Dividend history.

Effective January 1, 2006, the Federal Government implemented a dividend tax regime for dividends paid by Canadian corporations to their shareholders. The result of these changes is that the top federal personal income tax rate on eligible dividends received by individuals (investors) decreased by 5% in 2006. Certain provinces have mirrored the federal regulations concerning such dividends.

Eligible dividends generally include dividends paid after 2005 by Canadian public corporations out of income subject to the general corporate income tax rate.

Since 2006, all common and preferred share dividends paid by Laurentian Bank of Canada are designated as eligible dividends for the purposes of the Income Tax Act (Canada) and any similar provincial and territorial legislation. All dividends paid thereafter will be eligible unless indicated otherwise.

For more information or for help on this subject, contact your tax advisor.