ADDENDUM FOR LIFE INCOME FUND (LIF) BMO Nesbitt Burns INC. RETIREMENT INCOME FUND

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1 ADDENDUM FOR LIFE INCOME FUND (LIF) Pursuant to The Pension Benefits Act () BMO Nesbitt Burns INC. RETIREMENT INCOME FUND Plan Carrier BMO Trust Company 54 th Floor, 1 First Canadian Place Toronto, Ontario M5X IH3 Acting through its Agent, BMO Nesbitt Burns Inc. CLIENT NAME: BRANCH CODE: ACCOUNT #: Upon receipt of locked-in pension assets pursuant to the Pension Benefits Act (), and in accordance with the instructions of the Planholder to transfer the assets to a life income fund, the Plan Carrier and Planholder agree that the provisions of this Addendum are appended to and form additional terms of the declaration of trust or trust agreement for the above-named retirement income fund. 1. Pension Legislation. For the purposes of this Addendum, the word "Act" means The Pension Benefits Act () and the word "Regulations" means The Pension Benefits Act Regulations made under the Act. 2. Definitions. All terms in this Addendum which are used in the Act or Regulations, have the same meaning as under the Act or Regulations. For greater certainty, the words approved, contract, fund, financial institution, locked-in retirement account (LIRA), life income fund (LIF), locked-in retirement income fund (LRIF), life annuity contract, prescribed RRIF and transfer have the same meanings as are respectively given to these words in sections 1, 18.1, 18.2 and of the Regulations, and the words pension benefit credit, pension plan and superintendent have the same meaning as given to these words in section 1(1) of the Act. In this Addendum, Plan means the above-named retirement income fund, governed by the declaration of trust or trust agreement and the additional terms of this Addendum and includes the fund as that term is used in the Regulations. Planholder means the planholder, accountholder or annuitant under the declaration of trust or trust agreement and application form for the Plan and includes the owner of the Plan as that term is used in the Regulations. Locked-In Assets means all the assets in the Plan at any time, including any interest or other earnings realized or accrued to that time. 3. Spouse and Common-Law Partner. The word "Spouse" where used in relation to another spouse means the person who is married to that other spouse, and Spouses means two persons who are married to each other. The Common-Law Partner of a member or former member means: a person who, with the member of former member, registered a common-law relationship under section 13.1 of The Vital Statistics Act, or a person who, not being married to the member or former member, cohabited with him or her in a conjugal relationship i. for a period of at least three years, if either of them is married; or ii. for a period of at least one year, if neither of them is married. Common-Law Relationship means the relationship between two persons who are Common-Law Partners of each other. Notwithstanding anything to the contrary contained in the Plan, this Addendum or any endorsements forming a part thereof, for the purposes of any provision of the Income Tax Act (Canada) respecting registered retirement income funds, "Spouse" and Common-Law Partner do not include any person who is not recognized as a spouse or common-law partner under the Income Tax Act (Canada). 4. Transfers Into the Plan. The only assets that may be transferred into the Plan with this Addendum are assets originating, directly or indirectly, from: (d) a registered pension benefit credit arising from a deferred life annuity under section 21 of the Act; another LIF; a LIRA or LRIF; or a life annuity contract; that conforms with the Income Tax Act (Canada), the Act and the Regulations. Any transfer into the Plan must be on a tax deferred basis under the Income Tax Act (Canada). 5. Deferred Life Annuity. The Plan will be administered as a deferred life annuity under the Act, until all the Locked-In Assets are transferred out as permitted by paragraph 7 of this Addendum or paid out in accordance with the Act and the Regulations.

2 6. Not to be Based on Differences in Sex. In accordance with section 21(18) of the Act, the Plan Carrier shall not provide for or permit: different pensions, annuities or benefits; or different options as to pensions, annuities or benefits; based on differences in sex. 7. Transfers Out of the Plan. The Planholder may transfer all or part of the Locked-In Assets: to another financial institution s approved LIRA, LIF or LRIF; in accordance with paragraph 60(l) of the Income Tax Act (Canada), to purchase a life annuity contract, or in accordance with paragraph 20 of this Addendum, to a prescribed RRIF; that conforms with the Income Tax Act (Canada), the Act and the Regulations. In accordance with paragraphs 146.3(2)(e) and (e.2) of the Income Tax Act (Canada), the Plan Carrier will retain sufficient Locked-In Assets to satisfy the requirement to pay the minimum amount to the Planholder for the year. Any transfer out of the Plan must be made on a tax deferred basis under the Income Tax Act (Canada). Subject to paragraph 29 of this Addendum regarding terms of investments, the date of the transfer shall not be more than 30 days after the date of the request for the transfer by the Planholder. 8. Joint Pension. The balance of the Locked-In Assets cannot be transferred by the Planholder to a life annuity contract that does not provide joint pension benefits described in section 23 of the Act unless : the Planholder does not have a Spouse or Common-Law Partner at the time of the transfer; or the Planholder and his or her Spouse or Common-Law Partner have waived their right to a joint pension under subsection 23(3) of the Act. 9. Superintendent s Approved List. The Plan Carrier in making a transfer shall ensure that the name of any transferee financial institution is on the superintendent's list of approved financial institutions. 10. Notice of Locked-In Status on Transfer. The Plan Carrier in making a transfer must ensure that the transfer is to an approved form of contract, the transferee financial institution is advised in writing that the transferred Locked-In Assets must be administered as a deferred life annuity under the Act, and the transferee financial institution accepts and is bound by all of the terms and conditions of section 18.1 of the Regulations by which the Plan Carrier is bound. 11. Fiscal Year of Plan. The fiscal year of the Plan ends on December 31 of each year. 12. Requirement to Pay Annual Income. The Planholder will be paid an income from the Plan, beginning no later than during the second fiscal year of this Plan, the amount of which may vary annually. 13. Amount and Frequency of Payments. The Planholder must notify the Plan Carrier by instructions of the amount and frequency of the payments for each fiscal year. If the Planholder does not give instructions as to the amount of the payments or instructs an amount less than the minimum amount for the fiscal year, the minimum amount prescribed for a registered retirement income fund will be paid. If the Planholder does not give instructions as to the frequency of the payments, the amount will be paid in one payment at the end of the fiscal year. The instructions must be given within a reasonable time prior to the beginning of the fiscal year to which they relate, and the instructions expire at the end of the fiscal year to which they relate. However, where the Plan Carrier guarantees the return for a period of two or more fiscal years, the Planholder must give instructions at the beginning of the period setting the amount of income to be paid from the Plan during each of those years, in accordance with paragraph 19 of this Addendum. With the consent of the Plan Carrier, the Planholder may change the amount and frequency of the payments or request additional payments by instructing the Plan Carrier. The Planholder must give the Plan Carrier instructions as to which of the Locked-In Assets to sell where required in order to ensure there is sufficient cash in the Plan to make the payments. If the Plan Carrier does not receive the instructions within a reasonable time before a payment is required, the Plan Carrier may sell any of the Locked-In Assets that the Plan Carrier, in its discretion, considers appropriate to provide the required cash; and the Plan Carrier will not be liable for any loss that may result from this action, including but not limited to investment losses or diminution of the Locked-In Assets, or for any related investment or administration expenses. 14. Annual Minimum Amount. The amount of income paid during the second and each subsequent fiscal year of the Plan must not be less than the minimum amount that would be required to be paid to the Planholder under Section of the Income Tax Act (Canada). There is no minimum amount that must be paid in the first fiscal year of the Plan.

3 15. Maximum Amount of Income. Subject to paragraph 14 of this Addendum, the maximum amount will not exceed M calculated in accordance with the following formula: M = F x B In this formula, M = F = B = the maximum amount; the factor (from the table in the Schedule) that corresponds to the reference rate for the year and the Planholder s age at the end of the immediately preceding year; and the balance of the Locked-In Assets on January 1 of the year plus, in the case of a transfer to the Plan in the year other than a transfer directly or indirectly from another LIF or an LRIF the amount of the transfer on the date of transfer. 16. Reference Rate. The reference rate for a year referred to in paragraph 15 of this Addendum means the greater of 6% and the percentage determined for the year by adding 0.5% to the average yield as at November 30 of the immediately preceding year, as published by the Bank of Canada in the Bank of Canada Review and expressed as a percentage, for Government of Canada long-term bonds identified as CANSIM series no. B14013; and converting the rate determined under clause, based on semi-annual compounding of interest, to an effective annual rate of interest, and rounding it to the nearest multiple of 0.5%. 17. Additional Transfer Other Than from Another LIF or LRIF. If in any fiscal year of the Plan, an additional transfer is made to the Locked-In Assets other than an additional transfer of an amount transferred directly or indirectly from another LIF or LRIF, an additional withdrawal will be allowed in that year in respect of the transfer and shall be calculated in accordance with paragraph 15 of this Addendum. 18. Maximum Amount Where Transfer from Another LIF or LRIF. If the Locked-In Assets are transferred to the Plan directly or indirectly from another LIF or LRIF of the Planholder, then, during the year in which the transfer is made, the maximum amount specified in paragraph 15 of this Addendum in relation to the transferred Locked-In Assets will be equal to zero, except to the extent that the Income Tax Act (Canada) requires the payment of a higher amount. 19. Where Return Guaranteed For Period of Two or More Years. Where the Plan Carrier guarantees the return for a period of two or more fiscal years, the amount to be paid in the second or any later year within the period cannot exceed the maximum amount determined in accordance with the following formula: L = M x J / K In this formula, L = M = J = K = (i) (ii) the maximum amount for the year; the maximum amount determined under paragraph 15 of this Addendum, for the initial year of the period; the balance of the Locked-In Assets on January 1 of the year; and the reference balance determined on January 1 of the year, calculated as the reference balance at the beginning of the previous year, reduced by M, plus the amount determined under clause (i) multiplied by the reference rate for the year, if it is one of the first 16 fiscal years of the fund, or by 6% in any other case. In applying this formula to the second year of the period, the reference balance referred to in clause (i) is the balance of the Locked-In Assets at the beginning of the initial year of the period. 20. One-Time Transfer of Up To 50% of the Locked-In Assets to a Prescribed RRIF. Subject to an order under The Garnishment Act to enforce a maintenance order within the meaning of that Act, to an order under section 59.3 of The Family Maintenance Act to preserve assets, and to sections 21.4(3) to (5) of the Act and the Regulations, a Planholder who: (d) is at least 55 years of age; is the annuitant under one or more LIFs or LRIFs; and by filing the prescribed information with the superintendent in accordance with the Regulations, satisfies the superintendent that he or she has not previously made a prescribed transfer under section 21.4 of the Act; may transfer up to 50% of the balance of the Locked-In Assets in the Plan to a prescribed RRIF. 21. Withdrawal Where Disability. Despite subsection 18.1(15) of the Regulations, if the life expectancy of the Planholder is likely to be shortened considerably due to a mental or physical disability, as evidenced by the written opinion of a qualified medical practitioner, the Planholder may elect, for the purposes of subsection 21(6) of the Act, to

4 withdraw the Locked-In Assets as a payment or series of payments. Provided however that if the Planholder is a member or former member, the Planholder and the Planholder s Spouse or Common-Law Partner must jointly agree, in writing in a form approved by the commission and filed with the Plan Carrier, to waive the joint pension referred in paragraph 8 of this Addendum. 22. Commutation Where Small Amount. Despite subsection 21(1), (2) and (3) of the Act, sections 18 and 18.1 to 18.2 of the Regulations, and subject to section 23 of the Act, the Plan Carrier may allow the Locked-In Assets of a Planholder who is a member or former member to be commuted where the Planholder makes an application to the Plan Carrier to have the Locked-In Assets commuted; and provides evidence satisfactory to the Plan Carrier that the Locked-In Assets, when combined with the total amount of pension benefit credits in all other retirement benefit plans of the Planholder under sections 18 to 18.2 is an amount that, when compounded annually at a rate of 6% per year for each year by which the age of the Planholder, as of December 31 of the year in which the application is filed, precedes his or her 65 th birthday, are less than 40% of the YMPE in the year in which the application is filed. 23. Breakup of Marriage or Common-Law Relationship. Upon breakup of marriage or Common-Law Relationship, the Locked-In Assets of a Planholder who is or was a member shall be divided between the Spouses or Common-Law Partners under subsection 31(2) of the Act. 24. Death of Planholder. On the death of the Planholder who is or was a member, the Locked-In Assets shall be paid: to the Planholder s surviving Spouse or Common-Law Partner, unless he or she has received or is entitled to receive a transfer under paragraph 23 of this Addendum; and in any other case, to the designated beneficiary or the estate of the Planholder. 25. No Assignment etc. Subject to subsection 31(2) of the Act and sections 14.1 to 14.3 of The Garnishment Act (), the Locked-In Assets may not be assigned, charged, anticipated or given as security, and any transaction purporting to do so is void; and are exempt from execution, seizure or attachment. 26. Valuation of the Locked-In Assets on Transfer etc. For the purpose of a transfer, the purchase of a life annuity contract, a transfer or payment on the death of the Planholder, a transfer under subsection 31(4) of the Act following a division of pension benefit credits under subsection 31(2) of the Act or a payment pursuant to an order made under The Garnishment Act, the value of the Locked-In Assets shall be the aggregate market value of the assets held in the Plan, valued in accordance with the Agent s regular practice as of market closing immediately prior to such transfer or payment. 27. Manner of Investment. The Locked-In Assets shall be invested and re-invested on the direction of the Planholder as provided in the declaration of trust, and will be invested in qualified investments for registered retirement income funds under the Income Tax Act (Canada). The Locked-In Assets will not be invested, directly or indirectly, in any mortgage in respect of which the mortgagor is the Planholder, the Spouse, Common-Law Partner, parent brother, sister or child of the Planholder, or the Spouse or Common-Law Partner of a parent, brother, sister or child of the Planholder. 28. Information in Statements. The Plan Carrier will supply the information specified in subsections 18.2(11) to (14) of the Regulations, in statements provided to the Planholder. 29. Terms of Investments; Transfers and Payments. All transfers and payments from the Plan are subject to the terms of the investments and will be subject to the withholding of any applicable tax and deduction of all reasonable expenses, costs, fees and charges. Transfers and payments may be made in cash or in kind, in accordance with the instructions of the Planholder and subject to the terms of the investments and the requirements of the Plan Carrier or the Agent. 30. Provision of Pension on Improper Pay Out. If all or any part of the Locked-In Assets are paid out contrary to the Act or section 18.1 of the Regulations, the Plan Carrier shall provide or ensure the provision of a pension benefit credit equal to the balance of the Locked-In Assets that were paid out. 31. Provision of Pension on Improper Transfer. If the Plan Carrier in making a transfer does not comply with paragraphs 9 or 10 of this Addendum and the transferee financial institution fails to administer the Locked-In Assets transferred as a deferred life annuity under the Act or in a manner required by the plan to which it was transferred, the Plan Carrier making the transfer will provide or ensure the provision of a pension benefit credit equal in value to the amount transferred. 32. Indemnity. Should the Plan Carrier and/or its Agent be required to make payments or to provide an annuity or a pension as a result of any Locked-In Assets being paid out or transferred otherwise than in accordance with the provisions of this Addendum, the Regulations or as may be required by applicable law, the Planholder will indemnify and hold harmless the Plan Carrier and/or the Agent to the extent that Locked-In Assets were previously received by

5 or accrued to the benefit of any of them or the Planholder s estate. This indemnity will be binding upon the Planholder s legal representatives, successors, heirs and assigns. 33. Amendment. The Plan Carrier may not amend the Plan with this Addendum if, as amended, the Plan with this Addendum would no longer conform to a form approved by the superintendent. The Plan with this Addendum may not be amended without prior notice to the Planholder unless the amendment is required for the Plan with this Addendum to comply with the requirements of the Act and the Regulations and with section of the Income Tax Act (Canada). The Pension Benefits Regulations require that spousal consent be obtained when a Planholder enters into a LIF. The information below is the prescribed spousal consent form provided by the government of. For administrative use: If a LIF account is opened for a transfer from a pension fund, a life annuity or a locked-in plan at another financial institution, make sure: a Locking-In Agreement has been received and signed, and the jurisdiction indicated in the Locking-In Agreement is. If a LIF account is being opened for an internal transfer, (i.e. from a LIRA at the same financial institution) make sure the jurisdiction of the LIF is the same as the LIRA (i.e. ). SPOUSAL CONSENT FOR THE TRANSFER TO THE LIF It is advised the Planholder s spouse get legal advice from a lawyer regarding the rights and legal consequences of signing the consent below.

6 Department of Labour and Immigration Pension Commission SPOUSE'S/COMMON-LAW PARTNER S DECLARATION TO GIVE UP MINIMUM 66²/3% JOINT AND SURVIVOR PENSION FROM RPPs, LIRAs, LIFs AND LRIFs I,, am the "spouse"/"common-law partner" (as described below) of. (name of retiring member/owner) The retiring member/owner earned benefits under a pension plan regulated by the Pension Benefits Act of ("the Act"). The Act defines "spouse" and common-law partner as follows: spouse where used in relation to another spouse means the person who is married to that other spouse, and spouses mean two persons who are married to each other; "common-law partner" of a member or former member means a person who, with the member or former member, registered a common-law relationship under section 13.1 of The Vital Statistics Act, or a person who, not being married to the member or former member, cohabited with him or her in a conjugal relationship (i) for a period of at least three years, if either of them is married, or (ii) for a period of at least one year, if neither of them is married; common-law relationship means the relationship between two persons who are common-law partners of each other. I understand that the Act requires that every pension plan shall provide that the pension payable to a member who is married or in a common-law relationship at the time the pension payments begin shall be a joint pension payable during the lives of the member and the spouse or partner of the member which joint pension may decrease by not more than 1/3 on the death of either the member or the spouse or partner. However, I understand that if I choose to sign this waiver form and it is filed with the plan administrator/financial institution, I give up my rights to the minimum 66²/3% joint and survivor pension. I further understand that signing this waiver means that the retiring member/owner may choose a pension that gives me a lower survivor benefit than the 66²/3% joint and survivor pension. I certify that: a) I have read this form and understand it, b) I have read and reviewed the retiring member's retirement statement or a statement from the financial institution showing the balance in the owner's account and know the amount of the benefit I am giving up,

7 c) I am signing this form of my own free will, d) The retiring member/owner is not present while I am signing this form, and e) I realize that i. this form only gives a general description of the legal rights I have under the Act and the regulations under the Act, and ii. if I wish to understand exactly what my legal rights are, I must read the Act and the regulations under the Act and seek legal advice. To give up my rights mentioned above, I sign this waiver form at (city/town) (province) this day of, (signature of retiring member/owner) (signature of spouse/common-law partner) I,, of (print name of witness) (print address of witness) do witness the signature of the spouse/common-law partner who signed this form before me outside of the presence of the member/owner. COMMENTS AND INSTRUCTIONS (signature of witness) This form must be completed where the member of a pension plan or the owner of a LIRA (Locked-In Retirement Account) wishes to, elect a form of pension or purchase a life annuity, that provides the spouse with less than the 66²/3% joint and survivor pension required by the Act, transfer funds to a LIF or an LRIF from a pension plan or a LIRA, or elect a form of pension, or purchase a life annuity, that co-ordinates payments with a pension payable under the Canada Pension Plan. This form must be, completed in its entirety, signed by the spouse/common-law partner, retiring member and witnessed not more than 15 days after receipt of the retirement statement required in section 23(8) of the Regulations. signed outside of the immediate presence of the retiring member/owner, and filed with the plan administrator or financial institution. For further information please contact the plan administrator or financial institution. Prior to completing this form, each party should consider obtaining independent legal advice concerning their individual rights and the effect of this waiver. MG-1701 (A) (rev. Aug 04)

8 Income Payment Type: Please check one: Minimum Amount as defined in this Addendum. Maximum Amount as defined in this Addendum. Annual Amount $ Gross Net The total annual payments in a year cannot be less than the minimum amount and cannot exceed the maximum amount allowed to be paid as defined in this addendum. For administrative use: The Planholder must give instructions for the amount and frequency of the payments for each fiscal year. The instructions should be given within a reasonable time period prior to the fiscal year to which they relate. The Planholder may change the amount, frequency or request additional payments, provided it satisfies our operations and administrative policies. If the Planholder does not provide an amount or indicates an amount less than the minimum, the minimum amount will be paid. If the Planholder does not provide the frequency of the payments, it will default to one annual payment at the end of the fiscal year. The Planholder can elect to have the minimum amount determined based on the age of the Planholder [s spouse or commonlaw partner (as defined under the Income Tax Act), if younger.this election is made on the RRIF application form. Type of Transfer The transfer to the LIF is made from: Pension Fund LIRA LRIF Life Annuity another LIF For administrative use: LIF payments can begin as early as the date the pension plan would have been authorized to make payments. The minimum amount for the initial year of the LIF is zero. The maximum amount for the initial year the LIF is transferred in from a LIF or LRIF is zero. The maximum amount for the initial year the LIF is transferred from a pension fund, LIRA or life annuity is prorated based on the number of partial or full months remaining in the calendar year. Plan Carrier, by its Agent Planholder: Print Full Name Signature of Authorized Person Signature of Planholder Date Date