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

2.5 General Description of the Main Compartment Assets
2.5.1 Debt Instruments
Debt Instruments may take the form of either a senior or subordinated bond (i.e. Supplementary Capital
Notes, Subordinated Supplementary Capital Notes), a debenture (including, without limitation, a corporate
bond), a money-market instrument or any other interest bearing or non-interest bearing financial instrument,
or any combination thereof. Debt Instruments may have a specific term or may be perpetual. By way
of illustration (but without limitation) any of the following may constitute a Debt Instrument (provided that
in each case, such Debt Instrument shall be issued by an Eligible Obligor of the Main Compartment Asset):
straight bonds; zero bonds; structured bonds; commercial paper; subordinated bonds or debentures, including
instruments constituting own funds for banking regulatory purposes; instruments whose coupon depends
on the amount of distributable profits available to their issuer; Deposits; and any combination
thereof. Details of a Debt Instrument constituting the Main Compartment Asset of a specific Compartment
of the Issuer shall (where applicable) be provided in the relevant Final Terms.
2.5.2 Equity Instruments
Equity Instruments may take the form of either shares, share-like transferable instruments, other instruments
which represent one or more or may be converted into or swapped for shares or such instruments
which provide for a different method by which shares or other transferable share-like instruments, could be
acquired or subscribed, or any combination thereof (provided that in each case, such Equity Instrument
shall be issued by an Eligible Obligor of the Main Compartment Asset). Details of Equity Instruments constituting
the Main Compartment Asset of a specific Compartment of the Issuer shall (where applicable) be
provided in the relevant Final Terms.
2.5.3 Fund Instruments
Fund Instruments may take the form of fund units each representing a right of co-ownership or similar interest
in respect of a pool of assets, such as (without limitation) units of investment funds established pursuant
to Directive 85/611/EEC (as amended).
2.6 Description of the Derivative Agreements
General
The Issuer and the Derivative Counterparty will enter into an Austrian-law governed master agreement for
financial futures transactions (Rahmenvertrag für Finanztermingeschäfte) (the Master Agreement) (including
the Annexes thereto relating to (i) currency transactions and options in respect of currency transactions
(Anhang für Devisengeschäfte und Devisenoptionen zum Rahmenvertrag für Finanztermingeschäfte)
and (ii) options based on stock exchange indices, futures and securities (Anhang für Optionsgeschäfte auf
Börsenindizes, Futures und auf Wertpapiere zum Rahmenvertrag für Finanztermingeschäfte) (together with
the other transactions refered to above, the Transactions and each, a Transaction), which will govern
each Derivative Agreement. Where applicable, a separate Derivative Agreement will be entered and evidenced,
pursuant to an additional annex to the Master Agreement, in respect of each Compartment by way
of individual confirmation (Bestätigung des Einzelabschlusses) which shall state the number of the relevant
Compartment. Each Derivative Agreement will be evidenced by a confirmation under the Master Agreement.
Each Derivative Agreement will provide for the exchange of payments between the Issuer (acting through
its relevant Compartment) and the Derivative Counterparty, at such times and in such amounts as provided
in each Derivative Agreement. Amounts payable by each party to the other party will be calculated by reference
to a notional amount, and will be expressed as such notional reference amount, multiplied by a certain
rate of interest, index amount or (as the case may be) asset price, or in absolute terms, whereby payments
may, in addition, be conditional upon the occurrence of certain events agreed in the Derivative
Agreement.
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