FINAL DISCLOSURE SUPPLEMENT Dated November 23, 2010 To the Disclosure Statement dated October 15, 2010 Union Bank, N.A. Market-Linked Certificates of Deposit, due November 24, 2017 (MLCD No. 86) $8,500,000 Notional Currency Basket Return Set forth below are the terms and conditions of the Union Bank, N.A. (the Bank ) Currency Basket Return Market-Linked Certificates of Deposit (the MLCDs ). You should carefully review this Disclosure Supplement (the Supplement ), as well as the attached Disclosure Statement, before deciding if an investment in an MLCD is appropriate for you. In the event of any inconsistency between the Disclosure Statement and the Supplement, the terms of the Supplement will control. In general, the MLCDs are designed for investors who are prepared to hold the MLCDs until the Maturity Date and seek return of principal along with participation in the potential depreciation of the U.S. Dollar against the Brazilian Real, Russian Ruble, Indian Rupee, and Korean Won. All capitalized terms used but not defined herein have the meanings set forth in the Disclosure Statement. MLCD Description Each MLCD is a certificate of deposit that pays a return based on the appreciation against the United States Dollar of a basket of foreign currencies as specified below (the Currency Basket ), subject to minimum return if held to maturity. This return is therefore not a fixed coupon and no periodic interest payments will be made on the MLCDs. Return Potential: The interest payment to the depositor on the Maturity Date is equal to the greater of (i) the product of the appreciation, if any, of the Currency Basket against the U.S. Dollar over the term of the MLCDs, the outstanding Deposit Amount, and the Participation (as defined below) or (ii) the Minimum Indexed Interest Amount (as defined below). Return of Principal: At maturity, you will receive repayment of your Deposit Amount and an amount no less than the Minimum Indexed Interest Amount, regardless of the performance of the Currency Basket. Investors who redeem all or a portion of their MLCD early may lose a portion of their Deposit Amount. FDIC Insurance: The MLCDs are our deposit obligations and are therefore eligible for FDIC coverage up to applicable limits set by federal law and regulation. The FDIC insures all deposits maintained by a depositor in the same ownership capacity (i.e., individual or joint) at the same insured depository institution up to an aggregate amount of $250,000. Further, with respect to the MLCDs, the FDIC insurance covers only the Deposit Amount and does not include any Indexed Interest Amount, Minimum Indexed Interest Amount or secondary market premium. You are responsible for determining and monitoring the FDIC insurance coverage limit in purchasing any MLCD. The Bank has no obligation to monitor the FDIC insurance coverage that is available to you. IRA Eligible: MLCDs are eligible investments for individual retirement accounts ( IRAs ). Risks and Considerations Purchasing an MLCD involves a number of risks, including risks not typically associated with fixed-rate or floating-rate certificates of deposit or debt instruments. The Bank recommends that prospective investors carefully consider, together with their financial, legal, accounting, tax and other advisors, those risks in determining the suitability of an MLCD in light of their financial circumstances. Please refer to the accompanying Disclosure Statement for a more detailed discussion of these risks which include, but are not limited to: You are not guaranteed the return of the Deposit Amount if your MLCD is not held to maturity. In addition, if you choose to exercise the Early Redemption feature, you are not guaranteed the return of the Deposit Amount. If you hold more than the FDIC insured limitations in deposits with the Bank (including the MLCDs you purchase), you will not receive the benefit of FDIC insurance for any balance in excess of that amount. In this instance, the return of principal is subject to the credit risk of the Bank. Neither the Bank nor any Offering Broker is required to, nor does the Bank or any of its affiliates intend to, make a secondary market in the MLCDs. There is no assurance that a secondary market will develop. Funds needed prior to maturity should not be invested in MLCDs. The MLCDs may yield a return that is less than that of a traditional certificate of deposit or debt instrument of a comparable maturity. Interest on the MLCDs will be subject to annual income taxes based upon a comparable yield for the issuance, even though no payments will be made on the MLCDs until the Maturity Date absent early redemption. You may incur a tax liability without any offsetting income from the MLCDs. Interest is taxed as ordinary income which may be taxed at a higher rate than the lower capital gains rate normally paid by investors on longer term investments. See United States Federal Income Tax Considerations herein and in the Disclosure Statement. Investing in the MLCDs is not equivalent to investing directly in the Currency Basket. The Currency Basket is composed of the currencies of Brazil, Russia, India and Korea. The exchange rates of these currencies against the U.S. Dollar may be affected by many complex factors, including government policies/interventions by either those nations, or the U.S., and actions of central banks of various countries, and may be highly volatile and unpredictable. The Payment at Maturity is based on the s of the Basket Currencies as of a single day. Your return could be significantly different if it were determined on a different day. We cannot predict the direction or magnitude of the changes that would result from the selection of any different date. Changes in the s of one or more Basket Currencies may offset each other, resulting in a Payment at Maturity that is limited to the Deposit Amount plus the Minimum Indexed Interest Amount even if one or more Basket Currencies have appreciated against the U.S. Dollar. The MLCDs are made available through UnionBanc Investment Services, LLC ( UBIS ), a subsidiary of the Bank. The MLCDs are time deposit obligations of the Bank, a national banking association, and are not obligations of UnionBanCal Corporation, the Offering Brokers, or any other company affiliated with the Bank. None of UnionBanCal Corporation, UBIS or any other affiliate of the Bank guarantees the financial condition of the Bank.
Key Terms Issuer... Investment Benchmark... Currency... Minimum Deposit Amount... Union Bank, N.A. A basket of foreign currencies consisting of the Brazilian Real, Russian Ruble, Indian Rupee and Korean Won, each a Basket Currency and collectively, subject to equal, 25% weightings, the Currency Basket. USD $1,000 principal amount (except that each Offering Broker may, in its discretion, impose a higher minimum deposit amount with respect to the MLCD sales to its customers) and multiples of $1,000 principal amount in excess of such amount. Pricing Date... November 23, 2010. Issue Date (Settlement Date)... November 29, 2010. Maturity Date... November 24, 2017. Payment at Maturity... The Deposit Amount plus the greater of a) the Minimum Indexed Interest Amount or b) the Indexed Interest Amount. Indexed Interest Amount... The product of the following: a) Deposit Amount b) Participation c) Basket Appreciation Basket Appreciation... Final Basket Value Initial Basket Value Initial Basket Value Initial Basket Value... 100. Final Basket Value... Currency Return... 100 times (1 plus the sum of 25% of the Brazilian Real Currency Return and 25% of the Russian Ruble Currency Return and 25% of the Indian Rupee Currency Return and 25% of the Korean Won Currency Return) For each Basket Currency the amount determined for the applicable for such currency, as follows: Initial Final Initial Where: Initial is the of the relevant Basket Currency on the Pricing Date. Brazilian Real 1.7336 Russian Ruble 31.2635 Indian Rupee 45.6100 Korean Won 1134.2000 Final is the of the relevant Basket Currency on the Final Valuation Date. Changes in the s from the Final Valuation Date to the Maturity Date will not be taken into account for purposes of determining the Payment at Maturity and will not affect the return on the MLCDs. The Currency Return is based solely on the change in the s for the Basket Currencies from the Pricing Date to the Final Valuation Date. No changes between the Pricing Date and Final Valuation Date (or Early Redemption Dates) in the s, including increases, will be considered in determining the Currency Return. 2
Final Valuation Date... November 20, 2017. Participation... 200%.... For each Basket Currency, the amount determined for the applicable for such currency, as follows: Brazilian Real: the number of Brazilian Reals for which one U.S. Dollar can be exchanged, as determined by reference to the ASK price on the Bloomberg page BZFXPTAX<CURNCY>, or any successor page at approximately 6:00pm Sao Paulo time. Russian Ruble: the number of Russian Rubles for which one U.S. Dollar can be exchanged, as reported by Reuters on Page EMTA, or any successor page at approximately 1:30pm Moscow time. Indian Rupee: the number of Indian Rupees for which one U.S. Dollar can be exchanged, as determined by reference to the Bloomberg page INRRATE<CURNCY>, or any successor page at approximately 2:30pm Mumbai time. Korean Won: the number of Korean Wons for which on U.S. dollar can be exchanged, as determined by reference to Reuters page KFTC18, or any successor page at approximately 3:30 p.m. Seoul time. Minimum Indexed Interest Amount... Annual Percentage Yield (APY)... Periodic Interest Payments... Call Feature... Early Redemption Dates... Survivor s Option... 14.00% multiplied by the outstanding Deposit Amount on the Maturity Date. This equates to a 1.89% Annual Percentage Yield on such Deposit Amount. 1.89% (if the Indexed Interest Amount does not exceed the Minimum Indexed Interest Amount, so that only the outstanding Deposit Amount and the Minimum Indexed Interest Amount is payable on the MLCDs). APYs assume that the MLCDs were purchased in the original offering and are calculated on the basis of a 365-day year. None. None. The 15 th of each March, June, September, and December, beginning December 15, 2011. The amount you receive upon an early redemption (the Early Redemption Amount ) is described in the section of the Disclosure Statement entitled General Description of the MLCDs - Early Redemption." Upon an Early Redemption, the value of your MLCD may be less than if held to maturity and will be impacted by the factors described under "Risk Factors - Value of the MLCDs Prior to Maturity May Be Substantially Less Than Your Deposit Amount and Fees and Hedging in the Disclosure Statement. Upon the death or adjudication of incompetence of the beneficial owner of the MLCD prior to the Final Valuation Date, the estate will be entitled to the return of the full Deposit Amount. The estate will not be entitled to additional payments associated with the performance of the Investment Benchmark or any secondary market premiums that may have been paid. Survivor s Option Payment Dates... The 10 th of each month, beginning January 10, 2011. Calculation Agent... CUSIP... Selling Concession... Union Bank, N.A. 90521ADP0 3.50% of the Deposit Amount of each MLCD. 3
Additional Risk Factors You should carefully consider the risk factors set forth below as well as the risk factors discussed under Risk Factors in the Disclosure Statement and the other information contained in this Supplement and the accompanying Disclosure Statement. In particular, please review the information in the disclosure statement set forth under the caption, You Will be Subject to Foreign Currency Risks if Your Investment Benchmark is Linked to Foreign Currency. You should reach an investment decision only after you have carefully considered with your advisors the suitability of an investment in the MLCDs in light of your particular circumstance. Adjustments to a Basket Currency If, after the Pricing Date and on or before the valuation date, any country issuing a Basket Currency has lawfully eliminated, converted, redenominated or exchanged its lawful currency that was in effect on the Pricing Date (an original currency ) for a successor currency, then for the purpose of calculating the Currency Return for such Basket Currency, the Basket will include the successor currency and no longer include the original currency. The Initial for the successor currency will be adjusted to reflect such successor currency in accordance with the exchange ratio set by the relevant government for converting the original currency into the successor currency on the date that the elimination, conversion, redenomination or exchange occurred. 4
Illustrative Examples The following examples are provided for illustration purposes only and are hypothetical. They are not representative of every possible scenario concerning possible Indexed Interest Amounts that could result from possible changes in the value of the Investment Benchmark over the term of the MLCDs. We cannot predict the Final Basket Value. The assumptions we have made in connection with the illustrations set forth below may not reflect actual events, and the hypothetical Final of the Basket Currencies used in the scenarios below may not be the actual Final of each Basket Currency. The Participation is 200%. You should not take these examples as an indication or assurance of the expected performance of the Investment Benchmark or of the return on the MLCDs. The following examples indicate how the Indexed Interest Amount would be calculated with respect to a hypothetical $1,000 Deposit Amount in the MLCDs. These examples assume that there is no early redemption, and that the MLCDs are held to maturity. Indexed Interest Amount: The product of the following: a) Deposit Amount b) Participation c) Basket Appreciation Amount Basket Appreciation Amount Initial Basket Value Final Basket Value Final Basket Value Initial Basket Value Initial Basket Value The Initial Basket Value as of the close of trading on the Pricing Date will be 100. The Final Basket Value will be equal to: 100 x (1+25% of the Brazilian Real Currency Return + 25% of the Russian Ruble Currency Return + 25% of the Indian Rupee Currency Return + 25% of the Korean Won Currency Return) Currency Return: Equal to: Initial Final Initial Participation : 200% Minimum Indexed Interest Amount: Payment at Maturity: The Minimum Indexed Interest Amount at maturity will be 14.00% multiplied by the outstanding Deposit Amount on the Maturity Date. This equates to a 1.89% Annual Percentage Yield. The Deposit Amount plus the greater of (i) the Minimum Indexed Interest Amount or (ii) the Indexed Interest Amount. 5
Sample Scenarios The following tables show four different scenarios for calculating the Payment at Maturity over the term of the MLCDs. These hypothetical examples are for purposes of illustration only. The actual Payment at Maturity will depend on the Final Basket Value. Scenario 1 shows that the movement of one or more of the Basket Currencies can offset the depreciation of one or more other Basket Currencies. In this scenario, the Brazilian Real and the Russian Ruble both appreciate against the U.S. Dollar by more than the amount that the Indian Rupee and the Korean Won both depreciate against the U.S. Dollar. However, because the Indexed Interest Amount is still less than the Minimum Indexed Amount, the Payment at Maturity is equal to the Deposit Amount plus the Minimum Indexed Interest Amount. Scenario Initial Final Final Basket Value Currency Currency Return Brazilian Real 1.7336 1.6391 5.45% 1 Russian Ruble 31.2635 28.4623 8.96% 101.5375 Indian Rupee 45.6100 47.8859-4.99% Korean Won 1134.2000 1171.2883-3.27% The Final Basket Value in the above scenario would equal 100 x [1 + (0.0545 x 25%) + (0.0896 x 25%) + (-0.0499 x 25%) + (-0.0327 x 25%)], or 101.5375. The Indexed Interest Amount for each $1,000 Deposit Amount of an MLCD would be: $1,000 x 200% x (101.5375-100)/100 = $30.75 Since this is less than the Minimum Indexed Interest Amount of $140, the Payment at Maturity would be: $1,000 + (14% x $1,000) = $1,140.00 Scenario 2 shows the depreciation of all four of the Basket Currencies against the U.S. Dollar. In this scenario, the Brazilian Real, Russian Ruble, Indian Rupee, and Korean Won all depreciate against the U.S. Dollar. The Payment at Maturity is equal to the Deposit Amount plus the Minimum Indexed Interest Amount. Scenario Initial Final Final Basket Value Currency Currency Return Brazilian Real 1.7336 1.8307-5.60% 2 Russian Ruble 31.2635 33.2644-6.40% 95.5950 Indian Rupee 45.6100 47.5165-4.18% Korean Won 1134.2000 1150.5325-1.44% The Final Basket Value in the above scenario would equal 100 x [1 + (-0.0560 x 25%) + (-0.0640 x 25%) + (-0.0418 x 25%) + (-0.0144 x 25%)], or 95.5950. The Indexed Interest Amount for each $1,000 Deposit Amount of an MLCD would be: $1,000 x 200% x (95.5950-100)/100 = -$88.10 Since this is less than the Minimum Indexed Interest Amount of $140, the Payment at Maturity would be: $1,000 + (14% x $1,000) = $1,140.00 6
Scenario 3 shows the appreciation of all four of the Basket Currencies against the U.S. Dollar. In this scenario, the Brazilian Real, Russian Ruble, Indian Rupee and Korean Won all appreciate against the U.S. Dollar. The Payment at Maturity is equal to the Deposit Amount plus the Indexed Interest Amount. Scenario Initial Final Final Basket Value Currency Currency Return Brazilian Real 1.7336 1.2003 30.76% 3 Russian Ruble 31.2635 25.8237 17.40% 115.6775 Indian Rupee 45.6100 39.7263 12.90% Korean Won 1134.2000 1115.4857 1.65% The Final Basket Value in the above scenario would equal 100 x [1 + (0.3076 x 25%) + (0.1740 x 25%) + (0.1290 x 25%) + (0.0165 x 25%)], or 115.6775. The Indexed Interest Amount for each $1,000 Deposit Amount of an MLCD would be: Scenario $1,000 x 200% x (115.6775-100)/100 = $313.55 Since this is greater than the Minimum Indexed Interest Amount, the Payment at Maturity would be: $1,000 + $313.55 = $1,313.55. Scenario 4 shows that the depreciation of one of the Basket Currencies can offset the appreciation of the other three Basket Currencies. In this scenario, the percentage by which the Russian Ruble depreciates against the U.S. Dollar is greater than the aggregate percentage by which the Brazilian Real, the Indian Rupee and the Korean Won appreciate against the U.S. Dollar. The Payment at Maturity is equal to the Deposit Amount plus the Minimum Indexed Interest Amount. Initial Final Final Basket Value Currency Currency Return Brazilian Real 1.7336 1.5751 9.14% 4 Russian Ruble 31.2635 37.5068-19.97% 99.1375 Indian Rupee 45.6100 42.8460 6.06% Korean Won 1134.2000 1119.2286 1.32% The Final Basket Value in the above scenario would equal 100 x [1 + (0.0914 x 25%) + (-0.1997 x 25%) + (0.0606 x 25%) + (0.0132 x 25%)], or 99.1375. The Indexed Interest Amount for each $1,000 Deposit Amount of an MLCD would be: $1,000 x 200% x (99.1375-100)/100 = -$17.25 Since this is less than the Minimum Indexed Interest Amount, the Payment at Maturity would be: $1,000 + (14% x $1,000) = $1,140.00 7
Hypothetical Final Basket Values The following table shows hypothetical values of the Currency Basket for several different scenarios over the term of the MLCDs. Because the value of the Currency Basket may be subject to significant fluctuations over the term of the MLCDs, we cannot show the range of all possible Indexed Interest Amounts that would result from given changes in the value of the Currency Basket. These hypothetical examples are for purposes of illustration only. The actual Payment at Maturity will depend on the actual values of the Currency Basket used to calculate the Indexed Interest Amount at maturity. The following table indicates how the interest payable on the MLCD would be calculated with respect to nine hypothetical scenarios, each of which assumes an Initial Basket Value of 100 and Final Basket Values in the range of 75 to 250 and the Participation of 200%. The Payment at Maturity equals the outstanding Deposit Amount plus the greater of the Minimum Indexed Interest Amount or the Indexed Interest Amount. Initial Final (Final Basket Value - Initial Basket Value) Participation Interest Payable APY Payment at Scenarios Basket Value Basket Value (Initial Basket Value) at Maturity Maturity A 100 75-25.00% 200.00% 14.00% 1.89% $ 1,140.00 B 100 95-5.00% 200.00% 14.00% 1.89% $ 1,140.00 C 100 100 0.00% 200.00% 14.00% 1.89% $ 1,140.00 D 100 110 10.00% 200.00% 20.00% 2.64% $ 1,200.00 E 100 125 25.00% 200.00% 50.00% 5.97% $ 1,500.00 F 100 150 50.00% 200.00% 100.00% 10.42% $ 2,000.00 G 100 165 65.00% 200.00% 130.00% 12.65% $ 2,300.00 H 100 180 80.00% 200.00% 160.00% 14.64% $ 2,600.00 I 100 200 100.00% 200.00% 200.00% 17.01% $ 3,000.00 The graph below of the hypothetical scenarios A, D, F and H illustrates the fact that changes in the Currency Basket, including increases, between the Pricing Date and the valuation date are not used to determine the Indexed Interest Amount. Only the Initial Basket Value and the Final Basket Value on the valuation date are used to determine the Indexed Interest Amount. For example, in Scenario A, the Currency Basket increases to 150, a 50% increase from the Initial Basket Value of 100, during the term of the MLCD; however, the Payment at Maturity is based on the Final Basket Value of 75, resulting in a Payment at Maturity of $1,140, the outstanding Deposit Amount plus the Minimum Indexed Interest Amount. 250 Currency Basket Values 200 150 100 Scenario A Scenario D Scenario F Scenario H 50 0 2010 2011 2012 2013 2014 2015 2016 2017 8
Investment Benchmark Historical Information The historical exchange rate information for each Basket Currency set forth in the applicable table below is provided on a basis comparable to the corresponding definition for such Basket Currency. As a result, the historical exchange rate information for each Basket Currency, other than the Russian Ruble and Korean Won, is derived from the applicable rate information as published by Bloomberg Financial Markets and was calculated by the Bank in a manner consistent with the definition for such Basket Currency. The historical exchange rate information for the Russian Ruble and Korean Won is provided as published by Reuters. The Bank obtained such historical information from Bloomberg Financial Markets or Reuters, as applicable, without independent verification. The historical daily exchange rates and historical exchange rate performance of the Basket Currencies set forth below should not be taken as an indication of future performance. Please note that: Even though currencies trade around-the-clock, the market value of the MLCDs may not reflect the up-to-the-minute underlying exchange rates. Suspensions or disruptions of market trading in the Basket Currencies may adversely affect the value of the MLCDs, and may also affect the timing of payments. Please see Market Disruption Events in the Disclosure Supplement for additional information. 10 Year Historical Price Graphs for Basket Currencies 4.5 4 3.5 3 2.5 2 1.5 1 Brazilian Real 38 36 34 32 30 28 26 24 22 20 Russian Ruble 55 50 45 40 35 30 Indian Rupee 1700 1600 1500 1400 1300 1200 1100 1000 900 800 Korean Won 9
10 Year Historical Price Graphs for Currency Basket While historical information on the value of the Currency Basket does not exist for dates prior to the Pricing Date, the following graph illustrates the hypothetical daily values of the Currency Basket over the past 10 years, assuming the basket was constructed on November 25, 2000 and set equal to 100 on that date. Over the past 10 years, the Currency Basket has experienced significant fluctuations. Any historical upward or downward trend in the value of the Currency Basket during any period shown below is not an indication that the value of the Currency Basket is more or less likely to increase or decrease at any time during the term of the MLCDs. The historical Currency Basket values do not give an indication of future performance of the Currency Basket. We cannot assure you that the future performance of the Currency Basket or the constituent Basket Currencies will result in holders of the MLCDs receiving an amount greater than the outstanding Deposit Amount of the MLCDs and the Minimum Indexed Interest Amount on the Maturity Date. 10 Year Historical Basket Performance Basket Closing Value 130 120 110 100 90 80 70 60 50 40 10
UNITED STATES FEDERAL INCOME TAX CONSIDERATIONS To ensure compliance with Treasury Department Circular 230, you are hereby notified that (a) any discussion of United States federal tax issues in this Disclosure Supplement is not intended or written to be relied upon, and cannot be relied upon by you for the purpose of avoiding penalties that may be imposed on you under the Internal Revenue Code of 1986, as amended (the Code ), (b) this discussion is included herein by the Bank in connection with the promotion or marketing (within the meaning of Circular 230) by the Bank, UBIS and the Offering Brokers of the transactions or matters addressed in this Disclosure Supplement, and (c) you should seek advice based on your particular circumstances from an independent tax advisor. The following discussion supplements (and, to the extent inconsistent with, supersedes) and should be read in conjunction with the discussion in the attached Disclosure Statement under United States Federal Income Tax Considerations. For purposes of that discussion, the MLCDs are long-term MLCDs. The table below sets forth the following information with respect to each $1,000 principal amount of the MLCDs for each of the indicated accrual periods through the maturity dates of the MLCDs: the adjusted issue price at the beginning of the accrual period; the amount of interest deemed to have accrued during the accrual period; and the total amount of interest deemed to have accrued from the original issue date through the end of the accrual period. The table is based upon a projected payment schedule (including a comparable yield equal to 3.90% per annum (compounded annually)) that the Bank established for the MLCDs. The table reflects the expected issuance of the MLCDs on November 29, 2010 and the scheduled maturity date of November 24, 2017. The table also assumes that the MLCDs will not be withdrawn prior to maturity under the Survivor s Option or pursuant to an early redemption. The projected payment schedule consists of a single payment at maturity, which includes the principal amount and a projection for tax purposes of the Indexed Interest Amount. The Bank has determined that the projected payment schedule for each $1,000 principal amount of the MLCDs would consist of the payment on the maturity date of the principal amount of $1,000 and a projected Indexed Interest Amount of $306.59, for a total of $1,306.59. This information is provided solely for tax purposes, and the Bank makes no representations or predictions as to what the actual Indexed Interest Amount will be. Interest Deemed to Accrue on the MLCDs During the Accrual Period (1) Total Interest Deemed to Have Accrued from Original Issue Date as of End of Accrual Period Adjusted Issue Price at Beginning of Accrual Period Accrual Period November 29, 2010 to December 31, 2010 1,000.00 3.47 3.47 January 1, 2011 to December 31, 2011 1,003.47 39.14 42.61 January 1, 2012 to December 31, 2012 1,042.61 40.66 83.27 January 1, 2013 to December 31, 2013 1,083.27 42.25 125.52 January 1, 2014 to December 31, 2014 1,125.52 43.90 169.42 January 1, 2015 to December 31, 2015 1,169.42 45.61 215.03 January 1, 2016 to December 31, 2016 1,215.03 47.39 262.42 January 1, 2017 to November 24, 2017 1,262.42 44.17 306.59 (1) Represents the adjusted issue price at the beginning of the accrual period multiplied by the hypothetical comparable yield for the accrual period. Final Adjusted Issue Price = $1,306.59 per $1,000 principal amount of MLCDs. All prospective investors in the MLCDs should consult their own tax advisors concerning the taxation of the MLCDs. 11