COMMERZBANK AKTIENGESELLSCHAFT Frankfurt am Main Final Terms dated 25 June, 2008 with respect to the Base Prospectus dated 27 February, 2008 relating to Warrants relating to the Dow Jones Industrial Average * Index denominated in USD (to be publicly offered in the Kingdom of Belgium and to be admitted for listing at EASYNEXT market organised by Euronext Brussels N.V./S.A.) * 'Dow Jones' and 'Dow Jones Industrial Average ' are service marks of Dow Jones & Company, Inc. or its licensors and have been licensed for use for certain purposes by Commerzbank Aktiengesellschaft. Commerzbank Aktiengesellschaft's Warrants based on the Dow Jones Industrial Average are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representations regarding the advisability of investing in such Warrants.
CERTAIN RISK FACTORS It is the opinion of the Issuer that the following information contains the major risks connected with an investment in the securities. However, no representation, warranty or undertaking is made that the list or description of the risks associated with an investment in the securities is complete. Further to this, the order of the risks described should not be considered as a statement on the extent of the possible financial effects connected with such risks or the probability of their occurrence. The occurrence of one or more of the risks described may negatively affect the ability of the Issuer to redeem the Warrants and/or the economic and financial situation of Commerzbank and its profits which may equally have a negative effect on the ability of the Issuer to redeem the Warrants. Potential purchasers of the Warrants are advised to read the complete Base Prospectus (including the information contained in the respective Final Terms) and to seek their own advice (including tax consultants and account holding bank) before reaching an investment decision. The following information is not intended to replace the advice given to the investor by its own bank. An investment decision should not be reached solely on the basis of this information as it is not intended to be equivalent to the advice or information tailored specifically for the requirements, aims, experience or knowledge and circumstances of the investor. Potential investors intending to purchase the Warrants should only purchase the Warrants if they are able to sustain the loss of the purchase price and of the transaction costs in connection with the purchase of the Warrants. RISKS ASSOCIATED WITH THE WARRANTS General Warrants on shares, indices, currency exchange rates, precious metals or commodity futures contracts (the "Warrants") grant to the holder (the "Warrantholder") the right to receive an amount in cash expressed in or converted into Euro, as the case may be, and multiplied with the Ratio by which the Reference Price of the underlying asset (the share, index, exchange rate, precious metal or commodity futures contract) (the "Underlying Asset") exceeds the Strike Price as determined in the Terms and Conditions of the Warrants on the Valuation Date (in the case of Call Warrants) or is exceeded by the Strike Price (in the case of Put Warrants) (the "Cash Settlement Amount"). The Warrants are American style warrants and may be exercised during an Exercise Period. Warrants which have not been exercised on the Expiration Date will be automatically exercised on the Expiration Date if the Cash Settlement Amount is a positive amount at that time, or otherwise the Warrants expire worthless. The Underlying Assets will not be delivered. In the case of an automatic exercise the Valuation Date shall be the Expiration Date, whereas in the case of an exercise during the Exercise Period the Valuation Date is the Exercise Date or the business date following the Exercise Date as specified in the Final Terms and may, in the case of the occurrence of a Market Disruption Event, be postponed further. The Warrants do not entitle the Warrantholders to receive a coupon payment or dividend yield and therefore do not constitute a regular source of income. Possible losses in connection with an investment in the Warrants can therefore not be compensated by other income from the Warrants. Special Characteristics of Warrants relating to Shares In the case of the occurrence of an Adjustment Event as set forth in the Terms and Conditions of the Warrants, the Issuer is entitled, but not obligated, to make adjustments to the Terms and Conditions of the Warrants in its reasonable discretion with the aim of maintaining for the holder of Warrants, to the extent possible, the economic position which they held prior to such events. (An Adjustment Event means amongst others any of the following events: capital increases, spin-offs, adjustments with respect to option or futures contracts relating to the Shares at the Related Exchange, etc.) Such adjustments may inter alia affect the Strike Price as well as the Ratio and may lead to the underlying 2
share being replaced by a basket of shares or, in the case of a merger, by shares of the merged or newly formed entity in any suitable number or to the designation of a different stock exchange as the Exchange. In this connection the Issuer may but is not obliged to take into consideration the adjustments made by the Related Exchange in case options on the relevant shares are traded on an options and futures exchange. In the case of the occurrence of an Extraordinary Event as set forth in the Terms and Conditions of the Warrants, the Issuer may (instead of an adjustment) terminate the Warrants prematurely. (An Extraordinary Event means amongst others any of the following events: takeover-bids with respect to the Shares of the Company, termination of trading of the Shares at the Exchange as well as of option or futures contracts relating to the Shares at the Related Exchange or the announcements thereof, the inability of the Issuer to undertake transactions to hedge its risks arising from the obligations of the Issuer under the Warrants, the application for insolvency proceedings with regard to the assets of the Company, etc.) In the case of such Extraordinary Event each Warrant will be redeemed at an amount which will be determined by the Issuer in its reasonable discretion - after consultation with an independent expert if the Issuer deems necessary - as the fair market value of the Warrants at the date as determined by the Issuer in the notification of the termination. The rights arising from the Warrants will terminate with the payment of such amount. Special Characteristics of Warrants relating to Indices If the index to which a specific Warrant relates is no longer calculated and published by the relevant sponsor of such index but by another person, company or institution acceptable to the Issuer as the successor sponsor, the Cash Settlement Amount will be calculated on the basis of the index being calculated and published by the successor sponsor and any reference made to the sponsor shall, if the context so admits, then refer to the successor sponsor. If at any time the index to which a specific Warrant relates is cancelled or replaced, the Issuer will determine the Index on the basis of which the Cash Settlement Amount shall be calculated (the "Successor Index"). If in the opinion of the Issuer a determination of a Successor Index is not feasible (for whatever reason), the Issuer or an expert appointed by the Issuer will continue the calculation and the publication of the Index on the basis of the former concept of the Index and its last determined level. In the case of the occurrence of an Extraordinary Event as set forth in the Terms and Conditions of the Warrants, the Issuer may (a) continue (itself or through an independent expert determined by the Issuer) the calculation of the Index on the basis of the former concept of the Index and its last determined level or (b) terminate the Warrants prematurely. (An Extraordinary Event means that in the opinion of the Issuer (i) the determination of a Successor Index in accordance with the above is not possible or (ii) the Index Sponsor materially modifies the calculation method of the Index with effect on or before the Valuation Date, or materially modifies the Index in any other way (except for modifications which are contemplated in the calculation method of the Index relating to a change with respect to securities comprising the Index or with respect to any other routine measures).) If the Issuer decides to terminate the Warrants prematurely due to the occurrence of an Extraordinary Event each Warrant will be redeemed at an amount which will be determined by the Issuer in its reasonable discretion - after consultation with an independent expert if the Issuer deems necessary - as the fair market value of the Warrants at the date as determined by the Issuer in the notification of the termination. The rights arising from the Warrants will terminate with the payment of such amount. Special Characteristics of Warrants relating to Commodity Futures Contracts If the Issuer determines that the concept or the contract specifications of the Relevant Futures Contract have been modified substantially and that the concept or the contract specifications, as the case may be, are no longer comparable to those prevailing at the issue of the Warrants, the Issuer can, but is not obligated, to make adjustments to the Strike Price, Ratio and/or any other provision of the Terms and Conditions. General Risks associated with the Purchase of Warrants Warrants involve a high degree of risk and investors must be prepared to sustain a total loss of the purchase price of their Warrants. This is particularly the case if the price of the Underlying Asset is below the Strike Price (in the case of Call Warrants) or is above the Strike Price (in the case of Put 3
Warrants) and where on the basis of the remaining time to the Expiration Date it cannot be expected that the price of the Underlying Asset will move in time into the preferred direction. The occurrence of fluctuations or the non-occurrence of anticipated fluctuations in the price of the Underlying Asset may disproportionately affect the value of the Warrants and may lead to the Warrants expiring worthless. Important factors in determining the price of Warrants are in particular: the actual price of the relevant Underlying Asset and the expectations of market participants regarding its price, the anticipated frequency and intensity of fluctuations in the price of the relevant Underlying Asset (volatility), and the lifetime of the Warrants. Risk of Loss due to Changes in the Volatility of the Underlying Asset Changes in the frequency and intensity of fluctuations in the price of the Underlying Asset anticipated by the market participants (implied volatility) may reduce the value of the Warrants even if the price of the Underlying Asset does not change. A generally positive development in the price of the Underlying Asset does not necessarily result in an increase in the price of the Warrants. The price of the Warrants may even fall if the performance of the Underlying Asset is overcompensated by a decreasing volatility with a negative effect on the value of the Warrants. Risk of Loss due to a Decrease in the Time Value Depending on the expectations of the market participants with respect to the future performance of the Underlying Asset, they are prepared to pay a price for a Warrant which differs to a greater or lesser extent from the intrinsic value of the Warrant (the intrinsic value means the amount by which the market price of the Underlying Asset exceeds the Strike Price (in the case of a Call Warrant) or is exceeded by the Strike Price (in the case of a Put Warrant)). Thus, the time value of a Warrant, i.e. the premium paid on top of its intrinsic value, changes permanently. As closer to the expiry of a Warrant, the more and faster its time value falls to zero; on expiry, the time value has reached zero. Purchases of Warrants which still have a relatively high time value shortly before expiry are therefore associated with particular risks. Risk associated with Leverage A typical feature of Warrants is their leverage effect on the earnings prospects of the invested capital: The price of Warrants always reacts over proportionately to changes in the price of the Underlying Asset and, thus, offer chances of higher profit during their lifetime - but bear at the same time high risks of incurring a loss. This is because the leverage has an effect in both directions - i.e. not only upwards in favourable periods, but also downwards in unfavourable periods. The greater the leverage, the riskier the purchase of Warrants. The leverage effect is particularly strong in the case of Warrants with very short lifetimes. Time Lag after Exercise In the case of any exercise of the Warrants, there will be a time lag between the time a Warrantholder gives instructions to exercise and the time the applicable Cash Settlement Amount relating to such exercise is determined. Any such delay between the time of exercise and the determination of the Cash Settlement Amount will be specified in the applicable Final Terms. However, such delay could be significantly longer, particularly in the case of the occurrence of a market disruption event (if applicable) or following the imposition of any exchange controls. The applicable price of the Underlying Asset may change significantly during any such period, and such movement or movements could decrease the Cash Settlement Amount of the Warrants being exercised and may result in such Cash Settlement Amount being zero. 4
Warrants are Unsecured Obligations The Warrants are unsecured and unsubordinated obligations of the Issuer and will rank pari passu with all present and future unsecured and unsubordinated obligations of the Issuer, without any preference among themselves and without any preference one above the other by reason of priority of date of issue, currency or any payment or otherwise, except for obligations given priority by law. Any person who purchases any of the Warrants is relying upon the creditworthiness of the Issuer and has no rights under the Warrants against any other person. Together with the general investment risk an investment in the Warrants is also concerned with possible default risk of the Issuer. The Issuer may issue several issues of warrants relating to various reference underlying assets which may be specified in the applicable Final Terms. However, no assurance can be given that the Issuer will issue any warrants other than the warrants to which a particular set of Final Terms relates. At any given time, the number of warrants outstanding may be substantial. Warrants provide opportunities for investment and pose risks to investors as a result of fluctuations in the value of the underlying asset. In general, certain risks associated with the Warrants are similar to those generally applicable to other options or warrants of private corporate issuers. Issuer Risk In addition to the risk connected with the investment in the Underlying Asset of a Warrant, the investor bears the risk that the financial situation of the Issuer of the Warrant declines or that insolvency or bankruptcy proceedings are instituted against the Issuer and that as a result the Issuer cannot fulfil its payment obligations under the Warrants. Possible Illiquidity of the Warrants in the Secondary Market It is not possible to predict the price at which Warrants will trade in the secondary market or whether such market will be liquid or illiquid. The Issuer may, but is not obliged to, list Warrants on a stock exchange. The Issuer may, but is not obliged to, at any time purchase Warrants at any price in the open market or by tender or private treaty. Any Warrants so purchased may be held or resold or surrendered for cancellation. The Issuer may, but is not obliged to, be a market-maker for an issue of Warrants. Even if the Issuer is a market-maker for an issue of Warrants, the secondary market for such Warrants may be limited. To the extent that an issue of Warrants becomes illiquid, an investor may have to exercise such Warrants to realise value. Potential Conflicts of Interest The Issuer and its affiliates may also engage in trading activities (including hedging activities) related to the Underlying Asset of the Warrants and other instruments or derivative products based on or related to the Underlying Asset for their proprietary accounts or for other accounts under their management. The Issuer and its affiliates may also issue other derivative instruments in respect of the Underlying Asset. Such activities could present certain conflicts of interest, could influence the prices of the Underlying Assets or other securities and could adversely affect the value of such Warrants. Risks in connection with Borrowing If the investor obtains a loan in connection with financing the purchase of the Warrants the investor does not only bear the risk of sustaining the loss in connection with the Warrants if the price of the Underlying Assets develops unfavourably, but also has to pay back the loan and pay the interest connected with it. This means a substantial increase in risk. An investor can never rely on being able to pay back the loan and the interest connected with it through gains derived from the purchase of the Warrants. Prospective purchasers of Warrants should therefore carefully consider their particular financial circumstances and whether they will be able to pay back the loan and pay the interest connected with it even if the investor has to sustain losses instead of the expected gains. Risks associated with Currency If the Underlying Asset of the Warrants is quoted in another currency than the Warrant any risk in connection with an investment in the Warrants does not only depend on the development of the price 5
of the Underlying Asset but also on the development of the respective currencies. Unfavourable developments in these markets can increase the risk and could lead to a decrease in the value of the Warrants or in the Cash Settlement Amount. Transactions Excluding or Limiting Risk The investor cannot expect that at all times during the lifetime of the Warrants transactions can be concluded which exclude or limit the risks incurred from a purchase of Warrants; this depends on the market conditions and the specific features of such Warrants as specified in the Final Terms of such Warrants. Such transactions can under certain circumstances be concluded only at an unfavourable market price and lead to a corresponding loss. Influence of ancillary Costs on Potential Profit Investors should consider that the return on the investment in the Warrants is reduced by the costs in connection with the purchase and sale of the Warrants. Minimum or fixed commissions per transaction (purchase and sale) combined with a low order value (price of the Warrant times quantity) can lead to costs which, in extreme cases, may exceed the value of the Warrants purchased. Additional costs arise generally if the Warrants are exercised. Together with the costs directly linked to the purchase of the Warrants, these additional costs may be considerable compared with the total Cash Settlement Amount received by the Warrantholder exercising his Warrants. The Influence of Hedging Transactions of the Issuer on the Warrants The Issuer and/or its affiliates may in the course of their normal business activity engage in trading in the Underlying Asset. In addition, the Issuer may conclude transactions in order to hedge itself partially or completely against the risks associated with the issue of the Warrants. These activities of the Issuer and/or its affiliates may have an influence on the market price of the Warrants. A possibly negative impact of the conclusion or dissolution of these hedging transactions on the value of the Warrants or the size of the Cash Settlement Amount to which the holder of a Warrant is entitled cannot be excluded. In particular, the dissolution of the hedge position and a possible unwinding of the Issuer s and/or its affiliates position in the Underlying Asset during the closing auction on the relevant Valuation Date may influence the price of the Underlying Assets in the closing auction. Consequently, the Cash Settlement Amount payable to the investor calculated on the Reference Price of the Underlying Assets might be reduced merely by the fact that the hedge for the Warrants was dissolved on the Valuation Date in the closing auction. This risk is higher for Underlying Assets with low liquidity levels, especially during the closing auction. 6
GENERAL INFORMATION This document contains the Final Terms of the Warrants described herein and must be read in conjunction with the Base Prospectus dated 27 February, 2008 (the "Base Prospectus"). Full information on the Issuer and the offer of the Warrants is only available on the basis of a combination of these Final Terms and the Base Prospectus. Prospective purchasers of the Warrants are advised to read the complete Base Prospectus including the chapter on "Risk Factors" and to seek their own advice (including tax consultants and account holding bank) before reaching an investment decision. Prospectus Liability Commerzbank Aktiengesellschaft (the "Issuer", the "Bank" or "Commerzbank", together with its consolidated subsidiaries "Commerzbank Group" or the "Group") with its registered office at Kaiserplatz, 60261 Frankfurt am Main, Federal Republic of Germany, accepts responsibility for the information contained in this Base Prospectus. The Issuer hereby declares that having taken all reasonable care to ensure that such is the case, the information contained in this Base Prospectus is, to the best of its knowledge, in accordance with the facts and contains no omission likely to affect its import. No person is or has been authorised by the Issuer to give any information or to make any representation not contained in or not consistent with this Base Prospectus or any other information supplied in connection with this Base Prospectus or the Warrants and, if given or made, such information or representation must not be relied upon as having been authorised by the Issuer. The delivery of this Base Prospectus does not at any time imply that the information contained herein concerning the Issuer is correct at any time subsequent to the date hereof or that any other information supplied in connection with the Base Prospectus or the Warrants is correct as of any time subsequent to the date indicated in the document containing the same. Subscription and Sale As of 25 June, 2008 Commerzbank will offer Warrants relating to to the Dow Jones Industrial Average Index denominated in USD (the Warrants ) with issue sizes and issue prices per series as determined in the following table. Characteristics Type Issue Size ISIN Strike Price in USD Call 3,000,000 DE000CB3BZ04 12,000.00 Put 3,000,000 DE000CB3BZ12 13,000.00 Call 3,000,000 DE000CB3BZ20 13,000.00 Put 3,000,000 DE000CB3BZ38 11,000.00 Exercise Period 1 July, 2008 17 September, 2008 1 July, 2008 17 December, 2008 1 July, 2008 18 March, 2009 1 July, 2008 18 March, 2009 Issue Price in EUR 1.27 0.83 1.09 0.42 Calculation Agent If a calculation agent will be necessary Commerzbank will act as calculation agent. 7
Form of the Warrants The Warrants will be represented by a global warrant in bearer form (the "Global Warrant") which will be deposited with Euroclear Belgium, Avenue de Schiphol 6, 1140 Brussels, Belgium ("Euroclear Belgium"). There will be neither global bearer warrants nor definitive warrants. Status The Warrants are unsecured and unsubordinated obligations of the Issuer and rank and will rank pari passu with all present and future unsecured and unsubordinated obligations of the Issuer, without any preference among themselves and without any preference one above the other by reason of priority of date of issue or otherwise, except for obligations given priority by law. Minimum Trading Unit The Minimum Trading Unit of Warrants relating to each series of Warrants is one (1) Warrant. Listing The admission for listing and trading of the Warrants on EASYNEXT market organised by Euronext Brussels N.V./S.A has been applied. First day of trading is envisaged to take place on 25 June, 2008. Availability of documents These Final Terms, the Base Prospectus dated 27 February, 2008 and Supplement A to the Base Prospectus dated 8 April, 2008 will be made available to investors on the internet page: www.warrants.commerzbank.com whereas the Articles of Association of Commerzbank Aktiengesellschaft, the annual report of the Commerzbank Group for the financial years 2005 and 2006 as well as the quarterly interim report as of 30 September, 2007 (reviewed English version) ) and the Preliminary Statement relating to the Financial Year 2007 (Consolidated Financial Statements as of 31 December, 2007 (abridged version without audit opinion)) are available in their current form on the internet page of Commerzbank: www.commerzbank.de. Payment Date 30 June, 2008 Settlement The Warrants will be cash settled. Settlement will take place not later than on the third business day following the respective Valuation Date, all as specified in detail in the Terms and Conditions of the Warrants. Taxation Withholding tax at source: All amounts payable under the Warrants will be paid without deduction or withholding for or on account of any present or future taxes, duties or governmental charges whatsoever imposed or levied by or on behalf of the Federal Republic of Germany or any taxing authority therein. In the case that the Issuer will be compelled by law or other regulation to deduct or withhold such taxes, duties or governmental charges the Issuer will not pay any additional amounts to compensate the Warrantholder for such deduction or withholding. Taxes payable in Belgium: The following description is only a summary of current Belgian tax law which can change over time. The summary does not purport to be a comprehensive description of all of the tax considerations that may be relevant to any particular Warrantholder, including tax considerations that arise from rules of general application or that are generally assumed to be known to Warrantholders. It is not intended to 8
be, nor should it be construed to be, legal or tax advice. Prospective Warrantholders should consult their tax advisor on the basis of their own particular situation. Please note that in addition to the explanation below, payments on the Warrants may be subject to tax law or other laws or regulations in force in the countries where such payments occur. Income tax The Belgian tax authorities have not issued any guidance in relation to the Belgian tax treatment of investment products such as the Warrants. The description of the tax regime below is based on the analysis according to which the Warrants should be classified as securities which do not constitute claim rights for Belgian tax purposes. - Belgian resident individual investors Belgian resident individual investors holding the Warrants as a private investment are not subject to Belgian tax on capital gains realized upon the exercise or the disposal of the Warrants. Belgian resident individual investors may, however, be subject to a 33% tax (to be increased with the municipal surcharge) if the capital gain so realized is deemed to be speculative. Belgian resident individual investors who hold the Warrants within the framework of their professional activity are taxable at the ordinary progressive income tax rates for business income on any gains realized on the disposal or the exercise of such Warrants. - Belgian resident corporate investors Belgian resident corporations will be subject to Belgian capital gains taxation on the disposal or the exercise of the Warrants, irrespective of whether such Warrants relate to shares or other assets or indices. Current normal corporate tax rate in Belgium is 33.99%. Capital losses realised on the transfer, exercise or expiry of the Warrants are deductible for Belgian corporate tax purposes. - Belgian resident legal entities Belgian resident entities subject to the tax on legal entities will not be subject to taxation in Belgium on the capital gains realized upon the exercise or the disposal of the Warrants. - Non-resident individual or corporate investors Non-resident individuals or corporations are in principle not subject to taxation on capital gains realized on Warrants, unless the non-resident acquired the Warrants for a business conducted in Belgium through a fixed base or a Belgian establishment, to which the Warrants are attributable. In such a case, the same principles apply as described with regard to Belgian resident individuals (holding the Warrants for professional purposes) or corporations (see above). Tax on stock exchange transactions Investors acquiring or selling Warrants through a professional intermediary established in Belgium, other than upon initial subscription, are subject to a Belgian tax on stock exchange transactions. This tax amounts to 0.17 per cent and is applicable both by reason of the acquisition and of the sale of the Warrants in Belgium. It is capped to EUR 500 per transaction and per party. This tax is not due by: - intermediaries as mentioned in article 2, 9 and 10 of the Law of 2 August, 2002 on the supervision of the financial sector and financial services acting for their own account; - insurance companies as mentioned in article 2, 1 of the Law of 9 July, 1975 on the supervision of insurance companies acting for their own account; - pension funds ( voorzorgsinstellingen / institutions de prévoyance ) as mentioned in article 2, 3, 6 of the Law of 9 July 1975 on the supervision of insurance companies acting for their own account; - collective investment institutions acting for their own account; and 9
- non-residents acting for their own account and subject to an affidavit of non-residency. Estate and gift tax Transmission of Warrants by reason of death will only be subject to Belgian estate tax on the fair market value of the Warrants if the Warrants are part of a Belgian resident's estate. Gifts of Warrants in Belgium are subject to gift tax, unless the gift is made by way of a purely physical delivery of bearer securities. Transfers of Warrants by way of a foreign notarial deed which is not voluntarily presented for registration in Belgium are not subject to gift tax. Information on the Underlying Asset The Warrants issued under this Base Prospectus relate to the Dow Jones Industrial Average Index. Information on the Dow Jones Industrial Average Index is available on the following internet page: Underlying Asset Dow Jones Industrial Average Index (ISIN US2605661048) Internet Page www.dowjones.com Disclaimer relating to Dow Jones Industrial Average Index The Warrants are not sponsored, endorsed, sold or promoted by Dow Jones. Dow Jones makes no representation or warranty, express or implied, to the owners of the Warrants or any member of the public regarding the advisability of investing in securities generally or in the Warrants particularly. Dow Jones' only relationship to the Licensee is the licensing of certain trademarks, trade names and service marks of Dow Jones and of the Dow Jones Industrial Average, which is determined, composed and calculated by Dow Jones without regard to Commerzbank Aktiengesellschaft or the Warrants. Dow Jones has no obligation to take the needs of Commerzbank Aktiengesellschaft or the owners of the Warrants into consideration in determining, composing or calculating Dow Jones Industrial Average. Dow Jones is not responsible for and has not participated in the determination of the timing of, prices at, or quantities of the Warrants to be issued or in the determination or calculation of the equation by which the Warrants are to be converted into cash. Dow Jones has no obligation or liability in connection with the administration, marketing or trading of the Warrants. DOW JONES DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE DOW JONES AVERAGE INDUSTRIAL OR ANY DATA INCLUDED THEREIN AND DOW JONES SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. DOW JONES DOES MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY COMMERZBANK AKTIENGESELLSCHAFT, OWNERS OF THE WARRANTS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE DOW JONES AVERAGE INDUSTRIAL OR ANY DATE INCLUDED THEREIN. DOES DOW JONES MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES, OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE DOW JONES AVERAGE INDUSTRIAL OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL DOW JONES HAVE ANY LIABILITY FOR ANY LOST PROFITS OR INDIRECT, PUNITIVE, SPECIAL OR CONSEQUENTIAL DAMAGES OR LOSSES, EVEN IF NOTIFIED OF THE POSSIBILITY THEREOF. THERE ARE NO THIRD PARTY BENEFICIARIES OF ANY AGREEMENTS OR ARRANGEMENTS BETWEEN DOW JONES AND COMMERZBANK AKTIENGESELLSCHAFT. 10
TERMS AND CONDITIONS OF THE WARRANTS 1 General and Definitions (1) Each series of Warrants (the "Warrants") issued by Commerzbank Aktiengesellschaft, Frankfurt am Main (the "Issuer") grants to the Warrantholder the right (the "Option Right") to receive upon exercise from the Issuer the payment of a Cash Settlement Amount (rounded, if necessary, to two decimal places (with 0.005 being rounded upwards)) in accordance with these Terms and Conditions of the Warrants. The Warrants are American style (exercisable during the Exercise Period) with automatic exercise at the Expiration Date and settlement in cash. (2) For the purposes of these Terms and Conditions of the Warrants the following definitions shall apply: "Cash Settlement Amount" The Cash Settlement Amount is the amount expressed in U. S. Dollar ("USD") multiplied with 0.001 and converted into Euro ("EUR"), by which the Reference Price exceeds the Strike Price (in the case of Call Warrants) or is exceeded by the Strike Price (in the case of Put Warrants). The conversion into EUR shall be made at the Relevant Conversion Rate. "Exercise Date" Subject to 3 paragraph (2) (a), the Payment Business Day on which the Warrant Agent has received an Exercise Notice with respect to the relevant Warrant, or, in the case of Automatic Exercise pursuant to 3 paragraph (2) (d) the Expiration Date. "Exercise Period" Subject to 3 paragraph (2) (a) the Option Right can be exercised during the Exercise Period as detailed in the table below on any Payment Business Day from and including the first day of the Exercise Period until 10.00 am (Brussels time) on the last day of the Exercise Period (the "Expiration Date"), provided that such day is a Payment Business Day, failing which the Expiration Date shall be the first preceding Payment Business Day. "Index" The Index shall be the Dow Jones Industrial Average Index (ISIN US2605661048), as determined and published by Dow Jones & Company, Inc. (the "Index Sponsor"). "Index Business Day" An Index Business Day is a day (other than a Saturday or a Sunday) on which the level of the Index is determined and published by the Index Sponsor. "Minimum Exercise Number of Warrants" The Minimum Exercise Number of Warrants relating to each series of Warrants is 100 Warrants. "Participant" Participant means a securities intermediary who directly or indirectly holds a book-entry interest in the Warrants through accounts with Euroclear Belgium on behalf of its customers. For the purpose of the Warrant issues, the Participant shall include Euroclear Bank S.A./N.V. as operator of the Euroclear System and Clearstream Banking, société anonyme, Luxembourg. "Payment Business Day" A Payment Business Day is a day (other than a Saturday or a Sunday) on which commercial banks in Frankfurt am Main and Brussels, Euroclear Belgium ( 2 paragraph (1)) as well as the Trans-European Automated Gross Settlement Express Transfer System (TARGET) are simultaneously open for business. "Reference Price" The Reference Price shall be the closing level of the Index calculated and published by the Index Sponsor (the Reference Level ) on the Valuation Date, expressed in USD where one index point is equal to USD 1.00. 11
"Strike Price" The Strike Price relating to a series of Warrants is the price determined in the table below. "Valuation Date" Subject to 4 the Valuation Date means, in respect of any exercised Warrant, the Exercise Date. In case of an Automatic Exercise and for Warrants which are exercised on the Expiration Date, the Valuation Date shall be the Expiration Date. "Warrant Redemption Account" Warrant Redemption Account means, for the purpose of exercising any Warrants, the escrow account of the Warrant Agent with Euroclear Belgium, into which the exercised Warrants must be deposited. "Warrantholder" Warrantholder means, a person holding Warrants through a Participant or, in the case of a Participant acting on its own account, that Participant. For each series of Warrants the terms "Strike Price" and "Exercise Period" and shall have the following meaning: Type Issue Size ISIN Strike Price in USD Call 3,000,000 DE000CB3BZ04 12,000.00 Put 3,000,000 DE000CB3BZ12 13,000.00 Call 3,000,000 DE000CB3BZ20 13,000.00 Put 3,000,000 DE000CB3BZ38 11,000.00 Exercise Period 1 July, 2008 17 September, 2008 1 July, 2008 17 December, 2008 1 July, 2008 18 March, 2009 1 July, 2008 18 March, 2009 "Relevant Conversion Rate" The Relevant Conversion Rate shall be the ask price of EUR 1.00 in USD, as quoted on the International Interbank Spot Market (the "EUR/USD Spot Rate") and published on Bloomberg page EURUSD on the Valuation Date at or about the time the Reference Level is determined and published by the Index Sponsor. Should such EUR/USD Spot Rate no longer be published on Bloomberg page EURUSD but on another page (the "Successor Page"), the Relevant Conversion Rate shall be the EUR/USD Spot Rate as published on the Successor Page. The Issuer shall publish the Successor Page according to 13. If on the Valuation Date the EUR/USD Spot Rate is not published on Bloomberg page EURUSD or on any Successor Page, the Issuer shall request four major banks in Frankfurt am Main at the Issuer's choice to quote ask prices for EUR in USD at or about the time the Reference Level is determined and published by the Index Sponsor. In this case, the Relevant Conversion Rate shall be the arithmetic mean of such ask prices. 12
2 Form; Status (1) Except as set forth hereinafter, all Warrants are represented by a global Warrant in bearer form (the Global Warrant ), which will be deposited and given in custody with Euroclear Belgium in Brussels or its successor securities depository institution for Global Warrants ( Euroclear Belgium ). Each Warrant entitles the holder thereof, subject to these Terms and Conditions, to the Option Right. (2) All transactions (including transfer of Warrants) in the open market or otherwise must be effected through the account at Euroclear Belgium in which the relevant Warrants are held and through the relevant Participant, in accordance with the rules applicable on EASYNEXT market organised by Euronext Brussels. Title will pass upon registration of the transfer in the books of Euroclear Belgium and of the relevant Participant. Transfers of Warrants may not be effected after the exercise pursuant to 3. (3) The Warrants are unsecured and unsubordinated obligations of the Issuer and rank and will rank pari passu with all present and future unsecured and unsubordinated obligations of the Issuer, without any preference among themselves and without any preference one above the other by reason of priority of date of issue or otherwise, except for obligations given priority by law. (1) Entitlement 3 Entitlement; Exercise Procedure; Settlement The Warrantholders are entitled to exercise the Warrants on any Payment Business Day during the Exercise Period. Upon the Expiration Date, the Warrants which have not been exercised by the Warrantholders shall be subject to the provisions regarding the Automatic Exercise according to paragraph (2) (d). (2) Exercise Procedure Any exercise of Warrants by the Warrantholder shall be carried out in accordance with the provisions of the following paragraphs: (a) Exercise Date and Exercise Notice; Determinations Warrants may be exercised on any Payment Business Day during the Exercise Period by a Participant, in its own name or on behalf of another Warrantholder, confirming to the Warrant Agent by fax or telex (each such fax or telex to be referred to as an Exercise Notice in a form acceptable to the Warrant Agent, that (i) it irrevocably exercises such Warrants, (ii) it shall arrange for the transfer of the Warrants being exercised to the Warrant Redemption Account of the Warrant Agent specified in the Exercise Notice not later than 10.00 am (Brussels time) on the relevant Exercise Date, and (iii) payment of the relevant Cash Settlement Amount for each duly exercised Warrant is requested to be made to that Participant. The Exercise Notice, copies of which may be obtained from the Warrant Agent, must include such information as may be requested by the Warrant Agent which is necessary or desirable in its view to enable the Issuer to pay the Cash Settlement Amount to the Participant. The relevant Participant shall also inform Euroclear Belgium that the Warrantholder wishes to exercise the amount of Warrants as confirmed to the Warrant Agent in an Exercise Notice. Any determinations as to whether the Exercise Notice is duly completed and in proper form shall be made by the Warrant Agent and shall be binding on the relevant Participant and the relevant Warrantholder. Any such Exercise Notice determined to be incomplete or not in proper form shall be null and void. If such Exercise Notice is subsequently corrected to the satisfaction of the Warrant Agent it shall be deemed to be a new Exercise Notice delivered at the time such corrected Exercise Notice is delivered to the Warrant Agent. In the event that an Exercise Notice is received by the Warrant Agent after 10.00 a.m. (Brussels time) on any Exercise Date, the Exercise Date shall be deemed to be the next Payment Business Day immediately following the date on which such Exercise Notice has 13
been received; provided, however, that an Exercise Notice received after 10.00 a.m. (Brussels time) on the Expiration Date shall be void and all rights of the Warrantholder under the relevant Warrants shall terminate, save as provided in paragraph (d) below. (b) Effect of Delivery of Exercise Notice Delivery of an Exercise Notice shall constitute an irrevocable election and undertaking by the relevant Warrantholder to exercise the Warrants specified therein. After delivery of such Exercise Notice, such exercising Warrantholder may not otherwise transfer such Warrants. If, notwithstanding this, any Warrantholder does so transfer or attempt to so transfer such Warrants, the Warrantholder will be liable to the Issuer for any losses, costs and expenses suffered or incurred by the Issuer, including, without limitation, those suffered or incurred as a consequence of it having terminated any related hedging operations in reliance on the relevant Exercise Notice and subsequently (i) entering into replacement hedging operations in respect of such Warrants or (ii) paying any amount on the subsequent exercise of such Warrants without having entered into any replacement hedging operations. The Warrant Agent shall confirm, as soon as possible, to the Issuer the number of Warrants being exercised and the reference of the account to which the payment of any Cash Settlement Amount in respect of the Warrants being exercised must be made. The Issuer shall, by the Payment Business Day next following the Valuation Date (i) confirm to the Warrant Agent the Cash Settlement Amount, if any, in respect of the Warrants; and (ii) transfer the corresponding aggregate Cash Settlement Amount in respect of the Warrants being exercised to the Warrant Agent. (c) Minimum Exercise Number The Warrants are exercisable only in the Minimum Exercise Number and integral multiples thereof thereafter. Any Exercise Notice which purports to exercise Warrants in breach of this provision shall be void and of no effect. (d) Automatic Exercise on Expiration Date (3) Settlement Any Warrants which have not been exercised by the Warrantholder by 10.00 a.m. (Brussels time) on the Expiration Date, will be automatically exercised on the Expiration Date without the need for any action by or on behalf of the Warrantholder if the Cash Settlement Amount is a positive amount at that time (the "Automatic Exercise"). (a) General Subject to the Warrants being exercised having been transferred to the Warrant Redemption Account as specified in the Exercise Notice, and subject to certification as to non-u.s. beneficial ownership having been received, the Warrant Agent on behalf of the Issuer shall pay or cause to be paid on the third Payment Business Day following the Valuation Date (the Settlement Date ) the Cash Settlement Amount (if any) for each duly exercised Warrant to such account of the relevant Participant as designated by such Participant in the Exercise Notice, subject to compliance by the Warrantholder with the exercise procedure as described in these Terms and Conditions. The Participant shall be responsible for crediting the relevant Cash Settlement Amount to the account of the relevant Warrantholder. Neither the Issuer nor the Warrant Agent nor Euroclear Belgium shall have any responsibility in respect hereof. (b) Exercise Risk Exercise of the Warrants and payments by the Issuer will be subject in all cases to any applicable fiscal or other laws, regulations and practices in force at the relevant time and none of the Issuer or the Warrant Agent shall incur any liability whatsoever if it is unable to effect the transactions contemplated, after using reasonable efforts, as a result of such laws, regulations and practices. None of the Issuer and the Warrant Agent shall under any circumstances be liable for any acts or defaults of any clearing systems in the performance of its duties in relation to the Warrants. 14
(c) Settlement Automatic Exercise In case of Automatic Exercise, if and to the extent that on the basis of the Terms and Conditions a Cash Settlement Amount would be due by the Issuer had the Exercise Notice been received on the Expiration Date before 10.00 a.m. (Brussels time), the Issuer will pay or cause to be paid the Cash Settlement Amount, due in respect of all Warrants that had remained unexercised by their holders, on the relevant Settlement Date to the Warrant Agent for onward payment to the Participants. Euroclear Belgium will be informed by or on behalf of the Issuer of the Cash Settlement Amount due in respect of all Warrants represented by the Global Warrant and of the Cash Settlement Amount due per Warrant. Euroclear Belgium shall not be obliged to make any payment in excess of funds it actually received as funds free of charges of any kind whatsoever. The Participant shall be responsible for crediting the relevant Cash Settlement Amount to the account of the relevant Warrantholder. Neither the Issuer nor the Warrant Agent shall have any responsibility for the onward payment by Euroclear Belgium to its Participants, nor for the crediting by such Participant of the account of any Warrantholder. (d) Cancellation of Warrants Warrants which have been exercised and in respect of which the Cash Settlement Amount has been paid by the Warrant Agent on behalf of the Issuer to the relevant Participant will be kept in the Warrant Redemption Account. The Global Warrant shall at all times represent the aggregate amount of the outstanding Warrants and the Warrants being exercised. The Global Warrant shall be cancelled on the fourth Payment Business Day following the Expiration Date. (4) All taxes, duties or other fees and charges in connection with the ownership, transfer, payment of an Early Termination Amount and Automatic Exercise of the Warrants are to be borne and paid by the Warrantholders. (5) Any determination, calculation or other decision of the Issuer shall, in the absence of manifest error, be binding for all parties involved. 4 Postponement of Valuation Date; Market Disruption Event (1) If on a Valuation Date the Reference Level of the Index is not determined and published or if a Market Disruption Event occurs, then the next calendar day on which the Reference Level of the Index is again calculated and published and on which there is no Market Disruption Event shall be deemed to be the Valuation Date. If, according to the provision above, the Valuation Date is postponed for ten consecutive Index Business Days and if also on such day the Reference Level of the Index is not determined and published or if in the opinion of the Issuer a Market Disruption Event occurs, then this day shall be deemed to be the Valuation Date and the Issuer shall determine the Reference Level of the Index on such day. For the purpose of such determination, the Issuer will calculate the closing level of the Index on the basis of the prices of the securities comprising the index on such day at the time the closing level of the Index is usually determined (the "Calculation Time"). If the trading of one or more securities being relevant for such calculation is limited or suspended on such date, the Issuer will estimate at its own discretion the price of the relevant securities at the Calculation Time after consultation with an independent expert, if the Issuer deems this necessary, and in consideration of the prevailing market conditions. (2) "Market Disruption Event" means any suspension of or limitation imposed on trading in the stocks comprising the Index on the stock exchanges or trading systems the prices of which are the basis for the calculation of the Index, provided that in the opinion of the Issuer in any such case such suspension or limitation is material for the calculation of the Index. A limitation on the hours or days of trading does not constitute a Market Disruption Event provided that such limitation results from an announced change in the regular business hours of the relevant stock exchange or trading system. A limitation imposed on trading during the day by reason of movements in price exceeding the limits permitted by the relevant stock exchange or 15