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Term Sheet Ratchet Swap

Start Date Spot, Forward Start or Forward Start with a fixed payment period
at the beginning

Maturity 3 Months up to 15 Years

Currency Euro, USD, GBP

Notional 1.000.000,00 and more

Counterpart A pays

Coupon Floating or Fixed Rate

Spread (in Floating case) ± X bp

Reference (in Floating case) Euribor or Libor

Day count Act/Act, Act/360, E30/360, 30/360 etc.

Adjusted or unadjusted, following or modified following

Roll over 1 Month up to 12 Months

Counterpart B pays see Bond Cash Flows below

Swap counterparts BGB, LBB or other counterparts

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Term Sheet Ratchet Note / SSD

Start Date see Ratchet Swap

Maturity see Ratchet Swap

Currency see Ratchet Swap

Notional see Ratchet Swap

Coupon1 Fixing + Y1

Coupon i min{max[Reference i + Yi, Ci-1], Ci-1 + Bi} Minimum coupon

0%, i > 1

or

Coupon i min{ Reference i + Yi , Ci-1 + Bi} Minimum coupon 0%, i > 1

Reference Fixing Upfront or In Arrears

Definition of N Bi% is a ratchet cap for an interest period that limits the increase
of the coupon i compared to the previous interest period i-1 to a
specified number.
Yi% is a spread per interest period
Bi% and Yi%, can change (go up and / or go down) during tenor
but specified at trade day

Simple coupon example 3 Months Euribor + 50 basis points, Euribor can go up by 60 basis
points for each interest period, if Euribor drops coupon stays on
the pervious level (for first version only)

Day count Act/Act, Act/360, E30/360, 30/360 etc.

Adjusted or unadjusted, following or modified following

Interest period begins on coupon date (included) and ends on the following cou-
pon date (excluded)

Coupon Roll over 1 Months up to 12 Months

Determination of Reference 1 Month up to 12 Months Euribor or Libor in Euro, USD, GBP

or 1 Year to 10 Year Swaprate (CMS) in Euro, USD, GBP

Determination Date of Refer- two TARGET-business days prior to each day within the cur-
ence rent interest period

Interest Calculation Bankgesellschaft Berlin AG

Agent

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Arranger Bankgesellschaft Berlin AG

Issuer of Bond / SSD Landesbank Berlin (Berlin or London Branch) or other issuers

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