Variable Return

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

The Variable Return, if any, on a Note will be the sum of: (i) the Capital Appreciation and (ii) the Additional Amount, where the Variable Return may not be less than zero.

Capital Appreciation equals the amount, if any, by which NAVFINAL exceeds the Original Principal Amount ($100).

The Additional Amount, which may be positive or negative, is an amount equal to: (i) the Undiscounted Fixed Amount discounted for a term of one year at the 1-year Bankers’ Acceptance Rate prevailing at the Maturity Date; less (ii) the Principal Outstanding at the Maturity Date. The Undiscounted Fixed Amount is a sum in excess of $100 to be established by the Calculation Agent.

Example:

NAVFINAL = $180
Principal Outstanding = $70.00
Total of Quarterly Principal Repayments = $30.00
Undiscounted Fixed Amount = $104.00
1 yr BA CDOR at Maturity = 4.30%

(i) Capital Appreciation = NAVFINAL ($180) - $100 = $80.00

(ii) Additional Amount = $104.00/ (1 + 0.043) - $70.00 = $29.71

(iii) Variable Return = Additional Amount + Capital Appreciation = $29.71 + $80.00

(iv) Maturity Payment Amount = Principal Outstanding + Variable Return
= $70.00 + $109.71 = $179.71

Maturity Payment Amount is in addition to Quarterly Principal Payments of $30.00 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 NAVFINAL 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.

Equity Account Exposure

Equity exposure was 104% on the issue date (March 30, 2007) and has changed as noted below:

Quarterly Partial Principal Repayments

Quarterly Partial Principal Repayments per Note will be payable in Canadian dollars in an amount, if any, equal to 100% of the aggregate Distributions (on a per Note basis) paid on the Shares notionally held in the Equity Account during the relevant quarterly period is such Shares were notionally held in the Equity Account on the record date(s) for such distributions.

Upon payment of any Quarterly Partial Principal Repayment on the Notes, the aggregate amount of such payment will be deducted from the Principal Repayment Account. If Quarterly Partial Principal Prepayments per Note total $99, in the aggregate, during the term of the notes, no further Quarterly Partial Principal Repayments will be made. In such event, any further Distributions made on Shares notionally held in the Equity Account will thereafter be reinvested in Shares. There can be no assurance that any Distribution will be paid on the Shares during the term of the Notes and, accordingly, there can be no assurance that any Quarterly Partial Principal Repayments will be paid on the Notes.

Performance Commentary

As at July 31, 2008 the performance of the BNS Dundee AdPlus Focused Income & Growth Deposit Note (ROC), Series 1 on a NAV basis is -11.50% since inception. The Notes have paid a total of $5.00 in all quarterly partial principal repayments. Weak global markets have caused Canadian equities to underperform over the past several months, 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 were 1 leveraging event and 2 de-leveraging events. As at July 31, 2008 the Notes have an equity exposure of 19%.

Portfolio Performance

Portfolio Assets	Weight	Initial Price 03/30/2007	Current Price 01/07/2009	Price Performance	Lock-in Date
ARC Energy Trust	6.67%	$21.25	$22.33	5.08%	09/17/2008
Bank of Montreal	6.67%	$69.72	$47.41	-32.00%	09/17/2008
CI Financial Income Fund	6.67%	$27.60	$19.53	-29.24%	09/17/2008
Canadian Imperial Bank of Commerce	6.67%	$100.19	$60.12	-39.99%	09/17/2008
Great-West Lifeco Inc.	6.67%	$34.80	$31.51	-9.45%	09/17/2008
H&R Real Estate Investment Trust	6.67%	$24.62	$16.77	-31.88%	09/17/2008
IGM Financial Inc.	6.67%	$48.86	$44.65	-8.62%	09/17/2008
Inter Pipeline Fund	6.67%	$9.28	$9.01	-2.91%	09/17/2008
Manitoba Telecom Services Inc.	6.67%	$46.60	$41.27	-11.44%	09/17/2008
RioCan Real Estate Investment Trust	6.67%	$24.84	$19.92	-19.81%	09/17/2008
Russel Metals Inc.	6.67%	$28.55	$27.34	-4.24%	09/17/2008
Toronto-Dominion Bank	6.67%	$69.42	$60.41	-12.98%	09/17/2008
TransAlta Corp	6.67%	$25.00	$32.14	28.56%	09/17/2008
TransCanada Corp.	6.67%	$38.35	$37.59	-1.98%	09/17/2008
Yellow Pages Income Fund	6.67%	$13.62	$9.38	-31.13%	09/17/2008
Overall Return				-13.48%

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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