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5 Year 10 Stock Basket Power CDSM CUSIP: 45083AAH5 Product Summary

Iberia Bank is offering certificates of deposit (the “CDs”) that are insured by the FDIC within the limits and to the extent described herein and in the Disclosure Statement accompanying this term sheet dated May 28, 2010 (the “Disclosure Statement”) under the section entitled “FDIC Insurance.” The CDs are principal protected if held to maturity. The CDs provide exposure to potential price appreciation in a basket of ten publicly traded securities. The CDs offer an opportunity to receive a semi-annual coupon based upon the Reference Securities Performance. Issuer: Issue: Trade Date: Pricing Date: Iberia Bank 5 Year 10 Stock Basket Power CDSM 6/25/2010 6/25/2010 Deposit Amount per CD: Minimum Deposit: Issue Price: Settlement Date: Maturity Date: $1,000 $10,000 ($5,000 IRA) 100% 6/30/2010 6/30/2015, subject to adjustment as described in the Disclosure Statement

Preliminary Term Sheet

Basket: An equally weighted basket comprised of the common stock (each a “Reference Security” and together, the “Reference Securities”) of the following 10 public companies (each, a “Reference Issuer” and together, the “Reference Issuers”): Reference Issuer Alcoa, Inc. AT&T, Inc. Bank of America Corp US Intel Corp McDonald’s Corp Coupon: Coupon Rate: Reference Security Performance: Final Share Price: Initial Share Price: Cap: Floor: Payment at Maturity: Maturity Redemption Amount: Closing Price: Ticker Symbol AA T BAC INTC MCD Relevant Exchange NYSE NYSE NYSE NYSE NYSE Initial Share Price [______] [______] [______] [______] [______] Reference Issuer Kraft Foods Inc. Merck & Co Inc. Pfizer Inc. Verizon Communications Inc. Wal-Mart Stores Inc. Ticker Symbol KFT MRK PFE VZ WMT Relevant Exchange NYSE NYSE NYSE NYSE NYSE Initial Share Price [______] [______] [______] [______] [______]

The Principal Amount multiplied by the Coupon Rate. For each Coupon Payment Date the Coupon Rate will be a percentage equal to the greater of the average of the equally weighted Reference Security Performances, and zero. Reference Security Performance for each security on each Coupon Valuation date will equal the coupon cap if the Final Share Price less Initial Share Price divided by Initial Share Price is greater than or equal to zero, or will be the greater of the Final Share Price less Initial Share Price divided by Initial Share Price or the floor, if less than zero. The Closing Price of the Reference Security on the designated Coupon Valuation Date. With respect to a Reference Security, the price listed in the table above. [4.00 – 6.00]% (per Reference Security, to be determined on the Pricing Date; applicable for each semi-annual Coupon Valuation Date) -35.00% (per Reference Security, applicable for each semi-annual Coupon Valuation Date) For each CD, the Maturity Redemption Amount. Principal Amount plus any Coupon due on the Maturity Date. For any date of determination and with respect to any Reference Security, the official closing price of the Reference Security on the Relevant Exchange as of the close of the regular trading session on the Relevant Exchange and as reported in the official price determination mechanism for the Relevant Exchange. December 28, 2010, June 27, 2011, December 27, 2011, June 26, 2012, December 26, 2012, June 25, 2013, December 26, 2013, June 26, 2014, December 26, 2014, and June 26, 2015, subject to adjustment as described in the Disclosure Statement. December 31, 2010, June 30, 2011, December 30, 2011, June 29, 2012, December 31, 2012, June 28, 2013, December 31, 2013, June 30, 2014, December 31, 2014, and June 30, 2015, subject to adjustment as described in the Disclosure Statement. As described more fully in the Disclosure Statement, depositors redeeming prior to maturity will receive the current market value of their CDs minus any early redemption fees. Early withdrawals are permitted at par in the event of death of the beneficial owner of the CDs. June 30, 2011, June 29, 2012, June 28, 2013, June 30, 2014, subject to adjustment as described in the Disclosure Statement. A depositor electing to redeem his or her CDs prior to maturity will be subject to an Early Redemption Charge of 3.00% in Year 1; 2.00% in Year 2; 1.00% in Year 3; 0.00% in Year 4; and 0.00% in Year 5. [3.00]% (compounded annually) Page 1 of 10

Coupon Valuation Date:

Coupon Payment Date:

Early Redemption:

Early Redemption Dates: Early Redemption Charge: Comparable Yield (for tax purposes):

including IRAs. network and communications products. fabricated aluminum. mining. and recycling of aluminum. FDIC Insurance: This deposit qualifies for FDIC coverage generally up to $250. but also seek equity market return potential. During the year ended December 31. is engaged in manufacturing and marketing packaged food products. US Intel Corp Intel Corporation designs. Bank of America Corp Bank of America Corporation accepts deposits and offers banking. manufactures. and other financial and risk-management products and services.sec. chipsets.gov. and an investment banking and securities brokerage subsidiary. subject to the cap level on each individual stock within the basket. Inc. limited. Alcoa. AT&T Inc. 2013 and thereafter $100. bringing design. Alcoa is involved in the technology. Description of the Reference Securities The following are brief descriptions of the companies whose securities make up the Basket. and alumina worldwide. Those seeking equity sector diversification through a basket of 10 reference securities. Kraft Foods Inc. engineering. 2010. including snacks. the Company had operations in more than 70 countries and sold its products in approximately 150 countries.nyse. packaging.com or NASDAQ at www. building and construction. 2008. embedded processors and microcontrollers. Inc. smelting. Those who desire preservation of capital at maturity. PLEASE NOTE THAT THIS PRODUCT MAY NOT BE APPROPRIATE FOR ALL DEPOSITORS. Kraft Foods Inc. Its subsidiaries and affiliates provide services in the United States and around the world. conferencing products. Large-Cap Companies: As of May 27. systems management software. The company’s products include precision castings. flash memory products. refining. These restaurants serve a varied.000 in aggregate for certain retirement plans and accounts. IRA-eligible Potential Purchasers • • • • Long-term investors who desire to participate in potential equity market appreciation. as the case may be. asset management.com. each of the Reference Securities was a component of the DJIA® and had a market capitalization Diversification by Industry: The Reference Securities represent several different industry groups. Page 2 of 10 . The Company's major products include microprocessors. the NYSE at www. valuepriced menu in more than 100 countries globally. Alcoa. production. These descriptions are based on descriptions available on Bloomberg. engages in the production and management of primary aluminum. automotive. YOU SHOULD NOT INVEST YOUR MONEY IN THE CDS IF YOU DO NOT HAVE THE INTENT OR ABILITY TO KEEP YOUR INVESTMENT IN THE CDS FOR THE FULL TERM. Alcoa serves the aerospace.5 Year 10 Stock Basket Power CDSM THE TERMS OUTLINED HEREIN ARE SUMMARY AND INDICATIVE ONLY AND ARE SUBJECT TO CHANGE. beverages.000 in aggregate for individual depositors through December 31. aerospace and industrial fasteners. and industrial markets. fabricating. You can find additional information about the companies on the websites of the Securities and Exchange Commission at www. third generation (3G) network and wireless coverage worldwide. AT&T Inc. and sells computer components and related products. and other capabilities of Alcoa's businesses as a single solution to customers. The Bank assumes no responsibility for the accuracy or completeness of this information. convenient meals and various packaged grocery products. Highlights • • • • • Semi-Annual Income Potential: Depositors may receive a coupon semi-annually based upon the Reference Securities’ average performance. and up to $250. Those demanding FDIC-insured instruments. greater than $10 billion. and Internet access and voice services. investing.000. and digital imaging products. always versus their initial levels. cheese. McDonald’s Corporation McDonald's Corporation franchises and operates McDonald's restaurants in the food service industry. graphics products. is a communications holding company.nasdaq. Their primary service offerings include Internet protocol (IP)-based business communications services. The Company has a mortgage lending subsidiary. commercial transportation.

Verizon Communications Inc. Inc. Alcoa Inc. is a global pharmaceutical company that discovers. is a research-based. contract manufacturing and bulk pharmaceutical chemicals. Domestic Wireless's products and services include wireless voice. It provides these services to consumers. long distance and other services. Internet access. Inc. we make no representation or warranty as to their accuracy or completeness. and neighborhood markets. data services and other value-added services and equipment sales across the United States. without independent verification by us. businesses and government customers both in the United States and internationally in 150 countries. and accordingly. and no assurance can be given as to the performance of the Basket Securities during the term of the CDs. Pfizer Inc.P. network access. and hardware. 45 40 35 30 25 20 15 10 5 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Page 3 of 10 . supercenters. operates discount stores. The Company operates nationally and internationally.. Wal-Mart Stores Inc. next generation Internet protocol (IP) network services. Inc. develops. 2010. electronics. The Company discovers. a treatment for male pattern hair loss. manufactures and markets prescription medicines for humans and animals. Merck's products include a treatment for elevated cholesterol. Merck & Co. broadband video and data. Verizon Communications Inc. and markets a broad range of human and animal health products. a treatment for hypertension. and a treatment for allergic rhinitis. It operates in two business segments: Pharmaceutical and Animal Health. housewares. Wireline's communications services include voice. including the manufacture of gelatin capsules. Wal-Mart Stores. develops.5 Year 10 Stock Basket Power CDSM Merck & Co. is a provider of communications services. small appliances.. The Company's discount stores and supercenters offer merchandise such as apparel. manufactures. Pfizer Inc. Walmart's markets offer a full-line supermarket and a limited assortment of general merchandise. Historical Information for the Basket Securities The following graphs set forth the monthly historical performance of each of the Basket Securities for the five years ending on May 27. a preventive treatment for osteoporosis. The historical level of the Basket Securities should not be taken as an indication of future performance. The Company has two primary reportable segments: Domestic Wireless and Wireline. global pharmaceutical company. We obtained the various closing prices from Bloomberg L. Pfizer also operates several other businesses. carriers.

5 Year 10 Stock Basket Power CDSM AT&T Inc. 40 35 30 25 20 15 10 5 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Bank of  America Corp 60 50 40 30 20 10 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Intel Corp 30 25 20 15 10 5 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Page 4 of 10 .

70 60 50 40 30 20 10 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Page 5 of 10 .5 Year 10 Stock Basket Power CDSM McDonald's Corporation 80 70 60 50 40 30 20 10 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Kraft Foods Inc. 35 30 25 20 15 10 5 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Merck & Co Inc.

45 40 35 30 25 20 15 10 5 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Wal‐Mart Stores Inc. 70 60 50 40 30 20 10 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Page 6 of 10 .5 Year 10 Stock Basket Power CDSM Pfizer Inc. 30 25 20 15 10 5 0 May‐05 May‐06 May‐07 May‐08 May‐09 May‐10 Verizon Communications Inc.

00% 5.00 120.00 113.00% 5.00 109.00 110.00 103.00 103.00 100. therefore.00 103.00 108.00% 5.00 100.00% 5.00% 5.00 100.00% 5.00 118.00% 5.00% 5.00% 5.00% 0.00% Year 5 105.00% 5.00% 5.00% 0. the Final Share Price of each of the Reference Securities has increased from the Initial Share Price for that Reference Security.00 105.00% 5.00% 5.00 104.00 107.00 116.00% 5.00 104.5 Year 3 Year 3.00% 5. Security Security Security Security Security Security Security Security Security Security Security 1 2 3 4 5 6 7 8 9 10 Initial Closing Price 100 100 100 100 100 100 100 100 100 100 6 Months 104.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% 5.00% Year 1 103.00% 5.00% 5. The following examples indicate how changes in the performance of the Reference Securities over the term of the CDs will affect the Coupon payable on the CDs for any Coupon Payment Date. Page 7 of 10 .00 114.00% 5.00 110.5 Year 10 Stock Basket Power CDSM Illustrative Examples The following examples are provided for illustration purposes only and are hypothetical.00% 5.00% 5.00 114.00 110.00 109.00 103.00% 5.00% Security Security 1 Security 2 Security 3 Security 4 Security 5 Security 6 Security 7 Security 8 Security 9 Security 10 Average of Capped Performances: Minimum Semi-Annual Return: Semi-Annual Interest Rate: Annual Percentage Yield ("APY"): Closing Price Year 1.00% 5.00% 5.00 109.00% 5.00 120. the CDs will pay a Coupon equal to the Coupon Cap.00% 5.00% 5.00 103.00 Year 5 5.00% 5.00% 5.00% 0.5 Year 4 113.00% 5.00% 5.00 100.00 108.00% In this example.00 111.00 100.00 114.00% 0.00 118.00 111.00% 5.5 Year 2 Year 2. You should not take these examples as an indication or assurance of the expected performance of the Reference Securities or the CDs.00% 5.00% 5.00% 5.00% 5.00% 5.00 101.00% 5.00 118.00 102. the Reference Security Performance as of such Coupon Payment Dates is greater than the Cap.00% 5.00 113.00 118.00% 5.00 114.00 109.00 108.00 101.00% 5.00% 5.00% 5.00 116.5 Year 3 Year 3.00% 5.00% 5.00 120.00 103.00 112.00% 5.00 Year 4.00% 5.00 100.00 104.00% 5.00 105.00% 5.00% 5.00% 5.00 114.00% 5.00 109.00% 5.00% 5.00 102.00 112.00% 5.00% 5.00 110.00% 5.00 115.00 119.00% 5.00 104.00% 0.00% 5.00% 10.00 113. capped at 5% Year 1. and the hypothetical Initial Share Prices of the Reference Securities used in the illustrations below are not the actual Initial Share Prices of the Reference Securities.00% 5.00% 5.00% 5.00% 5.00 119.00% 0.00 Year 1 5.00% 5.00 100.00 106.00 102.00% 5.00 114.00 116.00% Year 4.00 112.00% 5.00% 5.5 5.00% 5.00 6 Months 5.00 116.00 108.00% 5.00% 5. for certain of the Reference Securities and with respect to certain Coupon Payment Dates.00 105. Example 1: The securities performance rise over the term of the CDs.00% 5.00% 5.00 116. as of each Coupon Payment Date.00% 5.00% 5.00 108.00% 5.00% 5.00% 5.00% 5.00 116.00 105.00 110.00 114.00 103.00 106.00% 5.00% 0.00% 5.00% 5.00% 5.00% 5. they do not purport to be representative of every possible scenario concerning increases or decreases in the return of the CDs.00% 5.00% 5.00% 5.00% 5.00% 0.00% 5.00 111.5 Year 4 5.00% 5.00 111. We cannot predict the Closing Prices of the Reference Securities on the Coupon Valuation Dates.00% 5.00 112.00 Performances from Initial Closing Price.00 113.00% 5.00 108.00 102.00% 5.00% 5.00 118.00 107.00% 5.00% 5.00% 5.00% 5.00 110.00% 5.00% 5.00% 5.00% 5.00% 0.5 101.00% 5.00 112.00 118.00 103.00% 5.00 109. On each Coupon Payment Date. The assumptions we have made in connection with the illustrations set forth below may not reflect actual events.00% 0.00 118. Furthermore. The Reference Security Performance for those Reference Securities that will contribute to the calculation of the Coupon Rate with respect to those Coupon Payment Dates is therefore limited by the Cap.00% 5.5 Year 2 Year 2.00% 5.00% 5.00% 5.00% 5.00 108.00 117.00 112.00 111.00% 5.00 110.

00 98.00 95.00 101.00 111.00 92.00% 5.00% 5.00 105.00 111.40% 0.00% -10.00 106.60% Year 1 108.00 106.00% 5.00% 5.00 108.00 Performances from Initial Closing Price.00% 5.00 114.80% 2.00 6 Months 5.00 102.00 94.00% -2.00 108. Page 8 of 10 .00 103.00% 5.00% 5.00 94.50% 5.00% -5. the Final Share Price of some of the Reference Securities has declined with respect to the Initial Share Price for that Reference Security.5 Year 2 Year 2.00 100.00% 5.70% 0.00 112.20% 2.00% 5. while the Final Share Price of other Reference Securities has increased.00 92.00 109.00% 5.00 114.00 110.00% -6.00 106.00% 5.00 92.00 107.00 105.00% 5.00% 5.00 113.00% 5.00% 5.00 106.00 109.00% 5.00 112.00% 5.00 109.00% 5.00 90.00 98.00% 3.00 105.00% -10.00 96.00% 0.00% 5.00% 5.00% -4.5 Year 2 Year 2.00% 2.00% 5.00 111.00% 5.20% 2.00% 5.00% 5.00% -6.00% -5.00% Year 4.00% 5.00% 5.00 110.00% -4.00% -2.00% -9.00 108.00 Year 4.00% 1.00 111.00 94.00 Year 1 5.00% 5.00% 0.00% 5.00 91.00 91.00 115.00% 0.00 100.00 108.00 107.00 103.00% 0.00% 5.00% 5.00% 5.00 110.00% -8.00 114.00% 5.00% 0.00% 4.00% 5.00% -1.00 104.00 103.00 114.00% 5.00 114.00 111.00% -8.00% 5.00 90.00 108.00 110.20% 0.00% -10.00 106.00% 5.00 98.00 92.00% -8.00 108.40% Year 3.00% 5.00% -6.00% 5.00 100.00 92.00 104.00% 5.00 107.00 101.80% 2.00% -2.00% -10.00% 5.00% 5.00% -6.00% 5.00 103.5 Year 10 Stock Basket Power CDSM Example 2: The securities performance is mixed over the term of the CDs.00 95.00% 5.00% -2.00 98.00% 0.00% 5.00 112.00% -10.00 108.00 90.00% -8.00% 5.5 Year 5 5.00% 5.5 Year 4 -2.00% 5.00% -2.00 106.00 101.00% 5.00% 5.00% 5.60% 0.00% 5.00% 0.00% 3.00% 5.00% -1. Year 1.20% Security Security 1 Security 2 Security 3 Security 4 Security 5 Security 6 Security 7 Security 8 Security 9 Security 10 Average of Capped Performances: Minimum Semi-Annual Return: Semi-Annual Interest Rate: Annual Percentage Yield ("APY"): Closing Price Year 1.5 101.5 Year 3 113.00 Year 5 90.00 114.00% 5.00 109.00% 2.00% 5.00% 5.00 99.00% 5.5 Year 3 5.00% 5.00% -8.00 94.00% 5.00% 5.00 107.00 104.00 114.10% In this example.00 103.00% 5.00% 5.00% -8.00% -2.80% 0.60% 2.00% 0.00% 1.00% 5.00 114.00 capped at 5% Year 3.00% 5.00 109.00 107.70% -0.00% 5.00 96.00% 5.00% 5. on any Coupon Payment Date.00% 5. Security Security Security Security Security Security Security Security Security Security Security 1 2 3 4 5 6 7 8 9 10 Initial Closing Price 100 100 100 100 100 100 100 100 100 100 6 Months 102.00 115.00% -9.00 98.00% 5.00 102.60% 2.5 Year 4 98.00 98.00 100.00 92.00 90.00 114.00% 0.

00 capped at Year 3. Federal Income Tax Considerations”) will be required to include in their taxable income for each year an amount of ordinary income equal to the “original issue discount” (“OID”) on the CDs for that year.00% 5.00 88.00% -4.00 95. if any.00 85.00% 0.00% -11.00% -6.S.00% 0.00 92.00 106.00 110.00 102. which is the yield at which the Issuer would issue a non-contingent fixed-rate debt instrument having terms and conditions similar to those of the CDs.00% -6.00% -4. Holders (as defined under “Certain U.00 Year 4. There may not be an active secondary trading market in the CDs and CDs should be viewed as long term investments.00 105.50% 0.00% -4.00 96.00 89.00% 5.00% 0.00% -11.00% 0.00 97.00 85.00% -15.00% -2.00% 5.00 108.00% In this example.00% -2.00 100. on any Coupon Payment Date.00% 0.00 108.00% 5.00 108.00% 0.00 86. It is suggested that prospective depositors reach a purchase decision only after careful consideration with their financial.00 102.00 93.00 94.00% -12.00% 5.00% -13.00 92.00% Year 1 96.00% 5.00 110.00% -14.00 106.00% 5. federal income tax purposes.00% 5.00 88.00% -2.00% 0.5 5.00% 0.00% 0.40% -2.00% -15.00 105.00 87.00% 5.00% -6.00% -13.00% -4. Therefore.00% -3. U.20% 0.00% -3.00% 5.20% 0.00 96.00% -8.00 90.00% -10.S.00% -6.00 103.00 110.00% Security Security 1 Security 2 Security 3 Security 4 Security 5 Security 6 Security 7 Security 8 Security 9 Security 10 Average of Capped Performances: Minimum Semi-Annual Return: Semi-Annual Interest Rate: Annual Percentage Yield ("APY"): Closing Price Year 1.00% -7.00 6 Months -13.00 Year 5 104.00 5% Year 4 5. legal.00 93.00 89. Original Issue Discount The Issuer will treat the CDs as “contingent payment debt instruments” for U.00% Year 4 101.00% 5.00% 5.00% -1.00 106.00% -6.00% -11.00 97.00% -11.00 98.00% 5. Year 1 Year 1. The comparable yield is determined by the Issuer as of the issuance date solely for U.00 92.00 107.00% 5.00% 5.00% -7.00 97.00% -11.00 100.00% -1.00 100.00% 5.00 93. Depositors’ yield may be less than that of a standard debt security of comparable maturity.00 100.00% 5.00 94.00 100.00 89.00% 5.00% -6.5 Year 3 94.00% -1. federal income tax purposes and is neither a prediction nor a guarantee of what the actual yield will be on the CDs.00% -15.5 Year 2 Year 2.00 96.00% 5.00% 5.00 98.00% -12.00 103.00 110.00% 5.00 99.00 103.00 87.5 Year 2 Year 2.00 Year 3.00% -15. tax and other advisors regarding the suitability of the CDs in light of their particular circumstances. the depositor will receive only the Principal Amount.00 89.00 102.5 Year 10 Stock Basket Power CDSM Example 3: The securities performance decline over the term of the CDs.00 90.00% 5.00 110.00 104. Page 9 of 10 .20% -0.00% -11.00% 5.00% -2.00% -6.00 89.00 107.00 108.00% -13.00% 5.5 102. the Calculation Agent may adjust the terms of the CDs to reflect the economic impact of such event. See “Risk Factors” in the accompanying Disclosure Statement for a discussion of risks.00 110.00% 5.00% 5.00% -8.00% -7.10% 0. which include: • • • • • The principal amount is not guaranteed if the CDs are not held to maturity.00 99.00% -5.00 90.00% -10. Certain Risk Considerations Purchasing the CDs involves a number of risks.00% Year 4.5 Year 5 -11.00 97.00% 0.00 Performances from Initial Closing Price.00 105.00% -6.00% 0.00 101.00% 5.00% -1.00% -2.00% 5. and on the Maturity Date.00% -7.00% 5.00% 0.00 85.00 94. Market conditions and events affecting the Reference Securities may negatively impact the coupons received by depositors In the event one or more of the Reference Securities is subject to an adjustment event (as described in the Disclosure Statement).00% 0.00 94.00% -15.00% -8.00 97.00% -10.00 109.00% 5. the Coupon Rate for those Coupon Payment Dates will be equal to zero.00% -4. accounting.00% 5.5 Year 3 -4.60% -0.00 89.00% -2.00% 5.00 88.00 85.00% -12.00% 5.S.00 85. even though holders may not receive any payment on the CDs until their maturity. the arithmetic average of the Reference Security Performances on each Coupon Payment Date is less than zero.00 106.00% -3. Security Security Security Security Security Security Security Security Security Security Security 1 2 3 4 5 6 7 8 9 10 Initial Closing Price 100 100 100 100 100 100 100 100 100 100 6 Months 87.00% 5.00% 5.00 94. The amount of the OID that must be taken into income in each year will be calculated on the basis of the “comparable yield” of the CDs.00% 5.00 104.00 100.00 108.30% -3.00% 0.00% 0.00 98.00 94.00% -3.00% 0.00 94.20% 0.00 98.00 109. Return on the CDs does not necessarily reflect the full performance of the Reference Securities in the level of the Reference Securities may affect whether or not depositors receive a return in excess of the minimum guaranteed return.5 89.00% -3.00% -15.00% 5.00 87.00 93.00 106.00% 5.00% 5.00 100.00 98.00 110.00% 5.S.00% 5.00 85.00% 5.00 109. The OID is included in income and taxable at ordinary income rates.00% -3.

Prospective depositors should see “Certain U. this Term Sheet should be read in conjunction with the Disclosure Statement. Therefore. Page 10 of 10 . exchange or other disposition of a CD will constitute ordinary interest income. Any gain recognized by a U. and is incorporated by reference into. Important information regarding the CDs is also contained in the Disclosure Statement which forms a part of.S. Holder on the sale. the excess will be taxed as additional OID income to the U.5 Year 10 Stock Basket Power CDSM If the actual yield on the CDs exceeds the corresponding amount on the projected payment schedule. this Term Sheet.S.S. Federal Income Tax Considerations” in the accompanying Disclosure Statement and consult their tax advisors regarding the tax consequences to them of a purchase of the CDs. Holder.