Variable Return

The Variable Return calculation is the formula used to determine the Variable Return on the Notes at the Maturity Date. The Variable Return, if any, on a Note is linked to the performance of the Portfolio and is calculated as follows:

‘‘NAVFINAL’’ means, at any time (expressed pro rata per Note): (i) the notional proceeds from the liquidation of the Fund Account; plus (ii) the maturity value of the Bond Account as calculated by the Calculation Agent; minus (iii) repayment of the Loan and any accrued and unpaid Loan interest and Program Fees. Portfolio Performance will be the amount, if any, determined on the Maturity Date and expressed as a percentage of the Principal Amount, by which the pro rata value of the Portfolio per Note exceeds the Principal Amount, being $100. 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 to the Account was 100% on the issue date (March 30, 2007) and has changed as noted below:

Performance Commentary

As at July 31, 2008 the performance of the BNS Dundee AdPlus Focused Income & Growth Deposit Notes (Total Return), Series 2 on a NAV basis is -9.29% since inception. 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 1 de-leveraging event. As at July 31, 2008 the Notes have an equity exposure of 31%.

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	$19.75	-7.06%	10/06/2008
Bank of Montreal	6.67%	$69.72	$42.50	-39.04%	10/06/2008
CI Financial Income Fund	6.67%	$27.60	$16.64	-39.71%	10/06/2008
Canadian Imperial Bank of Commerce	6.67%	$100.19	$58.50	-41.61%	10/06/2008
Great-West Lifeco Inc.	6.67%	$34.80	$30.70	-11.78%	10/06/2008
H&R Real Estate Investment Trust	6.67%	$24.62	$14.00	-43.14%	10/06/2008
IGM Financial Inc.	6.67%	$48.86	$38.00	-22.23%	10/06/2008
Inter Pipeline Fund	6.67%	$9.28	$9.08	-2.16%	10/06/2008
Manitoba Telecom Services Inc.	6.67%	$46.60	$42.17	-9.51%	10/06/2008
RioCan Real Estate Investment Trust	6.67%	$24.84	$19.25	-22.50%	10/06/2008
Russel Metals Inc.	6.67%	$28.55	$22.55	-21.02%	10/06/2008
Toronto-Dominion Bank	6.67%	$69.42	$59.43	-14.39%	10/06/2008
TransAlta Corp	6.67%	$25.00	$27.50	10.00%	10/06/2008
TransCanada Corp.	6.67%	$38.35	$37.67	-1.77%	10/06/2008
Yellow Pages Income Fund	6.67%	$13.62	$9.17	-32.67%	10/06/2008
Overall Return				-19.92%

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.

THE CONTENTS OF THIS SITE ARE DIRECTED AT, AND ARE FOR USE BY, RESIDENTS OF CANADA ONLY AND ARE NOT DIRECTED TO OR INTENDED FOR USE BY RESIDENTS OF ANY OTHER COUNTRY OR JURISDICTION. THE CONTENTS OF THIS SITE DO NOT CONSTITUTE AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY, DIRECTLY OR INDIRECTLY, ANY OF THE NOTES REFERRED TO HEREIN IN ANY JURISDICTION OUTSIDE OF CANADA. THE CONTENTS OF THIS SITE ARE NOT TO BE DOWNLOADED, DISSEMINATED, USED OR RELIED UPON BY PERSONS RESIDENT IN ANY NON- CANADIAN JURISDICTION. NO SECURITIES COMMISSION OR SIMILAR AUTHORITY IN CANADA OR ANY OTHER JURISDICTION HAS IN ANY WAY PASSED ON THE MERITS OF ANY OF THE NOTES OR THE ADEQUACY OF THE DISCLOSURE CONTAINED IN ANY OF THE DOCUMENTS ON THIS SITE.