I This document constitutes the base prospectus of ... - Volksbank AG

Pursuant to the terms of this agreement, which may be entered into in respect of a given Compartment of the
Issuer (the Pledge Agreement), VBAG as pledgor (the Pledgor) shall grant LEVADE as pledgee (the
Pledgee) a security right for the fulfilment of the Secured Transactions (see also 2.6 Description of the
Derivative Agreements Collateral). Should the Derivative Agreement be terminated with sums owed to
LEVADE by VBAG as Derivative Counterparty and Pledgor, the Pledgee shall have the right to enforce the
Pledge and realise the Collateral (which shall be kept with the Collateral Custodian during the term of the
Pledge Agreement. See below, Pledge Account and Custody Agreement between VBAG, LEVADE and BNY
Luxembourg as Collateral Custodian) in order to satisfy its claims in respect of the Secured Transactions.
The proceeds of the realisation of the Collateral will be distributed to the Pledgee for the account of the relevant
Compartment.
The Pledge Agreement will allow for either cash or financial instruments such as, but not limited to, senior or
subordinated bonds, debentures, money-market instruments or any other interest bearing or non-interest bearing
financial instruments or any combination thereof (provided always that the value of such property shall be
no less than (or equal to) EUR 100,000) to be used as Collateral.
Subject to the proviso described in the previous paragraph, the Pledge Agreement shall permit the release or
increase of Collateral where the Secured Transactions rise or fall in accordance with the terms of the Derivative
Agreement during its term.
The Pledge Agreement shall be governed by and construed in accordance with Luxembourg law with the
courts of Luxembourg being designated as the competent courts, the place of performance being Luxembourg.
Security provided under the Pledge Agreement, and perfection thereof may be governed by a law other than
Luxembourg law, depending on the location of such security or as may otherwise be provided by applicable
rules on the conflict of law.
Whether or not a Pledge Agreement will be entered into in respect of a given derivative Agreement will be
specified further in the Final Terms.
Pledge Account and Custody Agreement between VBAG, LEVADE and BNY Luxembourg as Collateral
Custodian
Where the Pledgor and the Pledgee enter into one or more Pledge Agreements, pursuant to the terms of the
Pledge Account and Custody Agreement, BNY Luxembourg as Collateral Custodian (or another party, provided
that such party will agree to, and be able to comply with, terms substantially equal to those provided by
the Pledge Account and Custody Agreement) shall open the Pledge Accounts in the name of VBAG as
Pledgor and ensure that the Collateral shall be retained in safe custody in the Pledge Accounts. Transfers from
the Pledge Accounts shall only be permitted where:
(a) the amount of the Collateral is adjusted downwards in accordance with fluctuations in the respective
values of the Secured Transactions and the Collateral (subject always to a joint notice thereof to
the Collateral Custodian by the Pledgee and the Pledgor); 1
(b) the Pledge Agreement is terminated due to the fulfilment of the Pledgors obligations under the
Derivative Agreement (subject always to a joint notice thereof to the Collateral Custodian by the
Pledgee and the Pledgor); and
(c) the security over the Collateral is enforced by the Pledgee (subject always to a notice thereof to
the Collateral Custodian by the Pledgee);
and in each case the Collateral shall be transferred to an account provided by the relevant notice.
1 See also 2.6 Description of the Derivative Agreements Collateral.
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