Variable Return

Principal Outstanding equals the Original Principal Amount ($100) less the aggregate of all Monthly Partial Principal Repayments made during the term of the Notes.

The Variable Return, if any, on a Note equals (i) NAVFINAL; less (ii) the Principal Outstanding.

NAVFINAL is an amount, expressed per Note, equal to the NAV determined on the third Business Exchange Day prior to the Maturity Date, excluding any amount notionally held in the Principal Repayment Account which will be paid out as a Monthly Partial Principal Repayment on the Maturity Date.

NAV means, at any time, the total of: (i) the value of the Fund Account based on the then prevailing net asset value (the ‘‘Fund Account Value’’) and the value of the Bond Account; plus (ii) any cash in the Principal Repayment Account; minus (iii) the amount of the Loan then outstanding; minus (iv) the accrued and unpaid Program Fee; divided by (v) the number of Notes outstanding.

Example:

Maturity Payment Amount of $140.00 is in addition to total Monthly Partial Principal Repayments of $44.48 paid over the term of the Notes.

If the Notes are held to the Maturity Date, the full Original Principal Amount ($100 per Note) will have been paid in total by the Maturity Date (regardless of the performance of the Portfolio and even if NAV FINAL is less than $100 for any reason.) An Investor cannot elect to receive the Variable Return, if any, prior to the Maturity Date and the Notes cannot be redeemed or retracted prior to the Maturity Date. There is a possibility that an Investor may not receive any Variable Return.

Fund Account Exposure

Fund exposure was 132% on the issue date (October 29, 2007) and has changed as noted below:

Monthly Partial Principal Repayments

Monthly Partial Principal Repayments per Note will be payable in Canadian dollars in an amount, if any, equal to 75% of the aggregate Distributions (on a per Note basis) paid on the Units in the Fund Account as of the relevant record date(s) in the relevant month. Upon payment of any Monthly Partial Principal Repayment on the Notes, the aggregate amount of such payment will be deducted from the Principal Repayment Account. If Monthly Partial Principal Prepayments per Note total $99, in the aggregate, during the term of the notes, no further Monthly Partial Principal Repayments will be made. In such event, any further Distributions, if any, made on the Units in the Fund Account will thereafter be reinvested in Units at the then prevailing net asset value per Unit and no amounts corresponding to the amounts of any such Distributions will be credited to the Principal Repayment Account. There can be no assurance that any Distribution will be paid on the Units in the Fund Account during the term of the Notes and, accordingly, there can be no assurance that any Monthly Partial Principal Repayments will be paid on the Notes.

Performance Commentary

As at July 31, 2008 the performance of the BNS CI Performer Deposit Notes (ROC), Series 2 on a NAV basis is -16.48% since inception. The Notes have paid a total of $2.12 in all monthly partial principal repayments. Global equity markets continue to be extremely volatile, negatively affecting the overall performance of the Notes. The Canadian yield curve rallied over the month, increasing the cost of principal protection and therefore decreasing distance in CPPI Notes. During the period from July 1, 2008 to July 31, 2008 there was 1 de-leveraging event. As at July 31, 2008 the Notes have a fund exposure of 29%.

Fund Performance

Note: An investment in principal protected notes may not be suitable for all investors. Important information about these investments is contained in the Information Statement of each note. Investors should obtain and carefully read a copy prior to investing, paying particular attention to the associated risks. Past performance is not indicative of future returns. Commissions, trailing commissions, management fees and expenses all may be associated with these investments. Principal is guaranteed at maturity only for products purchased at their issue price and held to maturity. The investment return on the notes, if any, is uncertain in that an investor may not receive more than return of the principal amount at maturity. A person should reach a decision to invest in the notes only after carefully considering with his or her advisor, the suitability of this investment in light of his or her investment objectives and the information set out in the respective Information Statement.

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