Terms Supplement to the NASDAQ-100 Index Disclosure Statement IMPORTANT INFORMATION ABOUT THE INDEX INTEREST CALCULATION

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1 EICD #7 Terms Supplement to the NASDAQ-100 Index Disclosure Statement This Terms Supplement should be read in conjunction with the Disclosure Statement and the Trade Confirmation, each relating to the NASDAQ-100 Index Equity-Indexed Certificates of Deposit, and supplements the description of the general terms and provisions of the CDs set forth in such Disclosure Statement. Terms not defined in this Supplement are defined in the Disclosure Statement. The CDs may not be appropriate for every investor. Please refer to the section headed Important Investment Considerations in the Disclosure Statement for a discussion of the risks involved with an investment in the CDs. The Issuer of the CDs, RBC Centura Bank, is an affiliate of RBCDR. Both are owned, directly or indirectly, by Royal Bank of Canada. IMPORTANT INFORMATION ABOUT THE INDEX INTEREST CALCULATION Index Interest will be determined based upon the sum of periodic percentage changes (positive or negative) in the level of the Index on the Valuation Dates (set forth below), subject to a cap of 7% on any increase in the level of the Index between any consecutive Valuation Dates and no limit on decreases in the level of the Index. Assuming the Index does not increase by more than 7% between any consecutive Valuation Dates during the term of the CDs, at maturity you will receive interest equivalent to the amount of interest you would receive if Index Interest was calculated solely based on the beginning and ending levels of the Index over the term of the CDs, unless the sum of periodic percentage changes of the Index for the term of the CD are less than the Minimum Interest Amount, in which case you would receive interest equal to the Minimum Interest Amount. If the level of the Index increases by more than 7% between any consecutive Valuation Dates during the term of the CDs, the interest you receive at maturity may be significantly different than the interest you would receive if Index Interest was calculated solely based on the percentage change in the level of the Index from the beginning of the term of the CDs to maturity. You should examine the effects of the 7% cap on the calculation of the Index Interest payable on the CDs before deciding to invest in the CDs. Please review the section headed Examples below. The maximum interest rate on the CDs will be %, which represents an annual percentage yield ( APY ) of approximately 18.47% (see Interest Calculation below). At maturity, you will receive 100% of your deposit amount plus the greater of the Index Interest or the Minimum Interest Amount of 5.5% of the Deposit Amount over the term of the CD, which represents an APY of approximately 0.98%. See Examples below for an illustration of the interest calculations on the CDs.

2 IMPORTANT ADDITIONAL DISCLOSURE THE CDs ARE NOT SUITABLE FOR ALL INVESTORS. It is difficult to predict the effect of the quarterly cap on the Index Interest of the CDs. The quarterly cap can produce a substantially lesser amount of Index Interest than using the beginning and ending values of the Index to calculate the Index Interest. During the term of the CDs, you may obtain from the Wall Street Journal the closing values of the Index on the Valuation Dates. TERMS Instrument: Issuer: Term: NASDAQ-100 Index Equity-Indexed Certificates Of Deposit RBC CENTURA BANK Five and one-half (5½) Years Pricing Date: December 18, 2003 Issuance Date: December 23, 2003 Maturity Date: June 23, 2009 Interest Payment: Interest: Index Interest: At maturity The interest you will receive on the CDs will be either: (1) Index Interest, if any, determined, earned, credited and paid on the Maturity Date based upon the calculation of the Index Interest, or (2) the Minimum Interest Amount, whichever is greater. Index Interest will be based upon the sum of Periodic Percentage Changes over the term of the CD. A Periodic Percentage Change is the change in the level of the Index, measured over a three-month period beginning on the respective Start Date and ending on the respective Valuation Date during the term of the CD (each, a Valuation Period ) and can be positive or negative, depending on the performance of the Index. The maximum positive Periodic Percentage Change for any particular Valuation Period is 7%. There is no limit on the size of negative Periodic Percentage Changes and, in the event of a negative Periodic Percentage Change for a Valuation Period, the amount of interest accrued on the CDs will be decreased in direct proportion to the negative Periodic Percentage Change. However, Index Interest will not be less than zero. The Start Date for any Valuation Period is the Business Day next following the preceding Valuation Date, except that the initial Start Date is December 19, At maturity, all of the Periodic Percentage Changes are added to determine the Index Interest. See the section headed Examples below. 2

3 Minimum Interest Amount: Interest Calculation: 5.5% of the amount of the Deposit Amount for the term of the CD, 0.98% APY The amount of Index Interest or the Minimum Interest Amount you would receive on the Maturity Date is described in the following formulas: Index Interest = [Deposit Amount] x [Sum of Periodic Percentage Changes] Minimum Interest Amount = [Deposit Amount] x 5.5% See the section headed Periodic Percentage Change below. On the Maturity Date, you will receive the Index Interest or the Minimum Interest Amount, whichever is greater. The total amount you would receive on the Maturity Date is described in the following formula: Total Dollars Returned at Maturity = [Deposit Amount] + [Index Interest] or [Deposit Amount] + [Minimum Interest Amount], whichever is greater. See the section headed Examples below. Periodic Percentage Change: The Periodic Percentage Change for a Valuation Period will equal the lesser of (a) 7% and (b) the following amount (positive or negative), expressed as a percentage, rounded to 3 decimal places and determined for the Valuation Period as follows: (Ending Level - Starting Level) Starting Level where Starting Level will equal, in the case of the initial Valuation Period, the Initial Index Level, and in the case of each subsequent Valuation Period, the level of the Index on the last day of the immediately preceding Valuation Period, in each case subject to postponement in the event of a Market Disruption Event; and Ending Level for a Valuation Period will be the level of the Index on the last day of the Valuation Period, in each case subject to acceleration or postponement in the event of a Market Disruption Event. In no circumstance may the Periodic Percentage Change for a Valuation Period be greater than 7%. The Periodic Percentage Change for a Valuation Period may be negative. The sum of Periodic Percentage Changes will equal an amount, expressed as a percentage rounded to 3 decimal places, determined based on adding the Periodic Percentage Changes, positive or negative, as the case may be, calculated for each Valuation Period during the term of the CD. Specifically, the sum of Periodic Percentage Changes will equal: PPC FIRST + PPC SECOND + + PPC Nth + + PPC LAST 3

4 where PPC FIRST, PPC SECOND, PPC Nth and PPC LAST are the Periodic Percentage Changes for the first, second, any additional intervening, and last Valuation Periods, respectively. See the section headed Examples below. Initial Index Level: The closing level of the Index on December 18, Valuation Dates: Early Withdrawal: March 18, June 18, September 18 and December 18 of 2004, 2005, 2006, 2007 and 2008, and March 18 and June 18 of 2009 or, if any of the above dates is not a Business Day, the next following Business Day. In the event of the death of the owner of a CD, early withdrawal of the CD will be permitted, up to $100,000 of the Deposit Amount. The balance of the Deposit Amount above $100,000 will remain subject to the terms of the CD and may not be withdrawn prior to the Maturity Date. Denomination: $1,000. Minimum Deposit: $5,000. In the event of early withdrawal, RBCDR will endeavor to obtain funds for you as soon as possible. RBCDR will not advance funds in connection with early withdrawals and can give no assurances that payment pursuant to early withdrawals will be made by a specified date. RBCDR may require documentation evidencing the death of the owner of the CD. As discussed under the section headed Secondary Market below and in the subsection headed Secondary Market under Important Investment Considerations in the Disclosure Statement, a secondary market may be available in which you can sell your CD prior to maturity. FDIC Insurance: Federal Tax (OID): Comparable Yield: Assumed Payment: Calculation Agent: Up to $100,000 per depositor, aggregated with other deposits held by the depositor at the Issuer in the same legal capacity. See the section headed Deposit Insurance in the Disclosure Statement for important information about FDIC coverage. Most U.S. holders of the CDs, other than those purchasing the CDs through a tax advantaged retirement account (such as an IRA), are subject to tax rules requiring them to include in their taxable income during each tax year in which the CDs are outstanding imputed interest income on the CDs even though no interest, if any, will be paid on the CDs until maturity. Most U.S. holders of the CDs will accrue OID over the term of the CDs based on the CD s comparable yield. The Issuer is required to provide depositors holding CDs the comparable yield and, solely for tax purposes, is also required to provide to U.S. holders an assumed payment schedule based on the comparable yield that estimates the amount of every contingent and noncontingent payment (an Assumed Payment Schedule ). See the section headed Federal Income Tax Consequences in the Disclosure Statement. 3.89%, compounded (semi-annually) $1, per $1,000 CD, due at maturity Issuer 4

5 Secondary Market: RBCDR or one of its affiliates, though not obligated to do so, may maintain a secondary market in the CDs after the Settlement Date. EXAMPLES: The examples set out below are included for illustration purposes only. The levels of the Index used to illustrate the calculation of Index Interest are not estimates or forecasts of the levels of the Index on which the Starting and Ending Levels, the calculation of the Periodic Percentage Change, and in turn Index Interest, will depend. All examples assume that a customer has purchased a CD with a Deposit Amount of $5,000 and that no Market Disruption Event has occurred. The initial Starting Level for the Index is assumed to be In each example, the Valuation Dates are the 15th day of December, March, June and September of each year, commencing March 15, As demonstrated by some of the examples below, the possibility exists that you may not earn any Index Interest on your CDs greater than the Minimum Interest Amount even if the level of the Index increases during one or more Valuation Periods, or if the Index level as of the Maturity Date is more than 7% greater than the Initial Index Level. Example 1: The final Ending Level of the Index is greater than the initial Starting Level of the Index, and the level of the Index fluctuated (up and down) from Valuation Date to Valuation Date Index Actual Capped Index Actual Capped Index Actual Capped Index Actual Capped Level Return Return Level Return Return Level Return Return Level Return Return March 1, % 5.00% 1, % 7.00% 1, % -3.00% June 1, % 4.25% 1, % 7.00% 1, % -6.25% September 1, % -4.50% 1, % 7.00% 1, % 7.00% December 1,370 1, % -3.75% 1, % 3.50% 1, % 4.00% Index Actual Capped Index Actual Capped Index Actual Capped Level Return Return Level Return Return Level Return Return March 2, % 7.00% 2, % 3.75% 2, % 3.75% June 1, % -3.00% 2, % 7.00% 2, % 3.75% September 2, % 7.00% 2, % 7.00% December 2, % -4.75% 2, % -4.75% Index Interest (%) = 5.00% % % % % % % % % % % % % % % % % % % % % % = 54.00% Index Interest ($) = $5,000 x 54.00% = $2,700 Payment Amount = $5,000 + $2,700 = $7,700 5

6 Example 2: The final Ending Level of the Index is substantially greater than the initial Starting Level of the Index, and the number of quarters during which there was positive Index performance is greater than the number of quarters during which there was negative Index performance, however, because of the capped return, the Index Interest on the CD was equal only to the Minimum Interest Amount Index Actual Capped Index Actual Capped Index Actual Capped Index Actual Capped Level Return Return Level Return Return Level Return Return Level Return Return March 1, % 7.00% 1, % 7.00% 1, % 7.00% June 1, % % 1, % % 1, % % September 1, % 7.00% 1, % 7.00% 1, % 7.00% December 1,370 1, % % 1, % % 1, % % Index Actual Capped Index Actual Capped Index Actual Capped Level Return Return Level Return Return Level Return Return March 1, % 7.00% 2, % 7.00% 2, % 7.00% June 1, % % 1, % % 3, % 7.00% September 2, % 7.00% 2, % 7.00% December 1, % % 2, % 7.00% Index Interest (%) = 7.00% % % % % % % % % % % % % % % % % % % % = -1%, but the Index Interest (%) cannot be less than 5.5%, which is the Minimum Interest Amount Index Interest ($) = $5,000 x 5.5% = $275 Payment Amount = $5,000 + $275 = $5,275 All numbers provided in these examples are for illustrative purposes only and do not reflect predictions of Index levels. The Nasdaq 100, Nasdaq 100 Index, and Nasdaq are trade or service marks of The Nasdaq Stock Market, Inc. (which with its affiliates are the Corporations) and are licensed for use by the Royal Bank of Canada. The EICDs have not been passed on by the Corporations as to their legality or suitability. The EICDs are not issued, endorsed, sold, or promoted by the Corporations. THE CORPORATIONS MAKE NO WARRANTIES AND BEAR NO LIABILITY WITH RESPECT TO THE ELCDs. 6