LEVERAGED TECHNOLOGIES STRUCTURED NOTE

The product has a maturity of 18 months

Features 3 of the most well known compa-nies in the industry!

1.) Apple

2.) Tesla

3.) LinkedIn

3-to-1 upside offered for volatile and lucra-tive technology stocks

Limited 1-to-1 downside

No principal protection – similar to a direct investment

Redemption payments are calculated based on the basket value after 18 months

All redemption payments occur at maturity and are subject to Stratton’s credit risk

Limited liquidity and secondary market, with no exchange present or guaranteed fair market value

Not insured by FDIC, or any U.S. agencies

"This product changed our life! My wife and I wanted to diversify our portfolios, and were attracted by technologies stocks. However, we weren’t entirely confident about their potential over a short period of time. We heard about this product and we’re hooked! We were able to diversify our portfolio and even though the stocks only gained an average of 5%, we received a 15% return on our principal!”

Johnny and Mandy McKennen—May 2015

This truly innovative and unique product is perfect for investors seeking or requiring exposure in the technology sector, either for diversification or speculation, who hold mildly bullish expectations regarding the performance of this sector. Modest gains are transformed into respectable returns following an accelerated upside structure in the form of a 3-to-1 amplification, all the while being able to maintain a 1-to-1 downside, similar to a direct investment in stocks.

The highly volatile technology stocks selected enjoy relatively very low correlations between one another, meaning a poor performance by one of the stocks will likely be offset by the performance of the other stocks, and on average an investor will generate positive returns.

An average everyday novice investor will not only be able to understand our simple payoff structure, but will be motivated also by their awareness of the underlying stocks, being some of the most pop-ular companies today and will have the opportunity to enter a position that requires a small investment!

Stratton Investment Bank July 2nd, 2015

Overview of Product

What is our product about?

Customer Testimonial

Payoff Structure

This product features a simple to understand and very lucrative payoff structure. An initial start-ing value is calculated to be $255, following a weighting of the underly-ing stocks. A terminal value is calculated using these same weights at the end of the 18 months using the closing prices on this day. Redemption values will be calculated based up-on these weighted bas-kets. Positive returns will be multiplied by a factor of 3, with a capped re-turn at 45%. Negative returns will be dealt with on a 1-to-1 basis, de-creasing the principal amount returned to the investor, hence the ab-sence of principal protection.

Take the plunge, get into technology today!

4 Potential Payoff Scenarios

LEVERAGED TECHNOLOGIES STRUCTURED NOTES - FINAL TERM SHEET

Issuer Stratton Investment Bank

Credit Rating Stratton Investment Bank unsecured long term debts are rated AA

by S&P. These ratings represent the rating agencies’ assessments

of our creditworthiness and are not indicative of the market risk as-

sociated with the Notes or the performance of the Index.

Ranking of the Notes The Notes will constitute deposit liabilities of equal ranking with all

other deposit liabilities of Stratton Investment Bank without any

preference among all unsecured long-term deposit liabilities.

Underlying Basket of Assets 60% in Tesla Motors Inc.

20% in LinkedIn

20% in Apple

Principal Amount $255 per Note

Issue Type Structured Notes

Issue Price 100% of Par Value

Issue Size 50,000 Notes for total offering of $12.75 million

Term 18 months - From July 2nd 2015 to December 31st 2016

Participation Rate 300% up to a capped level of 45%

Minimum Subscription Amount Notes are made available to every investors. A single investment in

one unit is accepted. The minimum subscription amount is therefore

$255.

Payout Profile at Maturity 3-to–1 upside exposure to market measure, from inception date to

maturity subject to capped. 1-to-1 downside exposure to market

measure.

Investment Consideration This investment is designed for investors who anticipate that the

market return (market measure) will increase moderately over the

term of the notes, and are willing to accept a capped return, take

full downside risk exposure and forgo interim interest payments.

Basket Average Return An investment in this structured note in the last 18 months would

have earned investors a return of 45%

Initial Setting Date July 2nd 2015

Initial Stocks Level Closing level of each stock within the basket on June 30th 2015

Suitability profile This issuance is intended at investors who wants an exposure to the

most volatile technology stocks for which a minimal investment is

required. Due to its low value, it gives a chance to average-

investors to invest in technology stocks.

Final Observation Date The final observation date is set to be December 31st 2016. If such

day is a date on which stock prices are not published, the Final

Observation shall be the next date on which an Index level is

published

Observations Dates The Observation Date will be July 2nd 2015 and December 31st

2016. If an Observation Date is a date on which the stock prices in

the basket are not published, the closing level from the next imme-

diate Scheduled Trading Day will be used with respect to the

Observation Date.

Closing Level & Return Calcula-

tion

Calculated as the closing level of the stocks within the basket on

the Observation Date. Returns are calculated over the holding

period (HPR) of 18 months

Scheduled Trading Days Any day on which all of the Relevant Exchanges are scheduled to

be open for trading for each indexes included in the leveraged

basket.

Business Day Any day that is not a Saturday or a Sunday and does not fall on a

legal holiday nor any other day on which banking institutions or

financial trading markets is closed.

Business Day Convention If the Maturity Date or observation dates fall on a day that is not a

business day, then that date will be the first following day that is a

business day.

Secondary Market Stratton Investment Bank will not provide a secondary market for

these Notes due to the size of the total offering. A Note holder will

not receive the principal amount prior to the Maturity Date and the

Notes will not be listed on any exchange. If the Note holder decide

to liquidate the Notes prior to maturity, there is no guaranteed

liquid market to sell and therefore, holder might receive

substantially less than the amount he previously invested.

Redemption Notes will not be redeemable prior to the determined maturity date

scheduled to be in December 2016

Listing The Notes will not be listed on any exchange and we have no inten-

tion to list it. Notes will be available and sold by Stratton Investment

Bank and our affiliated dealers.

Distribution The Notes will initially be distributed by Stratton Investment Bank

itself and certain authorized unaffiliated third party broker-dealers.

Direct distribution will be made to smaller institutional investors

such as commercial banks and insurance companies.