CAD SPARQS

Description of Return of Capital Payments

Holders will receive partial repayments of the Principal Amount (the "Partial Principal Repayments") equal to the amount of any dividends or other distributions (other than Extraordinary Distributions if so specified in the pricing supplement under which you purchased your Debt Securities (the “Pricing Supplement”)) paid by the issuers on the equity securities notionally included in the Portfolio during the immediately preceding calendar quarter or, for RBC TEAM II RoC Yield Securities (“TEAM II”) and mid-month RBC Stock PARticipating Quantitative model Securities (SPARQS)TM RoC (“mid-month SPARQS”), the period of time from the 16th day following the start of the immediately preceding calendar quarter to the 15th day following the completion of the immediately preceding calendar quarter (subject to adjustment if such days are not business days) (the “Partial Principal Repayment Period”), to a maximum of $99.00 per Debt Security over the term of the Debt Securities. The Partial Principal Repayments will be calculated and payable quarterly no later than the third or fifth business day (as specified in the Pricing Supplement) following the end of each calendar quarter during the term of the Debt Securities, other than the calendar quarter in which the Final Valuation Date or Maturity Date falls or, for TEAM II and mid-month SPARQS, no later than the third business day following the end of each Partial Principal Repayment Period, other than the final Partial Principal Repayment Period in which the Final Valuation Date falls. In addition, any non-cash dividends or other distributions (other than Extraordinary Distributions if so specified in the Pricing Supplement) paid by the issuers on the equity securities notionally included in the Portfolio will be converted into their notional cash value, as determined by the Calculation Agent acting in good faith, and paid out as Partial Principal Repayments following the end of each calendar quarter or, for TEAM II and mid-month SPARQS, following the end of each Partial Principal Repayment Period, in which such non-cash dividends or other distributions are paid. Please refer to the Pricing Supplement for additional details. Capitalized terms used but not defined herein have the meanings specified in the Pricing Supplement.

Distribution Payments