Vorarlberger Landes- und Hypothekenbank Aktiengesellschaft

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Entities (as specified in the applicable Final Terms). Such Notes may be
redeemed prior to their scheduled maturity and at less than their
principal amount on the occurrence of a Credit Event (as specified in the
applicable Final Terms) and interest on such Notes may cease to
accrue prior to the scheduled maturity of such Notes or may, due to
potential principal reductions, be reduced on the occurrence of such
Credit Event. On the occurrence of a Credit Event and, if so specified in
the applicable Final Terms, such Notes may be redeemed by settlement
in the form of physical delivery of certain assets.
Dual Currency Notes: Dual Currency Notes are Notes, where payment of principal and/or
payment of interest can be made in different currencies. Payments
(whether in respect of principal or interest and whether at maturity or
otherwise) in respect of Dual Currency Notes will be made in such
currencies, and based on such rates of exchange, as the Issuer and the
relevant Dealer(s) may agree (as specified in the applicable Final
Terms).
Zero Coupon Notes: Zero Coupon Notes will be offered and sold at a discount to their
principal amount and will not bear interest other than in the case of late
payment.
Other Notes: Notes may be of any other type of security which the Issuer and the
relevant Dealer(s) may agree. The terms governing any such Notes will
be specified in the applicable Final Terms.
Redemption: The applicable Final Terms will indicate either that the Notes cannot be
redeemed prior to their stated maturity (except for taxation reasons, or,
in the case of Senior Notes (as defined herein) only upon the
occurrence of an Event of Default) or that such Notes will be
redeemable at the option of the Issuer and/or the Holders upon giving
notice within the notice period (if any) indicated in the applicable Final
Terms to the Holders or the Issuer, as the case may be, on a date or
dates specified prior to such stated maturity and at a price or prices and
on such terms as indicated in the applicable Final Terms.
Unless otherwise permitted by then current laws and regulations, Notes
(including Notes denominated in Sterling) in respect of which the issue
proceeds are to be accepted by the Issuer in the United Kingdom will
have a minimum redemption amount of GBP 100,000 (or its equivalent
in other currencies), unless such Notes may not be redeemed until on or
after the first anniversary of their date of issue.
Pfandbriefe will not in any event be capable of being redeemed prior to
their stated maturity for taxation reasons or at the option of their
Holders.
In the first eight years of their term, Supplementary Capital Notes will
not be subject to early redemption at the option of a holder of Notes or
at the option of the Issuer.
Taxation: Payments of principal and interest in respect of the Notes (other than
Pfandbriefe) will be made without withholding or deduction for or on
account of any present or future taxes or duties of whatever nature
imposed or levied by way of withholding or deduction at source by or on
behalf of the Republic of Austria, or any political subdivision or any
authority thereof or therein having power to tax unless such withholding
or deduction is required by law. In such event, the Issuer in respect of
Notes other than Pfandbriefe will generally pay such additional amounts
as shall be necessary in order that the net amounts received by the
Holders of the Notes after such withholding or deduction shall equal the
respective amounts of principal and interest which would otherwise
have been receivable in respect of the Notes in the absence of such