Company Details

Directors and Officers

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

Brian D. McChesney
President, Chief Executive Officer and Director
(Corporate Director)

Stephen D. Pearce
Chief Financial Officer, Secretary and Director
(Director, Scotia Capital Inc.)


Profile

Energy Split Corp. II was created to generate fixed cumulative preferential tax efficient distributions for the holders of the ROC Preferred Shares and to enable the holders of the Capital Yield Shares to receive leveraged tax efficient distributions from the Royalty Trust portfolio.

General Information

Distribution Policy

Holders of ROC Preferred Shares were entitled to receive quarterly fixed cumulative preferential tax efficient distributions equal to $0.1718 per ROC Preferred Share. The Company's Capital Yield Share distribution policy was to pay a quarterly distribution on the Capital Yield Shares equal to the distributions received on the royalty trust portfolio minus the distributions payable on the ROC Preferred Shares and all administrative and operating expenses provided the net asset value per Unit at the time of declaration, after giving effect to the distribution, was greater than the issue price of the ROC Preferred Shares. For historical dividend amounts, please see distribution information.

Redemption

All Capital Yield Shares and ROC Preferred Shares were redeemed by the Company on December 16, 2010. The ROC Preferred Shares were redeemed at a price per share of $13.74. The Capital Yield Shares were redeemed at $9.86 per share.


Taxation

All return of capital distributions paid to a holder of ROC Preferred Shares or Capital Yield Shares will not be included in computing the income of the holder but will reduce the holder's adjusted cost base of the shares. To the extent that the adjusted cost base of a share would otherwise be less than zero, the negative amount will be deemed to be a capital gain realized by the holder from a disposition of the shares and the holder's adjusted cost base will be increased by the amount of such deemed capital gain.

Dividends other than the capital gains dividends received by individuals on the ROC Preferred or Capital Yield Shares will be subject to the normal gross-up and dividend tax credit rules applicable to dividends received on shares of a taxable Canadian corporation.

The amount of any capital gains dividend received by a holder of ROC Preferred Shares or Capital Yield Shares will be considered to be a capital gain of the holder in the taxation year in which the capital gains dividend is received.

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.