COMMERZBANK AKTIENGESELLSCHAFT

Therefore, if a Credit Linkage Event occurs with regard to a Derivative Note investors may only
receive a fraction of the invested capital or may suffer a total loss of the capital invested and
loss of interest. In addition, there is a reinvestment risk.
The effects of Credit Linkage Events on the Notes may be leveraged, meaning that (i) where the
Principal Amount of the Note is lower than the sum of the Weighted Amounts of all Reference Entities,
Credit Linkage Events do not affect the payments under the Notes proportionally to their weighting
within the portfolio but by the absolute Weighted Amount of the respective Reference Entity, or (ii) the
Weighted Amount of the respective Reference Entity is multiplied by a factor.
Further, Credit Linkage Events may not have direct effects on the payments under the Notes in cases
where Credit Linkage Events below a certain threshold are not taken into account.
In case of (early) redemption by physical delivery prospective investors must be aware that, as a result
of such a physical delivery, investors and their investment no longer depend on the creditworthiness of
the Issuer but on the value of the Deliverable Obligations actually delivered.
The value of any such delivered obligation might be significantly less than the capital invested
by the investor and may, in extreme cases, even be zero.
In addition to such credit linkage, the Notes may be linked to certain underlyings, i.e. the amount
payable upon redemption and/or interest payments on the Notes are linked to the performance of
certain underlyings such as shares, share baskets, currencies, currency baskets, interest rates,
interest rate structures, indices and index baskets (the "Reference Underlyings"). As the Notes can,
in addition to credit linkage, provide for linkage to Reference Underlyings, the risk for the investors, as
described above, is cumulative or exponentially increased (for further aspects of risks relating to
underlying linkage, see "Additional Risks with respect to Notes with Underlying Linkage" below).
The Notes do not create any legal relationship between the holders of the Notes (the "Noteholders")
and the Reference Entities, and the Noteholders will not have any right of recourse against the
relevant Reference Entity in the event of any loss.
If during the term of the Notes, the creditworthiness of one or more Reference Entities deteriorates
significantly without the occurrence of a Credit Linkage Event being imminent, this may materially
adversely affect the market price of the Notes.
The correlation between Reference Entities may affect the market price of the Notes linked to more
than one of the Reference Entities. Depending on the structure of the Notes, a change in correlation
can have a positive or negative effect on the market value of the Notes.
The Final Terms may set out credit ratings of the specified Reference Entities issued by private rating
institutions. In spite of its wide-spread application a rating is merely a condensed measure of
assessing the ability of an issuer to meet its payment obligations. The factors influencing the way
ratings are arrived at are not always transparent. The rating agencies expressly state that their ratings
should be used as an assistance in preparing, but not as a substitute for, one’s own analysis.
As a result of mergers or other events, the Reference Entity or, in the case of more than one
Reference Entity, the Reference Entities within the portfolio of Reference Entities may change and any
risk which may result from such a change of Reference Entities will be borne by the Noteholders.
The Issuer, the Determination Agent and their affiliates may be in possession of information in relation
to any Reference Entities that may not be publicly available or not known to the Noteholders and may
be subject to conflicts of interest.
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