DIE ERSTE österreichische Spar-Casse ... - ERSTE Stiftung

Zero-Coupon Notes
Changes in market interest rates have a substantially stronger impact on the prices of Zero
Coupon Notes than on the prices of ordinary notes.
Structured Notes
An investment in Notes under which the premium and/or the interest and/or the redemption
amount is determined by reference to one or more formula, either directly or inversely, may
entail significant risks not associated with similar investments in conventional Notes. Such
risks include the risks that the holder of such Notes will receive no interest at all or that the
resulting interest rate will be less than that payable on a conventional debt security at the
same time and/or that the holder of such Notes could lose all or a substantial portion of the
redemption amount of the Notes. In addition, investors should be aware that the market price
of such Notes may be very volatile. In general, structured Notes generate a specific cash flow.
The Terms and Conditions for the Notes set out under which requirements, to which date and
to which amount the interest or/and redemption amounts are/will be payable. If the agreed
conditions do not occur, the real cash flow may substantially differ from the expected cash
flow.
Risks relating to Caps
In the case of a cap, a Noteholder will not be able to benefit from any favourable development
beyond the cap.
Purchase on credit - debt financing
If a loan or credit is used to finance the acquisition of the Notes and the Notes subsequently
go into default, or if their trading price diminishes significantly, the investor may not only incur
a loss on the investment but will also have to repay the loan and interest payable thereon.
Incidental costs
Incidental costs associated with the purchase and sale of the Notes may have a significant
impact on the potential return on the Notes.
Clearing Risk
Investors have to rely on the functionality of the relevant clearing system.
Taxation
Prospective investors should contact their own tax advisors for advice on the tax impact of an
investment in the Notes which may differ from the general description of tax impacts on
investors.
Applicable law and changes in applicable laws or in tax legislation
The Notes are governed by Austrian law, and changes in applicable laws, regulations,
regulatory policies or tax legislation may have an adverse effect on the Issuer, the Notes and
the investors.
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