Annual Coupons

Annual Coupons per Note, if any, will be payable in Canadian dollars on the Annual Coupon Payment Date, in an amount, rounded to the nearest cent, equal to the result obtained using the following formula:

The Coupon Rate will be determined annually on the relevant Valuation Date. Generally stated, the Coupon Rate for each year until maturity will be a percentage amount equal to the simple average of the 10 Share Returns (one for each Share, each of which may be positive or negative).
The Share Return of a Share is the percentage increase or decrease in its Closing Price from the Issue Date to the applicable Valuation Date (the “Share Performance”), subject to the following:

1. If the Share Performance is greater than zero, then the Share Return will be deemed to be 10% in all events (regardless of whether the actual positive Share Performance is less than or exceeds 10%); and
2. If the Share Performance is zero or negative, then the Share Return will be the actual negative Share Performance, limited to -25%.

The maximum amount of interest that may be payable over the term of the Notes is $30.00 per Note (i.e., $10.00 in each year). Any Annual Coupon Amounts payable in respect of the Notes will not reflect any dividends declared on the Shares.