Communication from the Ministry of Finance No. 384 / 2013 Coll.

The Ministry of Finance (hereinafter "the Ministry ') issues government bonds to the extent provided for by a special law and determines their emission conditions in accordance with the provisions of Section 26 of Act No. 190 / 2004 Coll., on Bonds, as amended, (hereinafter" the Act on Bonds'). These emission conditions define the rights and obligations of the issuer and bondholders as well as information on the issue of bonds and the necessity of the premium savings bond of the Czech Republic, 2013- 2016 II, FIX% (hereinafter referred to as "bond 'or" bonds').

1. Basic description of bonds:

Issuing: Czech Republic - Ministry of Finance

Name: Premium savings bond of the Czech Republic, 2013- 2016 II, FIX%

Short name: SSD-P CR, FIX%, 16 II

Issuing serial number: 84.

Nominal value: 1 CZK (in words: one crown Czech)

Emission rate at issue date: 100% (in words: 100%) of nominal value

Form of the bond: bearer security

Debt form: book-entry security

Type of bond: sovereign bond

Currency in which bonds are denominated: Czech crown (CZK)

Start date of the deadline for subscription: 4.11.2013

Date of expiry of the deadline for subscription: 12.12.2015

Issuing date: 12.12.2013

Due date: 12. 12. 2016

Debt yield: determined at a fixed interest rate fixed for

first yield period from 12.12.2013

by 12.12.2014 at 0,50% p.a.

second yield period from 12.12.2014

by 12 December 2015 at 0,50% p.a.

third yield period from 12.12.2015

until 12 December 2016 at 6,00% p.a.

Taxation of bond yield: according to Czech legislation

ISIN: CZ0001004170

2. The bonds are issued on the basis of special laws within the meaning of Section 25 (2) of the bond law. The issue of bonds is guaranteed by the Ministry.

3. The bonds belong to the bearer, they are issued in a book-entry form and are recorded in a separate register, which he keeps according to the provisions of § 35 (1) (d) of Act No. 218 / 2000 Coll., on budgetary rules and on amending certain related laws (budgetary rules), as amended, by the Ministry (hereinafter referred to as the Ministry's register).

4. Bonds can only be subscribed by:

(a) a natural person;

(b) a civil association of natural persons or an affluent society;

(c) trade union or employers' organisations;

(d) the Foundation or the Foundation;

(e) a community of general interest;

(f) the building chamber or professional organisation;

(g) a school legal person not established by the Ministry, Region, Municipality or Association of Municipality within the meaning of § 124 (2) of Act No 561 / 2004 Coll., on pre-school, primary, secondary, higher vocational and other education (the Education Act), as amended,

h) Economic Chamber of the Czech Republic or Agrarian Chamber of the Czech Republic established by Act No. 301 / 1992 Coll., on the Economic Chamber of the Czech Republic and the Agrarian Chamber of the Czech Republic, as amended,

(i) a public university established within the meaning of Act No. 111 / 1998 Coll., on higher education institutions and amending and supplementing other laws (Act on higher education), as amended,

j) a public research institution established within the meaning of Act No. 341 / 2005 Coll., on Public Research Institutions, as amended,

k) Czech Television established by Act No. 483 / 1991 Coll., on Czech Television, as amended, Czech Radio established by Act No. 484 / 1991 Coll., on Czech Radio, as amended, or Czech Press Office established by Act No. 517 / 1992 Coll., on Czech Press Office, as amended,

(l) General Health Insurance Company of the Czech Republic established by Act No. 551 / 1991 Coll., on General Health Insurance Company of the Czech Republic, as amended, or in the department, branch, business and other health insurance company established under Act No. 280 / 1992 Coll., on the department, branch, business and other health insurance companies, as amended,

(m) the local authorities and the higher local authorities of the Czech Republic or the capital of Prague,

n) voluntary association of municipalities established within the meaning of Act No. 128 / 2000 Coll., on Municipality (municipal establishment), as amended,

o) Association of Cities and Municipality of the Czech Republic, Association of Local Government of the Czech Republic or Association of Regions of the Czech Republic,

(p) the association of owners of units within the meaning of Act No. 72 / 1994 Coll., which regulates certain joint ownership relations with buildings and certain ownership relations with apartments and non-residential premises and complements certain laws (the Housing Act), as amended; or

(q) a foreign legal person having a similar activity to one of the persons referred to in points (b) to (f);

(hereinafter referred to as "the subscriber 'or" the subscribers').

5. The Ministry does not intend to request the admission of bonds to trading on a European regulated market or on a multilateral trading venue located in a Member State of the European Union. The trading of bonds at those transfer points is excluded.

6. The expected total nominal value of the bond issue is CZK 5 000 000 000 (in words: five billion Czech crowns). The bonds may be issued in less than or greater than the expected nominal value of the bond issue in accordance with the provisions of Section 7 of the bond law. The possible extent of the increase in the volume of bond issuance is CZK 50 000 000 000 (in words: CZK 50 billion).

7. Debt issues may be issued in successive instalments (in tranches) within the subscription deadline.

8. Bonds with the exception of bonds under point 13 of these emission conditions are offered for subscription in the Czech Republic publicly. The activities related to the subscription of bonds are provided by the Ministry and the persons entrusted by the Ministry to carry out the selected activities ("distributors' or" distributor ', as appropriate). Distributors at the date of the start of the deadline for subscription are Česká spořitelna, a.s., Czechoslovak Commercial Bank, a. s., J & T BANKA, a.s., and Komerční banka, a.s. Bonds will also be signed at selected branches of the Czech Post, s.p. Current list of distributors, individual distribution sites and methods of organising and technical security of bond subscription will be published on the Ministry's website.

9. The subscribers referred to in point 4 of these terms and conditions shall submit a request for the subscription of bonds to the relevant tranche of the bond issue via a distributor and, under the conditions specified and published by the issuer, also via the Ministry (hereinafter referred to as "the subscription request '). One subscriber may subscribe through one application for a bond subscription of at least 1 000 units (in words: one thousand). One subscriber may submit an application / subscription claim for the subscription of bonds to each tranche of the bond issue referred to in points 12 and 14 of these terms and conditions in a total of up to 50 000 000 units (in words: 50 million) for each individual tranche of the bond issue. The subscribers shall, when applying for a subscription to the distributor or the Ministry, certify in a credible manner that they belong to the persons referred to in point 4 of these emission conditions and demonstrate their authority to act on or for those persons. The bond subscription price of the relevant bond issue tranche shall be the total nominal value of bonds subscribed by one subscriber through one subscription application multiplied by their issue rate (hereinafter referred to as the bond subscription price). The subscriber shall pay the price of the bond subscription within five working days of the date of the end of the subscription period of the relevant tranche of the bond issue, unless the Ministry determines otherwise at the latest by the date of the commencement of the subscription period of the respective tranche of the bond issue. The moment of payment of the subscription price means the crediting of funds to the payment account of a distributor or a ministry, and that moment becomes binding on the subscriber and the subscriber can no longer cancel it. In the event of an application / application for a subscription directly to the Ministry, the price of the bond subscription may be paid only by cash transfer to the Ministry's payment account. From the time of payment of the bond subscription price to the date of issue of the relevant bond issue tranche, this amount shall not be remunerated. After the publication date of the end of the subscription period of the respective tranche of bond issuance, bonds of the respective tranche of bond issuance cannot be subscribed, unless otherwise specified by the Ministry. The subscription of bonds under this item of the terms and conditions of the issue shall also mean the reinvestment of the last yield and the nominal value of all or part of the sovereign debt of the other bond issue, the issue conditions of which are recognised by the issuer by the holder of the bond in the bond issue, if the issuer requests such reinvestment; in this case, the date on which the request for such reinvestment was made shall be the date of payment of the bond subscription price.

10. By signing an application for a subscription, the subscribers must state that the purpose and the intended nature (s) of the bond subscription, including the beneficial owner, is in accordance with the nature and requirements laid down in those terms and conditions and does not circumvent those conditions. Furthermore, by signing the application for a subscription, the subscribers must confirm that all the information and information they have provided in connection with the application for a subscription is complete and true. This includes, in particular, data and information relating to the legal status and identification of the subscriber's person mentioned directly in the application for a subscription, as well as data and information provided by the subscriber to the distributor or to the Ministry under the identification / registration forms or the conclusion of related contracts that are related in any way to the subscription of bonds. In the case of an application / claim for a subscription of bonds in a total number of more than 30 000 000 units (in words: 30 million), these are, in particular, data and information concerning the origin of the funds from which the bond subscription price is paid, including the identification of the source and range of income or other property of the subscriber, through which the price of the bond subscription was paid both indirectly and indirectly. In the case of a bond subscription in the total number of units in the previous sentence, the subscriber shall always be obliged to provide the required data and information on the origin of the funds intended to cover the price of the bond subscription, including the identification of the intended purpose of the bond subscription, by submitting and signing an appropriate affidavit to the Ministry directly or through a distributor; if the subscriber submits more than one subscription application, the number of units of the underwritten bonds shall be added up. Such a subscriber shall submit to the Ministry a declaration of honour, together with an application for a subscription, which shall exceed the total number of debentures fixed, i.e. 30 000 000 (in words of: 30 million), the subscriber being obliged to include in that affidavit information and information which also relates to previous subscription applications. The subscriber's good faith in the fulfilment of all conditions and related requirements for the subscription of bonds under these emission conditions must continue on the part of the subscriber from the time of the application for the subscription until the payment of the subscribed bonds by the issuer. A good faith must therefore continue on the part of the subscriber even after it becomes the owner of the subscription bonds. In the case of the transfer or transfer of bonds, good faith on the part of the borrower, i.e. the new borrower, shall include, in addition to good faith on the completeness and veracity of the data and information on the nature and identification of his or her person, the fact that the transfer or transfer of bonds is consistent with the nature and requirements laid down by these emission conditions. The issuer reserves the right to verify the existence and duration of good faith on the part of the subscriber, or subsequently on the part of the borrower, from the time of the application for a subscription to the date of repayment by the issuer. In the event of doubt as to good faith on the part of the subscriber or subsequently on the part of the borrower, the issuer shall be entitled to require proof of good faith on the part of the subscriber by submitting additional data, information and documents relating in particular to the nature and identification of the subscriber, the intended purpose of the bond subscription and the source of the funds or funds used to cover the price of the subscription. The subscriber concerned and, where appropriate, the holder of the bonds shall submit the required data, information and documents directly to the Ministry.

11. In the event that the expected nominal value of the bond issue is exceeded in accordance with point 6 of these terms and conditions, the issuer may decide, in the period from the date of the start of the subscription period to the date of issue of the relevant tranche of the bond issue in accordance with points 12 and 14 of these terms and conditions, to reduce the number of units of the subscription bonds by the subscriber in question; the result of a pro rata reduction for a single subscriber shall be rounded down to the whole crown. The reduction of the subscribed bonds takes place in such a way that, first of all, the applications for the subscription are reduced, which in their sum exceed the total number of units of 10 000 000 (in words: 10 million), with only the number of bonds exceeding that total number of units being reduced. In the event that such a reduction results in the maximum expected nominal value of bond issuance, applications for subscription of individual subscribers to the total number of units of 10 000 000 (in words: 10 million) are no longer reduced by any subscriber. If no such reduction is achieved at the maximum expected nominal value of the bond issue, then in the second round, the pro rata reduction of the underwriting bonds of all subscribers shall be made, irrespective of the total number of units of the underwriting bonds by one subscriber. In addition, the issuer reserves the right to reject completely an individual application for a subscription where doubts of good faith remain on the part of the subscriber on the part of the issuer. In particular, there are doubts as to the veracity of the data and information provided, doubts as to whether the subscription of bonds is in accordance with the nature and requirements laid down in these terms and conditions and does not circumvent them, in particular with regard to the range of persons authorised to acquire such bonds under point 4 of these terms and conditions and other obligations of subscribers under these terms and conditions, including doubts as to the origin of the funds intended or used to cover the price of the bond subscription. In order to avoid doubt, it is established that, on the part of the issuer, doubts of good faith remain on the part of the subscriber in particular where the subscriber concerned does not submit the required data, information or documents to the issuer in accordance with point 10 of these emission conditions. In the event that doubts about good faith on the part of the subscriber, in particular in relation to the purpose of the subscription of bonds or sources of funds, remain on the part of the issuer of the bond, or arise, only in relation to a part of the subscription, the issuer shall be entitled to refuse to apply for the subscription only in relation to that part of the subscription. If, as a result of this partial refusal of an application for a subscription, the subscription of one subscriber would be less than 1 000 (in words: one thousand) pieces of bonds, thereby violating the condition to the minimum extent of the subscription of one subscription application under the sentence of the second paragraph of point 9 of these terms of issue, the issuer shall be entitled to reject the application in full. The non-satisfied or partially satisfied subscribers shall be returned by the Ministry to the unsatisfied or partially satisfied subscribers only by a cash transfer to the payment account from which the relevant funds have been shown to the account of the distributor or the Ministry, or to the payment account indicated in the subscription application in the event of payment of the cash subscription price with the distributor, without undue delay.

12. The subscription period of the first tranche of the bond issue shall end on 29.11.2013 or on the date determined by the issuer, whichever date is earlier.

13. The issue of further tranches of bond issuance shall take the form of a reinvestment of bond yields issued in the previous tranches of bond issuance in accordance with points 16 and 17 of these emission conditions, with the exception of the last bond yield, at the date of the reinvestment of bond yield. The issue rate of all bonds issued in the form of reinvestment of bond yields at each reinvestment date of the bond yield shall be 100% (in words: 100%) of their nominal value.

14. The issuer may decide to issue any further tranches of bond issuance, with the exception of the tranches of bond issuance in accordance with points 12 and 13 of these emission terms and conditions, and determine the starting date and the closing date of the subscription period of the corresponding additional tranche of bond issuance. The notification of any further tranches of bond issuance shall be published on the Ministry's website. The emission rate of any bonds issued under this item of emission conditions will always be determined by the issuer taking into account prevailing current financial market conditions and taking into account any corresponding proportional return at the date of issue of the relevant tranche of the bond issue.

15. An application for the transfer of bonds shall be made through a distributor and under conditions determined and published by the issuer also through the Ministry. Bonds are transferred without settlement. The transferability of bonds is limited in accordance with Section 26 (6) of the bond law, so that bonds can only be transferred to the person referred to in point 4 of these emission conditions. The person to whom the bonds are transferred shall, when submitting the request for the transfer of the bonds to the distributor or the Ministry, certify in a credible manner that they belong to the persons referred to in point 4 of these emission conditions and demonstrate their authority to act on or for those persons. Transferability of bonds is excluded after 12 November 2016.

16. The yield of the bond (hereinafter referred to as "yield" or "yield") shall be determined at a fixed interest rate of the amount fixed for each yield period in accordance with point 1 of these emission conditions. The proceeds shall be reinvested once a year in accordance with point 17 of these emission conditions, on a date of 12.12 starting in 2014, except for the last yield paid to the bond-holder, together with the repayment of the nominal value of the bonds at the maturity date of the bonds referred to in point 24 of these emission conditions, unless the bond-holder applies for the reinvestment of the last return and the nominal value of all or the relevant part of the bonds held by the bond-holder in accordance with point 25 of these terms and conditions (hereinafter referred to as the "bond reinvestment request '). If the bonds are repaid before the specified maturity date referred to in point 22 of these terms and conditions, the amount of the relevant yield for the yield period ending on the corresponding early repayment date shall not be reinvested in accordance with point 17 of these terms and conditions but paid to the bond owner in accordance with points 22 and 24 of these terms and conditions; a part of the sentence in front of the semicolon shall be used mutatis mutandis in the case of the repayment of bonds before their due date in accordance with point 21 of these emission conditions, with the pro rata return being paid to the bond holder concerned in accordance with point 21 of these emission conditions.

17. Reinvestment of proceeds means that, at the date of reinvestment of the proceeds, bonds of the same bond issue at the total nominal value are credited to the property account of the owner of the bonds in the register of the Ministry, corresponding to the amount of the return on all the bonds of the owner of the same bond issue after tax, collected at a special tax rate (hereinafter referred to as "withholding tax") for the relevant period. If the reinvestment date of the proceeds per day is not a working day, the relevant bonds will be credited to the owner's property account on the first following working day. For the purposes of reinvestment, the total amount of the yield on all the bond holders' bonds of the same post-tax issue, collected at a special tax rate for the relevant yield period, shall be rounded up to the full crown. The reinvestment of the proceeds increases the number of bond holders' bonds in its property account in the Ministry's register and the total nominal value of the bond issue. The total amount of the last yield on all the bond holders' bonds paid to the bond owner, unless the bond holder applies for a reinvestment of bonds under point 25 of these emission conditions, shall be rounded up to a penny after tax levied by a deduction at a specific tax rate. For the purposes of taxation of income by withholding tax rate according to the Income Tax Act for residents of the Czech Republic and residents of the Contracting States, it is necessary to prove to the tax payer residence / registered office for tax purposes in the Czech Republic or in the Contracting State, for example, a valid identity card, an honest declaration or entry in the relevant public register. A Contracting State shall mean a Member State of the European Union and the European Economic Area and a State with which a valid and effective agreement or agreement is concluded containing provisions on the exchange of information on tax matters. For the purposes of applying the preferential tax rate resulting from the relevant international double taxation agreement, it is necessary to demonstrate to the tax residence by supporting the tax residence certificate issued by the relevant foreign tax administrator. In addition, for the purposes of applying the relevant withholding tax rates, a declaration of actual ownership of income should also be provided. If the above documents are evidenced after the date of reinvestment of the proceeds, the amount of the refund will be paid only by cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) and registered in the property account of the owner of the bonds in the Ministry's register according to point 24 of these emission conditions.

18. The yield period shall be set at 12 months, from the 12th of the year concerned to the 12th of the following year. The first period of return for the reinvestment of the proceeds shall be set from 12 December 2013 to 12 December 2014. The calculation of return and proportional return shall be based on the actual number of calendar days per year and the actual number of days in the relevant yield period. The yield period shall be the relevant yield period according to point 1 of these emission conditions. The proportional return shall be included in the price of the bond from the date of issue, or from the date of commencement of the relevant yield period, and shall be calculated as the yield multiplied by the proportion of the actual number of days from the date of commencement of the relevant yield period to the date of calculation of the proportional return and the actual number of days of the relevant yield period. The total amount of the proportional return on all the bond holders' bonds of this bond issue shall be rounded to the nearest cent in order to calculate the proportional return.

19. The proceeds determined according to paragraphs 16 and 17 of these emission conditions shall always be received by the person who owns the bonds at the date of 12.11, starting in 2014. The proceeds of the reinvestment of the yield for the first yield period from the date of issue until 12 December 2014 shall be received by the person who owns the bonds as of 12 November 2014.

20. The separation of the right to yield from the bond is excluded.

21. The issuer is entitled to write bonds when they are issued first into the issuer's property account in the Ministry's registry under the provisions of Section 15 (4) of the bond law and to acquire bonds before their due date, including the purchase of bonds at any price at any time after the issue date and under other conditions determined by the Ministry. Own bonds acquired by the issuer before their maturity date, including bonds repurchased by the issuer, shall not be extinguished and shall be at the discretion of the issuer whether it leaves them in the issuer's possession and, where appropriate, sells them or decides otherwise. The issuer also reserves the right to pay bonds before the date of their maturity, including a proportional return, where, on the part of the issuer in relation to the bond owner, doubts arise as to the veracity of the data and information provided or other doubts as to whether the bond subscription is in accordance with the nature and requirements laid down by these terms of issue or does not circumvent them, in particular with regard to the range of persons entitled to acquire those bonds under point 4 of these terms and conditions and, consequently, the holders of bonds under these terms of issue, including doubts about the origin of the funds intended or used to cover the bond subscription price, while remaining after the application of the procedure under point 10 of those terms. In order to avoid doubt, it is established that, on the part of the issuer, doubts of good faith remain on the part of the holder of the bonds in particular where the owner concerned does not submit the required data, information or documents to the issuer in accordance with point 10 of these emission conditions. In the event that the issuer's doubts about good faith on the part of the bond holder, in particular in relation to the purpose of the subscription of bonds or sources of funds, continue to exist after the application of the procedure under point 10 of these terms and conditions, only in relation to a part of the bond of the owner concerned, the issuer is entitled to pay up only part of the bond of the owner concerned before their due date. If less than 1 000 (in words: one thousand) bonds were to remain owned by the bond holder concerned as a result of this procedure, the issuer shall be entitled to repay all bonds owned by the owner concerned before their due date. The issuer's notice of repayment of bonds before the date of their maturity (hereinafter referred to as "the issuer's notification of early repayment ') shall be entitled to send to the address indicated in the subscription application or registered in the bond-holder's property account in the Ministry's registry and to do so via a distributor, the issuer or distributor being entitled to deliver to the bond-holder concerned the notification of early repayment to the issuer via the postal service provider. The decision of the issuer to repay the nominal value of all or part of the bond-holder concerned before their due date shall be effective at the time of receipt of the issuer's notification of early repayment to the bond-holder concerned; where the bond holder concerned withdraws receipt of the issuer's early repayment notification, the effects of service of that notice shall occur at the time of refusal of receipt. If the bond holder concerned is not affected by the notification of the issuer's early repayment, the effects of the notification shall occur at the time when the bearer first attempted to service, provided that the document was then deposited in accordance with the applicable postal conditions and that the bond holder concerned did not nevertheless collect it within the prescribed time limit. If the issuer's notification of early repayment fails to deliver to the bond holder concerned because it is not delayed at the point of delivery, the effects of service shall occur at the time of return of the undelivered document to its consignor, i.e. the issuer or distributor. As from the date on which the notification of the issuer of early repayment was received / effect, the bonds in the number of items covered by the repayment of the bonds before their maturity cannot be transferred. For this purpose, the issuer reserves the right to block, from the date of dispatch of the issuer's notification of early repayment to the issuer, the number of bonds covered by the issuer's decision to repay the bonds before their due date. The issuer shall not subsequently carry out or record a bond transfer on the basis of a bond transfer order that has been delivered to the issuer on and / or after the date on which the issuer's early repayment notification was received / received. The number of units of bonds that are repaid by the issuer before their maturity date, including the date of early repayment of the bonds so paid up before their maturity date, shall be indicated by the issuer in the notification of the issuer of early repayment, the maturity not exceeding 30 (in words: 30) days. In order to determine and calculate the resulting amount, including the method of taxation, point 22 of these emission conditions shall apply mutatis mutandis, with the amount being repaid to the person who owns the bonds on the date of receipt / effect of the notification of the issuer of early repayment. The amounts corresponding to the nominal value of the owner's bonds and the corresponding pro rata income after tax collected by withholding at a special tax rate shall be paid to the holder of the bonds on redemption before their due date only by a cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) and registered in the ownership account of the bond holder in the Ministry's register. Paid-up bonds shall cease at the same time as the owner's right to the return of the bond. The total amount corresponding to the total nominal value of bonds repaid before their due date and the relevant yield or proportional return on the number of units of bonds repaid before their due date paid to the bondholder for the period from the date of commencement of the relevant yield period to the early repayment date shall be rounded up to a penny after tax levied on taxes at a special tax rate.

22. A bond-holder may request the issuer, through a distributor, and under conditions determined and published by the issuer, also through the Ministry, to repay the nominal value of all or part of the bonds held by him of this bond issue before the specified maturity date, in accordance with the following terms and conditions (hereinafter referred to as the "early repayment request"):

The relevant yield for the period from the date of commencement of the relevant yield period to the date of early repayment shall be paid after tax levied by withholding at a specific tax rate and the nominal value of the relevant bonds shall be paid to the person who holds the bonds on the first working day following the relevant date of the last possible application for early repayment. An application for early repayment may be submitted by the bond holder through a distributor or by the Ministry only during the periods for the submission of applications for early repayment determined by the issuer under this item of emission conditions. As from the time of the application for early repayment, bonds in the number of units in which the application for early repayment was submitted may not be transferred. At one early repayment date, one bond holder may submit only one request for early repayment and, through it, apply for the repayment of its own bonds before a specified maturity date of at least 1 000 units (in words: one thousand). Where the number of shares in the owner's property account of the bond holder is less than 1 000 (in words: one thousand), the holder of the bond may apply for the repayment of its own bonds before the specified maturity date of less than 1 000 (in words: one thousand) if he requests the repayment of all shares in his own debt registered in the registry of the Ministry before the specified maturity date. At one early repayment date, one bond owner may apply for repayment before a specified maturity date of 100% (in words: 100%) of its own bonds up to and including 500 000 (in words: five hundred thousand) and up to and including 50% (in words: fifty percent) of its own bonds over 500 000 (in words: five hundred thousand). Repayment bonds before the specified maturity date shall cease at the same time as the right of the bond holder to return. The amounts corresponding to the nominal value of the owner's bonds and the relevant income after tax collected by withholding at a special tax rate shall be paid to the holder of the bonds on repayment before the specified maturity date only by a cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) and registered in the property account of the bond holder in the Ministry's register. If the date of early repayment is not the working day, such payments shall be made on the first following working day without entitlement to payment of the proceeds for such deferral. The change of the payment account shall be notified by the bondholder to the Ministry via a distributor, unless otherwise specified by the Ministry. The total amount corresponding to the total nominal value of bonds repaid before the specified maturity date and the relevant yield on the number of units of bonds in which the relevant application for early repayment has been made, paid to the holder of the bonds for the period from the date of commencement of the relevant yield period to the date of termination of the relevant yield period, shall be rounded to pennies after tax taxation, in accordance with the special tax rate.

23. Bonds shall be repaid at nominal value on the date of 12.12.2016 if the bonds are not repaid before the specified maturity date in accordance with point 21 or 22 of these emission conditions or if the bond holder does not submit a request for reinvestment of bonds in accordance with point 25 of these emission conditions. This date concludes the interest on bonds. The issuer has decided under Section 17 of the bond law that the right to repayment of bonds is for the person who is entitled to exercise the rights associated with the bonds on 12 November 2016. The nominal value of all the bearer bonds shall be repaid together with the payment of the last yield to the person who holds the bonds on 12 November 2016. If the date of repayment of the nominal value of the bonds and the payment of the last yield is not a working day, such payments shall be made on the first following working day without entitlement to payment of the yield for such deferral.

24. The issuer undertakes to ensure the repayment of the nominal value of the bonds together with the payment of the last yield to the holders of bonds under these emission conditions exclusively in the crowns of the Czech or other currency, which will be the legal currency of the Czech Republic at the date of the payment. The CSDs, a.s., the Czech National Bank and the Ministry are involved in ensuring the repayment of bonds and reinvestment and the payment of revenues. The issuer reserves the right to entrust another or other person at any time to be involved in ensuring the repayment of bonds and reinvestment and the payment of revenues. Notifications of any other delegates shall be published on the Ministry's website. This change shall not be caused by the holders of the bonds' injury and any such change shall take effect not later than 30 days before the date and not earlier than 30 days after the date of expiry of the relevant yield period or early repayment. The nominal value of the bonds will be repaid together with the payment of the last proceeds after tax, collected by withholding at a special tax rate only by means of a cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) and registered in the property account of the bond-holder in the Ministry's register, unless the bond-holder applies for a reinvestment of bonds under point 25 of these emission conditions. The change of the payment account shall be notified by the bondholder to the Ministry via a distributor, unless otherwise specified by the Ministry. The total amount of the last yield on all the bond holders' bonds paid to the bond holder shall be rounded to a penny after tax levied by withholding tax at a specific tax rate. The holder of a bond which is a tax resident of a Contracting State with which a double taxation contract is concluded shall be required to prove to the tax residence, in order to benefit from the benefits under this contract, by supporting a tax residence certificate issued by the foreign tax administrator responsible to the person involved in securing the repayment of the bonds and the payment of the proceeds under this item of the emission conditions. Notice of designation shall be published on the Ministry's website. If the holder of the bonds does not confirm the actual ownership of the interest income on the ownership bonds and residence / registered office for tax purposes in the Contracting State, i.e. in the Member State of the European Union and the European Economic Area or in the State or jurisdiction with which the Czech Republic has a valid and effective contract containing provisions on the exchange of tax information, and the actual owner will not be provided with the necessary information from the Ministry, the relevant tax rate levied by deduction at a specific tax rate under the Income Tax Act for taxpayers who are not resident in the Contracting States shall be applied.

25. If the Ministry so decides in due time before the due date, the holder of the bonds shall be entitled to request the issuer to reinvest the bonds by means of a distributor and, under the conditions specified and published by the issuer, also through the Ministry to reinvest the last yield and the nominal value of all or part of the bonds that he owns that bond issue. In such a case, the bond holder shall not be paid their last return and the total nominal value or the relevant part thereof shall not be repaid by means of a cash transfer to a payment account under point 24 of these emission conditions, but shall be reinvested at the desired amount by the holder in government bonds pre-determined by the Ministry. The application for a reinvestment of bonds cannot be reinvested in the nominal value of bonds encumbered by third parties' rights, in particular liens, or in the nominal value of bonds for which the suspension of the exercise of the owner's right to dispose is recorded in the Ministry's register. A notice of the date from which a request for a reinvestment of bonds can be made and of government bonds in which the latest return and nominal value of bonds can be reinvested shall be published in good time on the Ministry's website. A bond-holder may, through one request for a reinvestment of bonds, apply for a reinvestment of the nominal value of its shares in government bonds determined by the Ministry of Finance of at least 1 000 units (in words: one thousand) and for a reinvestment of the last yield only in its entirety. A reinvestment of the last yield and the nominal value of all or part of all of the bonds held by it shall be requested by the Ministry by means of a request for reinvestment of the bonds through a distributor and under conditions determined and published by the issuer also through the Ministry. The total amount of the bond yield of the bond holder after tax collected by withholding at the special tax rate for the last yield period shall be rounded upwards for the purpose of reinvesting the last yield and the nominal value of the bonds. The last day for the submission of an application for reinvestment of bonds is 11 November 2016. In the case of bondholders who have applied for the reinvestment of the last proceeds, the amount of the last proceeds after tax shall be reinvested by withholding at a specific tax rate at the date of the reinvestment of the bonds. For the purposes of taxation of income by withholding tax rate according to the Income Tax Act for residents of the Czech Republic and residents of the Contracting States, it is necessary to prove to the tax payer residence / registered office for tax purposes in the Czech Republic or in the Contracting State, for example, a valid identity card, an honest declaration or entry in the relevant public register. A Contracting State shall mean a Member State of the European Union and the European Economic Area and a State with which a valid and effective agreement or agreement is concluded containing provisions on the exchange of information on tax matters. For the purposes of applying the preferential tax rate resulting from the relevant international double taxation agreement, it is necessary to demonstrate to the tax residence by supporting the tax residence certificate issued by the relevant foreign tax administrator. In addition, for the purposes of applying the relevant withholding tax rates, a declaration of actual ownership of income should also be provided. If the above documents are documented after the date of the reinvestment of the bonds, the amount of the refund will be paid only by cash transfer to a payment account held with a bank or branch of a foreign bank in domestic currency (CZK) and registered in the property account of the owner of the bonds in the registry of the Ministry according to point 24 of these emission conditions.

26. Only one payment account for the purposes of payment of revenues, repayment of bonds before the specified maturity date and repayment of the nominal value of the bonds shall be registered in the property account of the bearer established by the Ministry in the register of the Ministry, for all sovereign debt of the owner registered in the register of the Ministry. All payments referred to in the first sentence of this item of the emission conditions shall be made to a payment account registered in the Ministry register two working days before the date of execution of the relevant payment.

27. The valid assessment of the financial capacity (rating) of the long-term Crown liabilities at the date of determination of these emission conditions by Standard & Poor's is at AA level, Moody's level A1 and Fitch Ratings at AA- level.

28. Bonds are direct, unconditional and unsubordinated liabilities of the Czech Republic, which are at the same level with all other existing and future direct, unconditional and unsubordinated liabilities of the Czech Republic.

29. Any rights associated with bonds shall be limited to 10 years from the date on which they could be exercised for the first time, in accordance with Article 42 of the bond law.

30. These emission conditions are announced by the Ministry in the Collection of Laws. Any notice to the bondholders and to the public regarding such bonds shall be published in the Czech language on the Ministry's website in the part in which the issuer publishes information on the government bonds issued by it.

31. The operating rules of the Ministry's records shall be published as amended on the Ministry's website and shall be binding on all holders of bonds and distributors and on all persons involved in securing the repayment of bonds and the payment of revenues.

32. The Ministry reserves the right to perform all acts relating to the management of the Ministry's records, the subscription of bonds, the repayment of bonds before their due date, the reinvestment of the last yield and the nominal value of the bonds, entries in the Ministry's records, changes in data and other related activities defined by the Ministry's operating rules.

33. These emission conditions may be translated into foreign languages. If there is a conflict between different language versions of emission conditions, the Czech version will be decisive.