Impact of Case Law

This report has been prepared on the assumption that all claims on the Plan after the valuation date will be in respect of benefits payable to members of the Plan determined in accordance with the Plan terms and that all Plan assets are available to provide for these benefits. It is possible that court and regulatory decisions and changes in legislation could give rise to additional entitlements to benefits under the Plan and cause the results in this report to change. By way of example, we bring your attention to the following decisions:

• The Ontario Court of Appeal’s 2003 decision in Aegon Canada Inc. and Transamerica Life Canada versus ING Canada Inc. restricted the use of original plan surplus where two or more pension plans were merged.

• The Supreme Court of Canada’s 2004 decision in Monsanto Canada Inc. versus Superintendent of Financial Services upheld the requirement, with retroactive effect, to distribute surplus on partial plan wind-up under the Pension Benefits Act (Ontario).

We are not in a position to assess the impact that such decisions or changes could have on the assumption that all plan assets on the valuation date are available to provide for benefits determined in accordance with the Plan terms. If such a claim arises subsequent to the date of this report, the consequences will be dealt with in a subsequent report. We are making no representation as to likelihood of such a claim.