COMMERZBANK AKTIENGESELLSCHAFT

Transaction Costs
When Notes are purchased or sold, several types of incidental costs (including transaction fees and
commissions) are incurred in addition to the current price of the Notes. These incidental costs may
significantly reduce or even exclude the profit potential of the Notes. For instance, credit institutions as
a rule charge their clients for own commissions which are either fixed minimum commissions or prorata
commissions depending on the order value. To the extent that additional – domestic or foreign –
parties are involved in the execution of an order, including but not limited to domestic dealers or
brokers in foreign markets, Noteholders must take into account that they may also be charged for the
brokerage fees, commissions and other fees and expenses of such parties (third party costs).
In addition to such costs directly related to the purchase of Notes (direct costs), Noteholders must also
take into account any follow-up costs (such as custody fees). Prospective investors should inform
themselves about any additional costs incurred in connection with the purchase, custody or sale of the
Notes before investing in the Notes.
Credit Risk relating to Borrowings by the Investor
If a loan is used to finance the acquisition of the Notes and the Notes subsequently go into default, or
if one or more Credit Linkage Event occur or if the trading price diminishes significantly, the Noteholder
not only has to face a potential loss on his investment but he will also have to repay the loan and pay
interest thereon. This may significantly increase the risk of a loss. Noteholders should not assume that
they will be able to repay the loan or pay interest thereon from the profits of a transaction. Instead,
potential investors should assess their financial situation prior to an investment, as to whether they are
able to pay interest on the loan, or to repay the loan on demand, even if they may suffer losses instead
of realising gains.
Taxation
Payments of interest on the Notes, or profits realised by the Noteholder upon the sale or repayment of
the Notes, may be subject to taxation in the Noteholder's home jurisdiction or in other jurisdictions in
which it is required to pay taxes. The tax impact on Noteholders generally in the Federal Republic of
Germany and in Switzerland is described under "Taxation"; however, the tax impact on an individual
Noteholder may differ from the situation described for Noteholders generally.
Prospective investors should consult their own tax advisors for advice on the tax impact of an
investment in the Notes.
Governing Law
The Terms and Conditions will be governed by German law. No assurance can be given as to the
impact of any possible judicial decision or change in German law or administrative practice after the
date of this Prospectus.
Payment Risks unrelated to the Credit Linkage
Floating Rate Notes
The interest income on floating rate Notes cannot be anticipated. Due to varying interest income,
investors are not able to determine a definite yield of floating rate Notes at the time they purchase
them, so that their return on investment cannot be compared with that of investments having fixed
interest rates. If the Terms and Conditions provide for frequent interest payment dates, investors are
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