Vorarlberger Landes- und Hypothekenbank Aktiengesellschaft

Early Redemption for
Taxation Reasons:
20
withholding or deduction, subject to the exceptions set out in § 7 of the
Terms and Conditions of the Notes , e.g., no additional amounts will be
paid in respect of Austrian withholding taxation in respect of investment
income (Kapitalertragsteuer).
Pfandbriefe will not provide for the obligation of the Issuer to pay such
additional amounts in the event of taxes or duties being withheld or
deducted from payments of principal or interest as aforesaid.
Early redemption for taxation reasons will be permitted in the case of
Notes other than Pfandbriefe if as a result of any change in, or
amendment to, the laws or regulations of the Republic of Austria or any
political subdivision or taxing authority thereto or therein affecting
taxation or the obligation to pay duties of any kind, or any change in, or
amendment to, an official interpretation or application of such laws or
regulations, which amendment or change is effective on or after the
date on which the last tranche of this series of Notes was issued, the
Issuer is required to pay additional amounts on the Notes, all as more
fully set out in the Terms and Conditions.
Pfandbriefe will not be subject to early redemption for taxation reasons.
Status of the Notes: The senior Notes (the "Senior Notes") will constitute unsecured and
unsubordinated obligations of the Issuer ranking pari passu among
themselves and pari passu with all other unsecured and unsubordinated
obligations of the Issuer.
Pfandbriefe will constitute unconditional and unsubordinated obligations
of the Issuer ranking pari passu among themselves. Pfandbriefe are
covered, however, by separate pools of public loans (in the case of
Public Pfandbriefe) or mortgage loans (in the case of Mortgage
Pfandbriefe) and rank at least pari passu with all other obligations of the
Issuer under Pfandbriefe.
The subordinated Notes (the "Subordinated Notes") and
Supplementary Capital Notes will constitute unsecured and
subordinated obligations of the Issuer ranking pari passu among
themselves and pari passu with all other subordinated obligations of the
Issuer. In the event of the liquidation or bankruptcy of the Issuer, no
amounts shall be payable in respect of such obligations until the claims
of all unsubordinated creditors of the Issuer shall have been satisfied in
full.
Negative Pledge: Senior Notes other than Pfandbriefe will contain a negative pledge
provision.
Events of Default and Cross
Default:
No negative pledge provision will apply to Supplementary Capital Notes.
Senior Notes (other than Pfandbriefe) will provide for Events of Default
entitling Holders to demand immediate redemption of the Notes.
The Senior Notes other than Pfandbriefe will provide for a cross-default
provision.
Subordinated Notes and Supplementary Capital Notes will not provide
for any Event of Default entitling Holders to demand immediate
redemption.
Pfandbriefe will not provide for any Event of Default entitling Holders to
demand immediate redemption.
Governing Law: Notes other than Pfandbriefe will be subject to German law.
Pfandbriefe will be subject to Austrian law.
Jurisdiction: Non-exclusive place of jurisdiction for any legal proceedings arising