COMMERZBANK AKTIENGESELLSCHAFT

(including hedging transactions) with respect to the Reference Entities or Reference Obligations of the
Reference Entities. The Issuer, the Determination Agent and their affiliates are also entitled to exercise
a function in relation to the Notes other than the present function and to issue additional derivative
instruments in relation to the potential Reference Obligations or the Reference Entities. Such
transactions may favourably or adversely affect the market price of the Notes. If additional and
competing products are introduced in the markets, this may adversely affect the value of the Notes.
The Issuer, the Determination Agent and their affiliates are entitled in connection with any future
securities issues by the Reference Entities to act as managers, financial advisers for the relevant
Reference Entity or as commercial bank for a Reference Entity. Such activities may result in conflicts
of interest.
The Issuer, the Determination Agent and their affiliates may on the issue date of the Notes or at any
time thereafter be in possession of information in relation to any Reference Entities that may be
material to holders of any Notes and that may not be publicly available or not known to the
Noteholders. There is no obligation on the part of the Issuer, the Determination Agent or their affiliates
to disclose any such information to the Noteholders.
Risk of Credit Default Swap Spread Tightening
Irrespective of the occurrence of a Credit Linkage Event, payments under the Notes may be linked to
the Protection Value of one or more Hypothetical Credit Default Swaps (the determination of
"Protection Value" will be specified in the Final Terms) relating to the Reference Entities.
With respect to certain types of Notes, the calculation of interest payments may be based on the
Protection Value. The Protection Value is expressed as a percentage of the Principal Amount of the
Notes and is equal to the present values of the premium legs of one or more Hypothetical Credit
Default Swaps in relation to the Reference Entities with a certain maturity and a nominal amount to be
specified in the Terms and Conditions.
The Protection Value, calculated on a similar basis as described above, may also become relevant for
the Redemption Amount payable at maturity of certain types of Notes (irrespective of any additional
payments in the case of a Credit Event).
Similar determinations with respect to payments may also be applicable in case of Notes relating to
more than one Reference Entity where the Hypothetical Credit Default Swap(s) with respect to all
Reference Entities become(s) relevant and, if applicable, in addition, allow(s) for the weightings of the
Reference Entities, all as set out in the Final Terms.
As a consequence, tightening of Credit Default Swap Spreads may have a negative effect on the
market value of the Notes, on interest payments and/or the repayment amount of the Notes.
Substitution of Reference Entities or of the Reference Portfolio
As a result of mergers or other events involving Reference Entities, the Reference Entity or, in the
case of more than one Reference Entity, the composition of the Reference Entities within the portfolio
of Reference Entities may change. This could result in the risk that the Reference Entity or the portfolio
of Reference Entities, as the case may be, following such changes can, in economic terms, no longer
be compared with the relevant Reference Entity or the portfolio of Reference Entities prior to such
changes. Any risk which may result from such a change of Reference Entities will be borne by the
holders of the Notes.
The Final Terms may provide that in case of a Succession Event (as defined in § 6 of the Terms and
Conditions), a Reference Entity may become Successor (as defined in § 6 of the Terms and
Conditions) of another Reference Entity. If a Credit Event has already occurred and been notified
accordingly in relation to such Successor prior to the relevant Succession Event, such previous Credit
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