Question on "UP"ing

[thenatural]

So here is what I gather, please tell me if I am wrong.

I will use an Ali Baba as my example.

I have a Ali Baba Tulwar. If I use this combination in my cube...
1 Lum Rune + 1 Pul Rune + 1 Perfect Emerald + Exceptional Unique Weapon
I will get a Ali Baba that is a Hydra Edge. The sword will keep all the same attributes, now just do damage that a Hydra Edge would do.


I have my Ali Baba socketed with 2xIst. Will I lose those in the process of upping?

[lionheartthebrave]

I will get a Ali Baba that is a Hydra Edge. The sword will keep all the same attributes, now just do damage that a Hydra Edge would do

Correct, it will also have higher lvl and str/dex requirements

I have my Ali Baba socketed with 2xIst. Will I lose those in the process of upping?
No

The Arreat Summit has the answer to basic questions like this one

1 Lum Rune + 1 Pul Rune + 1 Perfect Emerald + Exceptional Unique Weapon = Elite Version of Weapon (Single Player, Ladder Only)
This formula changes the base item type from the exceptional to elite version. For example a Cleaver is turned into a Small Crescent. This does NOT convert the item to the Elite Unique version of the Exceptional Unique Item. Unique item bonuses remain the same; only the item it's based on is upgraded. This can be used to upgrade Ethereal Items also. They will continue to be Ethereal after they are upgraded. You cannot do this formula unless you are using a Ladder Character. Also if the item is socketed, then jewels or runes and their mods will also remain.

[Dezante]

Deleted, due to the query of OP already having been answered.