Distribution Policy

For historical distribution amounts, please see distribution information.

Redemption

All Capital Shares and Preferred Shares were redeemed by the Company on June 1, 2010 in accordance with the redemption provisions of the shares. The Preferred Shares were redeemed at a price per share of $9.75. The Capital Shares were redeemed at $11.0074 per share. Holders of 96,280 Capital Shares requested and received delivery of their pro rata share of BCE Inc. common shares in payment for their Capital Shares.

Taxation

Dividends received by individual Preferred Shareholders will be subject to the normal gross-up and dividend tax credit rules applicable to dividends received on shares of a taxable Canadian corporation.

Return of capital payments to a holder of Capital Shares will not be subject to tax but will reduce the adjusted cost base of the Capital Shares to the holder.

The Company qualifies as a “mutual fund corporation” and a “financial intermediary corporation” as defined in the Income Tax Act (Canada). As a result thereof and after deduction of expenses in computing its income, the Company does not anticipate that it will be subject to any material non-refundable income tax liability.

Directors and Officers

The following are the names, office(s) held and principal occupations of the directors and officers of the Company:

Name	Office(s) Held	Principal Occupation
Brian D. McChesney	President, Chief Executive Officer and Director	Managing Director, Scotia Capital Inc.
Michael K. Warman	Chief Financial Officer, Secretary and Director	Corporate Director
Robert C. Williams	Director	Chief Executive Officer, Headwater Investments Ltd.
E. Stuart Griffith	Director	Chief Financial Officer, ConceptWave Software, Inc.
Colin D. Watson	Director	Corporate Director