COMMERZBANK AKTIENGESELLSCHAFT

Physical Settlement
Amount
Redemption at
Maturity and Early
Redemption:
Early Redemption for
Taxation reasons:
Substitution of
Issuers; Branch
Designation:
Denominations of
Notes:
The Physical Settlement Amount will be determined in accordance with § 7 of the
Terms and Conditions as the pro-rata portion of the Outstanding Principle Balance or
Due and Payable Amount of the Deliverable Obligation(s), which in general will equal
the outstanding aggregate Principal Amount of the Notes, unless otherwise specified in
the Final Terms. Deliverable Obligation(s) are obligations of the Reference Entity
selected by the Issuer which satisfy the relevant Deliverable Obligation Categories and
Deliverable Obligation Characteristics set out in the Final Terms. The market value of
the selected Deliverable Obligation(s) delivered following the occurrence of the Credit
Event will not be taken into account.
In the case of a remaining fraction of the Deliverable Obligation(s) the Final Terms may
provide for a payment of a cash amount equal to the value of such fraction of the
Deliverable Obligation as stated in the Physical Settlement Amount. Under certain
circumstances, as specified in the Final Terms, the Issuer is not obliged to transfer the
Deliverable Obligations. In this case the Issuer shall pay the Partial Cash Settlement
Amount as determined in the applicable Final Terms.
The applicable Final Terms will indicate either that the Notes cannot be redeemed prior
to their stated maturity (except due to occurrence of a Credit Linkage Event, for taxation
reasons, or upon the occurrence of an event of default) or that the Notes will be
redeemable at the option of the Issuer and/ or the Noteholders upon giving notice within
the notice period (if any) indicated in the applicable Final Terms, 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.
Early redemption for taxation reasons will be permitted as provided in § 9 of the Terms
and Conditions of the Notes.
Any company may at any time during the life of a Series of Notes assume all the
obligations of the Issuer according to § 13 of the Terms and Conditions of each Series
of Notes. Upon any such substitution, such substitute company (the "New Issuer") shall
succeed to, and be substituted for, and may exercise every right and power of the
Issuer under the Terms and Conditions of the Notes with the same effect as if the New
Issuer had been named as the Issuer thereunder.
The Issuer may at any time, designate any branch or office of the Issuer outside the
Federal Republic of Germany as the branch or office primarily responsible for the due
and punctual payment in respect of the Notes then outstanding and the performance of
all of the Issuer’s other obligations under all the Notes then outstanding.
The Notes may be issued in such denominations as set out in the Terms and
Conditions and the Final Terms of each Series of Notes or in each case, such other
minimum denomination as may be allowed or required from time to time by the relevant
central bank (or equivalent body) or any laws or regulations applicable to the relevant
currency.
Taxation: Payments of principal and interest in respect of the Notes 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 or on behalf of the Federal Republic of Germany,
or any political subdivision or any authority thereof or therein having power to tax unless
such withholding or deduction is required by law. In the event that taxes or duties are
imposed or levied, the Issuer will, subject to the exceptions set forth in § 9 of the
relevant Terms and Conditions, pay such additional amounts as shall be necessary in
order that the net amounts received by the Noteholders of the Notes after such
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