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

the Underlying, as calculated by the Subsequent Index Calculation Agent or, as the case
may be, the Substitute Index will be used. Each reference in these Conditions to the Index
Calculation Agent or to the Underlying is a reference to the Subsequent Index Calculation
Agent or the Substitute Index, provided the context allows for it.
If the Index Calculation Agent effects a material change in the calculation formula or in
the calculation method or another material modification of the respective index during the
term (except such changes which are foreseen for the valuation and calculation of the respective
index because of changes or adaptations of the components of the index, or other
equivalent standard modifications), the Issuer will effect the calculation in such a way,
that such a price will be used instead of the published price of the relevant Underlying,
which results from the use of the original calculation formula and the original calculation
method. When the Index Calculation Agent effects a minor and only mathematical change
of the calculation formula on or before the relevant evaluation date, the Issuer (or the Calculation
Agent) will effect a corresponding adaptation of the calculation formula and/or
the calculation method.
Commercial property rights. The Issuer has been granted the permission to use the
commercial property rights regarding the Underlying, if required. Details are stated in the
Final Terms (item 28), to the extent applicable.
(iii) Effectiveness of adjustments. Adjustments shall be effective at such point in time on
which the respective adjustments become effective at the Relevant Options Exchange, or
would become effective if corresponding option contracts would be traded there or at such
point in time as determined by the Issuer. The Issuer will try to (without being obliged to)
notify the Noteholders promptly (whereas a period of five Business Days (as defined in §
5 para 3) shall be sufficient in any case) pursuant to § 11 when adjustments have been effected.
(iv) Binding adjustments. Adjustments according to the preceding paragraphs will be effected
by the Issuer and are (absent manifest error) binding on all persons involved. Further
Adjustment Events and/or changes of Adjustment Events and/or changes of adjustment
measures may be contained in the Final Terms (item 20b(xi)).
(b) Early redemption due to circumstances relating to the Underlying. If (i) the Underlying or a
component of the Basket is definitely discontinued or no longer existing, (ii) the Issuer loses its
right to use the Underlying (e.g. in case the Underlying is an index), (iii) the listing of the Underlying
or one or more Underlyings contained in a Basket, or in the case of Notes whose Underlying
consists of one or more indices, of one or more of the components of the relevant index, at a reference
stock exchange (as defined in item 20b(xii) of the Final Terms) (a Reference Stock Exchange)
is definitely discontinued due to whatsoever reason, (iv) only small liquidity with regard
to the respective Underlying, or in case of Notes, whose Underlying consists of one or more indices,
of one or more of the components of the Basket, at the Reference Stock Exchange is given, or
(v) an appropriate adjustment to the changes occurred is not possible or not feasible, the Issuer
shall be entitled to (without being obliged to) redeem the Notes with a four Business Days notice.
The redemption shall be effective on the date of notice pursuant to § 11. In case of a redemption,
repayment shall be made three Business Days after the date of publication of the redemption at the
last market price published for the Notes or at a price determined by the Issuer.
(c) Rate of Interest. Due date. The formula for calculating the Rate of Interest for Notes linked to
Underlyings (the Rate of Interest), observation period, starting value and the method of determination,
as the case may be, barrier, determination date and/or other details regarding the calculation
of interest are contained in the Final Terms (item 20b). The Interest Amount (as defined below)
shall be due and payable on each Interest Payment Date (as defined below).
(d) Determination date. Should a determination date with regard to a stock exchange listed Underlying
(or an Underlying contained in a Basket) fall on a day which on the relevant Reference Stock
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