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Scotiabank Equity Powered GICs
• Enjoy full principal protection • Benefitfromthereturnpotentialofequityinvestments
• Investforgrowthorincome • Selectwithorwithoutminimumguaranteedrate
Consider this investment if:
– Youwanta100%principalguaranteedandCDICeligibleinvestment
– Youwanttoinvestfortwoyearsorlonger
– YouwantthepotentialtoenhanceyourGICreturns
– YouarewillingtoforgotheguaranteedreturnofatraditionalGICinexchangeforthepotentialtoearnahigherreturn
Scotiabank Equity Powered GICs
Canadian Income
Canadian Guaranteed
Return
Canadian Growth
American Growth
Global Growth
Term in years 2 / 3 / 5 2 / 3 / 5 2 / 3 / 5 2 / 3 / 5 2 / 3 / 5
Minimum Annual
Guaranteed Interest Rate
/ / Paidannually
/ / Compoundedandpaid
atmaturityNone None None
Maximum Basket Return
/ / Paidannually
/ / Paidatmaturity
/ / Paidatmaturity
/ / Paidatmaturity
/ / Paidatmaturity
Cumulative Maximum Potential Return*
Up to
/ / Up to
/ / Up to
/ / Up to
/ / Up to
/ /
Linked to Basketof CanadianShares
Basketof CanadianShares
Basketof CanadianShares
Basketof USShares
BasketofGlobalShares
Minimum investment
$500(CanadianDollarsOnly)
Principal 100%PrincipalGuarantee
CDIC eligible Yes
Enjoy the potential for equity powered return with principal protection
Thisseriesisavailable
*ThisisnotanannualreturnbutratherthemaximumcumulativereturnovertheentiretermoftheGIC.ItisthesumoftheMinimumAnnualGuaranteedInterestRateforeachyearoftheterm,ifapplicable,andtheMaximumBasketReturn(foreachyearoftheterm,forCanadianIncome).ActualreturncouldbetheMinimumAnnualGuaranteedInterestRateonly,orzero,asapplicable.
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Scotiabank Equity Powered GICsIn which plans can I purchase the Scotiabank Equity Powered GIC?
YoucanpurchasetheScotiabankEquityPoweredGICwithinyourRRSP,RRIF,RESP,RDSP,TFSAornonregistered.
How is the potential return calculated?
Thepotentialreturniscalculatedastheaverageofthesharepricereturnsofthesharesinthebasket,subjecttoamaximumandaminimum,foreachshare.Formoreinformation,includingdetailedexamples,pleaserefertothe“TermsandConditions”and“HowistheReturnCalculated?”pagesenclosed.YoucanreviewthecurrentperformanceandpastreturnsofScotiabankEquityPoweredGICsbyspeakingwithaScotiabankbranchrepresentativeorbyvisitingwww.scotiabank.com.
How do Scotiabank Equity Powered GICs compare with other investments?
Scotiabank Equity Powered GICs
Regular GICsScotiabank Index
Powered GICDirect Market/Stock
Investment
Principal 100% guaranteed
Yes Yes Yes No
CDIC eligible Yes Yes Yes No
Can be redeemed? No No No Varies
Offers minimum guaranteed rate?
Yes,forCanadianIncomeandCanadianGuaranteedReturn
Yes,fullrateguarantee No No
Return calculation LinkedtoadiversifiedBasketofShares
FixedinterestrateLinkedtothe
performanceofastockmarketIndex
Determinedbyperformanceofinvestment
What is in the Basket of Canadian Shares?
TheBasketofCanadianSharesisadiversifiedgroupofCanadiancompaniesequallyweightedfortheinitialprice:
What is in the Basket of American Shares?
TheBasketofAmericanSharesisadiversifiedgroupofUSCompaniesequallyweightedfortheinitialprice:
What is in the Basket of Global Shares?
TheBasketofGlobalSharesisadiversifiedgroupofinternationalcompaniesequallyweightedfortheinitialprice.
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Scotiabank Equity Powered GICsCan I redeem my Scotiabank Equity Powered GIC prior to maturity? Can I transfer it?
No,aScotiabankEquityPoweredGICcannotberedeemedpriortomaturityanditisanon-transferableinvestment.
Are there any fees associated with Scotiabank Equity Powered GICs?
No,therearenofees.
What is the process for purchasing Scotiabank Equity Powered GICs?
PleasevisityourlocalbranchtopurchaseyourScotiabankEquityPoweredGIC.YouwillearninteriminterestbetweenthedateyoupurchaseaScotiabankEquityPoweredGICandtheGIC’sissuedate.WhenyourScotiabankEquityPoweredGICisissued,theinitialamountyouinvested,plusanyinteriminterestyou’veearned,areaddedtogetherandbecometheEquityPowered GICprincipalamount,whichisfullyguaranteed.
What return options do I have?
ThereturniscalculatedforeachEquityPoweredGICbasedontheperformanceoftheunderlyingBasketofShares.ThereisadifferentmaximumreturnassociatedwitheachEquityPoweredGIC.TheCanadianIncomeandCanadianGuaranteedReturnEquityPoweredGICsalsohaveaminimumguaranteedreturn.
What payout options do I have?
YoumayarrangetohavethereturnspaidtoyourScotiabankdepositaccountoryourbankaccountatanotherfinancialinstitution.YoucanalsochoosetoreinvestthereturnsinyourScotiaInvestmentAccount,orwecansendachequepayabletosomeoneelseyouname.
Is the underlying basket of shares different among Equity Powered GICs?
TheunderlyingbasketofsharesfortheScotiabankEquityPoweredGIC-CanadianIncome,CanadianGuaranteedReturn, andCanadianGrowthistheBasketofCanadianShares.TheunderlyingbasketofsharesfortheScotiabankEquityPoweredGIC–AmericanGrowthistheBasketofAmericanShares.TheunderlyingbasketofsharesfortheScotiabankEquityPoweredGIC–GlobalGrowthistheBasketofGlobalShares.
Which investment is right for me?
TherearetwotypesofScotiabankEquityPoweredGICs:1. Withminimumannualguaranteedinterestrate–CanadianIncomeisuniqueasitpaysannuallyaminimumguaranteed
interestrateorareturnrelatedtothebasketofshares,whicheverishigher,allowingyoutolock-ingainsgenerated,ifany,bytheperformanceoftheunderlyingBasketofCanadianShares.TheCanadianGuaranteedReturnalsohasaminimumannualguaranteedinterestratebutitiscompoundedannuallyandpaidatmaturity.
2. Withoutminimumannualguaranteedinterestrate–TheotherScotiabankEquityPoweredGICsdonothaveaminimumannualguaranteedinterestrate.However,theyprovideahighermaximumpotentialreturn.
AllScotiabankEquityPoweredGICoffer100%principalguaranteeandareCDICeligible.
Do I need to choose only one of the payout options?Theminimuminvestmentis$500.Therefore,ifyouhave$2,000toinvest,youcould,forexample,choosetopurchasetheScotiabankEquityPoweredGIC–CanadianIncomefor$500for2-years,theScotiabankEquityPoweredGIC–CanadianGuaranteedReturn for$500for3-years,theScotiabankEquityPoweredGIC–AmericanGrowthfor$500for5-years,andScotiabankEquityPoweredGIC–GlobalGrowthfor$500for5-years,therebyladderingyourmaturitydatesanddiversifyingyourinvestment.
To make the Scotiabank Equity Powered GICs part of your portfolio, talk to your Scotiabank advisor today.* MaximumPotentialReturnisthehighestpossiblereturnandincludestheminimumannualguaranteedinterestrate.Thisisnotanannualrateorrateofreturnandspecifiedfortheentireterm.
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Scotiabank Equity Powered GICs
This Page Is Left Blank Intentionally.
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Scotiabank Equity Powered GICs
CustomerAgreementforScotiabankEquityPoweredGIC(CustomerCopy)
Thisseriesisavailable
Scotiabank Equity Powered GIC being purchased (check only one)
£ CanadianIncome £ CanadianGuaranteedReturn £ CanadianGrowth £ AmericanGrowth £ GlobalGrowth
Issuer
£ TheBankofNovaScotia £ MontrealTrustCompanyofCanada £ NationalTrustCompany
PurchaseDate:________________________________ IssueDate:
PurchaseAmount:_____________________________ Maturitydatefor2yearterm:
Term2/3/5years(circle the appropriate) Maturitydatefor3yearterm:
Maturitydatefor5yearterm:
InterimInterestRatePerAnnum:_________________ Plannumber:_________________
ThisCustomerAgreement,whichisapartoftheFactSheet,providesyouwithasummaryofthedetailsoftheissue.Inaddition,theFactSheetincludesthreeadditionaldocuments:the“Terms&Conditions”oftheScotiabankEquityPoweredGICs,“HowistheReturnCalculated?”,whichoutlinesthemethodbywhichthemaximumpotentialreturniscalculated,and“TheSharesandtheCompanies”,whichoutlinesthecompaniescomprisingtheunderlyingBasketsofSharesfortheScotiabankEquityPoweredGICs.
Canadian IncomeCanadian
Guaranteed ReturnCanadian Growth American Growth Global Growth
Term 2 3 5 2 3 5 2 3 5 2 3 5 2 3 5
Minimum Annual Guaranteed Interest Rate
0% 0% 0% 0% 0% 0% 0% 0% 0%
Maximum Share Price Return/Maximum Basket Return (paid at maturity)
N/A N/A N/A
Maximum Annual Share Price Return / Maximum Annual Return
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Please check only one (for more details on the share and companies, please refer to “The Shares and the Companies”)
£ Basket of Canadian Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Canadian Income, Scotiabank Equity Powered GIC - Canadian Guaranteed Return and Scotiabank Equity Powered GIC - Canadian Growth only):
£ Basket of US Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - American Growth):
£ Basket of Global Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Global Growth):
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Scotiabank Equity Powered GICsTheTerms&Conditionsexplainsthefollowing:
1. Interim Period:BetweenthedayyoupurchasetheScotiabankEquityPoweredGICandtheissuedate,youwillearninterest.The“Terms & Conditions”explainhowthisinteriminterestiscalculated
2. Your Principal:YourPrincipal(“Principal”)isyourpurchaseamountplusanyinteriminterestearnedbetweenthepurchasedateandissuedate.Theprincipalisguaranteedandwillbepaidbacktoyouatmaturity.ThePrincipalwillincludeanyinteriminterestearnedbetweenthepurchasedateandtheissuedate.
3. Return: ThereturnyouwillreceiveonyourScotiabankEquityPoweredGICuponmaturityoratanniversarydates(applicableonlyforScotiabankEquityPoweredGIC–CanadianIncome)isdeterminedbythepriceperformanceofanunderlyingBasketofSharesofCanadian,USorglobalcompanies,subjecttoamaximumforeachshare.ForScotiabankEquityPoweredGIC–CanadianIncome,anynegativereturnforaparticularSharewillbelimitedtoforpurposesofcalculatingtheannualaverageSharereturnoftheBasket.FortheScotiabankEquityPoweredGIC–CanadianGuaranteedReturn,ScotiabankEquityPoweredGIC–CanadianGrowth,ScotiabankEquityPoweredGICs–AmericanGrowthorScotiabankEquityPoweredGIC–GlobalGrowthanynegativereturnforaparticularSharewillbelimitedtoforpurposesofcalculatingtheaverageSharereturnoftheBasket.IfyoupurchasetheScotiabankEquityPoweredGICs–CanadianGuaranteedReturn,ScotiabankprovidesaminimumannualguaranteedratethatwillbepaidregardlessoftheperformanceoftheunderlyingBasketofShares.IfyoupurchasetheScotiabankEquityPoweredGICs–CanadianIncome,ScotiabankpaysthegreaterofeithertheminimumannualguaranteedrateortheperformanceoftheunderlyingBasketofShares.Forspecificdetailsanddetailedexamplesofhowthereturniscalculated,pleaseseetheTerms&ConditionsincludedinthisFactSheetand“HowistheReturnCalculated?”.
Funds transferred to your account
4. Theinteriminterestrate,purchasedate,maximumreturnandminimumannualguaranteedinterestrateforyourScotiabankEquityPoweredGICwillbebasedonthedatethatthefundsarereceivedbytheissuer,whichisnotnecessarilythedateonwhichyourequestedthetransferofsuchfundsordepositedyourcheque.
Suitability
5. AScotiabankEquityPoweredGICisdifferentfromafixedrateinvestment.Thoughyourprincipalisalwaysguaranteed,thereisagreaterlevelofriskassociatedwithaScotiabankEquityPoweredGICthanwithafixedrateinvestmentbecauseitdoesnotprovideafullyguaranteedrateofreturn(withtheexceptionofinteriminterestearneduntilitsissuedateorScotiabankEquityPoweredGICswithaminimumannualguaranteedinterestrate).TheScotiabankEquityPoweredGIC–CanadianGrowth,theScotiabankEquityPoweredGIC–AmericanGrowthandtheScotiabankEquityPoweredGIC–GlobalGrowthmaynotprovideanyreturn.TheScotiabankEquityPoweredGIC–CanadianGuaranteedReturnandScotiabankEquityPoweredGIC–CanadianIncomemaynotprovideanyreturninexcessoftheminimumannualguaranteedinterestrate.Therefore,aninvestmentinaScotiabankEquityPoweredGICisonlysuitableforinvestorspreparedtoassumerisksrelatedtothereturn.
More Information
6. YourScotiabankEquityPoweredGICisnotredeemablebeforematurity,exceptintheeventofyourdeath.Formoredetails,pleaseseetheTerms&Conditions.
7. YourScotiabankEquityPoweredGICwillnotbeamended,exceptincasesspecifiedintheTerms&Conditions.
8. AfteryourScotiabankEquityPoweredGICisissued,thefollowinginformationisavailableonrequest(a)thenetassetvalueofyourGIConthedateyouspecifyandhowthatvalueisrelatedtothereturnpayableunderyourGIC;or(b)thelastavailablemeasurebeforethedateyouspecifyoftheaveragesharereturnsoftheSharesintheBasketandhowthatmeasureisrelatedtothereturnpayableunderyourGIC.Completeinformation(includinghistoricalinformationaboutpreviouslymaturedScotiabankEquityPoweredGICs)isavailableatwww.scotiabank.com,atanyScotiabankbranchorbymailbycontactingyourbranch.
9. Potential Conflicts of Interest:Scotiabankwillcalculatetheamount,ifany,ofreturntobepaidtoyou.Scotiabank’sdeterminationsandcalculationswillbeconclusiveforallpurposesandbindingonyou.Consequently,potentialconflictsbetweenyourinterestsandScotiabank’sinterestsmayarise.Inaddition,Scotiabankanditsaffiliatesmayholdinterestsinorsecuritiesof,extendcredittoorenterintootherbusinessdealingswithoneormoreoftheentitieswhoseSharesareincludedintheBasket.Pleasesee“Terms and Conditions – Your Risks”formoreinformationonconflictsofinterest.
10. Right of Cancellation: Youareentitledtoarightofcancellation,whichmustbeexercisedwithintwodaysafterthelaterof(a)thedateonwhichthisagreementtopurchaseisenteredintoand(b)thedayonwhichtheFactSheetisprovidedtoyou.UponcancellationofthepurchaseofScotiabankEquityPoweredGICs,youwillbeentitledtoarefundoftheprincipalinvested.Toexerciseyourrightofcancellation,youmaycontactyourbranchadvisor.
By signing below, you acknowledge that before entering this agreement to purchase your Scotiabank Equity Powered GIC in person, you have received a completed copy of this Scotiabank Equity Powered GIC Fact Sheet and that we have orally disclosed to you the information in the paragraphs numbered 1 to 10 above prior to or at the time of entering into this agreement. You further acknowledge that you have received and read a copy of the Investment Companion Booklet. You agree to be bound by all of the terms, conditions and other provisions in this Fact Sheet and those terms, conditions and other provisions in the Investment Companion Booklet that relate to your Scotiabank Equity Powered GIC purchase.
CustomerName(s):____________________________________________CustomerSignature(s):________________________________________
BranchSignature:_____________________________________________Date:_______________________________________________________
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Scotiabank Equity Powered GICs
CustomerAgreementforScotiabankEquityPoweredGIC(BranchCopy)
Thisseriesisavailable
Scotiabank Equity Powered GIC being purchased (check only one)
£ CanadianIncome £ CanadianGuaranteedReturn £ CanadianGrowth £ AmericanGrowth £ GlobalGrowth
Issuer
£ TheBankofNovaScotia £ MontrealTrustCompanyofCanada £ NationalTrustCompany
PurchaseDate:________________________________ IssueDate:
PurchaseAmount:_____________________________ Maturitydatefor2yearterm:
Term2/3/5years(circle the appropriate) Maturitydatefor3yearterm:
Maturitydatefor5yearterm:
InterimInterestRatePerAnnum:_________________ Plannumber:_________________
ThisCustomerAgreement,whichisapartoftheFactSheet,providesyouwithasummaryofthedetailsoftheissue.Inaddition,theFactSheetincludesthreeadditionaldocuments:the“Terms&Conditions”oftheScotiabankEquityPoweredGICs,“HowistheReturnCalculated?”,whichoutlinesthemethodbywhichthemaximumpotentialreturniscalculated,and“TheSharesandtheCompanies”,whichoutlinesthecompaniescomprisingtheunderlyingBasketsofSharesfortheScotiabankEquityPoweredGICs.
Canadian IncomeCanadian
Guaranteed ReturnCanadian Growth American Growth Global Growth
Term 2 3 5 2 3 5 2 3 5 2 3 5 2 3 5
Minimum Annual Guaranteed Interest Rate
0% 0% 0% 0% 0% 0% 0% 0% 0%
Maximum Share Price Return/Maximum Basket Return (paid at maturity)
N/A N/A N/A
Maximum Annual Share Price Return / Maximum Annual Return
N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Please check only one (for more details on the share and companies, please refer to “The Shares and the Companies”)
£ Basket of Canadian Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Canadian Income, Scotiabank Equity Powered GIC - Canadian Guaranteed Return and Scotiabank Equity Powered GIC - Canadian Growth only):
£ Basket of US Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - American Growth):
£ Basket of Global Shares, equally weighted for the Initial Price (For Scotiabank Equity Powered GIC - Global Growth):
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Scotiabank Equity Powered GICsTheTerms&Conditionsexplainsthefollowing:
1. Interim Period:BetweenthedayyoupurchasetheScotiabankEquityPoweredGICandtheissuedate,youwillearninterest.The“Terms & Conditions”explainhowthisinteriminterestiscalculated
2. Your Principal:YourPrincipal(“Principal”)isyourpurchaseamountplusanyinteriminterestearnedbetweenthepurchasedateandissuedate.Theprincipalisguaranteedandwillbepaidbacktoyouatmaturity.ThePrincipalwillincludeanyinteriminterestearnedbetweenthepurchasedateandtheissuedate.
3. Return: ThereturnyouwillreceiveonyourScotiabankEquityPoweredGICuponmaturityoratanniversarydates(applicableonlyforScotiabankEquityPoweredGIC–CanadianIncome)isdeterminedbythepriceperformanceofanunderlyingBasketofSharesofCanadian,USorglobalcompanies,subjecttoamaximumforeachshare.ForScotiabankEquityPoweredGIC–CanadianIncome,anynegativereturnforaparticularSharewillbelimitedtoforpurposesofcalculatingtheannualaverageSharereturnoftheBasket.FortheScotiabankEquityPoweredGIC–CanadianGuaranteedReturn,ScotiabankEquityPoweredGIC–CanadianGrowth,ScotiabankEquityPoweredGICs–AmericanGrowthorScotiabankEquityPoweredGIC–GlobalGrowthanynegativereturnforaparticularSharewillbelimitedtoforpurposesofcalculatingtheaverageSharereturnoftheBasket.IfyoupurchasetheScotiabankEquityPoweredGICs–CanadianGuaranteedReturn,ScotiabankprovidesaminimumannualguaranteedratethatwillbepaidregardlessoftheperformanceoftheunderlyingBasketofShares.IfyoupurchasetheScotiabankEquityPoweredGICs–CanadianIncome,ScotiabankpaysthegreaterofeithertheminimumannualguaranteedrateortheperformanceoftheunderlyingBasketofShares.Forspecificdetailsanddetailedexamplesofhowthereturniscalculated,pleaseseetheTerms&ConditionsincludedinthisFactSheetand“HowistheReturnCalculated?”.
Funds transferred to your account
4. Theinteriminterestrate,purchasedate,maximumreturnandminimumannualguaranteedinterestrateforyourScotiabankEquityPoweredGICwillbebasedonthedatethatthefundsarereceivedbytheissuer,whichisnotnecessarilythedateonwhichyourequestedthetransferofsuchfundsordepositedyourcheque.
Suitability
5. AScotiabankEquityPoweredGICisdifferentfromafixedrateinvestment.Thoughyourprincipalisalwaysguaranteed,thereisagreaterlevelofriskassociatedwithaScotiabankEquityPoweredGICthanwithafixedrateinvestmentbecauseitdoesnotprovideafullyguaranteedrateofreturn(withtheexceptionofinteriminterestearneduntilitsissuedateorScotiabankEquityPoweredGICswithaminimumannualguaranteedinterestrate).TheScotiabankEquityPoweredGIC–CanadianGrowth,theScotiabankEquityPoweredGIC–AmericanGrowthandtheScotiabankEquityPoweredGIC–GlobalGrowthmaynotprovideanyreturn.TheScotiabankEquityPoweredGIC–CanadianGuaranteedReturnandScotiabankEquityPoweredGIC–CanadianIncomemaynotprovideanyreturninexcessoftheminimumannualguaranteedinterestrate.Therefore,aninvestmentinaScotiabankEquityPoweredGICisonlysuitableforinvestorspreparedtoassumerisksrelatedtothereturn.
More Information
6. YourScotiabankEquityPoweredGICisnotredeemablebeforematurity,exceptintheeventofyourdeath.Formoredetails,pleaseseetheTerms&Conditions.
7. YourScotiabankEquityPoweredGICwillnotbeamended,exceptincasesspecifiedintheTerms&Conditions.
8. AfteryourScotiabankEquityPoweredGICisissued,thefollowinginformationisavailableonrequest(a)thenetassetvalueofyourGIConthedateyouspecifyandhowthatvalueisrelatedtothereturnpayableunderyourGIC;or(b)thelastavailablemeasurebeforethedateyouspecifyoftheaveragesharereturnsoftheSharesintheBasketandhowthatmeasureisrelatedtothereturnpayableunderyourGIC.Completeinformation(includinghistoricalinformationaboutpreviouslymaturedScotiabankEquityPoweredGICs)isavailableatwww.scotiabank.com,atanyScotiabankbranchorbymailbycontactingyourbranch.
9. Potential Conflicts of Interest:Scotiabankwillcalculatetheamount,ifany,ofreturntobepaidtoyou.Scotiabank’sdeterminationsandcalculationswillbeconclusiveforallpurposesandbindingonyou.Consequently,potentialconflictsbetweenyourinterestsandScotiabank’sinterestsmayarise.Inaddition,Scotiabankanditsaffiliatesmayholdinterestsinorsecuritiesof,extendcredittoorenterintootherbusinessdealingswithoneormoreoftheentitieswhoseSharesareincludedintheBasket.Pleasesee“Terms and Conditions – Your Risks”formoreinformationonconflictsofinterest.
10. Right of Cancellation: Youareentitledtoarightofcancellation,whichmustbeexercisedwithintwodaysafterthelaterof(a)thedateonwhichthisagreementtopurchaseisenteredintoand(b)thedayonwhichtheFactSheetisprovidedtoyou.UponcancellationofthepurchaseofScotiabankEquityPoweredGICs,youwillbeentitledtoarefundoftheprincipalinvested.Toexerciseyourrightofcancellation,youmaycontactyourbranchadvisor.
By signing below, you acknowledge that before entering this agreement to purchase your Scotiabank Equity Powered GIC in person, you have received a completed copy of this Scotiabank Equity Powered GIC Fact Sheet and that we have orally disclosed to you the information in the paragraphs numbered 1 to 10 above prior to or at the time of entering into this agreement. You further acknowledge that you have received and read a copy of the Investment Companion Booklet. You agree to be bound by all of the terms, conditions and other provisions in this Fact Sheet and those terms, conditions and other provisions in the Investment Companion Booklet that relate to your Scotiabank Equity Powered GIC purchase.
CustomerName(s):____________________________________________CustomerSignature(s):________________________________________
BranchSignature:_____________________________________________Date:_______________________________________________________
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Scotiabank Equity Powered GICs
The Scotiabank Equity Powered GIC.
TheScotiabankEquityPoweredGIC(“GIC”)isanon-redeemable,non-transferableguaranteedinvestmentcertificatewhoserateofreturn,ifany,isbasedonthepriceperformanceofanunderlyingBasketofSharesofCanadian,UScompaniesorinternationalcompanieswithglobaloperations. TheScotiabankEquity PoweredGIC is available asbothanon-registeredandregistereddeposit,subjecttothetermsoftheparticularplan.YoushouldreadthefollowingsummaryandthedetaileddescriptioncontainedinthisFactSheet.
Definitions
TheBankofNovaScotia,MontrealTrustCompanyofCanadaandNationalTrustCompanyareeachreferredtoasthe“Issuer.”
“Scotiabank”means,collectively,TheBankofNovaScotiaandanyofitsaffiliates.
“You”,“Your”and“Investor”meansthepurchaseroftheScotiabankEquityPoweredGICs.
Business Daymeansaday,otherthanaSaturday,SundayorstatutoryholidayinOntario,onwhichScotiabankisopenfordomesticbusinessinToronto,Ontario.
Business Exchange Daymeansanydayonwhicheachexchangeandeachrelatedexchangeareopenfortradingduringtheirrespectiveregulartradingsessions,notwithstandinganysuchexchangeorrelatedexchangeclosingpriortoitsscheduledclosingtimethatisalsoaBusinessDay.
Maturity DatemeansthedateonwhichthetermforyourScotiabankEquityPoweredGICends,asspecifiedonyourCustomerAgreement.
Principal means your purchase amount plus any interim interest you earn between thepurchasedateand issuedateofyourScotiabankEquityPoweredGICasspecified inyourCustomerAgreement.
Interim Interest Ratemeanstheregularnon-redeemableGICpostedrateapplicabletoyourtermassetoutinyourCustomerAgreement.
Please see“How is the Return Calculated?” for definitionof “Basket”, “Share”and“Share Return”
NoteIftheMaturityDatefallsonaSunday,thereturn,ifany,willbedepositedonthenextBusinessDay.NointerestwillbepaidfortheextradayordaysbetweentheMaturityDateandthedepositdate.
General Terms
Return Calculation: Scotia Capital Inc. will act as calculation agent. See “How is the Return Calculated?”
Right of Cancellation: Youareentitledtoarightofcancellation,whichmustbeexercisedwithintwodaysafterthelaterof(a)thedateonwhichthisagreementtopurchaseisenteredintoand(b)thedayonwhichtheFactSheet isprovidedtoyou.UponcancellationofthepurchaseofScotiabankEquityPoweredGICs,youwillbeentitledtoarefundoftheprincipalinvested.Toexerciseyourrightofcancellation,youmaycontactyourbranchadvisor.
Redemption Restrictions:ThetermofyourScotiabankEquityPoweredGICisstatedontheCustomerAgreementYourScotiabankEquityPoweredGICisnotredeemablebeforematurity,exceptintheeventofyourdeath.Inthatcircumstance,yourScotiabankEquityPoweredGICpurchaseamountwillbepaidtogetherwithinterestcalculatedfromyourGICpurchasedatetoitsredemptiondateattheregularnon-redeemableGICpostedrateapplicabletoyourspecificterm(seeCustomerAgreement).
Currency:Allamountswillbedeposited,calculatedandarepayableinCanadiandollars.
Restrictions on Sale:YourScotiabankEquityPoweredGICisonlyavailableforsalewithinCanadaandtoCanadianresidents.
No amendment:ThetermsofYourScotiabankEquityPoweredGICwillnotbeamended,except(a)ifacompanyannouncesthetermsofaPotentialAdjustmentEvent;(b)ifthereisanEquityDisruptionEvent;(c)ifthereisaSubstitutionEventinrespectofaShareintheBasket;(d)AMergerEventandTenderOffer;(e)anExtraordinaryEventoranyothereventbeyondthereasonablecontroloftheissuerofyourGICwhichhasamateriallyadverseeffectontheissuer’sabilitytocalculatearateofreturnforyourGIC,tomanagetherelatedrisk,orotherwiseperformitsobligations.Thedefinedtermsusedinthisriskfactoraredescribedbelow.Thecalculationagentwillmakethenecessarydeterminationsinconnectionwithanyamendmentinthecircumstancessetforthabove.
Potential Adjustment Eventmeans, inrespectofaShareofacompanycomprisingtheBasket, the occurrence of any of the following events: (a) a subdivision, consolidation orreclassificationoftheShares(unlessresultinginamerger),orafreedistributionordividendofanysuchSharestoexistingholdersbywayofbonus,capitalizationorsimilarissue;(b)adistribution,issueordividendtoexistingholdersoftheSharesof:(i)additionalShares;or(ii)othersharecapitalorsecuritiesgrantingtherighttopaymentofdividendsand/ortheproceedsofliquidationoftheapplicablecompanyequallyorproportionatelywithsuchpaymentstoholders
ofShares;or(iii)sharecapitalorothersecuritiesofanotherissueracquiredorowned(directlyorindirectly)bytheapplicablecompanyasaresultofaspin-offorothersimilartransaction,or(iv)anyothertypeofsecurities,rightsorwarrantsorotherassets,inanycaseforpayment(cashorotherconsideration)atlessthantheprevailingequitypriceasdeterminedbyScotiabank(c)anextraordinarydividendorotherdistribution(paidincashorotherwise)inrespectofsuchShares(wherethecharacterizationofadividendorotherdistributionas“extraordinary”willbedeterminedbyScotiabank)(d)acallbytheapplicablecompanyinrespectoftheSharesthatarenotfullypaid(e)arepurchasebytheapplicablecompanyoranyofitssubsidiariesoftheShareswhetheroutofprofitsorcapitalandwhethertheconsiderationforsuchrepurchaseiscash,securitiesorotherwise;(f)inrespectoftheapplicablecompany,aneventthatresultsinanyshareholderrightsbeingdistributedorbecomingseparatedfromcommonsharesorothersharesofthecapitalstockofsuchcompanypursuanttoashareholderrightsplanorarrangementdirectedagainsthostiletakeoversthatprovidesupontheoccurrenceofcertaineventsforadistributionofpreferredstock,warrants,debtinstrumentsorstockrightsatapricebelowtheirequityvalue,asdeterminedbyScotiabank,providedthatanyadjustmenteffectedasaresultofsuchaneventwillbereadjusteduponanyredemptionofsuchrights;or(g)anyothereventthatmayhaveadilutiveorconcentrativeeffectonthetheoreticalvalueoftheSharesasdeterminedbyScotiabank.
Equity Disruption Eventmeans in respectofaShare,anyevent,circumstanceorcausebeyondthereasonablecontroloftheissuerwhichhasorwillhaveamaterialadverseeffectontheabilityofequitydealersgenerallytoacquire,establish,re-establish,substitute,maintain,unwindormodifyhedgesofpositionsinrespectofsuchShare.IfanEquityDisruptionEventinrespectofaShareoccursonaValuationDate(asdefinedbelowin“HowistheReturnCalculated”),thedeterminationoftheclosingpriceforthatShareonsuchdate(and,possibly,anypaymentofreturn,ifany)maybedelayed.FluctuationsintheclosingpriceoftheaffectedSharemayoccurintheinterim.If“Scotiabank”determinesthatanEquityDisruptionEventinrespectofaShareintheBaskethasoccurredandiscontinuingonanydatethatbutforthateventwouldbeaValuationDateinrespectofsuchShare,thenthereturn,ifany,willbecalculated(andtheapplicableclosingpricewillbedetermined)onthebasisthatsuchValuationDatewillbepostponedtothenextBusinessExchangeDaythatisalsoaBusinessDayonwhichthereisnoEquityDisruptionEventineffectinrespectofsuchShare.
Substitution Eventmeans,inrespectofaShare,anyeventwhich,inthedeterminationofScotiabank,hasadverselyaffectedormaypotentiallyadverselyaffecttheliquidityoftheShare(ascomparedwithitsliquidityattheissuedate)andmayinclude,butisnotlimitedto:(i)anationalization;(ii)aninsolvency;(iii)adelisting;or(iv)anyMergerEventorTenderOfferinrespectofsuchSharethatisdeemedbyScotiabank,initssolediscretion,tobeaSubstitutionEvent.
Merger Eventmeans,inrespectofaShare,any:(a)reclassificationorchangeoftherelevantSharesthatresultsinatransferoforanirrevocablecommitmenttotransferallofsuchSharesoutstandingtoanotherentityorperson;(b)consolidation,amalgamation,mergerorbindingshareexchangeoftherelevantcompanywithorintoanotherentityorperson(otherthanaconsolidation,amalgamation,mergerorbindingshareexchangeinwhichsuchcompanyisthecontinuingentityandwhichdoesnotresultinareclassificationorchangeofallofsuchSharesoutstanding);(c)take-overbid,tenderoffer,exchangeoffer,solicitation,proposalorothereventbyanyentityorpersontopurchaseorotherwiseobtain100%oftheoutstandingSharesofsuchcompanythatresultsinatransferoforanirrevocablecommitmenttotransferallsuchShares(otherthansuchSharesownedorcontrolledbysuchotherentityorperson);or(d)consolidation,amalgamation,mergerorbindingshareexchangeofsuchcompanyorits subsidiarieswithor intoanotherentity inwhichsuchcompany is thecontinuingentityandwhichdoesnotresultinareclassificationorchangeofallsuchSharesoutstandingbutresultsintheoutstandingShares(otherthanSharesownedorcontrolledbysuchotherentity)immediatelypriortosucheventcollectivelyrepresentinglessthan50%oftheoutstandingSharesimmediatelyfollowingsuchevent(commonlyreferredtoasa“reversemerger”),ineachcaseifthemergerdateisonorbeforethedateonwhichtheShareReturninrespectofsuchShareisdetermined.
Tender Offermeans, inrespectofaShare,atake-overbid,tenderoffer,exchangeoffer,solicitation,proposalorothereventbyanyentityorpersonthatresultsinsuchentityorpersonpurchasing,orotherwiseobtainingorhavingtherighttoobtain,byconversionorothermeans,greaterthan10%andlessthan100%oftheoutstandingrelevantSharesoftheapplicablecompany,asdeterminedbyScotiabankbaseduponthemakingoffilingswithgovernmentalorself-regulatoryagenciesorsuchotherinformationastheCalculationAgentdeemsrelevant.
Extraordinary Event:ThereisalwaysthepossibilityofanequitydisruptionorothereventbeyondthereasonablecontroloftheissuerofyourGICwhichmayhaveamaterialadverseeffectontheissuer’sabilitytocalculatetherateofreturnonyourScotiabankEquityPoweredGICs,tomanagetherelatedriskorotherwiseperformitsobligations.Shouldsuchaneventoccur,theissuermay,actingreasonably,takesuchactionsasitdeemsappropriate,includingwithout limitation, adjusting or delaying calculations or payment of any return on yourScotiabankEquityPoweredGICs.
Risk Factors
AninvestmentinScotiabankEquityPoweredGICsissubjecttocertainriskfactorsthatyoushouldcarefullyconsiderbeforemakingapurchasedecision,includingthefollowing.
TERMS&CONDITIONS
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Scotiabank Equity Powered GICsRate of return.TherateofreturnthatmaybepayableontheScotiabankEquityPoweredGIC–CanadianGrowth, ScotiabankEquity PoweredGIC–CanadianGuaranteedReturn and Scotiabank Equity Powered GIC – American Growth, Scotiabank Equity Powered GIC–GlobalGrowthislinkedtothesimpleaverageoftheShareReturns(oneforeachShare,eachofwhichcanbepositiveornegative).InvestorsshouldrealizethatthereisapossibilitythatnoreturnmaybepayableontheGICs(besidestheminimumannualguaranteedinterestrateinthecaseoftheScotiabankEquityPoweredGIC–CanadianGuaranteedReturnonly)eventhoughthereisalimitonanyShare’snegativecontributiontotheaverageofShareReturnsiftheShareReturnforsuchshareisnegative.Atthesametime,themaximumShareReturnforanySharewillbecappedregardlessoftheactualpercentageincreaseinaShare’sclosingpricemeasuredfromthesecondBusinessExchangeDayfollowingtheIssueDatetothesecondBusinessExchangeDaypriortotheMaturityDate.Therefore,themaximumrateofreturn,ifany,thatmaybepayableisequaltothespecifiedmaximumShareReturn.SufficientlyweakpriceperformancebyoneormoreSharescanoffsetpositivepriceperformanceresultinginthepossibilityofnorateofreturnbeingpaid(besidestheminimumannualguaranteedinterestrateinthecaseoftheScotiabankEquityPoweredGIC–CanadianGuaranteedReturnonly).Inaddition,unlesstheShareReturnispositiveatmaturity,norateofreturnwillbepayableontheScotiabankEquityPoweredGIC–CanadianGrowthandScotiabankEquityPoweredGIC–AmericanGrowth, ScotiabankEquity PoweredGIC–GlobalGrowthandonly theminimumannualguaranteedinterestratewillbepayableontheScotiabankEquityPoweredGIC–CanadianGuaranteedReturn.Sinceyourprincipalisunconditionallyguaranteed,youwouldreceiveonlythatamountinthiseventandtheminimumannualguaranteedreturn,ifyouinvestedintheScotiabankEquityPoweredGIC–CanadianGuaranteedReturn.TheScotiabankEquityPoweredGIC–CanadianGrowthandScotiabankEquityPoweredGIC–AmericanGrowth,ScotiabankEquityPoweredGIC–GlobalGrowthoffernoguaranteedreturn.
Rate of return – Scotiabank Equity Powered GIC – Canadian Income.TherateofreturnthatmaybepayableontheScotiabankEquityPoweredGIC-CanadianIncomeislinkedtothesimpleaverageoftheShareReturns(oneforeachShare,eachofwhichcanbepositiveornegative).Investorsshouldrealizethatthereisapossibilitythatthereturnwillbelimitedtotheminimumannualguaranteedinterestrateandmightnotexceeditforanyorsomeoftheyearsoftheterm.ThemaximumShareReturnforanySharewillbecappedregardlessoftheactualpercentageincreaseinaShare’sclosingpricemeasuredfromthesecondBusinessExchangeDayfollowingtheIssueDatetothesecondBusinessExchangeDaypriortotherelevantAnniversaryDate.Therefore,themaximumrateofreturneachyearthatmaybepayableisequaltothespecifiedmaximumShareReturn.SufficientlyweakpriceperformancebyoneormoreSharescanoffsetpositivepriceperformanceresultinginthepossibilityofonlytheminimumannualguaranteedinterestratebeingpaid.
Risks relating to the Shares.ItisimpossibletopredictwhethertheclosingpriceofaSharewillincreaseordecreaseoverthetermoftheScotiabankEquityPoweredGICs.ClosingpricesoftheShareswillbe influencedbybothcomplexand interrelatedpolitical,economic,andfinancialeventsthatcaninfluencethepriceofaparticularShare.AprospectiveinvestorshouldundertakeanindependentinvestigationoftheSharescomprisingtheBaskets,astheinvestordeemsnecessary,toallowtheinvestortoreachaninformeddecisiontoinvestintheGICs.AninvestmentintheScotiabankEquityPoweredGICsis,apartfromtheprincipalprotectionfeatureoftheScotiabankEquityPoweredGIC,subjecttothesamerisksasadirectequityinvestmentintheShares.
No ownership of Shares in the Basket.SincetheBasketofSharesisnotionalonly,investorswillhavenoownershiporotherinterestintheSharescomprisingtheBasketotherthantherighttobepaidareturn,ifany,ontheirScotiabankEquityPoweredGICbasedonthepriceperformanceoftheSharesintheBasket.AninvestorwillnothavetherightsofasecurityholderofanyofthecompaniesintheBasketincluding,withoutlimitation,anyvotingrightsorrightstoreceivedividendsorotherdistributions.TherewillbenocontroloverthemanagementofanycompanywhoseSharesarereflectedintheBasket.TheperformanceoftheScotiabankEquityPoweredGICswilldependinpartontheabilityandsuccessofthemanagementofthecompaniescomprisingtheBasket,inadditiontogeneraleconomicandmarketfactors.PastperformanceofacompanyoritsSharesisnotindicativeoffuturereturns.AllinformationinthedocumentationbeingdeliveredtoyouinrelationtotheScotiabankEquityPoweredGICsrelatingtotheSharesandthecompaniesisderivedfrompubliclyavailablesourcesandispresentedinthisfactsheetinsummaryform.Assuch,Scotiabankassumesnoresponsibilityfortheaccuracyorcompletenessofsuchinformationorforanymaterialcontainedonthewebsitesofthevariouscompaniesreferredtoherein.
Conflict of interests.Scotiabankwillcalculatetheamount,ifany,ofreturntobepaidtoinvestorsofGICsonthematuritydateandonanniversarydatesfortheScotiabankEquityPowered-CanadianIncomeGIC.AllofScotiabank’sdeterminationsandcalculationswillbeconclusiveforallpurposesandbindinguponinvestors,withoutanyliabilitytoScotiabank,andinvestorsoranythirdpartywillnotbeentitledtoanycompensationfromScotiabankforanylosssufferedasaresultofanyofScotiabank’sdeterminationsandcalculations.SinceScotiabank’sdeterminations and calculationsmay affect the return, Scotiabankmay have a conflict ofinterest if it needs tomake any suchdeterminations and calculations because Scotiabankmayhaveaneconomicinterestadversetothoseofinvestors.Forexample,withrespecttoScotiabank’s hedging arrangements, certain determinations that Scotiabank must makeincluding,withoutlimitation,whetheranEquityDisruptionEventoranExtraordinaryEventhasoccurredandinmakingotherdeterminationswithrespecttoScotiabankEquityPoweredGIC.Scotiabankmayfromtimetotime,inthecourseofitsnormalbusinessoperations,holdSharesorinterestslinkedtoanyShareorcompany.Scotiabankanditsaffiliatesmayalsodealinthesecuritiesofeachcompany(includingShares)andmay,wherepermitted,acceptdepositsfrom,makeloansorotherwiseextendcreditto,andgenerallyengageinanykindofcommercialorinvestmentbankingorotherbusinesswithanycompanyoranyotherpersonorentityhavingobligationsrelatingtosuchcompanyandmayengageinproprietarytradingintheSharesorinoptions,futuresorderivativesrelatingtotheShares(includingsuchtradingasScotiabankmaydeemappropriate,initsdiscretion,tohedgeanyriskinconnectionwiththeScotiabankEquityPoweredGIC)andmayactwithrespecttheretointhesamemannerasitwouldiftheScotiabankEquityPoweredGICdidnotexist,regardlessofwhetheranysuchactionmighthave
anadverseeffectonthevalueofanySharesand,thus,thereturn,ifany,payableinrespectoftheScotiabankEquityPoweredGIC.ThereisnoassurancethatanysuchactionsbyScotiabankanditsaffiliateswillnothaveanadverseeffectonthevalueofanySharesand,thus,thereturn,ifany,payableinrespectoftheScotiabankEquityPoweredGIC.Scotiabankanditsaffiliatesmay,whetherbyvirtueoftherelationshipsdescribedaboveorotherwise,fromtimetotimebeinpossessionofinformationinrelationtoanycompanythatmaynotbepubliclyavailableorknowntoinvestors.ScotiabankEquityPoweredGICsdonotcreateanobligationonthepartofScotiabankoritsaffiliatestodisclosetoinvestorssuchrelationshiporsuchinformation(whetherornotconfidential).
Credit risk. Because the obligation to make payments to investors is an obligation ofScotiabank, the likelihood that such investorswill receive thepaymentsowing to them inconnectionwiththeGICswillbedependentuponthefinancialhealthandcreditworthinessofScotiabank.
Changes in legislation.Therecanbenoassurancethatincometax,securitiesandotherlawswillnotbeamendedorchangedinamannerwhichadverselyaffectsinvestors.
Economic and regulatory issues.Changesineconomicconditions,including,forexample,interestrates,inflationrates,commodityprices,industryconditions,competition,technologicaldevelopments,politicalanddiplomaticeventsandtrends,war,taxlawsandinnumerableotherfactors,canaffectsubstantiallyandadverselytheclosingpricesoftheShares.NoneoftheseconditionsarewithinthecontrolofScotiabank.TheGICsarenotsubjecttoCanadiansecuritieslaws.Accordingly,investorsdonothavethesamerightsofactionthataprospectuswouldprovide.NosecuritiescommissionorsimilarauthorityhasinanywaypasseduponthemeritsofinvestingintheScotiabankEquityPoweredGICsoranyoftheinformationthatisbeingdeliveredtoyou.
Tax considerations.
ThefollowingsummarizestheprincipalCanadianfederalincometaxconsiderationsgenerallyapplicabletoanindividual(otherthanatrust)who,forthepurposesoftheIncomeTaxAct(Canada) (the“Act”),dealsatarm’s lengthwith the IssuerandholdsaScotiabankEquityPoweredGICtomaturityoutside(an“investor”).ThissummaryisbasedontheActandtheregulationsmade thereunder (“Regulations”) as in force on the date of these Terms andConditions,allspecificproposalstoamendtheActorRegulationspubliclyannouncedbytheMinisterofFinancepriortothedateoftheseTermsandConditions(“TaxProposals”)andthecurrentadministrativepracticesandpoliciesoftheCanadaRevenueAgency.NoassurancecanbegiventhattheTaxProposalswillbeenactedasproposedoratall.Thissummarydoesnot,exceptfortheTaxProposals,takeintoaccountoranticipateanychangesinlaworintheadministrativepracticesandpoliciesoftheCanadaRevenueAgency.Provincial,territorialandforeignincometaxconsiderationsarenotaddressedinthissummary.
Thissummary isofageneralnatureonlyand isnot intendedtobe legalor taxadvice toany particular investor. No representation with respect to Canadian federal income taxconsiderations toanyparticular investor ismadeherein.Youshouldconsult yourown taxadvisorwithrespecttoyourparticularcircumstances.
Thissummaryisgenerallyapplicabletoaninvestorwho,atallrelevanttimes,forthepurposesoftheAct,isorisdeemedtobe,residentinCanadaandholdsaScotiabankEquityPoweredGICascapitalproperty.
When returns are to be included in income.Ingeneral,theinterestaccrualrulesundertheActandRegulationsshouldnotapplyinrespectoftheholdingofaScotiabankEquityPoweredGIC,except inrespectoftheminimumannualguaranteedinterestratefortheScotiabankEquityPoweredGIC-CanadianGuaranteedReturn.Accordingly,withtheexceptionoftheminimumannualguaranteedinterestratefortheScotiabankEquityPoweredGIC-CanadianGuaranteedReturn,youshouldnotberequiredtoincludeinincomeforanyyearthatendspriortothedeterminationoftheaverageofShareReturnsontheValuationDateimmediatelypriortotheMaturityDate(or,inrespectoftheScotiabankEquityPoweredGIC-CanadianIncome,theValuationDateinrespectoftheapplicableAnniversaryDate)anyimputedyieldinrespectofyourScotiabankEquityPoweredGIC.Ingeneral,anypositivereturn,onaScotiabankEquityPoweredGIC,(includinganyannualpositivereturninrespectofaScotiabankEquityPoweredGIC-CanadianIncome)willbeincludedinyourincomeintheyearitisreceivedorbecomesreceivable(dependingonthemethodregularlyfollowedbyyouincomputingincome)excepttotheextentthatitwasincludedinyourincomeforapreviousyear.
Interestthataccruedonyourpurchaseamountbetweenthepurchasedateandtheissuedate(interiminterest)willbeincludedinyourincomeintheyearinwhichyourScotiabankEquityPoweredGICisissued.
Information regarding registered plans.AScotiabankEquityPoweredGIC,ifissuedonthedateoftheseTermsandConditions,wouldbeaqualifiedinvestmentfortrustsgovernedbyregisteredretirementsavingsplans,registeredretirementincomefunds,registerededucationsavingsplans,deferredprofitsharingplans(otherthanadeferredprofitsharingplantowhichpaymentsaremadebytheIssuer,ScotiabankoracorporationorpartnershipwithwhichtheIssuerorScotiabankdoesnotdealatarm’slengthwithinthemeaningoftheAct)andtax-freesavingsaccounts(collectively,“RegisteredPlans”)andmaybeheldinsuchplanssubjecttothetermsoftheparticularRegisteredPlan.
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Scotiabank Equity Powered GICs
Definition of Terms:
Basket of Shares (or Basket) meansthenotionalportfolioofequitysecuritiesofcompaniesusedasareferenceforthepurposesofmeasuringtheShareReturn.
Closing Pricemeans,inrespectofaShare,onanyday,theofficialclosingpriceforthatShareasannouncedbytherelevantstockexchangeinthecurrencyquotedbysuchstockexchange,providedthat,ifonoraftertheIssueDatesuchstockexchangemateriallychangesthetimeofdayatwhichsuchofficialclosingpriceisdetermined,ScotiabankmaythereafterdeemtheClosingPricetobethepriceofthatShareasofthetimeofdayusedbysuchstockexchangetodeterminetheofficialclosingpricepriortosuchchange.
Final PricemeanstheClosingPriceoftheShareontheValuationDate.
Initial Pricemeans theClosingPriceof theShareon the secondBusinessExchangeDayfollowingtheIssueDateasdeterminedbyScotiabank.
SharesmeanstheequitysecuritiesofcompaniescomprisingtheBasket.
Share Return means,inrespectofaShare,thenumber(whichistobeexpressed asapercentage,roundedtotwodecimalplaces)calculatedasfollows:
Final Price − Initial Price
Initial Price
Valuation Date means the second Business Exchange Day prior to theMaturity Date, subject to amendments due to Equity Disruption Events orExtraordinaryEvents.
Calculation for “Canadian Guaranteed Return”, “Canadian Growth”, “American Growth” and “Global Growth”:
Methodology of calculation:
At theMaturityDate, youwill receive the return, if any, in an amountequaltothePrincipalmultipliedbytheaverageoftheShareReturnsoftheSharesintheBasket,expressedasapercentage.
•At the Maturity Date, Scotiabank will calculate the average oftheShareReturnsof theShares intheBasket.Prior totheaveragebeingcalculated,theShareReturnofeachSharewillbesubjecttoamaximum(the“MaximumSharePriceReturn”)andtoaminimumasstatedinyourCustomerAgreement.TheaverageoftheShareReturnswillbeusedasyourreturnandyouwillreceivepaymentequaltothatreturnmultipliedbyyourPrincipal.Youshouldknowthat.
• ShareReturnscanbepositiveornegative
• ThereisalimitonthenegativecontributionofaShareReturnontheaverageoftheShareReturns
•No return will be paid unless average of the Share Returns isgreaterthanzero
•FortheScotiabank Equity Powered GIC - Canadian GuaranteedReturn: aminimumannualguaranteedratewillbecompoundedthroughout the term and paid at maturity, regardless of theperformanceoftheShares.
Hypothetical Examples for “Canadian Guaranteed Return”, “Canadian Growth”, “American Growth” and “Global Growth”:
The following examples demonstrate how the return will be calculated and are included for illustration purposes only. The price performance of the Shares used to illustrate the calculation of the return are hypothetical and are not estimates or forecasts of future price performance or the amount actually payable. The actual price performance of the Shares will be different from this example and the differences may be material.
Both examples assume a 5 year term and $1,000 initial investment, a maximum Share Price Return of 35% and a minimum Share Price return of -10%. In the case of the Canadian Guaranteed Return only, a Minimum Annual Guaranteed Interest Rate of 0.75% is assumed.
Example 1:OverallPositivePerformance
Company Initial Price
Final Price
Actual Return
Share Return used for average calculation
Company 1 23.8 26.28 10.40% 10.40%Company 2 58.28 82.85 42.15% 35.00%Company 3 39.47 56.41 42.93% 35.00%Company 4 22.23 40.51 82.21% 35.00%Company 5 22.59 21.30 -5.70% -5.70%Company 6 32.71 28.75 -12.10% -10.00%Company 7 41.9 49.65 18.50% 18.50%Company 8 17.8 27.11 52.30% 35.00%Company 9 42.87 47.16 10.00% 10.00%
Company 10 38.72 53.98 39.40% 35.00%Average 19.82%
Intheabovehypotheticalexample,theaverageoftheShareReturnsispositiveandwouldbe19.82%. Inthiscase, fora$1,000 investment,youwill receive your $1,000 Principal atMaturity aswell as a ShareReturn of $198.20 (equal to the Principal amount multiplied by theaverageShareReturnsof19.82%)foratotalof$1,198.20.
If you purchased theScotiabank Equity Powered GIC - Canadian Guaranteed Return, you will also receive an additional $38.07guaranteedreturnforatotalof$1,236.27atMaturitybecauseoftheMinimum Annual Guaranteed Interest Rate. This Minimum AnnualGuaranteedInterestRateiscalculatedasfollows:
• Minimum Annual Guaranteed Interest Rate (which, in thishypothetical example, is 0.75%) compounded over 5 years is3.807%.ThiscompoundedMinimumAnnualGuaranteedInterestRateismultipliedby$1,000principalproduces$38.07atMaturity.
Example 2:OverallNegativePerformance
Company Initial Price
Final Price
Actual Return
Share Return used for average calculation
Company 1 23.80 15.76 -33.78% -10.00%Company 2 58.28 29.33 -49.67% -10.00%Company 3 39.47 37.46 -5.09% -5.09%Company 4 22.23 23.25 4.59% 4.59%Company 5 22.59 34.66 53.43% 35.00%Company 6 32.71 28.75 -12.11% -10.00%Company 7 41.90 29.33 -30.00% -10.00%Company 8 17.80 15.06 -15.39% -10.00%Company 9 42.87 40.21 -6.20% -6.20%
Company 10 38.72 41.82 8.01% 8.01%Average -1.37%
Intheabovehypotheticalexample,theaverageoftheShareReturnsisnegativeandwouldbe-1.37%.Inthiscase,fora$1,000investment,youwillonlyreceiveonlyyour$1,000PrincipalatMaturityasthenegativeaverageoftheShareReturnsproducesnoadditionalreturn.
If you purchased the Scotiabank Equity Powered GIC - Canadian Guaranteed Return,youwillreceive$38.07guaranteedreturnforatotalof$1,038.07atMaturitybecauseoftheMinimumAnnualGuaranteedInterestRate.ThisMinimumAnnualGuaranteedInterestRateiscalculatedasfollows:
•Minimum Annual Guaranteed Interest Rate (which, in this hypotheticalexample,is0.75%)compoundedover5yearsis3.807%.ThiscompoundedMinimumAnnualGuaranteedInterestRateismultipliedby$1,000principalproduces$38.07atmaturity.
Thus,thoughyouwillnotreceiveanyreturnfromthebasketofShares,youwillstillreceiveareturnasaresultoftheeMinimumGuaranteedInterestRateforatotalof$1,038.07atMaturity.
HOWISTHERETURNCALCULATED?
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Scotiabank Equity Powered GICs
Calculation methodology for “Canadian Income”
First,let’sdefineShareReturnsfortheCanadianIncome:
Anniversary Datemeansthesamecalendardate(dayandmonth)astheIssueDateinyearssubsequenttoyourpurchase.ThelastAnniversaryDateisyourMaturityDate.
Anniversary PricemeanstheClosingPriceofaShareontheValuationDate.
Valuation Date means the second Business Exchange Day prior to theAnniversaryDate,subjecttoamendmentsduetoEquityDisruptionEventsorExtraordinaryEvents.
Share Returnmeans,inrespectofaShare,thenumber(whichistobeexpressedasapercentage,roundedtotwodecimalplaces)calculatedasfollows:
Anniversary Price − Initial Price
Initial Price
Youwillreceiveanannualpaymentwhichwillbecalculatedusingthemaximumoftwovalues:
1.TheMinimumAnnualGuaranteedInterestRate
2.TheannualaverageoftheShareReturnsoftheBasketofShares,
calculatedasfollows:
i.ScotiabankwillcalculatetheShareReturnofeachShareintheBasketofShares
ii. AnypositiveShareReturnwillbedeemedtobethe“MaximumAnnualSharePriceReturn”asstatedinyourCustomerAgreement
iii.AnynegativeShareReturnwillbetheactualnegativeShareReturnlimited to the floor on negative share returns as stated in yourCustomerAgreement
iv.AnyzeroShareReturnwillbedeemedtobezero
v.Once each of the above Share Returns have been determined,ScotiabankwillcalculatetheannualaverageofthoseShareReturns
•Themaximumof1and2abovewillbemultipliedbyyourPrincipalandpaidouttoyou–thiswillbeanannualprocessforeveryyearofyourterm.
Youshouldknowthat
•Yourannualreturnwillalwaysbebetween“MinimumAnnualGuaranteedInterestPayment”andtheannualaverageoftheShareReturnsoftheBasket.
•Foryoutoreceiveanannualpaymentthatexceedsthe“MinimumAnnualGuaranteedInterestPayment”,theannualaverageoftheShareReturnsmustexceed the“MinimumAnnualGuaranteed InterestPayment”– i.e. thesevaluesarenotaddedtogether.
Hypothetical Examples for “Canadian Income”:
In the following examples, the Minimum Annual Guaranteed Interest Rate is 0.75%, the maximum Share Return is 4% and the limit on negative Share Return is -5%, investment of $1,000 for a 3 year term.
The following examples demonstrate how the return will be calculated and are included for illustration purposes only. The price performance of the Shares used to illustrate the calculation of the return are hypothetical and are not estimates or forecasts of future price performance or the return payable. The actual price performance of the Shares will be different from this example and the differences may be material.
Example 1:Thefollowingisanexampleofpositiveperformance:
Share PricesCompany Initial Price Year 1 Year 2 Year 3
Company 1 23.80 24.90 23.84 24.48Company 2 58.28 61.33 59.14 59.62Company 3 39.47 42.08 40.4 44.1Company 4 22.23 21.47 23.31 23.71Company 5 22.59 23.21 24.46 24.37Company 6 19.50 18.90 19.20 19.55Company 7 37.21 39.40 39.18 40.27Company 8 80.34 83.75 92.34 94.73Company 9 72.45 71.24 72.90 73.40
Company 10 43.25 45.67 47.53 46.45
Forexample,Company1’sInitialPricewas$23.80.OntheValuationDateinYear1,
itspricewas$24.9andthatisa4.62%increaseinpricefromitsInitialPrice.AsthisShareReturnispositive,theShareReturnofCompany1willbedeemedtheMaximumAnnualSharePriceReturnwhichis4.00%,thusCompany1’sShareReturnwillbe4.00%inYear1.AlltheotherCompanies’ShareReturnsarecalculatedinthesamemannerandthenaveragedtocalculatetheaverageShareReturnsof1.983%.InYear2,averageShareReturnsis3.46%.InYear3,averageShareReturnsisequaltotheMaximumAnnualSharePriceReturnof4.00%.
Usingtheaboveshareprices,theShareReturnsarecalculatedasfollows:
Year 1 Year 2 Year 3
Company Actual Return
Share Return used in average
calculation
Actual Return
Share Return used in average
calculation
Actual Return
Share Return used in average
calculationCompany 1 4.62% 4.00% 0.17% 4.00% 2.86% 4.00%Company 2 5.23% 4.00% 1.48% 4.00% 2.30% 4.00%Company 3 6.61% 4.00% 2.36% 4.00% 11.73% 4.00%Company 4 -3.42% -3.42% 4.86% 4.00% 6.66% 4.00%Company 5 2.74% 4.00% 8.28% 4.00% 7.88% 4.00%Company 6 -3.08% -3.08% -1.54% -1.54% 0.26% 4.00%Company 7 5.89% 4.00% 5.29% 4.00% 8.22% 4.00%Company 8 4.24% 4.00% 14.94% 4.00% 17.91% 4.00%Company 9 -1.67% -1.67% 0.62% 4.00% 1.31% 4.00%Company 10 5.60% 4.00% 9.90% 4.00% 7.40% 4.00%
Average Share Return 1.98% 3.46% 4.00%
Payment $19.83 $34.46 $40.00
ThereturnscalculatedaremultipliedbythePrincipalof$1,000togenerateapaymentof$19.83inYear1,apaymentof$34.46inyear2andapaymentof$40inyear3.
Inaddition,theinvestorwillreceivebacktheirPrincipalof$1,000.
Example 2:Thefollowingisanexampleofnegativeperformance:
Share PricesCompany Initial Price Year 1 Year 2 Year 3
Company 1 23.80 22.70 23.05 23.25Company 2 58.28 54.35 47.79 49.87Company 3 39.47 36.15 37.46 37.57Company 4 22.23 21.21 19.45 17.8Company 5 22.59 24.78 21.56 22.79Company 6 19.50 18.46 18.24 19.67Company 7 37.21 38.93 39.04 38.97Company 8 80.34 76.35 73.47 71.79Company 9 72.45 71.38 69.46 67.46Company 10 43.25 44.17 43.20 30.19
Usingtheaboveshareprices,theannualShareReturnsandannualpaymentsarecalculatedasfollows:
Year 1 Year 2 Year 3
Company Name Actual Return
Share Return used in average
calculation
Actual Return
Share Return used in average
calculation
Actual Return
Share Return used in average
calculationCompany 1 -4.62% -4.62% -3.15% -3.15% -2.31% -2.31%Company 2 -6.74% -5.00% -18.00% -5.00% -14.43% -5.00%Company 3 -8.41% -5.00% -5.09% -5.00% -4.81% -4.81%Company 4 -4.59% -4.59% -12.51% -5.00% -19.93% -5.00%Company 5 9.69% 4.00% -4.56% -4.56% 0.89% 4.00%Company 6 -5.33% -5.00% -6.46% -5.00% 0.87% 4.00%Company 7 4.62% 4.00% 4.92% 4.00% 4.73% 4.00%Company 8 -4.97% -4.97% -8.55% -5.00% -10.64% -5.00%Company 9 -1.48% -1.48% -4.13% -4.13% -6.89% -5.00%Company 10 2.13% 4.00% -0.12% -0.12% -30.20% -5.00%
Average Share Return -1.87% -3.30% -2.01%
Payment $7.50 $7.50 $7.50
Forexample,Company 1’sInitialPricewas$23.80.OntheValuationDateinYear1,itspricewas$22.70,a-4.62%decreasefromInitialPrice.Asthereturnisnegativeandhigherthan-5%,theShareReturnwillequal-4.62%.TheShareReturnsof theotherShares intheBasketarecalculated inthesamemannerandthenaveragedtocalculatetheaverageShareReturnsof-1.87%.
AstheaverageShareReturnsisbelowtheMinimumAnnualGuaranteedInterestRate, the paymentwill equal theMinimumAnnualGuaranteed Interest Ratemultiplied by the principal of $1,000 or $7.50. In Years 2 and 3 again theaverage of the Share Returns of the Basket is negative (-3.30%and -2.01%respectively) so again the payment will be equal to the Minimum AnnualGuaranteedInterestRatemultipliedbyyourprincipalor$7.50.AtMaturity,theinvestorwillalsoreceivebacktheirPrincipalof$1,000.
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Scotiabank Equity Powered GICs
AllinformationinthisFactSheetrelatingtotheSharesandthecompaniesissuingsuchSharesisderivedfrompubliclyavailablesourcesandispresentedinthisFactSheetinsummaryform.Assuch,Scotiabankdoesnotassumeanyresponsibilityfortheaccuracyorcompletenessofsuchinformationorforanymaterialcontainedonthewebsitesofthevariouscompaniesreferredtoherein,whichwebsiteinformationisnotincorporatedbyreferenceinto,ordeemedtobeapartof,thisFactSheet.
For Canadian Income, Canadian Guaranteed Return and Canadian Growth GICs:
THESHARESANDTHECOMPANIES
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