SecureFlex TD is a five-year-plus-one-day floating-rate term deposit, with quarterly pricing resets and interest payments. If the investor does not terminate or exit from the placement, the interest earned is tax-free. Minimum Volume PHP500,000.00 per certificate Tenor Five (5) Years and One (1) day. However, investor may choose to exit the placement without pre-termination penalties on interest payment date. Interest If held to maturity, the investor receives a withholding tax-exempt yield. A graduated withholding tax rate will apply on interests of placements withdrawn prior to final maturity. Interest shall be computed based on actual number of days/ 360. Investor receives a floating interest rate every 3 months. If the investor elects to continue the placement or fails to terminate it, principal is automatically extended for next three months at a new rate. Payment of interest is made by the issuance of a Manager’s check (MC) payable to the client or by way of a credit to the client’s CASA account with the bank. • Only Individuals benefit from the withholding tax exempt feature if clients hold on to the investment until final maturity. For Corporations and institutional investors, interest is subject to 20% Final withholding tax. Taxation Not subject to Final Withholding tax of 20% on the interest income if principal is NOT preterminated before final maturity date, otherwise, investment will be subject to a graduated withholding tax structure prescribed by law. Documentary Stamp Tax (DST) shall be initially shouldered by the Bank. However, if placement is preterminated not on an interest payment date ( also called “ELECTION DAY”), DST shall be charged to the client. Amount of DST is computed as follows: Principal invested and a fraction therof/PHP200.00 x PHP1.00. Pretermination policy Partial pretermination is not allowed, only full pretermination will be entertained. Pretermination is allowed subject to any of the following conditions: preterminated on election day – Withholding tax on the entire income earned/received by the client shall be imposed and shall be deducted by the Bank from the proceeds of the deposit (original principal + quarterly coupon interest) preterminated on a non- election day – (a) Client will earn 0.00% interest for the period, (b) Documentary Stamp Tax (DST) shall be shouldered by the client and (c) Withholding tax on the entire income earned/received by the client shall be imposed and shall be deducted by the Bank from the proceeds of the deposit (original principal) as follows depending on the holding period:  Term (based on holding period) Applicable Tax  less than one (1) year 20%  one year but less than two years 20%  two years but less than three years 20%  three year but less than four years 12%  four years but less than five years 5% Risk disclosure Credit / Default Risk – Refers to the risk that the Bank (borrower) with which the Time deposit has been placed is unable to pay its obligation to the investor (creditor) due to bank insolvency or bankruptcy. Principal risk – Refers to the risk that the investor will not get back his/her original principal invested. For this product, the risk is only attributable to the Documentary Stamp Tax (DST) which the investor has to pay only if he preterminates the TD prior to election day. Interest rate risk Refers to the risk that market rates may decline and the client will be able to invest at a lower rate. Client will still enjoy a higher rate compared to the investments of the same repricing tenor because he/she will get to enjoy tax exempt interest rate ( provided funds are held until maturity) Others PDIC-insured. As a deposit product, this is likewise covered by Phil Deposit Insurance Corp. subject to applicable rules and regulations, among others, on maximum insurance coverage. Documentary requirements from client Certificate of TD Terms and Conditions of the Long-term Non-Negotiable Certificate of Time Deposit Signed Product Description Client suitability questionnaire