HYPO TIROL BANK AG

provide that redemption will be or, at the option of the Issuer, may be byphysical delivery of a given number of underlying equity securities.Credit Linked NotesDual Currency NotesZero Coupon NotesOther NotesRedemptionTaxationCredit Linked Notes may be issued relating to one or more reference entitiesor assets (as specified in the Final Terms). Such Notes may be redeemedprior to their scheduled maturity and at less than their principal amount on theoccurrence of a credit event (as specified in the Final Terms) and interest onsuch Notes may cease to accrue prior to the scheduled maturity of suchNotes or may, due to potential principal reductions, be reduced on theoccurrence of such credit event. On the occurrence of a credit event and if sospecified in the Final Terms, such Notes may be redeemed by settlement inthe form of physical delivery of certain assets.Dual Currency Notes are Notes, where payment of principal and/or paymentof interest can be made in different currencies. Payments (whether in respectof principal or interest and whether at maturity or otherwise) in respect of DualCurrency Notes will be made in such currencies, and based on such rates ofexchange, as the Issuer and the relevant Dealer(s) may agree (as specified inthe Final Terms).Zero Coupon Notes will be offered and sold at a discount to their principalamount and will not bear interest other than in the case of late payment.Notes may be of any other type of security which the Issuer and the relevantDealer(s) may agree. The terms governing any such Notes will be specified inthe Final Terms.The Final Terms will indicate either that the Notes cannot be redeemed priorto their stated maturity (except for taxation reasons, or, in the case of SeniorNotes (as defined herein) only upon the occurrence of an Event of Default) orthat such Notes will be redeemable at the option of the Issuer and/or theHolders upon giving notice within the notice period (if any) indicated in theFinal Terms to the Holders or the Issuer, as the case may be, on a date ordates specified prior to such stated maturity and at a price or prices and onsuch terms as indicated in the Final Terms.Any Notes, the proceeds of which are to be accepted by the Issuer in theUnited Kingdom, which must be redeemed before the first anniversary of thedate of their issue, shall (a) have a redemption value of not less thanGBP 100,000 (or an amount of equivalent value denominated wholly or partlyin a currency other than Sterling), and (b) provide that no part of any suchNote may be transferred unless the redemption value of that part is not lessthan GBP 100,000 (or such an equivalent amount).Pfandbriefe will not be subject to early redemption for taxation reasons or atthe option of a Holder.Payments of principal and interest in respect of the Notes (other thanPfandbriefe) will be made without withholding or deduction for or on accountof any present or future taxes or duties of whatever nature imposed or leviedby way of withholding or deduction at source by or on behalf of the Republicof Austria, or any political subdivision or any authority thereof or thereinhaving 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 paysuch additional amounts as shall be necessary in order that the net amountsreceived by the Holders of the Notes after such withholding or deduction shallequal the respective amounts of principal and interest which would otherwisehave been receivable in respect of the Notes in the absence of suchwithholding or deduction, subject to the exceptions set out in § 7 of the Termsand Conditions of the Notes.Pfandbriefe will not provide for the obligation of the Issuer to pay suchadditional amounts in the event of taxes or duties being withheld or deducted9