The following is a summary of some of the key terms of The Bank of Nova Scotia's Innovative Tier 1 Capital structures. To obtain additional information, please refer to the respective prospectus. 

Terms of Innovative Tier 1 Capital Structures

*BNS Capital Trust

Non-cumulative cash distributions per $1,000 Scotia BaTS are payable on the last day of June and December of each year, provided that such date is a Regular Distribution Date and unless the Bank fails to declare Dividends in the Reference Dividend Declaration Month. A holder of Scotia BaTS will be required to include in computing the holder's income for a taxation year all net income and net realized capital gains, if any, payable to the holder in such taxation year. Substantially all of the amounts payable to holders of Scotia BaTS are expected to be treated as income from a trust, rather than capital gains, for income tax purposes.

*Scotiabank Capital Trust

Non-cumulative cash distributions per $1,000 Scotia BaTS II Series 2002-1, 2003-1 and 2006-1 are payable on the last day of June and December of each year, provided that such date is a Regular Distribution Date and unless the Bank fails to declare Dividends in the Dividend Reference Period.

A holder of Scotia BaTS II will be required to include in computing its income for a taxation year all net income, including net realized taxable capital gains, if any, paid or payable to it in that taxation year. All or substantially all of the amounts payable to holders of Scotia BaTS II are expected to be treated as income from a trust, rather than capital gains, for income tax purposes.

*Scotiabank Tier 1 Trust

Interest per $1,000 Scotia BaTS III Series 2009-1 is payable in equal semi-annual instalments on the last day of June and December of each year, however, holders will be required to invest interest paid in newly-issued preferred shares of the Bank in certain events. A holder of Scotia BaTS III Series 2009-1 will be required to include in computing its income for a taxation year any interest or amount that is considered to be interest that accrued to it to the end of the year or became receivable or was received by it before the end of the year, depending on the status of the holder and the method regularly followed by the holder in computing income.