Barclays, Base Prospectus 2006

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Operational Risks
The Group's businesses are dependent on the ability to process a large number of transactions
efficiently and accurately. Operational risks and losses can result from fraud, errors by employees,
failure to properly document transactions or to obtain proper internal authorisation, failure to comply
with regulatory requirements and Conduct of Business rules, equipment failures, natural disasters or
the failure of external systems, for example, the Group's suppliers or counterparties. Although the
Group has implemented risk controls and loss mitigation actions, and substantial resources are devoted
to developing efficient procedures and to staff training, it is only possible to be reasonably, but not
absolutely, certain that such procedures will be effective in controlling each of the operational risks
faced by the Group.
Risks Relating To The Financial Services Industry
The most significant market risks the Group faces are interest rate, credit spread, foreign exchange,
commodity price and equity price risks. Changes in interest rate levels, yield curves and spreads may
affect the interest rate margin realised between lending income and borrowing costs. Changes in
currency rates, particularly in the sterling-dollar and sterling-euro exchange rates, affect the value of
assets and liabilities denominated in foreign currencies and affect earnings reported by the Group's
non-UK subsidiaries and may affect revenues from foreign exchange dealing. The performance of
financial markets may cause changes in the value of the Group's investment and trading portfolios and
in the amount of revenues generated from assets under management. The UK and global financial
services market remains highly competitive and innovative competition comes both from incumbent
players and a steady stream of new market entrants. The landscape is expected to remain highly
competitive in all the Group's businesses, which could adversely affect the Group's profitability.
2. Summary of the "Terms and Conditions of the Notes and Related Information"
Method of Issue
Notes will be issued on a continuous basis in tranches (each a "Tranche"), each Tranche consisting of
Notes which are identical in all respects. One or more Tranches, which are expressed to be consolidated
and forming a single series and identical in all respects, but having different issue dates, interest
commencement dates, issue prices and dates for first interest payments may form a series ("Series") of
Notes. Further Notes may be issued as part of existing Series. The specific terms of each Tranche
(which will be supplemented, where necessary, with supplemental terms and conditions, the
"Supplemental Terms and Conditions") will be set forth in the Final Terms. In the context of the
issue of Notes under this Programme, from time to time, Notes may also be referred to as certificates
(the "Certificates"), whereby Certificates are Notes in the meaning of § 793 German Civil Code. For
Certificates and structured Notes the payment of interest and/or redemption amounts is usually linked
to the performance of an underlying. In connection with the issue of Certificates all references in this
summary to Noteholders shall be regarded as reference to Certificateholders. Generally, Notes may be
referred to as "Certificates" in cases where the listing of the relevant Tranche or the determination of
the specified denomination is effected by way of a quotation per unit.
Currencies and Regulatory Matters
Subject to any applicable legal or regulatory restrictions, any currency agreed between the Issuer and
the relevant Manager(s).
The Issuer shall ensure that Notes denominated or payable in Yen ("Yen Notes") will only be issued in
compliance with applicable Japanese laws, regulations, guidelines and policies. The Issuer or its
designated agent shall submit such reports or information as may be required from time to time by
applicable laws, regulations and guidelines promulgated by Japanese authorities in the case of Yen
Notes. Each Manager agrees to provide any necessary information relating to Yen Notes to the Issuer
(which shall not include the names of clients) so that the Issuer may make any required reports to the
competent authority of Japan for itself or through its designated agent.
Denomination of Notes
Notes will be issued in such denominations as may be agreed between the Issuer and the relevant
Manager(s). However, Notes other than those Notes giving the right to receive a cash amount, as a
consequence of the rights conferred by them being exercised, provided that the relevant Issuer is not