in the value of the Warrant cannot be offset by any other income from the Warrant.

It is expressly recommend that potential investors familiarise themselves with the specific risk profile of the product type described in this Prospectus and seek the advice of a professional if necessary.

1. General risks of Call and Put Warrants

Call/Put Warrants based on the Underlying are call/put warrants for which the investor receives a certain Settlement Amount in the Settlement Currency, pursuant to section 1 of the Terms and Conditions of the Securities. The Option Right to demand payment of the Settlement Amount by the Issuer under certain conditions differs in relation to call and put warrants: In the case of call warrants, as provided for by the Terms and Conditions of the Securities, this right depends on the difference by which the Price of the Underlying exceeds the Strike Price on the Valuation Date (the “Settlement Price”) . In the case of put warrants, the decisive difference is that by which the Settlement Price of the Underlying is below the Strike Price. The Warrant performs accordingly during the Term of the Securities: As a rule (disregarding other factors critical to the pricing of the warrants), the value of a call warrant drops if the price of the Underlying falls. The opposite is true of put warrants, which decline in value if the Price of the Underlying rises.

2. Features of Warrants on Currencies and Exchange Rates

In cases where the Underlyings are exchange rates or precious metals, it should also be noted that foreign currencies and precious metals are traded 24 hours/day through the time zones of Australia, Asia, Europe and America (starting 5.00 am Monday, Sydney time, and ending 5.00 pm Friday, New York time). It is therefore possible for a HIT Threshold, Lock Out Threshold, Upper or Lower Threshold, or Knock Out Threshold, pursuant to the Terms and Conditions of the Securities, to be reached, or passed above or below outside of local business hours or those of the Offeror.

3. Minimum Exercise

If so indicated in the Terms and Conditions of the Securities exercisable by the Holders, the Securityholder must tender a specified minimum number of the Securities, in order to exercise the Securities. Holders with fewer than the specified minimum number of Securities will, therefore, either have to sell their Securities or purchase additional Securities (incurring transaction costs in each case). Prospective buyers should review the Terms and Conditions to ascertain whether and how such provisions apply to the Securities.

4. Limitation of Exercise

If so indicated in the Terms and Conditions for any Securities that are exercisable by the holders thereof, and are based directly or indirectly on German equities as their underlying asset, the Option Right vested in the Securities may not be exercised on certain days. These include days, such as the date upon which the company issuing the German equities underlying the Securities holds its Annual General Meeting, as well as the immediately preceding banking day (ex dividend day). For certain Securities, the Terms and Conditions state that exercise is limited to certain dates. In the event that the exercise notice is not submitted by this exercise date, the Securities cannot be exercised until the next date stated in the Terms and Conditions.

5. Other factors affecting value

The value of a Security is determined not only by changes in the price of the Underlying, but also a number of other factors. More than one risk factor may have simultaneous effect with regard to the Securities such that the effect of a particular risk factor may not be predictable. In addition, more than

one risk factor may have a compounding effect which may not be predictable. No assurance can be given with regard to the effect that any combination of risk factors may have on the value of the Securities.

These factors include, inter alia: the maturity of the Security, the frequency and intensity of price fluctuations (volatility) in the Underlying, as well as the prevailing interest rate and dividend levels. A decline in the value of the Security may therefore occur even if the price of the Underlying remains constant.

Prospective buyers of the Securities should be aware that an investment in the Securities involves a valuation risk with regard to the Underlying. They should have experience with transactions in securities with a value derived from an underlying. The value of the Underlying may vary over time and may increase or decrease by reference to a variety of factors which may include corporate actions, macro economic factors and speculation. If the Underlying comprises a basket of various assets, fluctuations in the value of any one asset may be offset or intensified by fluctuations in the value of other basket components. In addition, the historical performance of the Underlying is not an indication of its future performance. The historical price of the Underlying does not indicate the future performance of the Underlying. Changes in the market price of the Underlying will affect the trading price of the Securities, and it is impossible to predict whether the market price of the Underlying will rise or fall.

If the Securityholder’s right vested in the Security is determined on the basis of a foreign currency, currency unit or calculation unit, or if the value of the Underlying is determined in such a foreign currency, currency unit or calculation unit, potential investors should be aware that investments in these Securities could entail risks due to fluctuating exchange rates, and that the loss risk does not depend solely on the performance of the Underlying, but also on unfavourable developments in the value of the foreign currency, currency unit or calculation unit. Such unfavourable developments may increase the Securityholder’s risk of loss, in such a way that

- the value of the acquired Securities diminishes accordingly, or

- any possible settlement amount diminishes accordingly.

6. Effect of ancillary costs

Commissions and other transaction costs incurred in connection with the purchase or sale of Securities may result in charges, particularly in combination with a low order value, which can substantially reduce the potential for gains relating to the Security. Before acquiring a Security, prospective buyers should therefore inform themselves of all costs incurred through the purchase or sale of the Security, including any costs charged by their custodian banks upon purchase and maturity of the Securities.

7. Transactions to offset or limit risk

Potential purchasers of the Securities should not rely on the ability to conclude transactions at any time during the term of the Securities that will allow them to offset or limit relevant risks. This depends on the market situation and the prevailing conditions. Transactions designed to offset or limit risks might only be possible at an unfavourable market price that will entail a loss for investors.

8. Trading in the Securities / Liquidity

It is not possible to predict if and to what extent a secondary market may develop in the Securities or at what price the Securities will trade in the secondary market or whether such market will be liquid or illiquid.

If so specified in this Prospectus, applications will be or have been made to the stock exchange(s) specified for admission or listing of the Securities. If the Securities are admitted or listed, no assurance is given that any such admission or listing will be maintained. The fact that any Securities are admitted to trading or listed does not necessarily denote greater liquidity than if this were not the case. If the Securities are not listed or traded on any exchange, pricing information for the Securities may be more difficult to obtain and the liquidity of the Securities may be adversely affected. The liquidity of the Securities may also be affected by restrictions on purchase and sale of the Securities in some jurisdictions. Additionally, the Issuer has the right (but no obligation) to purchase Securities at any time and at any price in the open market or by tender or private agreement. Any Securities so purchased may be held or resold or surrendered for cancellation.

The Offeror intends, under normal market conditions, to provide bid and offer prices for the Securities of an issue on a regular basis. However, the Offeror makes no firm commitment to the Issuer to provide liquidity by means of bid and offer prices for the Securities, and assumes no legal obligation to quote any such prices or with respect to the level or determination of such prices. Potential buyers therefore should not rely on the ability to sell Securities at a specific time or at a specific price.

9. Borrowed funds

If the purchase of Securities is financed by borrowed funds and investors’ expectations are not met, they not only suffer the loss incurred but also have to pay interest on and redeem the loan. This produces a substantial increase in investors’ risk of loss. Buyers of Securities should never rely on being able to redeem and pay interest on the loan through gains from a securities transaction. Rather, before financing the purchase of a security with borrowed funds, the investors’ financial situations should be assessed, as to their ability to pay interest on or redeem the loan immediately, even if they incur losses instead of the expected gains.

10. The effect on the Securities of hedging transactions by the Issuer

The Issuer may use all or some of the proceeds received from the sale of the Securities to enter into hedging transactions relating to the risks incurred in issuing the Securities. In such a case, the Issuer or one of its affiliated companies may conclude transactions that correspond to the Issuer’s obligations arising from the Securities. Generally speaking, this type of transaction will be concluded before or on the day of issue of the Securities, although these transactions can also be concluded after the Securities have been issued. The Issuer or one of its affiliated companies may take the necessary steps for the closing out of any hedging transactions, on or prior to the valuation date. Although the Issuer does not consider these types of transaction to have a massive impact on the value of the Securities, it cannot be ruled out that the price of the Underlying might, in certain cases, be affected by these transactions. In the case of securities whose value depends on the occurrence of a specific event in relation to the Underlying, entering into or closing out such hedging transactions may affect the likelihood of this event occurring or not occurring.

11. Expansion of the spread between bid and offer prices

In special market situations, where the issuer is completely unable to conclude hedging transactions, or where such transactions are very difficult to conclude, the spread between the bid and offer prices may be temporarily expanded, in order to limit the economic risks to the Issuer.

12. Changes in the tax treatment of the Securities

The tax considerations set forth in this Prospectus reflect the views of the Issuer based on the legislation applicable at the date of this Prospectus. It cannot, however, be ruled out that the tax treatment by the tax authorities and tax courts will be otherwise. Additionally, the tax considerations set forth herein may not be used as the sole basis for the decision to invest in the Securities from a tax perspective, since the individual situation of each investor must also be taken into account. The considerations with regard to taxation contained in this Prospectus, thus, do not constitute any sort of material information or tax advice nor are they in any way to be construed as a representation or warranty with respect to specific tax consequences. Accordingly, investors should consult their personal tax advisors before any decision to purchase the Securities.

Neither the Issuer nor the Offeror accepts any liability for the tax consequences of an investment in the Securities.

RESPONSIBILITY

UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxxxxxx, and Xxxxxxxxxxxxxxx 0, 0000 Xxxxx, Xxxxxxxxxxx, acting through its Xxxxxx Xxxxxx, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, as Issuer and UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, as Offeror of the Securities described in this Prospectus, assume responsibility for the content of this Prospectus pursuant to section 5 (4) of the WpPG.

The Issuer and the Offeror declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of their knowledge, in accordance with the facts and contains no omissions likely to affect its import.

Neither the Issuer nor the Offeror may be held liable on the basis of the Summary contained in this Prospectus alone, nor in any translation hereof, unless the Summary is misleading, inaccurate or contradictory if read in conjunction with other parts of the Prospectus.

In reference to the information in the “Information about the Underlying” section beginning on page 50 of this Prospectus, which obviously stems from third parties rather than from the Issuer or the Offeror, the Issuer and the Offeror confirm only that such information has been carefully prepared and correctly conveyed. To the extent apparent and verifiable for the Issuer and Offeror, no facts have been omitted that could lead to information being reproduced incompletely or incorrectly.

DESCRIPTION OF THE SECURITIES

I. GENERAL INFORMATION ABOUT THE PROSPECTUS AND THE ISSUE

1. Base Prospectus / To be supplemented by final terms / Availability of documentation

This document comprises the Final Terms of the offer to the Base Prospectus within the meaning of Directive 2003/71/EC of 4 November 2003 (the “Prospectus Directive“) and the corresponding German implementation legislation in the form of the Securities Prospectus Act (Wertpapierprospektgesetz). The Base Prospectus has been approved by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), as the competent authority in the (selected) home Member State of UBS within the meaning of the Prospectus Directive and the German Securities Prospectus Act (Wertpapierprospektgesetz), as UBS’s offering programme. “Approval” means the positive act at the outcome of the scrutiny of the completeness of the prospectus by XxXxx, including the consistency of the information given and its comprehensibility.

Printed copies of the Base Prospectus and the Final Terms of the offer are available free of charge both from the Issuer or at UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 - 00, X-00000 Xxxxxxxxx/Xxxx, Xxxxxxx Xxxxxxxx of Germany. Additionally, the Base Prospectus is published on the website xxx.xxx.xxx/xxxxxxxxx, or a successor website.

The specific terms and conditions relating to the respective securities offering are contained in the final terms of the offer. The final terms of the offer shall be presented by incorporation in the Base Prospectus essentially by way of deletion, particularly of square brackets incorporated in this Base Prospectus, or by way of completing of placeholder in square brackets as displayed. It is therefore only possible to gain a comprehensive impression of the Issuer and the Securities through examination of the Base Prospectus together with the corresponding final terms of the offer.

The final terms of the offer shall be filed with BaFin and communicated to investors on the day of the public offer at the latest:

a) by publication in one or more newspapers circulated throughout, or widely circulated in, the Member States of the European Economic Area in which the offer to the public is made; or

b) in a printed form to be made available, free of charge at the Issuer’s registered office or at UBS Deutschland AG, Xxxxxxxxxxxxx 00 - 00, X-00000 Xxxxxxxxx / Xxxx; or

c) in an electronic form on the website xxx.xxx.xxx/xxxxxxxxx, or a successor website.

If the final terms are published in electronic form, the Issuer and the Offeror shall also provide a paper version free of charge upon request.

The Issuer will also communicate to investors how the final terms of the offer are to be published and where they are available by publication in one or more newspapers circulated throughout, or widely circulated in, the Member States in which the offer to the public is made.

2. General Note on the Prospectus

No dealer, salesman or other person is authorised to give any information or to make any representation other than those contained in this Prospectus in connection with the offering or sale of the Securities. If given or made, such information or representation must not be relied upon as having been authorised by the Issuer or Offeror. 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. Potential investors who are contemplating purchasing Securities should conduct their own independent investigation of the risks involved in an investment in the Securities. Neither this Prospectus, nor other information relating to the Securities represents an offer (in the legal sense) on the part of or on behalf of the Issuer or other persons i.e. a subscription or purchase agreement relating to the Securities will not be effectively concluded with a unilateral declaration made on the part of or on behalf of the subscriber or buyer to the Issuer or Offeror.

3. Object of the Prospectus

The object of this Prospectus are the Call Warrants, in bearer form, with the International Security Identification Number (both as defined in the section “Summary of the Key Terms of the Securities”), issued by UBS AG, acting through its London Branch, as Issuer in accordance with German law, and issued in the amount of the Aggregate Amount of the Issue (as defined in the “Summary of the Key Terms of the Securities”). All payments relating to the Securities are made in the Settlement Currency (as defined in the section “Summary of the Key Terms of the Securities”.)

These Securities are each based on the listed Underlying, as detailed in the sections “Summary of the Key Terms of the Securities” and “Information about the Underlying”.

The Securities expire on the Expiration Date (as defined in the section entitled “Summary of the Key Terms of the Securities”).

4. Issue and Sale of the Securities

The Issuer intends to employ this Prospectus – following any necessary notification of the relevant member state of the European Economic Area by Germany’s Federal Financial Supervisory Authority, as the competent authority in the (selected) home Member State of UBS within the meaning of the Prospectus Directive and the German Securities Prospectus Act – for the public offer of the Securities in different member states of the European Economic Area. Since, however, the Securities will not be admitted to public offer / registered in all Member States, distribution of this Prospectus and the offer of the Securities may be subject to certain legal restrictions in some countries. Neither the Issuer nor the Offeror represent that this document may be lawfully distributed, or that the Securities may be lawfully offered, in compliance with any applicable registration or other requirements in any jurisdiction, or pursuant to an exemption available thereunder, or assumes any responsibility for facilitating any distribution or offering. Potential investors can find further information in the section entitled “Selling Restrictions” beginning on page 55 of this Prospectus.

5. Underwriting and Issue Price

It has been agreed that, on or after the respective Issue Date of the Securities (as defined in the section entitled “Summary of the Key Terms of the Securities”), UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, (the “Offeror”) shall underwrite the Securities by means of an underwriting agreement and shall place them for sale at the Issue Price as defined in the section entitled “Summary of the Key Terms of the Securities” under terms subject to change. The Issue Price shall be set at the Fixing Date (as defined in the section entitled “Summary of the Key Terms of the Securities”) based on the prevailing market situation and the price of the Underlying, and then be

published in accordance with the Terms and Conditions of the Securities. The selling price will then be adjusted on a continual basis to reflect the prevailing market situation.

The Offeror shall be responsible for coordinating the entire Securities offering. The total commission due for the respective underwriting and/or placement service relating to the underwriting of the Securities amounts to the Aggregate amount of underwriting and/or placing fees (as defined in the section entitled “Summary of the Key Terms of the Securities”).

6. Form and status of the Securities

The Securities issued by the Issuer are represented by one or more permanent global bearer certificate(s) and are deposited for clearing and settlement at the Clearing Systems(s) (as defined in the section entitled “Definitions”). Definitive securities will not be issued.

The Securities constitute direct, unsecured and unsubordinated 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.

7. Admission to Trading

The Offeror intends to apply for inclusion of the Securities to trading on the Stock Exchange(s) (as defined in the section entitled “Summary of the Key Terms of the Securities”). The Securities shall be delisted three trading days prior to the Expiration Date. As of this point until the Expiration Date, trading may only take place off exchange with the Offeror.

8. Subscription and Delivery of the Securities

The Securities may be purchased from the Offeror during normal banking hours. There is no subscription period. The Issue Price per Security is due for payment on the Initial Payment Date (as defined in the section entitled “Summary of the Key Terms of the Securities”).

After the Initial Payment Date, the appropriate number of Securities shall be credited to the buyer’s account in accordance with the rules of the corresponding Clearing System(s) (as defined in the section entitled “Definitions”).

9. Authorisation/Resolution for the Issue of the Securities

The Issuer does not need to obtain (individual) authorisation from its Management Board to issue the Securities. There exists a general resolution for the issue of the Securities.

10. Use of Proceeds

The net proceeds from the sale of the Securities will be used for funding purposes of the UBS Group and shall not be employed by the Issuer within Switzerland. The net proceeds from the issue shall be employed by the Issuer for general business purposes. A separate (“special purpose”) fund will not be established.

If, in the normal course of business, the Issuer trades in the Underlyings, or - if the Underlying is an index – in the individual index components, or in options and futures contracts on or related to the index, or xxxxxx the financial risks associated with the Securities by means of hedging transactions in

the corresponding shares or other underlying assets or in options or futures contracts on or related to the index, the Securityholders have no rights to or interests in the respective shares or other underlyings or options or futures contracts on or relating to the index.

II. SUMMARY OF THE KEY TERMS OF THE SECURITIES

This following section contains the key terms of the Securities. This summary does not represent a comprehensive description of the Securities, and is subject to and should be read in conjunction with the Terms and Conditions of the Securities, the general offering terms of the Securities and all other sections of this Prospectus. 4

4 The notation of the Securities will be different for each series of the securities and also the key terms can be different for each series of the Securities.

THE KEY TERMS OF CALL WARRANTS

Subject to an adjustment according to the Terms and Conditions of the Securities, the Call Warrants have the key terms as described below:

Emittentin / UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxx, und Xxxxxxxxxxxxxxx 0, 0000 Xxxxx, Xxxxxxx, handelnd durch ihre Niederlassung London, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Vereinigtes Königreich. /

Issuer: UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxxxxxx, and Xxxxxxx- xxxxxxxx 0, 0000 Xxxxx, Xxxxxxxxxxx, acting through its Xxxxxx Xxxxxx, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx.

Anbieterin / UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Vereinigtes Königreich. /

Offeror: UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx.

Zahlstelle / UBS Limited c/o UBS Deutschland AG, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. BNP Paribas, Xxxxxx X. Xxxxxx, 00000 Xxxxxxx, Xxxxxxx. Der Begriff „Zahlstelle“ umfasst in diesem Fall sämtliche Zahlstellen. /

Paying Agent: UBS Limited c/o UBS Deutschland AG, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx xx Xxxxxxx. BNP Paribas, Xxxxxx X. Xxxxxx, 00000 Xxxxx, Xxxxx. The term “Paying Agent” shall also refer to all Paying Agents.

Berechnungsstelle / UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx

Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. /

Calculation Agent: UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx of Germany.

Emissionsvolumen / Je Serie 10.000.000 Wertpapiere /

Issue Size: Each Series 10,000,000 Securities

Gesamtsumme der Emission / Je Serie Emissionspreis x Emissionvolumen /

Aggregate Amount of the Issue: Each series Issue Price x Issue Size

Gesamtbetrag der Übernahme- und/oder Platzierungsprovision / Aggregate amount of underwriting

and/or placing fee:

Keine /

none

Beginn des öffentlichen Angebots der Wertpapiere /

nach Genehmigung durch Borsa Italiana S.p.A. /

Start of public offer of the Securities:

after approval by Borsa Italiana S.p.A. l

Basiswert(e) / DAX® (ISIN DE0008469008) (der „Index“), wie er von der Deutsche Börse AG (der „Index Sponsor“) verwaltet, berechnet und veröffentlicht wird. /

Underlying(s): DAX® (ISIN DE0008469008) (the “Index”), as maintained, calculated and published by Deutsche Boerse AG (the “Index Sponsor”).

Basiswährung / Euro („EUR“) /

Underlying Currency: Euro (“EUR“)

Auszahlungswährung / Euro („EUR“) /

Settlement Currency: Euro (“EUR“)

Emissionspreis / Der Emissionspreis wird am Festlegungstag von der Berechungsstelle festgelegt. /

Issue Price: The Issue Price will be fixed by the Calculation Agent on the Fixing Date.

Emissionstag / 24. Mai 2006 /

Issue Date: 24 May 0000

Xxxxxxxxxxxxxxxx(xx) / 100 : 1 bzw. als Dezimalzahl ausgedrückt 0,01; das heißt

100 Wertpapiere beziehen sich auf 1 Basiswert. /

Ratio(s): 100 : 1, or expressed as a decimal number 0.01, i.e. 100 Securities relate to 1 Underlying.

Zahltag bei Emission / 26. Mai 2006 /

Initial Payment Date: 26 May 2006

Festlegungstag / 24. Mai 2006 /

Fixing Date: 24 May 2006

Basispreis / Siehe Tabelle. /

Strike Price: See table below.

Mindestausübungsanzahl / 100 bzw. ein ganzzahliges Vielfaches davon. /

Minimum Exercise Size: 100 or an integral multiple thereof.

Kleinste handelbare Einheit / 100 bzw. ein ganzzahliges Vielfaches davon. /

Minimum Trading Size: 100 or an integral multiple thereof.

Verfalltag / Siehe Tabelle.

Falls dieser Tag kein Basiswert-Berechnungstag ist, dann gilt der unmittelbar darauf folgende Basiswert-Berechnungstag als der Verfalltag. /

Expiration Date: See table below.

If this day is not an Underlying Calculation Date, the immediately succeeding Underlying Calculation Date is deemed to be the Expiration Date.

Abwicklung / Barausgleich innerhalb von fünf Bankgeschäftstagen nach (i) dem maßgeblichen Ausübungstag und (ii) im Fall einer Kündigung durch die Xxxxxxxxxx xxxx § 0 xxx Xxxxxxxxxxxxxxxxxxxxx xxxx xxx Xxxxxxxxxxxxx (xxx „Rückzahlungstag“).

Der „Bewertungstag“ entspricht, vorbehaltlich eines wirksamen Ausübungsverfahrens, dem maßgeblichen Ausübungstag. Falls dieser Tag kein Basiswert-Berechnungstag ist, dann gilt der unmittelbar darauf folgende Basiswert-Berechnungstag als Bewertungstag.

Der „Ausübungstag“ steht für den Bankgeschäftstag innerhalb der Ausübungsfrist, an dem bis spätestens zur Ausübungszeit sämtliche erforderlichen Ausübungsbedingungen erfüllt sind. Falls die erforder- lichen Ausübungsbedingungen an einem Tag erfüllt sind, der kein Bankgeschäftstag ist, oder erst nach Ablauf der Ausübungszeit an einem Ausübungstag, gilt der nächstfolgende Bankgeschäftstag als der Ausübungstag, vorausgesetzt, dass dieser Tag in die Ausübungsfrist fällt. Die in den Wertpapieren verbrieften Optionsrechte gelten als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxxxxxxxxxxx, xxx Xxxxxxxxxxx xxx Xxxxxxxxxxx oder der Erfüllung sonstiger Voraussetzungen bedarf. /

Settlement: Cash Settlement within five Banking Days after (i) the relevant Exercise Date and (ii) in case of a Termination by the Issuer in accordance with

§ 7 of the Conditions of the Securities, after the Termination Date (the “Settlement Date”).

The “Valuation Date” means, subject to an effective exercise procedure, the relevant Exercise Date. If this day is not an Underlying Calculation Date, the immediately succeeding Underlying Calculation Date is deemed to be the Valuation Date.

The “Exercise Date” means the Banking Day within the Exercise Period, on which at the latest at the Exercise Time all of the conditions required for the exercise are met. If the conditions required for the exercise are met on a day that is not a Banking Day or after lapse of the Exercise Time on an Exercise Day, the following Banking Day is

deemed to be the Exercise Date provided that such day falls within the Exercise Period. The option rights certified in the Securities are deemed to be exercised without requiring the submission of an exercise notice, the transfer of the Securities or the fulfilment of further special preconditions on the Expiration Date (also the “Exercise Day”).

Maßgebliche Börse / Frankfurter Wertpapierbörse (elektronisches Handelssystem XETRA®) /

Relevant Stock Exchange: Frankfurt Stock Exchange (electronic trading system XETRA®)

Maßgebliche Terminbörse / EUREX /

Relevant Futures and Options Exchange:

EUREX

Optionsstelle / UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. /

Warrant Agent: UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, D-60313 Frankfurt am Main, Federal Republic of Germany.

Wertpapier-Kenn-Nummern / ISIN: Siehe Tabelle. /

Security Identification Codes: ISIN: See table below.

Wertpapier-Börse(n) / Borsa Italiana S.p.A. Mailand /

Relevant Security Stock Exchange(s): Borsa Italiana S.p.A Milan

Anwendbares Recht / Deutsches Recht /

Governing Law: German Law

Tabellarische Darstellung der wichtigsten Ausstattungsmerkmale /

Table of the Key Terms

ISIN der Optionsscheine / ISIN of Warrants	Optionstyp / Option Type	Basiswert / Underlying	Basispreis / Strike Price	Basiswährung / Underlying Currency	Verfalltag / Expiration Date
CH0025557619	Call	DAX®	5,800	EUR	09.03.2007
CH0025557445	Call	DAX®	5,800	EUR	08.06.2007
CH0025557742	Call	DAX®	6,000	EUR	09.03.2007
CH0025557718	Call	DAX®	6,000	EUR	08.06.2007
CH0025557783	Call	DAX®	6,200	EUR	09.03.2007
CH0025557809	Call	DAX®	6,200	EUR	08.06.2007
CH0025557825	Call	DAX®	6,400	EUR	09.03.2007
CH0025557874	Call	DAX®	6,400	EUR	08.06.2007
CH0025557882	Call	DAX®	6,600	EUR	09.03.2007
CH0025557916	Call	DAX®	6,600	EUR	08.06.2007

III. WERTPAPIERBEDINGUNGEN III. TERMS AND CONDITIONS OF THE

SECURITIES

Diese nachfolgenden Wertpapierbedingungen, bestehend aus den produktspezifischen Besonderen Wertpapierbedingungen und den Allgemeinen Wertpapierbedingungen, gelten für jeweils eine Serie von Wertpapieren und sind in Zusammenhang mit und nach Maßgabe der „Zusammenfassung der wichtigsten Ausstattungsmerkmale” und den

„Definitionen” (die „Bedingungen”) zu lesen.

The following terms and conditions of the Securities, comprising the Special Conditions of the Securities and the General Conditions of the Securities, in each case apply to one series of Securities and shall be read in conjunction with, and are subject to, the “Summary of Key Terms” and the “Definitions” (the “Conditions”).

Die nachstehenden Bedingungen der Wertpapiere sind gegliedert in

The following Conditions of the Securities are composed of

Teil 1: Definitionen Part 1: Definitions

Teil 2: Besondere Wertpapierbedingungen Part 2: Special Conditions of the Securities

Teil 3: Allgemeine Wertpapierbedingungen Part 3: General Conditions of the Securities

TEIL 1: DEFINITIONEN PART 1: DEFINITIONS

„Ausübungsfrist“ beginnt am 29. Mai 2006 und endet am (einschließlich) Verfalltag.

„Ausübungszeit“ entspricht 10:00 Uhr (Orts- zeit Mailand).

„Bankgeschäftstag” steht für jeden Tag, an dem die Banken in Frankfurt am Main, Bundesrepublik Deutschland, und in Mailand, Italien, für den Geschäftsverkehr geöffnet sind und die Clearingstelle Wertpapiergeschäfte abwickelt.

„Basiswert-Berechnungstag“ steht für jeden Tag, an dem die Maßgebliche Börse für den Handel geöffnet ist, und an dem (i) der Index Sponsor den offiziellen Kurs für den Index bestimmt, berechnet und veröffentlicht und (ii) ein Handel bzw. eine Notierung in den dem Index zugrunde liegenden Werten, die mindestens 80 % der Marktkapitalisierung aller lndex- Werte bzw. des Gesamtwerts des Index darstellen, an der Maßgeblichen Börse stattfindet.

„Bewertungszeit“ entspricht dem Zeitpunkt der offiziellen Bestimmung des Schlusskurses des Basiswerts durch den Index Sponsor.

„Clearingstelle“ steht für Clearstream Banking AG, Frankfurt am Main (Neue Xxxxxxxxxxxx 0, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx), Monte Titoli S.p.A., oder jeder Nachfolger.

„Kurs des Basiswerts“ entspricht dem von dem Index Sponsor berechneten und veröffentlichten Kurs des Basiswerts.

„Wertpapiere“ steht für die von der Emittentin im Umfang von des Emissionsvolumens begebenen Call Optionsscheine, die auf den Inhaber lauten.

„Wertpapiergläubiger“ steht für die nach deutschem Recht als Eigentümer der Wertpapiere anerkannten Personen. Der Wertpapiergläubiger wird in jeder Hinsicht seitens (i) der Emittentin, (ii) der Optionsstelle, (iii) der Berechnungsstelle, (iv) der Zahlstelle und (v) aller sonstigen Personen als Berechtigter und Begünstigter bezüglich der in den Wertpapieren repräsentierten Rechte behandelt. Wertpapiergläubiger ist in jedem Fall die Person, die bei ihrer Depot führenden Stelle, für die (unmittelbar oder mittelbar) bei der Clearingstelle ein Konto

“Exercise Period” starts on 29 May 2006 and ends on (including) the Expiration Date.

“Exercise Time” means 10:00 hrs (local time Milan).

“Banking Day” means each day on which the banks in Frankfurt am Main, Federal Republic of Germany, and in Milan, Italy, are open for business and the Clearing System settles securities dealings.

“Underlying Calculation Date” means each day on which the Relevant Stock Exchange is open for trading and on which (i) the Index Sponsor determines, calculates and publishes the official price of the Index, and (ii) the assets, which are comprised in the Index are, to the extent of at least 80 % of the market capitalisation of all Index assets or of the overall value of the Index, available for trading and quotation on the Relevant Stock Exchange.

“Valuation Time” means the time of official determination of the closing price of the Underlying by the Index Sponsor.

“Clearing System(s)” means Clearstream Banking AG, Frankfurt am Main (Neue Xxxxxxxxxxxx 0, X-00000 Xxxxxxxxx am Main, Federal Republic of Germany), Monte Titoli S.p.A., or any successor in this capacity.

“Price of the Underlying” means the price of the Underlying as calculated and published by the Index Sponsor.

“Securities” means Call Warrants, issued in bearer form by the Issuer in the Issue Size.

“Securityholder” means the persons acknowledged by German laws as legal owner of the Security. The Securityholder shall, for all purposes, be treated by

(i) the Issuer, (ii) the Warrant Agent, (iii) the Calculation Agent, (iv) the Paying Agent and (v) all other persons as the person entitled to such Securities and the person entitled to receive the benefits of the rights represented by such Securities. Securityholder is, in any case, the person appearing as entitled in the books of the depositary bank, for which, directly or indirectly, the account, on which the Securities are

geführt wird, auf dem die Wertpapier verbucht sind, als Berechtigte geführt wird.

deposited, is held by the Clearing System.

TEIL 2: BESONDERE WERTPAPIER- BEDINGUNGEN

PART 2: SPECIAL CONDITIONS OF THE SECURITIES

CALL OPTIONSSCHEINE CALL WARRANTS

§ 1

Optionsrecht

§ 1

Option Right

(1) Die Emittentin gewährt hiermit dem Wertpapier- gläubiger von je einem (1) Call Optionsschein bezogen auf den Kurs des Basiswerts nach Maßgabe dieser Bedingungen das Recht (das

„Optionsrecht“), bei Ausübung des Options- scheins gemäß § 2 den Abrechnungsbetrag (§ 1 (2)), multipliziert mit dem Bezugsverhältnis und anschließend auf zwei Dezimalstellen kauf- männisch gerundet, zu beziehen (der

„Auszahlungsbetrag“).

(2) Der „Abrechnungsbetrag“ entspricht der Differenz, um die der Abrechnungskurs des Basis- xxxxx (§ 1 (3)) den Basispreis überschreitet, kauf- männisch auf zwei Dezimalstellen gerundet.

(3) Der „Abrechnungskurs“ des Basiswerts ent- spricht dem Kurs des Basiswerts an dem Bewer- tungstag zur Bewertungszeit.

(1) The Issuer hereby grants the Securityholder of each (1) Call Warrant relating to the Price of the Underlying under these Conditions the right (the “Option Right”) to receive upon exercise of the warrant in accordance with § 2 the Redemption Amount (§ 1 (2)) multiplied by the Ratio and afterwards commercially rounded to two decimal points (the “Settlement Amount”).

(2) The “Redemption Amount” equals the difference at which the Settlement Price of the Underlying (§ 1 (3)) exceeds the Strike Price, commercially rounded to two decimal points.

(3) The “Settlement Price” of the Underlying is the Price of the Underlying on the Valuation Date at the Valuation Time.

§ 2

Ausübungsverfahren; Ausübungserklärung; Ausübungstag

§ 2

Exercise Procedure; Exercise Notice; Exercise Date

(1) Das Optionsrecht kann durch den Wertpapiergläubiger jeweils nur bis zur Aus- übungszeit an einem Bankgeschäftstag, der zugleich ein Basiswert-Berechnungstag ist, innerhalb der Ausübungsfrist (der „Ausübungs- tag“) und in Übereinstimmung mit dem nach- folgend beschriebenen Ausübungsverfahren ausgeübt werden:

(2) Außer im Fall der Automatischen Ausübung können die Optionsrechte jeweils nur in der Mindestausübungsanzahl ausgeübt werden. Eine Ausübung von weniger als der Mindestaus- übungsanzahl von Wertpapieren ist ungültig und

(1) The Option Right may in each case only be exercised by the Securityholder until the Exercise Time on a Banking Day, which also is an Underlying Calculation Date, within the Exercise Period (the “Exercise Date”) and in accordance with the exercise procedure described below:

(2) Except when Automatic Exercise applies, the Option Rights may, only be exercised in a number equal to the Minimum Exercise Size. An exercise of less than the Minimum Exercise Size of the Securities will be invalid and ineffective.

entfaltet keine Wirkung. Eine Ausübung von mehr als der Mindestausübungsanzahl von Wert- papieren, deren Anzahl kein ganzzahliges Vielfaches derselben ist, gilt als Ausübung der nächstkleineren Anzahl von Wertpapieren, die ein ganzzahliges Vielfaches der Mindest- ausübungsanzahl ist.

(3) Zur wirksamen Xxxxxxxx xxx Xxxxxxxxxxxxx xxxxxx xx xxxxxxxxxxxx Xxxxxxxxxxxx xxx xxx Xxxxxxxxxxxxx die folgenden Bedingungen erfüllt sein:

(i) Bei der Optionsstelle muss eine schriftliche und rechtsverbindlich unterzeichnete Erklärung des Wertpapiergläubigers, dass er das durch das Wertpapier verbriefte Optionsrecht ausübt (die „Ausübungs- erklärung“), eingegangen sein. Die Ausübungserklärung ist unwiderruflich und bindend und hat unter anderem folgende Angaben zu enthalten: (a) den Namen des Wertpapiergläubigers, (b) die Bezeichnung und die Anzahl der Wertpapiere, deren Optionsrechte ausgeübt werden und (c) das Konto des Wertpapiergläubigers bei einem Kreditinstitut, auf das der gegebenenfalls zu zahlende Auszahlungsbetrag überwiesen werden soll;

(ii) die erfolgte Übertragung der betreffenden Wertpapiere auf die Optionsstelle, und zwar entweder (a) durch eine unwiderrufliche An- weisung an die Optionsstelle, die Wert- papiere aus dem gegebenenfalls bei der Optionsstelle unterhaltenen Wertpapier- depot zu entnehmen oder (b) durch Gutschrift der Wertpapiere auf das Konto der Optionsstelle bei der Clearingstelle.

Falls diese Bedingungen erst nach Ablauf der Ausübungszeit an einem Ausübungstag erfüllt sind, gilt das Optionsrecht als zum nächstfolgenden Ausübungstag ausgeübt, vorausgesetzt, dass dieser Tag in die Ausübungsfrist fällt.

(4) Nach Ausübung der Optionsrechte sowie der Feststellung des Abrechnungskurses des Basis- xxxxx berechnet die Berechnungsstelle (§ 9) den gegebenenfalls zu zahlenden Auszahlungsbetrag entweder nach der Anzahl der tatsächlich gelieferten Wertpapiere oder nach der in der

An exercise of more than the Minimum Exercise Size of the Securities that is not an integral multiple thereof will be deemed to be an exercise of a number of Securities that is equal to the next lowest integral multiple of the Minimum Exercise Size.

(3) For a valid exercise of the Option Rights the following conditions have to be met on the relevant Exercise Date until the Exercise Time:

(i) The Warrant Agent must receive written and legally signed notice by the Securityholder stating his intention to exercise the Option Right securitised in the Security (the “Exercise Notice”). The Exercise Notice is irrevocable and binding and shall contain among others (a) the name of the Securityholder, (b) an indication of the number of Securities to be exercised and (c) the account of the Securityholder with a credit institution, to which the transfer of the Settlement Amount, if any, shall be effected.

(ii) the effected transfer of the respective Securities to the Warrant Agent either (a) by an irrevocable order to the Warrant Agent to withdraw the Securities from a deposit maintained with the Warrant Agent or

(b) by crediting the Securities to the account maintained by the Warrant Agent with the Clearing System.

If these conditions are met after lapse of the Exercise Time on the Exercise Date, the Option Right shall be deemed to be exercised on the immediately succeeding Exercise Date provided that such day falls within the Exercise Period.

(4) Upon exercise of the Option Rights as well as determination of the Settlement Price of the Underlying the Calculation Agent (§ 9) shall calculate the Settlement Amount payable, if any, either corresponding to the number of Securities actually delivered or to the number of Securities

Ausübungserklärung genannten Anzahl von Wertpapieren, je nachdem, welche Zahl niedriger ist. Ein etwa verbleibender Überschuss bezüglich der gelieferten Wertpapiere wird an den maßgeblichen Wertpapiergläubiger auf dessen Kosten und Gefahr zurückgewährt.

(5) Die insoweit von der Berechnungsstelle getroffenen Berechnungen sind, außer in Fällen offensichtlichen Irrtums, abschließend und für alle Beteiligten bindend.

specified in the Exercise Notice, whichever is lower. Any remaining excess amount with respect to the Securities delivered will be returned to the relevant Securityholder at his cost and risk.

(5) Calculations made in this respect by the Calculation Agent are final and binding for all participants except in the event of manifest error.

§ 3

Automatische Ausübung; Ausübungstag

§ 3

Automatic Exercise; Exercise Date

(1) Optionsrechte, die innerhalb der Ausübungsfrist nicht oder nicht wirksam ausgeübt wurden, gelten vorbehaltlich von § 3 (2) dieser Bedingungen als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxxxxxxxxxxx, xxx Xxxxxxxxxxx xxx Xxxxxxxxxxx oder der Erfüllung sonstiger Voraussetzungen bedarf (die

„Automatische Ausübung“).

(2) Jeder Wertpapiergläubiger hat das Recht, durch schriftliche und rechtsverbindlich unterzeichnete Erklärung gegenüber der Emittentin am Verfalltag bis spätestens 10:00 Uhr auf die Automatische Ausübung am Verfalltag zu verzichten.

Optionsrechte, die innerhalb der Ausübungsfrist nicht oder nicht wirksam ausgeübt wurden, gelten als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxxxxxxxxxxx, xxx Xxxx- tragung der Wertpapiere oder der Erfüllung sonstiger Voraussetzungen bedarf (die

„Automatische Ausübung“).

(1) Option Rights, which have not been or have not been validly exercised, are, subject to § 3 (2) of these Conditions, deemed to be exercised without requiring the submission of an Exercise Notice, the transfer of the Securities or the fulfilment of further special preconditions (also the “Automatic Exercise”) on the Expiration Date (the “Exercise Day”).

(2) Each Securityholder shall have the right to waive the Automatic Exercise on the Expiration Date by giving written and legally signed notice to the Issuer latest by 10:00 hrs on the Expiration Date.

Option Rights, which have not been or have not been validly exercised, are deemed to be exercised without requiring the submission of an Exercise Notice, the transfer of the Securities or the fulfilment of further special preconditions (also the “Automatic Exercise”) on the Expiration Date (the “Exercise Date”).

TEIL 3: ALLGEMEINE WERTPAPIER- BEDINGUNGEN

PART 3: GENERAL CONDITIONS OF THE SECURITIES

§ 4

Form der Wertpapiere; Verzinsung und Dividenden; Dauerglobalurkunde; Übertragbarkeit; Status

§ 4

Form of Securities; Interest and Dividends; Permanent Global Note; Transfer; Status

(1) Die von der Emittentin begebenen auf den Inhaber lautenden Wertpapiere sind durch eine oder mehrere Dauer-Inhaber-Sammelurkunde(n) (die „Dauerglobalurkunde“) verbrieft. Effektive Wertpapiere werden nicht ausgegeben. Der Anspruch auf Lieferung effektiver Wertpapiere ist ausgeschlossen.

Auf die Wertpapiere werden weder Zinsen noch Dividenden gezahlt.

(2) Die Dauerglobalurkunde ist bei der Clearingstelle hinterlegt. Die Wertpapiere sind als Miteigentumsanteile an der Dauerglobalurkunde übertragbar und sind im Effektengiroverkehr ausschließlich in der kleinsten handelbaren Einheit übertragbar. Die Übertragung wird mit Eintragung der Übertragung in den Büchern der Clearingstelle wirksam.

(3) Die Wertpapiere begründen unmittelbare, unbesicherte und nicht nachrangige Verbind- lichkeiten der Emittentin, die untereinander und mit xxxxx sonstigen gegenwärtigen und künftigen unbesicherten und nicht nachrangigen Verbindlichkeiten der Emittentin gleichrangig sind, ausgenommen solche Verbindlichkeiten, denen aufgrund zwingender gesetzlicher Vorschriften Vorrang zukommt.

(1) The bearer Securities issued by the Issuer are represented in one or more permanent global bearer document(s) (the “Permanent Global Note”). No definitive Securities will be issued. The right to request the delivery of definitive Securities is excluded.

No interest and no dividends are payable on the Securities.

(2) The Permanent Global Note is deposited with the Clearing System. The Securities are transferable as co-ownership interests in the Permanent Global Note and may be transferred within the collective securities settlement procedure in the Minimum Trading Size only. Such transfer becomes effective upon registration of the transfer in the records of the Clearing System.

(3) The Securities constitute direct, unsecured and unsubordinated obligations of the Issuer, ranking pari passu among themselves and with all other present and future unsecured and unsubordinated obligations of the Issuer, other than obligations preferred by mandatory provisions of law.

§ 5

Tilgung; Vorlegungsfrist

§ 5

Settlement; Period of Presentation

(1) Die Emittentin wird, vorbehaltlich einer Markt- störung (§ 8 (3)) bis zum Rückzahlungstag (keinesfalls aber vor dem Rückzahlungstag), die Überweisung des Auszahlungsbetrags bzw. des Vorzeitigen Auszahlungsbetrags (§ 7 (3) in der Auszahlungswährung über die Zahlstelle zur Gutschrift auf das Konto des jeweils

(1) The Issuer will, subject to a Market Disruption (§ 8 (3)), procure until the Settlement Date (in any case not before the Settlement Date) the payment of the Settlement Amount or the Early Redemption Amount (§ 7 (3)), as the case may be, in the Settlement Currency to be credited via the Paying Agent to the account of the relevant

maßgeblichen Wertpapiergläubigers über die Clearingstelle veranlassen.

(2) Die Emittentin wird von ihrer Verpflichtung unter diesen Wertpapieren durch Zahlung des Auszahlungsbetrags, des Vorzeitigen Aus- zahlungsbetrags oder der sonstigen Zahlungs- beträge unter diesen Bedingungen an die Clearingstelle zur Weiterleitung an den jeweiligen Wertpapiergläubiger befreit.

(3) Alle im Zusammenhang mit (i) der Ausübung der Wertpapiere und/oder (ii) der Zahlung des Aus- zahlungsbetrags, des Vorzeitigen Auszahlungs- betrags oder der sonstigen Zahlungsbeträge unter diesen Bedingungen anfallenden Steuern, Abgaben und/oder Kosten sind von dem jeweiligen Wertpapiergläubiger zu tragen und zu zahlen. Die Emittentin und die Zahlstelle sind berechtigt, jedoch nicht verpflichtet, von den an den Wertpapiergläubiger zahlbaren Xxxxxxxx xxx Xxxxxxxxxxx xxx Xxxxxxx, Xxxxxxx, Xxxxxxxx, Xxxxxxx oder sonstigen Zahlungen den erforderlichen Betrag einzubehalten oder abzuziehen. Jeder Wertpapiergläubiger hat die Emittentin bzw. die Zahlstelle von Verlusten, Kosten oder sonstigen Verbindlichkeiten, die ihr in Verbindung mit derartigen Steuern, Abgaben, Gebühren, Abzügen oder sonstigen Zahlungen im Hinblick auf die Wertpapiere des jeweiligen Wertpapiergläubigers entstehen, freizustellen.

(4) Die Vorlegungsfrist gemäß § 801 Absatz 1 Satz 1 BGB wird auf zehn Jahre verkürzt.

Securityholder via the Clearing System.

(2) The Issuer will be discharged from its obligations under the Securities by payment of the Settlement Amount, the Early Redemption Amount, as the case may be, or of any other amount payable under these Conditions to the Clearing System for further credit to the relevant Securityholder.

(3) All taxes, charges and/or expenses incurred in connection with (i) the exercise of the Securities and/or (ii) the payment of the Settlement Amount, the Early Redemption Amount or of any other amount payable under these Conditions, as the case may be, shall be borne and paid by the Securityholder. The Issuer and the Paying Agent, as the case may be, are entitled, but not obliged, to withhold or deduct, as the case may be, from any amount payable to the Securityholder such amount required for the purpose of settlement of taxes, charges, expenses, deductions or other payments. Each Securityholder shall reimburse the Issuer or the Paying Agent, as the case may be, from any losses, costs or other debts incurred in connection with these taxes, charges, expenses, deductions or other payments related to the Security of the relevant Securityholder.

(4) The period of presentation as established in

§ 801 section 1 sentence 1 of the BGB is reduced to ten years.

§ 6

Anpassungen; Nachfolge-Index Sponsor; Nachfolgeindex

§ 6

Adjustments; Successor Index Sponsor; Successor Index

(1) Sollte der Index endgültig nicht mehr vom Index Sponsor verwaltet, berechnet und veröffentlicht werden, ist die Emittentin berechtigt, den Index Sponsor durch eine Person, Gesellschaft oder Institution, die für die Berechnungsstelle und die Emittentin nach billigem Xxxxxxxx xxxxx

§ 000 XXX akzeptabel ist (der „Nachfolge- Index Sponsor“), zu ersetzen.

In diesem Fall gilt dieser Nachfolge-Index Sponsor als Index Sponsor und jede in diesen

(1) If the Index is definitively not maintained, calculated and published by the Index Sponsor anymore, the Issuer shall be entitled to replace the Index Sponsor by a person, company or institution, which is acceptable to the Calculation Agent and the Issuer at their reasonable discretion pursuant to § 315 of the BGB (the “Successor Index Sponsor”).

In such case, the Successor Index Sponsor will be deemed to be the Index Sponsor and each

Bedingungen enthaltene Bezugnahme auf den Index Sponsor als Bezugnahme auf den Nachfolge-Index Sponsor.

(2) Veränderungen in der Berechnung des Index (einschließlich Bereinigungen) oder der Zusammensetzung oder Gewichtung der Kurse oder Wertpapiere, auf deren Grundlage der Index berechnet wird, führen nicht zu einer Anpassung, es sei denn, dass das an dem Bewertungstag maßgebende Konzept und die Berechnung des Index infolge einer Veränderung (einschließlich einer Bereinigung) nach Auffassung der Berechnungsstelle und der Emittentin nach billigem Xxxxxxxx xxxxx § 000 XXX nicht mehr vergleichbar ist mit dem bisher maßgebenden Konzept oder der maßgebenden Berechnung des Index. Dies gilt insbesondere, wenn sich aufgrund irgendeiner Änderung trotz gleich bleibender Kurse der in dem Index enthaltenen Einzelwerte und ihrer Gewichtung eine wesentliche Änderung des Indexwertes ergibt. Eine Anpas- sung kann auch bei Aufhebung des Index und/oder seiner Ersetzung durch einen anderen Index erfolgen. Zum Zweck einer Anpassung ermitteln die Berechnungsstelle und die Emittentin nach billigem Xxxxxxxx xxxxx

§ 000 XXX einen angepassten Wert je Index- Xxxxxxx, xxx xxx xxx Xxxxxxxxxx xxx Xxxxxx xxx Xxxxxxxxxx xxxxxxxx gelegt wird und in seinem wirtschaftlichen Ergebnis der bisherigen Regelung entspricht, und bestimmt unter Berück- sichtigung des Zeitpunktes der Veränderung den Tag, zu dem der angepasste Wert je Index-Punkt erstmals zugrunde zu legen ist. Der angepasste Wert je Index-Einheit sowie der Zeitpunkt seiner erstmaligen Xxxxxxxxx xxxxxx xxxxxxxxxxxx xxxxx § 00 xxxxxx Xxxxxxxxxxx xxxxxxx gemacht.

(3) Erlischt die Erlaubnis der Emittentin, den Index für die Zwecke der Wertpapiere zu verwenden oder wird der Index aufgehoben und/oder durch einen anderen Index ersetzt, legen die Berechnungsstelle und die Emittentin nach billigem Ermessen gemäß § 315 BGB, gege- benenfalls unter entsprechender Anpassung entsprechend § 6 (2) dieser Bedingungen, fest, welcher Index künftig zugrunde zu legen ist (der

„Nachfolgeindex“). Der Nachfolgeindex sowie der Zeitpunkt seiner erstmaligen Anwendung

reference in these Conditions to the Index Sponsor shall be deemed to refer to the Successor Index Sponsor.

(2) Any changes in the calculation of the Index (including corrections) or of the composition or of the weighting of the prices or securities, which form the basis of the calculation of the Index, shall not lead to an adjustment unless the Calculation Agent and the Issuer, upon exercise of their reasonable discretion (§ 315 of the BGB), determine that the underlying concept and the calculation of the Index (including corrections) applicable on any Valuation Date 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. Adjustments may also be made as a result of the termination of the Index and/or its substitution by another Index. For the purposes of making any adjustments, the Calculation Agent and the Issuer shall at their reasonable discretion pursuant to § 315 of the BGB determine an adjusted value per Index unit as the basis of the determination of the Price of the Underlying, which in its result corresponds with the economic result prior to this change, and shall, taking into account the time the change occurred, determine the day, on which the adjusted value per Index unit shall apply for the first time. The adjusted value per Index unit as well as the date of its first application shall be published without undue delay pursuant to § 11 of these Conditions.

(3) In the event that the authorisation of the Issuer to use the Index for the purposes of the Securities is terminated or that the Index is terminated and/or replaced by another index, the Calculation Agent and the Issuer shall determine at their reasonable discretion pursuant to § 315 of the BGB, after having made appropriate adjustments according to § 6 (2) of these Conditions, which Index (the “Successor Index“) shall be applicable in the future. The Successor Index and the date it is applied for the

werden unverzüglich gemäß § 11 dieser Bedingungen bekannt gemacht.

Jede in diesen Bedingungen enthaltene Bezug- nahme auf den Index gilt dann, sofern es der Zusammenhang erlaubt, als Bezugnahme auf den Nachfolgeindex.

(4) Ist nach Ansicht der Berechnungsstelle und der Emittentin, nach billigem Xxxxxxxx xxxxx

§ 000 XXX, eine Anpassung oder die Festlegung eines Nachfolgeindex, aus welchen Xxxxxxx auch immer, nicht möglich, werden die Berechnungsstelle und die Emittentin für die Weiterrechnung und Veröffentlichung des Index auf der Grundlage des bisherigen Indexkonzeptes und des letzten festgestellten Indexwertes Sorge tragen. Eine derartige Fortführung wird unverzüglich gemäß § 11 dieser Bedingungen bekannt gemacht.

(5) Die xx xxx xxxxxxxxxxxx § 0 (0) xxx (0) xxxxxx Xxxxxxxxxxx xxxxxxxxx Anpassungen und Fest- legungen der Berechnungsstelle und der Emittentin nach billigem Xxxxxxxx xxxxx

§ 000 XXX sind abschließend und verbindlich, es sei denn, es liegt ein offensichtlicher Irrtum vor.

(6) Vorgenommene Anpassungen und Festlegungen xxxxxx xxx xxx Xxxxxxxxxx xxxx § 00 xxxxxx Xxxxxxxxxxx xxxxxxx gemacht.

(7) Das Recht der Emittentin zur Kündigung gemäß

§ 7 dieser Bedingungen bleibt hiervon unberührt.

first time shall be published without undue delay in accordance with § 11 of these Conditions.

Any reference in these Conditions of Securities to the Index shall, to the extent appropriate, be deemed to refer to the Successor Index.

(4) If, in the opinion of the Calculation Agent and the Issuer at their reasonable discretion pursuant to § 315 of the BGB, an adjustment or the determination of a Successor Index is not possible, for whatsoever reason, the Calculation Agent and the Issuer shall, at their reasonable discretion pursuant to § 315 of the BGB provide for the continued calculation and publication of the Index on the basis of the existing Index concept and the last determined Index value. Any such continuation shall be published without undue delay pursuant to § 11 of these Conditions.

(5) The adjustments and determinations of the Calculation Agent and the Issuer pursuant to

§ 6 (1) through (4) of these Conditions at their reasonable discretion pursuant to § 315 of the BGB shall be conclusive and binding, except where there is a manifest error.

(6) Any effected adjustment and determination described above shall be published by the Issuer in accordance with § 11 of these Conditions.

(7) The Issuer’s right for termination in accordance with § 7 of these Conditions remains unaffected.

§ 7

Kündigung

§ 7

Termination

(1) Bei Vorliegen eines der nachstehend beispielhaft beschriebenen „Kündigungsereignisse“ ist die Emittentin berechtigt, aber nicht verpflichtet, die Wertpapiere durch Xxxxxxxxxxxxxx xxxxx

§ 00 xxxxx Xxxxxx xxx Xxxxxxxxxxxxxxxxxxxxx xx xxxxxxxx (die „Kündigung“):

(i) Die Ermittlung und/oder Veröffentlichung des Kurses des Basiswerts wird endgültig eingestellt oder der Emittentin oder der Berechnungsstelle wird eine entsprechende Absicht bekannt.

(ii) Die Emittentin und die Berechnungsstelle sind nach Ausübung billigen Ermessens

(1) If any of the following “Termination Events”, as described below, occurs at any time, the Issuer shall be entitled, but not obliged, to terminate the Securities by way of publication pursuant to

§ 11 specifying the Termination Event (the “Termination”):

(i) The determination and/or publication of the Price of the Underlying is discontinued permanently or the Issuer or the Calculation Agent obtains knowledge about the intention to do so.

(ii) It is, in the opinion of the Issuer and of the Calculation Agent at their reasonable

gemäß § 315 BGB der Ansicht, dass eine Anpassung dieser Bedingungen oder die Festlegung eines Nachfolge-Index Sponsors oder Nachfolgeindex, aus welchen Xxxxxxx auch immer, nicht möglich sei.

(iii) Die Emittentin und die Berechnungsstelle sind nach Ausübung billigen Ermessens gemäß § 315 BGB der Ansicht, dass eine sonstige erhebliche Änderung der Marktbedingungen an der für die Bestimmung des Kurses des Basiswerts zuständigen Maßgeblichen Börse eingetreten ist.

(2) Die Kündigung hat innerhalb von einem Monat nach dem Vorliegen des Kündigungsereignisses und unter Angabe des Kalendertags, zu dem die Kündigung wirksam wird (der

„Kündigungstag“), zu erfolgen. In Zweifelsfällen über das Vorliegen des Kündigungsereignisses entscheidet die Xxxxxxxxxx xxxxx § 000 XXX nach billigem Ermessen.

(3) Im Fall der Kündigung zahlt die Emittentin an jeden Wertpapiergläubiger bezüglich jedes von ihm gehaltenen Wertpapiers einen Xxxxxxxxxx xx xxx Xxxxxxxxxxxxxxxxxx, xxx xxx xxx Xxxxxxxxxx xxxxx § 000 XXX nach billigem Ermessen, gegebenenfalls unter Berücksichtigung des dann maßgeblichen Kurses des Basiswerts und der durch die Kündigung bei der Emittentin angefallenen Kosten, als angemessener Marktpreis eines Wertpapiers bei Kündigung festgelegt wird (der „Vorzeitige Auszahlungsbetrag“).

discretion pursuant to § 315 of the BGB, not possible, for whatever reason, to make adjustments to these Conditions or to select a Successor Index Sponsor or a Successor Index.

(iii) In the opinion of the Issuer and of the Calculation Agent at their reasonable discretion pursuant to § 315 of the BGB, another material change in the market conditions occurred in relation to the Relevant Stock Exchange relevant for the calculation and determination of the Price of the Underlying.

(2) The Termination has to be effected within one month following the occurrence of the Termination Event and shall specify the calendar day, on which the Termination becomes effective (the “Termination Date”). The Issuer reserves the right to determine in cases of doubt the occurrence of a Termination Event. Such deter- mination shall be done at the Issuer‘s reasonable discretion pursuant to § 315 of the BGB.

(3) In case of Termination the Issuer shall pay to each Securityholder an amount in the Settlement Currency with respect to each Certificate held by him, which is stipulated by the Issuer at its reasonable discretion and, if applicable, considering the Price of the Underlying then prevailing and the expenses of the Issuer caused by the Termination, pursuant to § 315 of the BGB as fair market price at occurrence of termination (the “Early Redemption Amount”).

§ 8

Marktstörungen

§ 8

Market Disruptions

(1) Sind die Emittentin und die Berechnungsstelle nach Ausübung billigen Ermessens gemäß

§ 315 BGB der Ansicht, dass an dem Bewertungstag bzw. dem Festlegungstag eine Marktstörung (§ 8 (3)) vorliegt, dann wird der Bewertungstag bzw. der Festlegungstag auf den unmittelbar darauf folgenden Basiswert- Berechnungstag, an dem keine Marktstörung mehr vorliegt, verschoben. Die Emittentin wird sich bemühen, den Beteiligten unverzüglich

(1) If, in the opinion of the Issuer and of the Calculation Agent at their reasonable discretion pursuant to § 315 of the BGB, a Market Disruption (§ 8 (3)) prevails on the Valuation Date or on the Fixing Date, the Valuation Date or the the Fixing Date shall be postponed to the next succeeding Underlying Calculation Dates on which no Market Disruption prevails. The Issuer shall endeavour to notify the parties pursuant to

§ 11 without delay of the occurrence of a

gemäß § 11 mitzuteilen, dass eine Marktstörung eingetreten ist. Eine Pflicht zur Mitteilung besteht jedoch nicht.

(2) Wenn der Bewertungstag aufgrund der Be- stimmungen des § 8 (1) um acht Basiswert- Berechnungstage nach dem Bewertungstag verschoben worden ist und auch an diesem Tag die Marktstörung fortbesteht, dann gilt dieser Tag als der Bewertungstag eine weitere Verschiebung des Bewertungstags findet nicht statt.

Die Emittentin und die Berechnungsstelle werden dann nach Ausübung billigen Xxxxxxxxx xxxxx

§ 000 XXX sowie unter Berücksichtigung (i) der dann herrschenden Marktgegebenheiten,

(ii) eines geschätzten Kurses des Basiswerts, ermittelt auf Grundlage der zuletzt erhältlichen Kurse des Basiswerts und der von dem Index Sponsor abgegebenen Schätzungen, und

(iii) sämtlicher sonstiger Konditionen bzw. Faktoren, die die Emittentin und die Berechnungsstelle angemessenerweise für bedeutsam halten, bestimmen, ob, und gegebenenfalls in welcher Höhe, die Emittentin einen Geldbetrag in der Auszahlungswährung zahlen wird. Auf diesen Geldbetrag finden die in diesen Bedingungen enthaltenen Bestimmungen über den Auszahlungsbetrag entsprechende Anwendung.

Market Disruption. However, there is no notification obligation.

(2) If the Valuation Date has been postponed, due to the provisions of § 8 (1), by eight Underlying Calculation Dates following the Valuation Date and if the Market Disruption continues to prevail on this day, this day shall be deemed the Valuation Date and the Valuation Date shall not be further postponed.

The Issuer and the Calculation Agent will then, at their reasonable discretion pursuant to § 315 of the BGB and taking into account (i) the market conditions then prevailing, (ii) a Price of the Underlying estimated on the basis of last announced Prices of the Underlying and of any estimate given by the Index Sponsor, and

(iii) such other conditions or factors as the Issuer and the Calculation Agent reasonably consider to be relevant, determine whether and in which amount, if applicable, the Issuer will make payment of an amount in the Settlement Currency. The provisions of these Conditions relating to the Settlement Amount shall apply mutatis mutandis to such payment.

(3) Eine „Marktstörung“ bedeutet (3) A “Market Disruption” shall mean

die Suspendierung der Bekanntgabe des maßgeblichen Kurs des Basiswerts an einem für die Berechung eines Auszahlungsbetrags bzw. eines Vorzeitigen Auszahlungsbetrags maßgeblichen Basiswert-Berechnungstag oder

die Suspendierung oder eine nach Auffassung der Emittentin und der Berechnungsstelle wesentliche Einschränkung des Handels

(i) an der/den Börse(n) bzw. in dem Markt/den Märkten, an/in der/dem/denen die dem Basiswert zugrunde liegenden Werte notiert oder gehandelt werden, allgemein, oder

(ii) in einzelnen dem Basiswert zugrunde liegender Werte an der/den Börse(n) bzw. in dem Markt/den Märkten an/in der/dem/ denen diese Werte notiert oder gehandelt werden, sofern eine wesentliche Anzahl oder ein wesentlicher Anteil unter Berück-

a suspension of the annoucement of the Price of the Underlying on any Underlying Calculation Date relevant for determining the Settlement Amount or the Early Redemption Amount, as the case may be, or

a suspension or a restriction, the latter of which is at the Issuer’s and Calculations Agent’s opinion significant, imposed on trading

(i) on the stock exchange(s) or in the market(s) on/in which the underlying values of Underlying are quoted or traded, in general, or

(ii) in individual underlying values of the Underlying on the stock exchange(s) or in the market/s on/in which these values are quoted or traded, provided that a major number or a major portion in terms of market capitalization is concerned (a

sichtigung der Marktkapitalisierung be- troffen ist (als wesentliche Anzahl bzw. wesentlicher Anteil gilt eine solche oder ein solcher von mehr als 20%), oder

(iii) in Options- oder Terminkontrakten in Bezug auf den Basiswert oder die dem Basiswert zugrunde liegenden Werte an der Maßgeblichen Terminbörse, falls solche Options- oder Terminkontrakte dort gehandelt werden, oder

(iv) aufgrund einer Anordnung einer Behörde oder der Maßgeblichen Börse bzw. aufgrund eines Moratoriums für Bank- geschäfte in dem Land, in dem die Maß- gebliche Börse ansässig ist, oder aufgrund sonstiger Umstände.

(4) Eine Beschränkung der Stunden oder Anzahl der Tage, an denen ein Handel stattfindet, gilt nicht als Marktstörung, sofern die Xxxxxxxxxxxxx xxx xxxxx Xxxxxxxx xxx xxxxxxxxx Xxxxxxxxxxxxxxx xxx Xxxxxxxxxxxx Xxxxx beruht, die mindestens eine (1) Stunde vor (i) entweder dem tat- sächlichen regulären Ende der Geschäftszeiten an der Maßgeblichen Börse oder (ii) dem Termin für die Abgabe von Handelsaufträgen zur Bearbeitung an dem betreffenden Tag an der Maßgeblichen Börse, je nachdem welcher Zeitpunkt früher ist, angekündigt worden ist. Eine im Laufe eines Tages auferlegte Beschränkung im Handel aufgrund von Preis- bewegungen, die bestimmte vorgegebene Grenzen überschreiten, gilt nur dann als Markt- störung, wenn diese Beschränkung bis zum Ende der Handelszeit an dem betreffenden Tag fortdauert.

number or part in excess of 20% shall be deemed to be material), or

(iii) in option or futures contracts with respect to the Underlying or to the underlying values of the Underlying on the Relevant Futures and Options Exchange, if such option or futures contracts are traded there, or

(iv) due to a directive of an authority, of the Relevant Stock Exchange or due to a moratorium, which is declared in respect of banking activities in the country, in which the Relevant Stock Exchange is located, or due to other whatsoever reasons.

(4) A restriction of the hours or the number of days during which trading takes place is not deemed a Market Disruption, if the restriction is based on a change in regular trading hours at the Relevant Stock Exchange announced in advance at least one (1) hour prior to the earlier of (i) the actual closing time for the regular trading hours of the Relevant Stock Exchange or (ii) the submission deadline for orders entered into the Relevant Stock Exchange for execution on the relevant day. A restriction of trading which is levied during the course of any day due to price developments exceeding certain prescribed limits shall only be deemed a Market Disruption, if such restriction continues until the end of trading hours on the relevant day.

§ 9

Berechnungsstelle; Optionsstelle;

Zahlstelle

§ 9

Calculation Agent; Warrant Agent; Paying Agent

(1) Die Berechnungsstelle, die Optionsstelle und die Zahlstelle (die „Wertpapierstellen“) über- nehmen diese Funktion jeweils in Übereinstimmung mit diesen Bedingungen. Jede der Wertpapierstellen haftet dafür, dass sie im Zusammenhang mit den Wertpapieren Handlungen bzw. Berechnungen vornimmt, nicht vornimmt oder nicht richtig vornimmt oder

(1) The Calculation Agent, the Warrant Agent and the Paying Agent (the “Security Agents”) shall assume such role in accordance with the Conditions. Each of the Security Agents shall be liable for making, failing to make or incorrectly making any measure or calculations, as the case may be, or for taking or failing to take any other measures only if and insofar as they fail to

sonstige Maßnahmen trifft oder unterlässt nur, wenn und soweit sie jeweils die Sorgfalt eines ordentlichen Kaufmanns verletzt hat.

(2) Jede der Wertpapierstellen handelt ausschließlich als Erfüllungsgehilfin der Emittentin und hat keinerlei Pflichten gegenüber dem Wertpapiergläubiger. Die Wertpapierstellen sind xxxxxxx xxx xxx Xxxxxxxxxxxxxx xxx § 000 XXX befreit.

(3) Die Emittentin ist berechtigt, jederzeit jede oder alle der Wertpapierstellen durch ein anderes Finanzinstitut zu ersetzen, eine oder mehrere zusätzliche Wertpapierstellen zu bestellen und deren Bestellung zu widerrufen. Ersetzung, Bestellung und Xxxxxxxx xxxxxx xxxxx § 00 xxxxxxx gemacht.

(4) Jede der Wertpapierstellen ist berechtigt, durch schriftliche Anzeige gegenüber der Emittentin jederzeit ihr Amt niederzulegen. Die Niederlegung wird nur wirksam mit der Bestellung einer anderen Gesellschaft als Berechnungsstelle, Optionsstelle bzw. als Zahlstelle durch die Emittentin. Niederlegung und Bestellung werden gemäß § 11 bekannt gemacht.

exercise the due diligence of a prudent businessman.

(2) Each of the Security Agents acts exclusively as vicarious agent of the Issuer and has no obligations to the Securityholder. Each of the Security Agents is exempt from the restrictions under § 181 of the BGB.

(3) The Issuer is entitled at any time to replace any of or all the Security Agents by another financial institution, to appoint one or several additional Security Agents, and to revoke their appointment. Such replacement, appointment and revocation shall be published in accordance with § 11.

(4) Each of the Security Agents is entitled to resign at any time from their function upon prior written notice to the Issuer. Such resignation shall only become effective if another company is appointed by the Issuer as Calculation Agent, Warrant Agent or as Paying Agent, as the case may be. Resignation and appointment are pub- lished in accordance with § 11.

§ 10

Xxxxxxxxx xxx Xxxxxxxxxx

§ 00

Substitution of the Issuer

(1) Die Emittentin ist jederzeit berechtigt, ohne Zustimmung der Wertpapiergläubiger eine andere Gesellschaft der UBS Gruppe als Emittentin (die „Neue Emittentin“) hinsichtlich aller Verpflichtungen aus oder in Verbindung mit den Wertpapieren an die Stelle der Emittentin zu setzen, sofern

(i) die Neue Emittentin alle Verpflichtungen der Emittentin aus oder in Verbindung mit den Wertpapieren übernimmt,

(ii) die Neue Emittentin alle etwa notwendigen Genehmigungen von den zuständigen Behörden erhalten hat, wonach die Neue Emittentin alle sich aus oder in Verbindung mit den Wertpapieren ergebenden Verpflichtungen erfüllen kann und Zahlungen ohne Einbehalt oder Abzug von irgendwelchen Steuern, Abgaben oder

(1) The Issuer is entitled at any time, without the consent of the Securityholders, to substitute another company within the UBS Group as issuer (the “New Issuer”) with respect to all obligations under or in connection with the Securities, if

(i) the New Issuer assumes all obligations of the Issuer under or in connection with the Securities,

(ii) the New Issuer has obtained all necessary authorisations, if any, by the competent authorities, under which the New Issuer may perform all obligations arising under or in connection with the Securities and transfer payments to the Paying Agent without withholding or deduction of any taxes, charges or expenses, and

Gebühren an die Zahlstelle transferieren darf, und

(iii) die Emittentin unbedingt und unwiderruflich die Verpflichtungen der Neuen Emittentin garantiert.

(2) Im Falle einer solchen Ersetzung der Emittentin gilt jede in diesen Bedingungen enthaltene Bezugnahme auf die Emittentin fortan als auf die Neue Emittentin bezogen.

(3) Die Ersetzung der Emittentin ist für die Wertpapiergläubiger endgültig und bindend und wird den Wertpapiergläubigern unverzüglich gemäß § 11 bekannt gemacht.

(iii) the Issuer unconditionally and irrevocably guarantees the obligations of the New Issuer.

(2) In case of such a substitution of the Issuer any reference in these Conditions to the Issuer shall forthwith be deemed to refer to the New Issuer.

(3) The substitution of the Issuer shall be final, binding and conclusive on the Securityholders and will be published to the Securityholders without undue delay in accordance with § 11 of these Conditions.

§ 11

Bekanntmachungen

§ 11

Publications

(1) Bekanntmachungen, die die Wertpapiere betreffen, werden in einer oder mehreren Zeitungen veröffentlicht, die in den Mitgliedstaaten des Europäischen Wirtschafts- raums, in denen das öffentliche Angebot unterbreitet wird, gängig sind oder in großer Auflage verlegt werden, und, sofern rechtlich erforderlich, im elektronischen Bundesanzeiger veröffentlicht bzw. in einer der jeweils maßgeblichen Rechtsordnung entsprechenden Form veröffentlicht. Soweit rechtlich zulässig werden die Bekanntmachungen den Wertpapier- gläubigern ausschließlich durch Mitteilung der Emittentin an die Clearingstelle zur Benachrichtigung der Wertpapiergläubiger übermittelt.

(2) Bekanntmachungen sind mit Veröffentlichung bzw. mit Mitteilung an die Clearingstelle durch die Emittentin den Wertpapiergläubigern gegenüber wirksam abgegeben.

(3) Bekanntmachungen sind, falls sie der Clearingstelle zugehen, am dritten Tag nach Zugang bei der Clearingstelle den Wert- papiergläubigern wirksam zugegangen oder, falls sie veröffentlicht werden (unabhängig davon, ob dies zusätzlich geschieht), am Tag der Veröffentlichung oder, falls sie mehr als einmal veröffentlicht werden, am Tag der ersten Veröffentlichung, oder falls Veröffentlichungen in

(1) Publications relating to the Securities will be published by insertion in one or more newspapers circulated throughout, or widely circulated in, the Member States of the European Economic Area, in which the offer to the public is made and, to the extent required by law, in the online German Federal Gazette (Bundes- anzeiger) or, as the case may be, in the way required by the relevant jurisdiction, respectively. To the extent legally possible, the publications will be published by way of Issuer’s notification to the Clearing System for the purpose of notifying the Securityholders.

(2) All publications have been validly given to the Securityholders with their publication or with the Issuer’s notification to the Clearing System, as the case may be.

(3) All publications shall, in case of the Issuer’s notification to the Clearing System, be effectively given to the Securityholders on the third day after their receipt by the Clearing System or, if published (whether or not such publication occurs in addition to a notification to the Clearing System) on the date of their publication, or, if published more than once, on the date of their first publication, or, if a publication is

mehr als einem Medium erforderlich sind, am Tag der ersten Veröffentlichung in xxxxx erforderlichen Medien. Im Fall der Bekannt- machung sowohl durch Veröffentlichung als auch durch Erklärung gegenüber der Clearingstelle ist die zeitlich vorangehende Bekanntmachung bzw. Erklärung maßgeblich.

§ 12

Begebung weiterer Wertpapiere; Ankauf; Einziehung; Entwertung

required in more than one medium, on the date of the first publication in all required media. In case of announcement by both, publication and Issuer’s notification to the Clearing System, the publication becomes effective on the date of the first of such publication or Issuer’s notification, as the case may be.

§ 12

Issue of further Securities; Purchase; Call;

Cancellation

(1) Die Emittentin ist berechtigt, ohne Zustimmung der Wertpapiergläubiger, jederzeit weitere Wertpapiere mit gleicher Ausstattung in der Weise zu begeben, dass sie mit diesen Wertpapieren eine einheitliche Serie bilden, wobei in diesem Fall der Begriff „Wertpapier“ entsprechend auszulegen ist.

(2) Die Emittentin ist berechtigt, ohne Zustimmung der Wertpapiergläubiger, jederzeit Wertpapiere im Markt oder anderweitig zu jedem beliebigen Preis zu kaufen. Sofern diese Käufe durch öffentliches Angebot erfolgen, muss dieses Angebot xxxxx Wertpapiergläubigern gegenüber erfolgen. Die von der Emittentin erworbenen Wertpapiere können nach Xxxx der Emittentin von ihr gehalten, weiterverkauft oder entwertet werden.

(3) Die Emittentin ist berechtigt, ohne Zustimmung der Wertpapiergläubiger, jederzeit ausstehende Wertpapiere einzuziehen und damit ihre Anzahl zu reduzieren.

(4) Aufstockung bzw. Xxxxxxxxxxx xxx Xxxxxxxxxxx xxxxxx xxxxxxxxxxxx xxxxx § 00 xxxxxx Xxxxxxxxxxx xxxxxxx gemacht.

(5) Sämtliche vollständig zurückgezahlten Wertpapiere sind unverzüglich zu entwerten und können nicht wiederbegeben oder wiederverkauft werden.

(1) The Issuer is entitled at any time to issue, without the consent of the Securityholders, further securities having the same terms and conditions as the Securities so that the same shall be consolidated and form a single series with such Securities, and references to “Securities” shall be construed accordingly.

(2) The Issuer is entitled at any time to purchase, without the consent of the Securityholders, Securities at any price in the open market or otherwise. If purchases are made by public tender, public tenders must be available to all Securityholders alike. Such Securities may be held, reissued, resold or cancelled, all at the option of the Issuer.

(3) The Issuer is entitled at any time to call, without the consent of the Securityholders, outstanding Securities and to reduce their number.

(4) Increase or reduction of Securities shall be published without undue delay in accordance with § 11 of these Conditions.

(5) All Securities redeemed in full shall be cancelled forthwith and may not be reissued or resold.

§ 13

Sprache

§ 13

Language

Diese Bedingungen sind in deutscher Sprache abgefasst. Eine Übersetzung in die englische Sprache ist beigefügt. Der deutsche Text ist bindend und maßgeblich. Die Übersetzung in die

These Conditions are written in the German language and provided with an English language translation. The German text shall be controlling and binding. The English language translation is

englische Sprache ist unverbindlich. provided for convenience only.

§ 14

Anwendbares Recht; Erfüllungsort; Gerichtsstand; Zustellungsbevollmächtigte; Korrekturen; Teilunwirksamkeit

§ 14

Governing Law; Place of Performance; Place of Jurisdiction; Agent of Process;

Corrections; Severability

(1) Form und Inhalt der Wertpapiere sowie alle Rechte und Pflichten aus den in diesen Bedingungen geregelten Angelegenheiten bestimmen sich in jeder Hinsicht nach dem Recht der Bundesrepublik Deutschland.

(2) Erfüllungsort und Gerichtsstand für alle Klagen oder sonstigen Verfahren aus oder im Zusammenhang mit den Wertpapieren ist, soweit rechtlich zulässig, Frankfurt am Main, Bundesrepublik Deutschland.

(3) Die UBS AG, Niederlassung London, in ihrer Funktion als Emittentin und die UBS Limited in ihren Funktionen als Anbieterin und Zahlstelle ernennen hiermit die UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx, als deutsche Bevollmächtigte, an die innerhalb der Bundesrepublik Deutschland im Rahmen jedes Verfahrens aus oder im Zusammenhang mit den Wertpapieren die Zustellung bewirkt werden kann (die „Zustellungsbevollmächtigte“). Falls, aus welchem Grund auch immer, die Zustellungsbevollmächtigte diese Funktion nicht mehr ausübt oder keine Anschrift innerhalb der Bundesrepublik Deutschland mehr hat, verpflichten sich die UBS AG, Niederlassung London, und die UBS Limited, eine Ersatz- Zustellungsbevollmächtigte in der Bundesrepublik Deutschland zu ernennen. Hiervon unberührt bleibt die Möglichkeit, die Zustellung in jeder anderen gesetzlich zulässigen Weise zu bewirken.

(4) Die Emittentin ist berechtigt, in diesen Bedingungen (i) offensichtliche Schreib- oder Rechenfehler oder ähnliche offenbare Unrichtigkeiten sowie (ii) widersprüchliche oder lückenhafte Bestimmungen ohne Zustimmung der Wertpapiergläubiger zu ändern bzw. zu ergänzen, wobei in den unter (ii) genannten Fällen nur solche Änderungen bzw. Ergänzungen zulässig sind, die unter Berücksichtigung der Interessen der Emittentin für die Wert- papiergläubiger zumutbar sind, das heißt die die

(1) The form and content of the Securities as well as all rights and duties arising from the matters provided for in these Conditions shall in every respect be governed by the laws of the Federal Republic of Germany.

(2) The place of performance and place of jurisdiction for all actions or other procedures under or in connection with the Securities shall, to the extent legally possible, be Frankfurt am Main, Federal Republic of Germany.

(3) Each of UBS AG, London Branch, in its role as Issuer and UBS Limited in its roles as Offeror, and Paying Agent hereby appoints UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx of Germany, as its agent in the Federal Republic of Germany to receive service of process in any proceedings under or in connection with the Securities in the Federal Republic of Germany (the “Agent of Process”). If, for any reason, such Agent of Process ceases to act as such or no longer has an address in the Federal Republic of Germany, UBS AG, London Branch, and UBS Limited agree to appoint a substitute agent of process in the Federal Republic of Germany. Nothing herein shall affect the right to serve the process in any other manner permitted by law.

(4) The Issuer is entitled to change or amend, as the case may be, in these Conditions of Securities

(i) any manifest writing or calculation errors or other manifest incorrectness as well as (ii) any conflicting or incomplete provisions without the consent of the Securityholders, provided that in the cases referred to under (ii) only such changes or amendments shall be permissible which are acceptable to the Securityholders taking into account the interests of the Issuer, i.e. which do not materially impair the financial situation of the

finanzielle Xxxxxxxxx xxx Xxxxxxx xxxxx xxxxxxxxxx xxxxxxxxxxxxxx. Xxxxxxxxxx xxx. Xxxxxxxxxxx dieser Xxxxxxxxxxx xxxxxx xxxxx § 00 xxxxxxx gemacht.

(5) Sollte eine Bestimmung dieser Bedingungen ganz oder teilweise unwirksam sein oder werden, so bleiben die übrigen Bestimmungen wirksam. Die unwirksame Bestimmung ist durch eine wirksame Bestimmung zu ersetzen, die den wirtschaftlichen Zwecken der unwirksamen Bestimmung so weit wie rechtlich möglich entspricht. Entsprechendes gilt für etwaige Xxxxxx in den Bedingungen.

relevant Securityholder. Any changes or amendments of these Conditions shall be published in accordance with § 11.

(5) If any of the provisions of these Conditions is or becomes invalid in whole or in part, the remaining provision(s) shall remain valid. The invalid provision shall be replaced by a valid provision, which, to the extent legally possible, serves the economic purposes of the invalid provision. The same applies to gaps, if any, in these Conditions.

RISK FACTORS RELATING TO THE ISSUER AND THE SECURITIES

The different risk factors associated with investment in the Securities issued within the framework of this Prospectus are outlined below. Which of these are relevant to the Securities described in this Prospectus depends upon a number of interrelated factors, especially the type of Securities and Underlyings. Investments in the Securities should not be made until all the factors relevant to the Securities have been acknowledged and carefully considered. Terminology and expressions defined in the Terms and Conditions shall have the same meaning when used herein. When making decisions relating to investments in the Securities, potential buyers should consider all information contained in the Prospectus and, if necessary, consult their legal, tax, financial or other advisor.

I. ISSUER-SPECIFIC RISKS

As a global financial services provider, the business activities of UBS are affected by the prevailing market situation. Different risk factors can impair the Company’s ability to implement business strategies and have a direct, negative impact on earnings. Accordingly, UBS’ revenues and earnings are and have been subject to fluctuations. The revenues and earnings figures from a specific period, thus, are not evidence of sustainable results. They can change from one year to the next and affect UBS’ ability to achieve its strategic objectives. A more comprehensive description of the risk factors, in the English language, can be found on pages 43-70 (inclusive) of the UBS Handbook 2004/2005, and on pages 16-17 (inclusive) of the UBS Financial Report 2004.

General insolvency risk

Each investor bears the general risk that the financial situation of the Issuer could deteriorate. The Securities constitute direct, unsecured and unsubordinated obligations of the Issuer, which – even in the event that the Issuer is declared insolvent - 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.

Effect of downgrading of the Issuer rating

The general assessment of the Issuer’s creditworthiness may affect the value of the Securities. This assessment generally depends on the ratings assigned to the Issuer or its affiliated companies by rating agencies such as Moody’s, Fitch and S&P.

Potential conflicts of interest

The Issuer and affiliated companies may participate in transactions related to the Securities in some way, for their own account or for account of a client. Such transactions may not serve to benefit the Securityholders and may have a positive or negative effect on the value of the Underlying and consequently on the value of the Securities. Furthermore, companies affiliated with the Issuer may become counterparties in hedging transactions relating to obligations of the Issuer stemming from the Securities. As a result, conflicts of interest can arise between the companies affiliated with the Issuer, as well as these companies and investors, in relation to obligations regarding the calculation of the price of the Securities and other associated determinations. In addition, the Issuer and its affiliates may act in other capacities with regard to the Securities, such as calculation agent, paying agent and administrative agent and/or index sponsor.

Furthermore, the Issuer and its affiliates may also issue other derivative instruments relating to the respective Underlying; introduction of such competing products may affect the value of the Securities. The Issuer and its affiliated companies may receive non-public information relating to the Underlying, and neither the Issuer nor any of its associated companies undertakes to make this information available to Securityholders. In addition, one or more of the Issuer’s affiliated companies may publish research reports on the Underlying. Such activities could present conflicts of interest and may affect the value of the Securities.

Within the context of the offering and sale of the Securities, the Issuer or any of its affiliated companies may directly or indirectly pay fees in varying amounts to third parties, such as distributors or investment advisors, or receive payment of fees in varying amounts, including those levied in association with the distribution of the Securities from third parties. Potential investors should be aware that the Issuer may retain fees in part or in full.

II. SECURITY-SPECIFIC RISKS

Investing in the Securities involves certain risks. Among others, these risks may take the form of equity market, bond market, foreign exchange, interest rate, market volatility and economic and political risks and any combination of these and other risks. Some of these are presented briefly below. Prospective investors should be experienced with regard to transactions in instruments such as the Securities and in the Underlying. Prospective buyers should understand the risks associated with an investment in the Securities and shall only reach an investment decision, after carefully considerations with their legal, tax, financial and other advisers of (i) the suitability of an investment in the Securities in the light of their own particular financial, fiscal and other circumstances; (ii) the information set out in this document and

(iii) the Underlying. An investment in the Securities should only be made after assessing the direction, timing and magnitude of potential future changes in the value of the Underlying, as the return of any such investment will be dependent, inter alia, upon such changes. More than one risk factor may have simultaneous effects with regard to the Securities, so that the effect of a particular risk factor is not predictable. In addition, more than one risk factor may have a compounding effect which may not be predictable. No assurance can be given with regard to the effect that any combination of risk factors may have on the value of the Securities.

Prospective purchasers of the Securities should recognise that the Securities may decline in value and should be prepared to sustain a total loss of their investment in the Securities. This risk is independent of the financial strength of the Issuer. The shorter the remaining term of the Securities is, the higher the risk of decline in value of the Securities. Moreover, one of the key features of the Securities as warrants is their so-called “Leverage” Effect: Any change in the value of the Underlying may result in a disproportionate change in the value of the Warrant. The Warrant therefore offers profit opportunities which are potentially better than those of other investments. At the same time, the Warrant also involves disproportionate loss exposure. The reason for this is that the leverage effect of the Warrant works both ways – i.e. not only to the investors benefit if the price of the Underlying moves in their favour, but also to their disadvantage, if price development is unfavourable. Therefore, when buying a certain Warrant, it should be noted that the higher the leverage effect of a Warrant, the higher the loss exposure involved. In addition, it should be noted that, typically, the shorter the (remaining) term of the Warrant, the higher the leverage effect. Potential investors must therefore be prepared and able to sustain a partial or even a total loss of the invested capital. A Warrant represents neither a claim for the payment of interest nor for the payment of dividends and thus does not generate any regular income. Therefore, potential reductions in the value of the Warrant cannot be offset by any other income from the Warrant.

It is expressly recommend that potential investors familiarise themselves with the specific risk profile of the product type described in this Prospectus and seek the advice of a professional if necessary.

1. General risks of Call and Put Warrants

Call/Put Warrants based on the Underlying are call/put warrants for which the investor receives a certain Settlement Amount in the Settlement Currency, pursuant to section 1 of the Terms and Conditions of the Securities. The Option Right to demand payment of the Settlement Amount by the Issuer under certain conditions differs in relation to call and put warrants: In the case of call warrants, as provided for by the Terms and Conditions of the Securities, this right depends on the difference by which the Price of the Underlying exceeds the Strike Price on the Valuation Date (the “Settlement Price”) . In the case of put warrants, the decisive difference is that by which the Settlement Price of the Underlying is below the Strike Price. The Warrant performs accordingly during the Term of the Securities: As a rule (disregarding other factors critical to the pricing of the warrants), the value of a call warrant drops if the price of the Underlying falls. The opposite is true of put warrants, which decline in value if the Price of the Underlying rises.

2. Features of Warrants on Currencies and Exchange Rates

In cases where the Underlyings are exchange rates or precious metals, it should also be noted that foreign currencies and precious metals are traded 24 hours/day through the time zones of Australia, Asia, Europe and America (starting 5.00 am Monday, Sydney time, and ending 5.00 pm Friday, New York time). It is therefore possible for a HIT Threshold, Lock Out Threshold, Upper or Lower Threshold, or Knock Out Threshold, pursuant to the Terms and Conditions of the Securities, to be reached, or passed above or below outside of local business hours or those of the Offeror.

3. Minimum Exercise

If so indicated in the Terms and Conditions of the Securities exercisable by the Holders, the Securityholder must tender a specified minimum number of the Securities, in order to exercise the Securities. Holders with fewer than the specified minimum number of Securities will, therefore, either have to sell their Securities or purchase additional Securities (incurring transaction costs in each case). Prospective buyers should review the Terms and Conditions to ascertain whether and how such provisions apply to the Securities.

4. Limitation of Exercise

If so indicated in the Terms and Conditions for any Securities that are exercisable by the holders thereof, and are based directly or indirectly on German equities as their underlying asset, the Option Right vested in the Securities may not be exercised on certain days. These include days, such as the date upon which the company issuing the German equities underlying the Securities holds its Annual General Meeting, as well as the immediately preceding banking day (ex dividend day). For certain Securities, the Terms and Conditions state that exercise is limited to certain dates. In the event that the exercise notice is not submitted by this exercise date, the Securities cannot be exercised until the next date stated in the Terms and Conditions.

5. Other factors affecting value

The value of a Security is determined not only by changes in the price of the Underlying, but also a number of other factors. More than one risk factor may have simultaneous effect with regard to the Securities such that the effect of a particular risk factor may not be predictable. In addition, more than

one risk factor may have a compounding effect which may not be predictable. No assurance can be given with regard to the effect that any combination of risk factors may have on the value of the Securities.

These factors include, inter alia: the maturity of the Security, the frequency and intensity of price fluctuations (volatility) in the Underlying, as well as the prevailing interest rate and dividend levels. A decline in the value of the Security may therefore occur even if the price of the Underlying remains constant.

Prospective buyers of the Securities should be aware that an investment in the Securities involves a valuation risk with regard to the Underlying. They should have experience with transactions in securities with a value derived from an underlying. The value of the Underlying may vary over time and may increase or decrease by reference to a variety of factors which may include corporate actions, macro economic factors and speculation. If the Underlying comprises a basket of various assets, fluctuations in the value of any one asset may be offset or intensified by fluctuations in the value of other basket components. In addition, the historical performance of the Underlying is not an indication of its future performance. The historical price of the Underlying does not indicate the future performance of the Underlying. Changes in the market price of the Underlying will affect the trading price of the Securities, and it is impossible to predict whether the market price of the Underlying will rise or fall.

If the Securityholder’s right vested in the Security is determined on the basis of a foreign currency, currency unit or calculation unit, or if the value of the Underlying is determined in such a foreign currency, currency unit or calculation unit, potential investors should be aware that investments in these Securities could entail risks due to fluctuating exchange rates, and that the loss risk does not depend solely on the performance of the Underlying, but also on unfavourable developments in the value of the foreign currency, currency unit or calculation unit. Such unfavourable developments may increase the Securityholder’s risk of loss, in such a way that

- the value of the acquired Securities diminishes accordingly, or

- any possible settlement amount diminishes accordingly.

6. Effect of ancillary costs

Commissions and other transaction costs incurred in connection with the purchase or sale of Securities may result in charges, particularly in combination with a low order value, which can substantially reduce the potential for gains relating to the Security. Before acquiring a Security, prospective buyers should therefore inform themselves of all costs incurred through the purchase or sale of the Security, including any costs charged by their custodian banks upon purchase and maturity of the Securities.

7. Transactions to offset or limit risk

Potential purchasers of the Securities should not rely on the ability to conclude transactions at any time during the term of the Securities that will allow them to offset or limit relevant risks. This depends on the market situation and the prevailing conditions. Transactions designed to offset or limit risks might only be possible at an unfavourable market price that will entail a loss for investors.

8. Trading in the Securities / Liquidity

It is not possible to predict if and to what extent a secondary market may develop in the Securities or at what price the Securities will trade in the secondary market or whether such market will be liquid or illiquid.

If so specified in this Prospectus, applications will be or have been made to the stock exchange(s) specified for admission or listing of the Securities. If the Securities are admitted or listed, no assurance is given that any such admission or listing will be maintained. The fact that any Securities are admitted to trading or listed does not necessarily denote greater liquidity than if this were not the case. If the Securities are not listed or traded on any exchange, pricing information for the Securities may be more difficult to obtain and the liquidity of the Securities may be adversely affected. The liquidity of the Securities may also be affected by restrictions on purchase and sale of the Securities in some jurisdictions. Additionally, the Issuer has the right (but no obligation) to purchase Securities at any time and at any price in the open market or by tender or private agreement. Any Securities so purchased may be held or resold or surrendered for cancellation.

The Offeror intends, under normal market conditions, to provide bid and offer prices for the Securities of an issue on a regular basis. However, the Offeror makes no firm commitment to the Issuer to provide liquidity by means of bid and offer prices for the Securities, and assumes no legal obligation to quote any such prices or with respect to the level or determination of such prices. Potential buyers therefore should not rely on the ability to sell Securities at a specific time or at a specific price.

9. Borrowed funds

If the purchase of Securities is financed by borrowed funds and investors’ expectations are not met, they not only suffer the loss incurred but also have to pay interest on and redeem the loan. This produces a substantial increase in investors’ risk of loss. Buyers of Securities should never rely on being able to redeem and pay interest on the loan through gains from a securities transaction. Rather, before financing the purchase of a security with borrowed funds, the investors’ financial situations should be assessed, as to their ability to pay interest on or redeem the loan immediately, even if they incur losses instead of the expected gains.

10. The effect on the Securities of hedging transactions by the Issuer

The Issuer may use all or some of the proceeds received from the sale of the Securities to enter into hedging transactions relating to the risks incurred in issuing the Securities. In such a case, the Issuer or one of its affiliated companies may conclude transactions that correspond to the Issuer’s obligations arising from the Securities. Generally speaking, this type of transaction will be concluded before or on the day of issue of the Securities, although these transactions can also be concluded after the Securities have been issued. The Issuer or one of its affiliated companies may take the necessary steps for the closing out of any hedging transactions, on or prior to the valuation date. Although the Issuer does not consider these types of transaction to have a massive impact on the value of the Securities, it cannot be ruled out that the price of the Underlying might, in certain cases, be affected by these transactions. In the case of securities whose value depends on the occurrence of a specific event in relation to the Underlying, entering into or closing out such hedging transactions may affect the likelihood of this event occurring or not occurring.

11. Expansion of the spread between bid and offer prices

In special market situations, where the issuer is completely unable to conclude hedging transactions, or where such transactions are very difficult to conclude, the spread between the bid and offer prices may be temporarily expanded, in order to limit the economic risks to the Issuer.

12. Changes in the tax treatment of the Securities

The tax considerations set forth in this Prospectus reflect the views of the Issuer based on the legislation applicable at the date of this Prospectus. It cannot, however, be ruled out that the tax treatment by the tax authorities and tax courts will be otherwise. Additionally, the tax considerations set forth herein may not be used as the sole basis for the decision to invest in the Securities from a tax perspective, since the individual situation of each investor must also be taken into account. The considerations with regard to taxation contained in this Prospectus, thus, do not constitute any sort of material information or tax advice nor are they in any way to be construed as a representation or warranty with respect to specific tax consequences. Accordingly, investors should consult their personal tax advisors before any decision to purchase the Securities.

Neither the Issuer nor the Offeror accepts any liability for the tax consequences of an investment in the Securities.

RESPONSIBILITY

UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxxxxxx, and Xxxxxxxxxxxxxxx 0, 0000 Xxxxx, Xxxxxxxxxxx, acting through its Xxxxxx Xxxxxx, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, as Issuer and UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, as Offeror of the Securities described in this Prospectus, assume responsibility for the content of this Prospectus pursuant to section 5 (4) of the WpPG.

The Issuer and the Offeror declare that, having taken all reasonable care to ensure that such is the case, the information contained in this Prospectus is, to the best of their knowledge, in accordance with the facts and contains no omissions likely to affect its import.

Neither the Issuer nor the Offeror may be held liable on the basis of the Summary contained in this Prospectus alone, nor in any translation hereof, unless the Summary is misleading, inaccurate or contradictory if read in conjunction with other parts of the Prospectus.

In reference to the information in the “Information about the Underlying” section beginning on page 50 of this Prospectus, which obviously stems from third parties rather than from the Issuer or the Offeror, the Issuer and the Offeror confirm only that such information has been carefully prepared and correctly conveyed. To the extent apparent and verifiable for the Issuer and Offeror, no facts have been omitted that could lead to information being reproduced incompletely or incorrectly.

DESCRIPTION OF THE SECURITIES

I. GENERAL INFORMATION ABOUT THE PROSPECTUS AND THE ISSUE

1. Base Prospectus / To be supplemented by Final Terms / Availability of documentation

This document comprises the Final Terms of the offer to the Base Prospectus within the meaning of Directive 2003/71/EC of 4 November 2003 (the “Prospectus Directive“) and the corresponding German implementation legislation in the form of the Securities Prospectus Act (Wertpapierprospektgesetz). The Base Prospectus has been approved by the Federal Financial Supervisory Authority (Bundesanstalt für Finanzdienstleistungsaufsicht – BaFin), as the competent authority in the (selected) home Member State of UBS within the meaning of the Prospectus Directive and the German Securities Prospectus Act (Wertpapierprospektgesetz), as UBS’s offering programme. “Approval” means the positive act at the outcome of the scrutiny of the completeness of the prospectus by XxXxx, including the consistency of the information given and its comprehensibility.

Printed copies of the Base Prospectus and the Final Terms of the offer are available free of charge both from the Issuer or at UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 - 00, X-00000 Xxxxxxxxx/Xxxx, Xxxxxxx Xxxxxxxx of Germany. Additionally, the Base Prospectus is published on the website xxx.xxx.xxx/xxxxxxxxx, or a successor website.

The specific terms and conditions relating to the respective securities offering are contained in the Final Terms of the offer. The Final Terms of the offer shall be presented by incorporation in the Base Prospectus essentially by way of deletion, particularly of square brackets incorporated in this Base Prospectus, or by way of completing of placeholder in square brackets as displayed. It is therefore only possible to gain a comprehensive impression of the Issuer and the Securities through examination of the Base Prospectus together with the corresponding Final Terms of the offer.

The Final Terms of the offer shall be filed with BaFin and communicated to investors on the day of the public offer at the latest:

a) by publication in one or more newspapers circulated throughout, or widely circulated in, the Member States of the European Economic Area in which the offer to the public is made; or

b) in a printed form to be made available, free of charge at the Issuer’s registered office or at UBS Deutschland AG, Xxxxxxxxxxxxx 00 - 00, X-00000 Xxxxxxxxx / Xxxx; or

c) in an electronic form on the website xxx.xxx.xxx/xxxxxxxxx, or a successor website.

If the Final Terms are published in electronic form, the Issuer and the Offeror shall also provide a paper version free of charge upon request.

The Issuer will also communicate to investors how the Final Terms of the offer are to be published and where they are available by publication in one or more newspapers circulated throughout, or widely circulated in, the Member States in which the offer to the public is made.

2. General Note on the Prospectus

No dealer, salesman or other person is authorised to give any information or to make any representation other than those contained in this Prospectus in connection with the offering or sale of the Securities. If given or made, such information or representation must not be relied upon as having been authorised by the Issuer or Offeror. 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. Potential investors who are contemplating purchasing Securities should conduct their own independent investigation of the risks involved in an investment in the Securities. Neither this Prospectus, nor other information relating to the Securities represents an offer (in the legal sense) on the part of or on behalf of the Issuer or other persons i.e. a subscription or purchase agreement relating to the Securities will not be effectively concluded with a unilateral declaration made on the part of or on behalf of the subscriber or buyer to the Issuer or Offeror.

3. Object of the Prospectus

The object of this Prospectus are the Call Warrants, in bearer form, with the International Security Identification Number (both as defined in the section “Summary of the Key Terms of the Securities”), issued by UBS AG, acting through its London Branch, as Issuer in accordance with German law, and issued in the amount of the Aggregate Amount of the Issue (as defined in the “Summary of the Key Terms of the Securities”). All payments relating to the Securities are made in the Settlement Currency (as defined in the section “Summary of the Key Terms of the Securities”.)

These Securities are each based on the listed Underlying, as detailed in the sections “Summary of the Key Terms of the Securities” and “Information about the Underlying”.

The Securities expire on the Expiration Date (as defined in the section entitled “Summary of the Key Terms of the Securities”).

4. Issue and Sale of the Securities

The Issuer intends to employ this Prospectus – following any necessary notification of the relevant member state of the European Economic Area by Germany’s Federal Financial Supervisory Authority, as the competent authority in the (selected) home Member State of UBS within the meaning of the Prospectus Directive and the German Securities Prospectus Act – for the public offer of the Securities in different member states of the European Economic Area. Since, however, the Securities will not be admitted to public offer / registered in all Member States, distribution of this Prospectus and the offer of the Securities may be subject to certain legal restrictions in some countries. Neither the Issuer nor the Offeror represent that this document may be lawfully distributed, or that the Securities may be lawfully offered, in compliance with any applicable registration or other requirements in any jurisdiction, or pursuant to an exemption available thereunder, or assumes any responsibility for facilitating any distribution or offering. Potential investors can find further information in the section entitled “Selling Restrictions” beginning on page 55 of this Prospectus.

5. Underwriting and Issue Price

It has been agreed that, on or after the respective Issue Date of the Securities (as defined in the section entitled “Summary of the Key Terms of the Securities”), UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx, (the “Offeror”) shall underwrite the Securities by means of an underwriting agreement and shall place them for sale at the Issue Price as defined in the section entitled “Summary of the Key Terms of the Securities” under terms subject to change. The Issue Price shall be set at the Fixing Date (as defined in the section entitled “Summary of the Key Terms of the Securities”) based on the prevailing market situation and the price of the Underlying, and then be

published in accordance with the Terms and Conditions of the Securities. The selling price will then be adjusted on a continual basis to reflect the prevailing market situation.

The Offeror shall be responsible for coordinating the entire Securities offering. The total commission due for the respective underwriting and/or placement service relating to the underwriting of the Securities amounts to the Aggregate amount of underwriting and/or placing fees (as defined in the section entitled “Summary of the Key Terms of the Securities”).

6. Form and status of the Securities

The Securities issued by the Issuer are represented by one or more permanent global bearer certificate(s) and are deposited for clearing and settlement at the Clearing Systems(s) (as defined in the section entitled “Definitions”). Definitive securities will not be issued.

The Securities constitute direct, unsecured and unsubordinated 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.

7. Admission to Trading

The Offeror intends to apply for inclusion of the Securities to trading on the Stock Exchange(s) (as defined in the section entitled “Summary of the Key Terms of the Securities”). The Securities shall be delisted three trading days prior to the Expiration Date. As of this point until the Expiration Date, trading may only take place off exchange with the Offeror.

8. Subscription and Delivery of the Securities

The Securities may be purchased from the Offeror during normal banking hours. There is no subscription period. The Issue Price per Security is due for payment on the Initial Payment Date (as defined in the section entitled “Summary of the Key Terms of the Securities”).

After the Initial Payment Date, the appropriate number of Securities shall be credited to the buyer’s account in accordance with the rules of the corresponding Clearing System(s) (as defined in the section entitled “Definitions”).

9. Authorisation/Resolution for the Issue of the Securities

The Issuer does not need to obtain (individual) authorisation from its Management Board to issue the Securities. There exists a general resolution for the issue of the Securities.

10. Use of Proceeds

The net proceeds from the sale of the Securities will be used for funding purposes of the UBS Group and shall not be employed by the Issuer within Switzerland. The net proceeds from the issue shall be employed by the Issuer for general business purposes. A separate (“special purpose”) fund will not be established.

If, in the normal course of business, the Issuer trades in the Underlyings, or - if the Underlying is an index – in the individual index components, or in options and futures contracts on or related to the index, or xxxxxx the financial risks associated with the Securities by means of hedging transactions in

the corresponding shares or other underlying assets or in options or futures contracts on or related to the index, the Securityholders have no rights to or interests in the respective shares or other underlyings or options or futures contracts on or relating to the index.

II. SUMMARY OF THE KEY TERMS OF THE SECURITIES

This following section contains the key terms of the Securities. This summary does not represent a comprehensive description of the Securities, and is subject to and should be read in conjunction with the Terms and Conditions of the Securities, the general offering terms of the Securities and all other sections of this Prospectus. 4

4 The notation of the Securities will be different for each series of the securities and also the key terms can be different for each series of the Securities.

THE KEY TERMS OF CALL WARRANTS

Subject to an adjustment according to the Terms and Conditions of the Securities, the Call Warrants have the key terms as described below:

Emittentin / UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxx, und Xxxxxxxxxxxxxxx 0, 0000 Xxxxx, Xxxxxxx, handelnd durch ihre Niederlassung London, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Vereinigtes Königreich. /

Issuer: UBS AG, Xxxxxxxxxxxxxx 00, 0000 Xxxxxx, Xxxxxxxxxxx, and Xxxxxxx- xxxxxxxx 0, 0000 Xxxxx, Xxxxxxxxxxx, acting through its Xxxxxx Xxxxxx, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx.

Anbieterin / UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Vereinigtes Königreich. /

Offeror: UBS Limited, 0 Xxxxxxxx Xxxxxx, Xxxxxx XX0X 0XX, Xxxxxx Xxxxxxx.

Zahlstelle / UBS Limited c/o UBS Deutschland AG, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. BNP Paribas, Xxxxxx X. Xxxxxx, 00000 Xxxxxxx, Xxxxxxx. Der Begriff „Zahlstelle“ umfasst in diesem Fall sämtliche Zahlstellen. /

Paying Agent: UBS Limited c/o UBS Deutschland AG, Xxxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx xx Xxxxxxx. BNP Paribas, Xxxxxx X. Xxxxxx, 00000 Xxxxx, Xxxxx. The term “Paying Agent” shall also refer to all Paying Agents.

Berechnungsstelle / UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx

Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. /

Calculation Agent: UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxx Xxxxxxxx of Germany.

Emissionsvolumen / Je Serie 10.000.000 Wertpapiere /

Issue Size: Each Series 10,000,000 Securities

Gesamtsumme der Emission / Je Serie Emissionspreis x Emissionvolumen /

Aggregate Amount of the Issue: Each series Issue Price x Issue Size

Gesamtbetrag der Übernahme- und/oder Platzierungsprovision / Aggregate amount of underwriting

and/or placing fee:

Keine /

none

Beginn des öffentlichen Angebots der Wertpapiere: /

nach Genehmigung durch Borsa Italiana S.p.A. /

Start of public offer of the Securities:

after approval by Borsa Italiana s.p.A l

Basiswert(e) / Dow Xxxxx EURO STOXX 50® Index (der „Index“), wie er von STOXX Limited (der „Index Sponsor“) verwaltet, berechnet und veröffentlicht wird, ausgedrückt in Euro. /

Underlying(s): Dow Xxxxx EURO STOXX 50® Index (the “Index”), as maintained, calculated and published by STOXX Limited (the “Index Sponsor”) and

expressed in Euro.

Basiswährung / Euro („EUR“) /

Underlying Currency: Euro (“EUR“)

Auszahlungswährung / Euro („EUR“) /

Settlement Currency: Euro (“EUR“)

Emissionspreis / Der Emissionspreis wird am Festlegungstag von der Berechungsstelle festgelegt. /

Issue Price: The Issue Price will be fixed by the Calculation Agent on the Fixing Date.

Emissionstag / 24. Mai 2006 /

Issue Date: 24 May 0000

Xxxxxxxxxxxxxxxx(xx) / 100 : 1 bzw. als Dezimalzahl ausgedrückt 0,01; das heißt

100 Wertpapiere beziehen sich auf 1 Basiswert. /

Ratio(s): 100 : 1, or expressed as a decimal number 0.01, i.e. 100 Securities relate to 1 Underlying.

Zahltag bei Emission / 26. Mai 2006 /

Initial Payment Date: 26 May 2006

Festlegungstag / 24. Mai 2006 /

Fixing Date: 24 May 2006

Basispreis / Siehe Tabelle. /

Strike Price: See table below.

Mindestausübungsanzahl / 100 bzw. ein ganzzahliges Vielfaches davon. /

Minimum Exercise Size: 100 or an integral multiple thereof.

Kleinste handelbare Einheit / 100 bzw. ein ganzzahliges Vielfaches davon. /

Minimum Trading Size: 100 or an integral multiple thereof.

Verfalltag / Siehe Tabelle.

Falls dieser Tag kein Basiswert-Berechnungstag ist, dann gilt der unmittelbar darauf folgende Basiswert-Berechnungstag als der Verfalltag. /

Expiration Date: See table below.

If this day is not an Underlying Calculation Date, the immediately succeeding Underlying Calculation Date is deemed to be the Expiration Date.

Abwicklung / Barausgleich innerhalb von fünf Bankgeschäftstagen nach (i) dem maßgeblichen Ausübungstag und (ii) im Fall einer Kündigung durch die Xxxxxxxxxx xxxx § 0 xxx Xxxxxxxxxxxxxxxxxxxxx xxxx xxx Xxxxxxxxxxxxx (xxx „Rückzahlungstag“).

Der „Bewertungstag“ entspricht, vorbehaltlich eines wirksamen Ausübungsverfahrens, dem maßgeblichen Ausübungstag. Falls dieser Tag kein Basiswert-Berechnungstag ist, dann gilt der unmittelbar darauf folgende Basiswert-Berechnungstag als Bewertungstag.

Der „Ausübungstag“ steht für den Bankgeschäftstag innerhalb der Ausübungsfrist, an dem bis spätestens zur Ausübungszeit sämtliche erforderlichen Ausübungsbedingungen erfüllt sind. Falls die erforder- lichen Ausübungsbedingungen an einem Tag erfüllt sind, der kein Bankgeschäftstag ist, oder erst nach Ablauf der Ausübungszeit an einem Ausübungstag, gilt der nächstfolgende Bankgeschäftstag als der Ausübungstag, vorausgesetzt, dass dieser Tag in die Ausübungsfrist fällt. Die in den Wertpapieren verbrieften Optionsrechte gelten als am Verfalltag automatisch ausgeübt (ebenfalls der „Ausübungstag“), xxxx xxxx xx xxx Xxxxxx xxxxx Xxxxxxxxxxxxxxxxxx, xxx Xxxxxxxxxxx xxx Xxxxxxxxxxx oder der Erfüllung sonstiger Voraussetzungen bedarf. /

Settlement: Cash Settlement within five Banking Days after (i) the relevant Exercise Date and (ii) in case of a Termination by the Issuer in accordance with

§ 7 of the Conditions of the Securities, after the Termination Date (the “Settlement Date”).

The “Valuation Date” means, subject to an effective exercise procedure, the relevant Exercise Date. If this day is not an Underlying Calculation Date, the immediately succeeding Underlying Calculation Date is deemed to be the Valuation Date.

The “Exercise Date” means the Banking Day within the Exercise Period, on which at the latest at the Exercise Time all of the conditions required for the exercise are met. If the conditions required for the exercise are met on a day that is not a Banking Day or after lapse of the Exercise Time on an Exercise Day, the following Banking Day is

deemed to be the Exercise Date provided that such day falls within the Exercise Period. The option rights certified in the Securities are deemed to be exercised without requiring the submission of an exercise notice, the transfer of the Securities or the fulfilment of further special preconditions on the Expiration Date (also the “Exercise Day”).

Maßgebliche Börse / Die Börse(n), an (der) (denen) aufgrund der Bestimmung des Index

Sponsors die im Index enthaltenen Werte gehandelt werden. /

Relevant Stock Exchange: The stock exchange(s) on which the assets comprised in the Index are

traded, as determined by the Index Sponsor.

Maßgebliche Terminbörse / Diejenige Terminbörse(n), an (der) (denen) der umsatzstärkste Handel

in Bezug auf Termin- oder Optionskontrakte auf den Basiswert stattfindet. /

Relevant Futures and Options Exchange:

The futures and options exchange(s), on which future and option contracts on the Underlying(s) are primarily traded.

Optionsstelle / UBS Deutschland AG, Xxxxxxxxxxxxx 00 – 16, X-00000 Xxxxxxxxx xx Xxxx, Xxxxxxxxxxxxxx Xxxxxxxxxxx. /

Warrant Agent: UBS Xxxxxxxxxxx XX, Xxxxxxxxxxxxxx 00 – 16, D-60313 Frankfurt am Main, Federal Republic of Germany.

Wertpapier-Kenn-Nummern / ISIN: Siehe Tabelle. /

Security Identification Codes ISIN: See table below.

Wertpapier-Börse(n) / Borsa Italiana S.p.A. Mailand /

Relevant Security Stock Exchange(s): Borsa Italiana S.p.A. Mailand

Anwendbares Recht / Deutsches Recht /

Governing Law: German Law

Tabellarische Darstellung der wichtigsten Ausstattungsmerkmale /

Table of the Key Terms

ISIN der Optionsscheine / ISIN of Warrants	Optionstyp / Option Type	Basiswert / Underlying	Basispreis / Strike Price	Basiswährung / Underlying Currency	Verfalltag / Expiration Date
CH0025559623	Call	Dow Xxxxx EURO STOXX 50® Index	3,600	EUR	09.03.2007
CH0025559565	Call	Dow Xxxxx EURO STOXX 50® Index	3,600	EUR	08.06.2007
CH0025559656	Call	Dow Xxxxx EURO STOXX 50® Index	3,800	EUR	09.03.2007
CH0025559631	Call	Dow Xxxxx EURO STOXX 50® Index	3,800	EUR	08.06.2007
CH0025559664	Call	Dow Xxxxx EURO STOXX 50® Index	4,000	EUR	09.03.2007
CH0025559680	Call	Dow Xxxxx EURO STOXX 50® Index	4,000	EUR	08.06.2007
CH0025559706	Call	Dow Xxxxx EURO STOXX 50® Index	4,200	EUR	09.03.2007
CH0025559714	Call	Dow Xxxxx EURO STOXX 50® ndex	4,200	EUR	08.06.2007
CH0025559722	Call	Dow Xxxxx EURO STOXX 50® Index	4,400	EUR	09.03.2007
CH0025559730	Call	Dow Xxxxx EURO STOXX 50® Index	4,400	EUR	08.06.2007