Document:

Exhibit
4.4
Execution Version

AMENDED
AND RESTATED AGENCY AGREEMENT

 

U.S.$15,000,000,000 

GLOBAL REGISTERED COVERED BOND PROGRAM

of

THE BANK OF NOVA SCOTIA,

as Issuer

- and -

unconditionally and irrevocably guaranteed
as to payments of interest and principal by

SCOTIABANK COVERED BOND GUARANTOR
LIMITED PARTNERSHIP,

as Guarantor

- and -

THE BANK OF NOVA SCOTIA, LONDON BRANCH,

as Principal Paying Agent, a Registrar and a Transfer Agent

-and-

THE BANK OF NOVA SCOTIA, NEW YORK
AGENCY

as a Paying Agent, a Registrar, a Transfer Agent and the Exchange Agent

- and -

COMPUTERSHARE TRUST COMPANY OF CANADA,

as Bond Trustee

 

DATED AS OF SEPTEMBER 24, 2013

    	 

    	 

    

CONTENTS

	Article 1 Definitions and interpretation	2
	   1.1	Definitions	2
	   1.2	Interpretation	2
	   1.3	Schedules	3

	Article 2 APPOINTMENT OF AGENTS	3
	Article 3 Issue of Bearer Global Covered Bonds and Registered Global Covered Bonds	7
	Article 4 Exchange of Global Covered Bonds	9
	Article 5 Issue of Definitive Covered Bonds	10
	Article 6 Terms of issue	11
	Article 7 Exchange and transfer of Covered Bonds	13
	Article 8 Payments	14
	Article 9 Determinations and notifications in respect of Covered Bonds and interest determination	18
	Article 10 Notice of any withholding or deduction	19
	Article 11 Other duties of the Registrar	19
	Article 12 Duties of the Transfer Agents	22
	Article 13 Regulations for transfers and exchanges of Registered Covered Bonds	23
	Article 14 Duties of the Agents in connection with early redemption	23
	Article 15 EXTENDABLE OBLIGATIONS	23
	Article 16 Receipt and publication of notices	24
	Article 17 Cancellation of Covered Bonds, Coupons and Talons	24
	Article 18 Issue of replacement Covered Bonds, Coupons and Talons	26

 

    	 

    	- ii -

    

	Article 19 Copies of documents to be made available	27
	Article 20 Meetings of Covered Bondholders	27
	Article 21 Commissions and expenses	28
	Article 22 Indemnity	28
	Article 23 Responsibility of the Agents	29
	Article 24 Conditions of appointment	29
	Article 25 Communications between the parties	31
	Article 26 Changes in Agents	31

	Article 27 Change of Bond Trustee or Bond Trustee	34
	   27.1	Change of Bond Trustee or Bond Trustee	34
	   27.2	Limitation of Liability	34

	Article 28 Merger and consolidation	34
	Article 29 Notification of changes to Agents	35
	Article 30 Change of specified office	35
	Article 31 Communications	35
	Article 32 Taxes and stamp duties	36

	
        Article 33
ASSIGNMENT 
	36
	33.1	Assignment	36
	33.2	Assignment under Security Agreement	36

	ARTICLE 34 AMENDMENTS 	37
	ARTICLE 35 FURTHER ASSURANCE	37
	ARTICLE 36 LIMITATION OF LIABILITY	38
	ARTICLE 37 NON-PETITION	38

    	 

    	- iii -

    

 

	Article 38 Governing law	38
	38.1	Governing Law	38
	38.2	Submission to Jurisdiction	38

 

	Article 39 Counterparts	38
	SCHEDULE 1	1
	SCHEDULE 2	1
	SCHEDULE 3	1
	SCHEDULE 4	1
	SCHEDULE 5	3

 

    	 

    	 

    

THIS AMENDED
AND RESTATED AGENCY AGREEMENT is dated as of September 24, 2013

BETWEEN:

		(1)	THE BANK OF NOVA SCOTIA, a bank named in Schedule I to the Bank Act, whose executive office
is at Scotia Plaza, 44 King Street West, Toronto, Ontario, M5H 1H1, in its capacity as the Issuer;

		(2)	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP, a limited partnership formed under
the laws of the Province of Ontario, whose registered office is at 100 King Street West, Suite 6100, 1 First Canadian Place, Toronto,
Ontario, M5X 1B8, by its managing general partner, Scotiabank
Covered Bond GP Inc. (in its capacity as the Guarantor);

(3)              
THE BANK OF NOVA SCOTIA, LONDON BRANCH, acting through its office at 201 Bishopsgate, London EC2M 3NS, in its capacity
as the Principal Paying Agent;

		(4)	THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, acting through its office at One
Liberty Plaza, 23rd Floor, New York, New York, 10006, in its capacity as a Paying Agent;

		(5)	THE BANK OF NOVA SCOTIA, LONDON BRANCH, acting through its office at 201 Bishopsgate, London
EC2M 3NS and THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, acting through its office at One
Liberty Plaza, 23rd Floor, New York, New York, 10006, each in their capacity as a Registrar;

		(6)	THE BANK OF NOVA SCOTIA, LONDON BRANCH, acting through its office at 201 Bishopsgate, London
EC2M 3NS and THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, acting through its office at One
Liberty Plaza, 23rd Floor, New York, New York, 10006, each in their capacity as a Transfer Agent;

		(7)	THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, acting through its office at One
Liberty Plaza, 23rd Floor, New York, New York, 10006, in its capacity as Exchange Agent;

		(8)	COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company incorporated under the laws of Canada,
whose registered office is at 100 University Avenue, 11th Floor, Toronto, Ontario M5J 2Y1, in its capacity as Bond Trustee.

WHEREAS:

		A.	The parties hereto (other than The Bank of Nova Scotia, New York Agency (the “Successor”)
and The Bank of Nova Scotia Trust Company of New York (the “Predecessor”)) are parties to an Agency Agreement
dated as of July 19, 2013 (the “Original Agreement”).

		B.	The Successor has agreed to assume all of the rights and obligations of the Predecessor under the
Original Agreement, and the parties hereto wish to make certain other

    	 

    	- 2 -

    

amendments
to the Original Agreement pursuant to and in accordance with the terms and conditions of this Amended and Restated Agency Agreement.

NOW THEREFORE,
IT IS HEREBY AGREED that in consideration of the mutual covenants and agreements herein set forth, the parties agree as follows:

Article 1

Definitions and interpretation

		1.1	Definitions

The Master Definitions
and Construction Agreement made between the parties to the Transaction Documents on July 19,
2013 (as the same may be amended, restated and/or supplemented from time to time, with the consent of the parties
thereto) (the “Master Definitions and Construction Agreement”) is expressly and specifically incorporated into
this Agreement and, accordingly, the expressions defined in the Master Definitions and Construction Agreement (as so amended, restated
and/or supplemented) will, except where the context otherwise requires and save where otherwise defined herein, have the same meanings
in this Agreement, including the recitals hereto and this Agreement will be construed in accordance with the interpretation provisions
set out in Section 2 (Interpretation and Construction) of the Master Definitions and Construction Agreement.

		1.2	Interpretation

For the purposes
of this Agreement, this Agreement has the same meaning as Agency Agreement in the Master Definitions and Construction Agreement.

In this Agreement,
any reference to payments of principal or interest includes any additional amounts payable in relation thereto under the Terms
and Conditions.

		(a)	In this Agreement, any reference to Euroclear and/or Clearstream, Luxembourg and/or DTC will, wherever
the context so permits (other than in relation to a NGCB), be deemed to include a reference to any other clearing system agreed
as is approved by the Issuer, the Principal Paying Agent, each Paying Agent, the Registrar, the Exchange Agent and the Bond Trustee
or as may otherwise be specified in the applicable Final Terms Document.

		(b)	In this Agreement, any reference to the “records” of an ICSD shall be to the
records that each of the ICSDs holds for its customer that reflect the amount of such customer’s interest in the Covered
Bonds (but excluding any interest in any Covered Bonds of one ICSD shown in the records of another ICSD).

		(c)	All references herein to Covered Bonds having a “listing” or being “listed”
on a Stock Exchange shall (i) in relation to the London Stock Exchange, be construed to mean that such Covered Bonds have been
admitted to the Official List by the UK Listing Authority and admitted to trading on the Market and/or the PSM or (ii) in
relation to any Stock Exchange in the European Economic Area, be construed to mean that such Covered Bonds have been admitted to
trading on a market which is a regulated market for purposes of the Markets in Financial Instruments Directive (Directive 2004/39/EC)
or (iii) to any other Stock Exchange, be construed to mean that the Covered Bonds have been listed on that

    	 

    	- 3 -

    

Stock
Exchange and/or to trading on the relevant market, as the case may be, and all references in the trust presents to “listing”
and “listed” will include references to “quotation” and “quoted” respectively.

		1.3	Schedules

The Schedules attached
to this Agreement will, for all purposes of this Agreement, form an integral part of it.

Article 2

APPOINTMENT OF AGENTS

2.1             
The Principal Paying Agent is appointed, and the Principal Paying Agent agrees to act, as agent of the Issuer, the Guarantor
(and, in the circumstances set out in Sections 2.6 and 2.7 below, the Bond Trustee), upon the terms and subject to the conditions
set out below, for the following purposes and all matters incidental thereto:

		(a)	completing, authenticating and delivering Temporary Global Covered Bonds and Permanent Global Covered
Bonds and (if required) authenticating and delivering Definitive Covered Bonds;

		(b)	giving effectuation instructions in respect of each Global Covered Bond which is a Eurosystem-eligible
NGCB;

		(c)	exchanging Temporary Global Covered Bonds for Permanent Global Covered Bonds or Definitive Covered
Bonds, as the case may be, in accordance with the terms of such Temporary Global Covered Bonds and, in respect of any such exchange,
(i) making all notations on Temporary Global Covered Bonds which are CGCBs as required by their terms and (ii) instructing Euroclear
and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Temporary Global Covered Bonds which
are NGCBs;

		(d)	exchanging Permanent Global Covered Bonds for Definitive Covered Bonds in accordance with the terms
of such Permanent Global Covered Bonds and, in respect of any such exchange, (i) making all notations on Permanent Global Covered
Bonds which are CGCBs as required by their terms and (ii) instructing Euroclear and Clearstream, Luxembourg to make appropriate
entries in their records in respect of all Permanent Global Covered Bonds which are NGCBs;

		(e)	paying sums due on Global Covered Bonds, Definitive Covered Bonds and Coupons and instructing Euroclear
and Clearstream, Luxembourg to make appropriate entries in their records in respect of all Global Covered Bonds which are NGCBs;

		(f)	exchanging Talons for Coupons in accordance with the Terms and Conditions;

		(g)	unless otherwise specified in the applicable Final Terms Document (the form of which is set out
in Schedule 3, Part A, Part B or Part C, as applicable), determining the interest and/or other amounts payable in respect of the
Covered Bonds in accordance with the Terms and Conditions;

    	 

    	- 4 -

    

		(h)	arranging on behalf of and at the expense of the Issuer and/or the Guarantor for notices to be
communicated to the Covered Bondholders in accordance with the Terms and Conditions;

		(i)	ensuring that, as directed by the Issuer, all necessary action is taken to comply with any reporting
requirements of any competent authority in respect of any relevant currency as may be in force from time to time with respect to
the Covered Bonds to be issued under the Program;

		(j)	submitting to the relevant authority or authorities such number of copies of each of the Final
Terms Document which relates to Covered Bonds which are to be listed as the relevant authority or authorities may require;

		(k)	acting as Calculation Agent in respect of Covered Bonds where named as such in the applicable Final
Terms Document; and

		(l)	performing all other obligations and duties imposed upon it by the Terms and Conditions and this
Agreement.

2.2             
Each Paying Agent is appointed, and each Paying Agent agrees to act, as paying agent of the Issuer and the Guarantor (and,
in the circumstances set out in Sections 2.6 and 2.7 below, the Bond Trustee) upon the terms and subject to the conditions set
out below, for the purposes of paying sums due on any Covered Bonds and Coupons and performing all other obligations and duties
imposed upon it by the Terms and Conditions and this Agreement.

2.3             
The Exchange Agent is hereby appointed, and the Exchange Agent hereby agrees to act as exchange agent of the Issuer and
the Guarantor (and, in the circumstances set out in Sections 2.6 and 2.7 below, the Bond Trustee) upon and subject to the terms
and conditions set out below for the purposes of effecting the conversion of non-U.S. dollar payments into U.S. dollars and performing
all other obligations and duties imposed upon it by the Terms and Conditions and this Agreement.

2.4             
Each Transfer Agent is hereby appointed, and each Transfer Agent hereby agrees to act, as transfer agent of the Issuer and
the Guarantor (and, in the circumstances set out in Sections 2.6 and 2.7 below, the Bond Trustee) upon the terms and subject to
the conditions set out below for the purposes of effecting transfers of Registered Definitive Covered Bonds and performing all
the other obligations and duties imposed upon it by the Terms and Conditions and this Agreement.

2.5             
The Registrar is hereby appointed, and the Registrar hereby agrees to act, as registrar and transfer agent of the Issuer
and the Guarantor (and, in the circumstances set out in Sections 2.6 and 2.7 below, the Bond Trustee) upon the terms and subject
to the conditions set out below, for the following purposes:

		(a)	completing, authenticating and delivering U.S. Registered Global Covered Bonds, Regulation S Global
Covered Bonds and Rule 144A Global Covered Bonds and authenticating and delivering Registered Definitive Covered Bonds; and

    	 

    	- 5 -

    

		(b)	performing all other obligations and duties imposed upon it by the Terms and Conditions and this
Agreement, including, without limitation, those set out in Article 11 (Other Duties of the Registrar).

The Registrar may from time
to time, subject to the prior written consent of the Issuer, delegate certain of its functions and duties set out in this Agreement
to the Principal Paying Agent.

2.6             
At any time after an Issuer Event of Default or Potential Issuer Event of Default will have occurred and is continuing or
the Bond Trustee will have received any money from the Issuer which it proposes to pay under Article 11 (Application of Funds)
of the Trust Deed to the relevant Covered Bondholders and/or Couponholders, the Bond Trustee may:

		(a)	by notice in writing to the Issuer, the Guarantor and the Agents, require the Agents pursuant to
this Agreement to act thereafter as Agents of the Bond Trustee in relation to payments of such funds to be made by or on behalf
of the Bond Trustee under the terms of the Trust Deed mutatis mutandis on the terms provided in this Agreement (save that
the Bond Trustee’s liability under any provisions thereof for the indemnification, remuneration and payment of out-of-pocket
expenses of the Agents will be limited to the amounts for the time being held by the Bond Trustee on the trusts of the Trust Deed
relating to the Covered Bonds of the relevant Series and available for such purpose) and thereafter to hold all Covered Bonds and
Coupons and all sums, documents and records held by them in respect of Covered Bonds and Coupons on behalf of the Bond Trustee;
or

		(b)	by notice in writing to the Issuer, the Guarantor and the Agents, require the Agents pursuant to
this Agreement to deliver up all Covered Bonds and Coupons and all sums, documents and records held by them in respect of Covered
Bonds and Coupons to the Bond Trustee or as the Bond Trustee will direct in such notice provided that such notice will be deemed
not to apply to any documents or records which the Agents are obliged not to release by any law or regulation; and

		(c)	by notice in writing to the Issuer (but not the Guarantor), require the Issuer to make all subsequent
payments in respect of the Covered Bonds and Coupons to or to the order of the Bond Trustee and not to the Principal Paying Agent,
any Paying Agent or the Registrar, as the case may be, and with effect from the issue of any such notice to the Issuer and until
such notice is withdrawn proviso (a) to Section 2.2 (Covenant to Repay Principal and to Pay Interest) of the Trust Deed relating
to the Covered Bonds will cease to have effect in respect of the Issuer.

2.7             
At any time after a Guarantor Event of Default or Potential Guarantor Event of Default will have occurred and is continuing
or the Bond Trustee will have received any money from the Guarantor which it proposes to pay under Article 11 (Application
of Funds) of the Trust Deed to the relevant Covered Bondholders and/or Couponholders, the Bond Trustee may:

		(a)	by notice in writing to the Issuer, the Guarantor, the Agents or any one or more of them, pursuant
to this Agreement to act thereafter as Agents respectively of the Bond Trustee in relation to payments of such funds to be made
by or on behalf of the Bond Trustee under the terms of the Trust Deed mutatis mutandis on the

    	 

    	- 6 -

    

terms provided in this Agreement
(save that the Bond Trustee’s liability under any provisions thereof for the indemnification, remuneration and payment of
out-of-pocket expenses of the Agents will be limited to the amounts for the time being held by the Bond Trustee on the trusts of
the Trust Deed relating to the Covered Bonds of the relevant Series and available for such purpose) and thereafter to hold all
Covered Bonds and Coupons and all sums, documents and records held by them in respect of Covered Bonds and Coupons on behalf of
the Bond Trustee; or

		(b)	by notice in writing to the Issuer, the Guarantor, the Agents or any one or more of them, pursuant
to this Agreement to deliver up all Covered Bonds and Coupons and all sums, documents and records held by them in respect of Covered
Bonds and Coupons to the Bond Trustee or as the Bond Trustee will direct in such notice provided that such notice will be deemed
not to apply to any documents or records which the Principal Paying Agent and the other Paying Agents or the Registrar, as the
case may be, are obliged not to release by any law or regulation; and

		(c)	by notice in writing to the Guarantor require it to make all subsequent payments in respect of
the Covered Bonds and Coupons to or to the order of the Bond Trustee and not to the Principal Paying Agent, any Paying Agent or
the Registrar, as the case may be, and with effect from the issue of any such notice to the Guarantor and until such notice is
withdrawn proviso (a) to Section 2.2 (Covenant to Repay Principal and to Pay Interest) of the Trust Deed relating to the Covered
Bonds will cease to have effect.

2.8             
In relation to each issue of Eurosystem-eligible NGCBs, the Issuer hereby authorizes and instructs the Principal Paying
Agent to elect Euroclear as common safekeeper (the “Common Safekeeper”). From time to time, the Issuer and the
Principal Paying Agent may agree to vary this election. The Issuer acknowledges that any such election is subject to the right
of Euroclear and Clearstream, Luxembourg to jointly determine that the other will act as Common Safekeeper in relation to any such
issue and agrees that no liability will attach to the Principal Paying Agent in respect of any such election made by it.

2.9             
The obligations of the Agents under this Agreement are several and not joint.

2.10         
Each Agent, by entering into this Agreement, represents and warrants to, and covenants with, the Issuer, the Guarantor and
the Bond Trustee that as of the date hereof and as long as it remains a party to this Agreement:

		(a)	it possesses the necessary experience, qualifications, facilities and other resources to perform
its responsibilities in relation to its duties and obligations hereunder and the other Transaction Documents to which it is a party;

		(b)	it is and will continue to be in regulatory good standing and in material compliance with and under
all Laws applicable to its duties and obligations hereunder and the other Transaction Documents to which it is a party;

		(c)	it is and will continue to be in material compliance with its internal policies and procedures
(including risk management policies) relevant to its duties and obligations hereunder and the other Transaction Documents to which
it is a party;

    	 

    	- 7 -

    

		(d)	it will exercise reasonable skill and care in the performance of its obligations hereunder and
the other Transaction Documents to which it is a party;

		(e)	it will comply with the CMHC Guide and each of the Transaction Documents to which it is a party;

		(f)	it will comply with all material legal and regulatory requirements applicable to the conduct of
its business so that it can lawfully attend to the performance of its obligations hereunder and the other Transaction Documents
to which it is a party; and

		(g)	in case of a Paying Agent, the unsecured, unsubordinated and unguaranteed debt obligations of such
Paying Agent rated by each of the Rating Agencies are at or above the Paying Agent Required Ratings.

Article 3

Issue of Bearer Global Covered Bonds and

Registered Global Covered Bonds

3.1             
Subject to Section 3.2, following receipt of an electronic copy of a Final Terms Document signed by the Issuer, the Issuer
authorizes each of the Principal Paying Agent and the Registrar, and each of the Principal Paying Agent and the Registrar agrees,
to take such steps as are required. For this purpose the Principal Paying Agent or, as the case may be, the Registrar will on behalf
of the Issuer:

		(a)	in the case of the Principal Paying Agent, prepare a Temporary Global Covered Bond and/or (if so
specified in the applicable Final Terms Document) a Permanent Global Covered Bond or (in the case of the Registrar) prepare a U.S.
Registered Global Covered Bond and/or a Regulation S Global Covered Bond and/or a Rule 144A Global Covered Bond by completing a
copy of the relevant signed master Global Covered Bond and attaching a copy of the applicable Final Terms Document to such copy
of the signed master Global Covered Bond;

		(b)	in the case of the first Tranche of any Series of Covered Bonds authenticate (or procure the authentication
of) the relevant Global Covered Bonds;

		(c)	in the case of the Principal Paying Agent, deliver the Temporary Global Covered Bond and/or Permanent
Global Covered Bond to the Common Depositary (if the Bearer Global Covered Bond is a CGCB) or Common Safekeeper (if the Bearer
Global Covered Bond is an NGCB) for Euroclear and Clearstream, Luxembourg and, in the case of a Bearer Global Covered Bond which
is a Eurosystem-eligible NGCB, instruct the Common Safekeeper to effectuate the same;

		(d)	in the case of the Principal Paying Agent, if the Bearer Global Covered Bond is an NGCB, instruct
Euroclear and Clearstream, Luxembourg to make the appropriate entries in their records to reflect the initial outstanding aggregate
principal amount of the relevant Tranche of Covered Bonds;

		(e)	in the case of the Principal Paying Agent, if specified in the applicable Final Terms Document
that a Permanent Global Covered Bond will represent the Regulation S Global Covered Bonds on issue, in the case of a Tranche subsequent

    	 

    	- 8 -

    

to the first Tranche of any Series
of Covered Bonds, deliver the applicable Final Terms Document to the Common Depositary or Common Safekeeper, as the case may be,
for attachment to the Permanent Global Covered Bond and where the Permanent Global Covered Bond is a CGCB, make all appropriate
entries on the relevant Schedule to the Permanent Global Covered Bond to reflect the increase in its nominal amount or where the
Permanent Global Covered Bond is an NGCB, instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries in their
records to reflect the increased outstanding aggregate principal amount of the relevant Series; and

		(f)	in the case of the Registrar, deliver: (i) in the case of a Registered Global Covered Bond registered
in the name of a nominee for the Common Depositary for Euroclear and Clearstream, Luxembourg, the Registered Global Covered Bond
to such Common Depositary for Euroclear and Clearstream, Luxembourg against receipt from the Common Depositary of confirmation
that the Common Depositary is holding the Registered Global Covered Bond in safe custody for the account of Euroclear and Clearstream,
Luxembourg and will instruct Euroclear or Clearstream, Luxembourg or both of them (as the case may be) unless otherwise agreed
in writing between the Registrar and the Issuer (A) in the case of Regulation S Global Covered Bonds issued on a non-syndicated
basis, to credit the Covered Bonds represented by the Registered Global Covered Bond to the Registrar's distribution account and
(B) in the case of Regulation S Global Covered Bonds issued on a syndicated basis, to hold the Regulation S Global Covered Bonds
represented by the Registered Global Covered Bond to the Issuer's order; and (ii) in the case of a Registered Global Covered Bond
registered in the name of DTC or a nominee, the Registered Global Covered Bond to a custodian for DTC against receipt from DTC
of confirmation that (A) in the case of an issue of Registered Covered Bonds on a non-syndicated basis, that the Registered Covered
Bonds represented by such Registered Global Covered Bond have been credited to the relevant Dealer's participant account (or the
participant account of the DTC participant through which the relevant Dealer is acting) and (B) in the case of an issue of Registered
Covered Bonds on a syndicated basis, that the Registered Covered Bonds represented by such Registered Global Covered Bond are held
to the Issuer's order.

3.2             
Each of the Principal Paying Agent and the Registrar will only be required to perform its obligations under Section 3.1
if it receives (as applicable):

		(a)	a master Temporary Global Covered Bond and a master Permanent Global Covered Bond, each duly executed
by a person or persons duly authorized to execute the same on behalf of the Issuer, which may be used by the Principal Paying Agent
for the purpose of preparing Temporary Global Covered Bonds and Permanent Global Covered Bonds, respectively, in accordance with
Section 3.1(a) and Article 4 (Exchange of Global Covered Bonds); and

		(b)	a master U.S. Registered Global Covered Bond, a master Regulation S Global Covered Bond and a master
Rule 144A Global Covered Bond, each duly executed by a person or persons duly authorized to execute the same on behalf of the Issuer,
which may be used by the Registrar for the purpose of preparing Registered Global Covered Bonds in accordance with Section 3.1(a).

    	 

    	- 9 -

    

3.3             
 Where the Principal Paying Agent delivers any authenticated Bearer Global Covered Bond to a Common Safekeeper for effectuation
using electronic means, the Principal Paying Agent is authorized and instructed to destroy the Bearer Global Covered Bond retained
by it following its receipt of confirmation from the Common Safekeeper that the relevant Bearer Global Covered Bond has been effectuated.

3.4             
In relation to each Series of Covered Bonds that are NGCBs and each series of Covered Bonds that are held under the New
Safekeeping Structure, each of the Principal Paying Agent and the Registrar will comply with the additional provisions set forth
in Schedule 6 hereto.

3.5             
Notwithstanding anything to the contrary contained herein, if at any time the Principal Paying Agent has entered into a
written agreement pursuant to which it has appointed an agent (the “Authentication Agent”) to authenticate and
effectuate Covered Bonds, the Authentication Agent shall fulfill the authentication and effectuation duties of the Principal Paying
Agent hereunder for and on behalf of the Principal Paying Agent in accordance with the terms of such agreement with respect to
such Covered Bonds, and shall be duly authorized to perform such duties hereunder.

Article 4

Exchange of Global Covered Bonds

4.1             
The Principal Paying Agent will determine the Exchange Date for each Temporary Global Covered Bond in accordance with its
terms. Immediately after determining any Exchange Date, the Principal Paying Agent will notify its determination to the Issuer,
the Guarantor, the Bond Trustee, the other Agents, the relevant Dealer, Euroclear and Clearstream, Luxembourg. On and after the
Exchange Date, the Principal Paying Agent will deliver, upon notice from Euroclear and Clearstream, Luxembourg, a Permanent Global
Covered Bond or Bearer Definitive Covered Bonds, as the case may be, in accordance with the terms of the Temporary Global Covered
Bond.

4.2             
Where a Temporary Global Covered Bond is to be exchanged for a Permanent Global Covered Bond, the Principal Paying Agent
is authorized by the Issuer and instructed:

		(a)	in the case of the first Tranche of any Series of Bearer Covered Bonds, to prepare a Permanent
Global Covered Bond in accordance with the terms of the Temporary Global Covered Bond applicable to such Tranche by completing
a copy of the signed master Global Covered Bond and attaching a copy of the applicable Final Terms Document to such copy of the
master Permanent Global Covered Bond;

		(b)	in the case of the first Tranche of any Series of Bearer Covered Bonds, to authenticate the Permanent
Global Covered Bond;

		(c)	in the case of the first Tranche of any Series of Bearer Covered Bonds, if the Permanent Global
Covered Bond is a CGCB, to deliver the Permanent Global Covered Bond to the Common Depositary which is holding the Temporary Global
Covered Bond representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg to hold on behalf
of the Issuer pending its exchange for the Temporary Global Covered Bond and on exchange entering the details of such exchange
or, in the case of a partial exchange,

    	 

    	- 10 -

    

entering details of the partial
exchange, of the Temporary Global Covered Bond in the relevant spaces in Schedule 2 of both the Temporary Global Covered Bond and
the Permanent Global Covered Bond;

		(d)	in the case of the first Tranche of any Series of Bearer Covered Bonds, if the Permanent Global
Covered Bond is an NGCB, to deliver the Permanent Global Covered Bond to the Common Safekeeper which is holding the Temporary Global
Covered Bond representing the Tranche for the time being on behalf of Euroclear and/or Clearstream, Luxembourg to effectuate (in
the case of a Permanent Global Covered Bond which is a Eurosystem-eligible NGCB) and to hold on behalf of the Issuer pending its
exchange for the Temporary Global Covered Bond and on exchange entering the details of such exchange or, in the case of a partial
exchange, entering details of the partial exchange, of the Temporary Global Covered Bond in the relevant spaces in Schedule 2 of
both the Temporary Global Covered Bond and the Permanent Global Covered Bond and instruct the ICSDs to make the appropriate entries
in their records;

		(e)	in the case of a subsequent Tranche of any Series of Bearer Covered Bonds, if the Permanent Global
Covered Bond is a CGCB, to attach a copy of the applicable Final Terms Document to the Permanent Global Covered Bond applicable
to the relevant Series and to enter details of any exchange in whole or part as stated above and instruct the ICSDs to make the
appropriate entries in their records; and

		(f)	in the case of a subsequent Tranche of any Series of Bearer Covered Bonds, if the Permanent Global
Covered Bond is an NGCB, to deliver the applicable Final Terms Document to the Common Safekeeper for attachment to the Permanent
Global Covered Bond applicable to the relevant Series.

Article 5

Issue of Definitive Covered Bonds

5.1             
Upon notice from Euroclear or Clearstream, Luxembourg (in the case of Bearer Covered Bonds only) pursuant to the terms of
the relevant Bearer Global Covered Bonds or upon the Issuer becoming obliged pursuant to Condition 2 (in the case of Registered
Covered Bonds only) to issue Definitive Covered Bonds, the Principal Paying Agent (in the case of Bearer Covered Bonds) and the
Registrar (in the case of Registered Covered Bonds) are each hereby authorized to:

		(a)	authenticate such Definitive Covered Bonds in accordance with the provisions hereof; and

		(b)	deliver such Definitive Covered Bonds, in the case of Bearer Definitive Covered Bonds, to or to
the order of Euroclear and/or Clearstream, Luxembourg or, in the case of Registered Definitive Covered Bonds, as the Registrar
may be directed by the registered holder of such Registered Definitive Covered Bonds.

The Principal Paying Agent will notify
the Issuer forthwith upon receipt of a request for the issue of Bearer Definitive Covered Bonds in accordance with the provisions
of a Temporary Global Covered Bond or Permanent Global Covered Bond, as the case may be, and the aggregate

    	 

    	- 11 -

    

nominal amount of such Temporary Global
Covered Bond or Permanent Global Covered Bond, as the case may be, to be exchanged in connection therewith. The Registrar will
notify the Issuer forthwith upon receipt of a request for the issue of Registered Definitive Covered Bonds in accordance with the
provisions of a Registered Global Covered Bond, as the case may be, or upon the exchange of Regulation S Definitive Covered Bonds
for Rule 144A Definitive Covered Bonds and vice versa, and the aggregate nominal amount of the relevant Registered Covered
Bond to be exchanged in connection therewith.

5.2             
The Issuer undertakes to deliver to the Principal Paying Agent or the Registrar, as the case may be, sufficient numbers
of executed Definitive Covered Bonds with, in the case of Bearer Definitive Covered Bonds (if applicable), Coupons and Talons attached,
to enable the Principal Paying Agent or the Registrar, as the case may be, to comply with its obligations under this Article.

Article 6

Terms of issue

6.1             
Each of the Principal Paying Agent and the Registrar will cause all Covered Bonds delivered to and held by it or them under
this Agreement to be maintained in safe custody and will ensure that Covered Bonds are issued only in accordance with the provisions
of this Agreement, the Trust Deed, the Terms and Conditions and, where applicable, the relevant Global Covered Bonds.

6.2             
For the purposes of Article 2 (Appointment of Agents), each of the Principal Paying Agent and the Registrar, as the case
may be, is entitled to treat a telephone, electronic or facsimile communication from a person purporting to be (and whom the Principal
Paying Agent or the Registrar, as the case may be, believes in good faith to be) the authorized representative of the Issuer named
in the list referred to in, or notified pursuant to, Section 24.7, or any other list duly provided for the purpose by the Issuer
to the Principal Paying Agent or the Registrar, as the case may be, as sufficient instructions and authority of the Issuer for
the Principal Paying Agent or the Registrar to act in accordance with Article 3 (Issue of Bearer Global Covered Bonds and
Registered Global Covered Bonds).

6.3             
In the event that a person who has signed a master Temporary Global Covered Bond, a master Permanent Global Covered Bond,
a master Registered Global Covered Bond or a Registered Definitive Covered Bond held by the Principal Paying Agent or the Registrar,
as the case may be, on behalf of the Issuer ceases to be an authorized representative of the Issuer as described in Section 24.7,
the Principal Paying Agent or the Registrar will (unless the Issuer gives notice to the Principal Paying Agent or the Registrar,
as the case may be that Covered Bonds signed by that person do not constitute valid and binding obligations of the Issuer or otherwise
until replacements have been provided to the Principal Paying Agent or the Registrar, as the case may be) continue to have authority
to issue Covered Bonds signed by that person, and the Issuer warrants to the Principal Paying Agent and the Registrar that those
Covered Bonds will be valid and binding obligations of the Issuer. Promptly upon any person ceasing to be an authorized representative
of the Issuer, the Issuer will provide the Principal Paying Agent with replacement master Temporary Global Covered Bond(s) and
replacement Permanent Global Covered Bond(s) and will provide the Registrar with replacement master Registered Global Covered Bonds
and Registered Definitive Covered Bonds and the Principal Paying Agent and the Registrar, as the case may be, will, upon receipt
of such replacements, cancel and destroy the master Temporary Global Covered Bond(s), master Permanent Global Covered Bond(s),
master

    	 

    	- 12 -

    

Registered Global Covered Bonds and
Registered Definitive Covered Bonds, as applicable, held by them which are signed by such person and will provide the Issuer with
a certificate of destruction in respect thereof, specifying the Covered Bonds so cancelled and destroyed.

6.4             
Each of the Principal Paying Agent and the Registrar will provide Euroclear and/or Clearstream, Luxembourg and, in the case
of the Registrar, DTC, with the notifications, instructions or information to be given by it to Euroclear and/or Clearstream,
Luxembourg and/or DTC, as the case may be.

6.5             
Where Registered Global Covered Bonds or Bearer Global Covered Bonds that are CGCBs are to be issued and are to be credited
on a delivery against payment basis, unless otherwise agreed, the Principal Paying Agent shall give instructions to Euroclear and/or
Clearstream, Luxembourg to credit such Covered Bonds represented by the Registered Global Covered Bonds or Bearer Global Covered
Bonds, as the case may be, to the Principal Paying Agent's distribution account following the delivery of such Global Covered Bond
to the Common Depositary. Each Bearer Covered Bond that is a CGCB, or each Registered Global Covered Bond which is so credited
to the Principal Paying Agent's distribution account with Euroclear, DTC or Clearstream, Luxembourg, as the case may be, or the
Paying Agent’s account with DTC, shall be held to the order of the Issuer pending delivery to the relevant Dealer on a delivery
against payment basis (unless otherwise indicated in the relevant Final Terms) in accordance with the normal procedures of Euroclear,
DTC or Clearstream, Luxembourg, as the case may be. The Principal Paying Agent shall on the Issue Date and against receipt of funds
from the relevant Dealer(s) (unless otherwise indicated in the relevant Final Terms) transfer the proceeds of issue to the Issuer
to the account notified to it by the Issuer and instruct the Common Depositary to instruct Euroclear, DTC or Clearstream, Luxembourg,
as the case may be, to credit the relevant securities account(s) of the relevant Dealer(s).

6.6             
If the Bearer Covered Bonds are NGCBs, the Principal Paying Agent shall, on behalf of the Issuer, instruct the Common Safekeeper
to effectuate the relevant Global Covered Bond and instruct Euroclear and Clearstream, Luxembourg to make the appropriate entries
in their records to reflect the initial outstanding aggregate principal amount of the relevant Tranche of Covered Bonds.

6.7             
If the Principal Paying Agent pays an amount (the “Payment Advance”) to the Issuer on the basis
that a payment (the “Payment”) has been or will be received from a Dealer and if the Payment is not received
by the Principal Paying Agent on the date the Principal Paying Agent pays the Issuer, the Issuer will repay to the Principal Paying
Agent the Payment Advance and will pay interest on the Payment Advance (or the unreimbursed portion thereof) from (and including)
the date the Payment Advance is made to (but excluding) the earlier of repayment of the Payment Advance or receipt by the Principal
Paying Agent of the Payment at a rate quoted at that time by the Principal Paying Agent as its cost of funding the Payment Advance
provided that evidence of the basis of such rate is given in writing by the Principal Paying Agent to the Issuer. For the avoidance
of doubt, the Principal Paying Agent will not be obliged to pay any amount to the Issuer if it has not received satisfactory confirmation
that it is to receive the amount from a Dealer.

6.8             
Except in the case of an issue where the Principal Paying Agent does not act as receiving bank for the Issuer in respect
of the purchase price of the Covered Bonds being issued, if on the Issue Date a Dealer does not pay the full purchase price due
from it in respect of any Covered Bond (the “Defaulted Covered Bond”) and, as a result, such Defaulted Covered
Bond remains in the Principal Paying Agent’s distribution account with DTC and/or Euroclear and/or

    	 

    	- 13 -

    

Clearstream, Luxembourg after the Issue
Date, the Principal Paying Agent will continue to hold such Defaulted Covered Bond pursuant to the order of the Issuer. The Principal
Paying Agent will notify the Issuer immediately of the failure of the Dealer to pay the full purchase price due from it in respect
of any Defaulted Covered Bond and, subsequently, will (a) notify the Issuer immediately on receipt from the Dealer of the full
purchase price in respect of any Defaulted Covered Bond and (b) pay to the Issuer the amount so received.

Article 7

Exchange and transfer of Covered Bonds

7.1             
Upon any exchange of all or a portion of an interest in a Temporary Global Covered Bond for an interest in a Permanent Global
Covered Bond or upon any exchange of, in the case of a Temporary Global Covered Bond, all or a portion of an interest in such Temporary
Global Covered Bond or, in the case of a Permanent Global Covered Bond, all of such Permanent Global Covered Bond for Bearer Definitive
Covered Bonds, the Principal Paying Agent will (i) procure that the relevant Global Covered Bond will, if it is a CGCB, be endorsed
by the Principal Paying Agent or on its behalf to reflect the reduction of its nominal amount by the aggregate nominal amount so
exchanged and the Permanent Global Covered Bond will be endorsed by the Principal Paying Agent or on its behalf to reflect the
increase in its nominal amount as a result of such exchange or (ii) in the case of any Global Covered Bond which is an NGCB, instruct
Euroclear, DTC and Clearstream, Luxembourg to make appropriate entries in their records to reflect such exchange. Until exchanged
in full, the holder of an interest in any Bearer Global Covered Bond will in all respects be entitled to the same benefits under
this Agreement as the holder of Bearer Definitive Covered Bonds and Coupons authenticated and delivered hereunder, subject as set
out in the Terms and Conditions and in the relevant Bearer Global Covered Bond. The Principal Paying Agent is hereby authorized
on behalf of the Issuer (a) in the case of any Global Covered Bond which is a CGCB, to endorse or to arrange for the endorsement
of the relevant Bearer Global Covered Bond to reflect the reduction in the nominal amount represented thereby by the amount so
exchanged and, if appropriate, to endorse the Permanent Global Covered Bond to reflect any increase in the nominal amount represented
thereby and, in either case, to sign in the relevant space on the relevant Bearer Global Covered Bond recording such exchange and
reduction or increase, (b) in the case of any Global Covered Bond which is an NGCB, to instruct Euroclear, DTC and Clearstream,
Luxembourg to make appropriate entries in their records to reflect such exchange and (c) in the case of a total exchange, to cancel
or arrange for the cancellation of the relevant Bearer Global Covered Bond.

7.2             
Upon any exchange of all or a portion of an interest in a Rule 144A Global Covered Bond for an interest in a Regulation
S Global Covered Bond or vice versa, the relevant Global Covered Bond(s) will be surrendered to the Registrar and endorsed
to reflect the reduction or increase (as the case may be) in its/their nominal amount by the Registrar or on its behalf. The Registrar
is hereby authorized on behalf of the Issuer (a) to endorse or to arrange for the endorsement of the relevant Global Covered Bond(s)
to reflect the reduction or increase (as the case may be) in the nominal amount represented thereby and, in either case, to sign
in the relevant space on the relevant Global Covered Bond(s) recording such exchange and reduction or increase, (b) to make all
appropriate entries in the Register and (c) in the case of a total exchange, to cancel or arrange for the cancellation of the relevant
Global Covered Bond.

7.3             
Upon any exchange of all or a portion of an interest in a Registered Global Covered Bond for an interest in a Registered
Definitive Covered Bond or vice versa, the relevant Registered Global Covered Bond(s) or Registered Definitive Covered Bond(s)
will be surrendered to the

    	 

    	- 14 -

    

Registrar and endorsed to reflect the
reduction or increase (as the case may be) in its/their nominal amount by the Registrar or on its behalf. The Registrar is hereby
authorized on behalf of the Issuer (a) to endorse or to arrange for the endorsement of the relevant Registered Global Covered Bond(s)
or Registered Definitive Covered Bond(s) to reflect the reduction or increase (as the case may be) in the nominal amount represented
thereby and, in either case, to sign in the relevant space on the relevant Registered Global Covered Bond(s) or Registered Definitive
Covered Bond(s) recording such exchange and reduction or increase, (b) to make all appropriate entries in the Register and (c)
in the case of a total exchange, to cancel or arrange for the cancellation of the relevant Registered Global Covered Bond(s) or
Registered Definitive Covered Bond(s).

Article 8

Payments

8.1             
The Issuer will, before the Relevant Time on each date on which any payment in respect of any Covered Bond becomes due under
the Terms and Conditions, transfer to an account specified by the Principal Paying Agent such amount in the relevant currency sufficient
for the purposes of the payment in same day funds settled through such payment system as the Principal Paying Agent and the Issuer
may agree.

Relevant Time
means, (i) in the case of payment in Sterling or Euro, 11:00 a.m., London time, (ii) in the case of payments in U.S. dollars or
Canadian dollars, 8:00 a.m. (New York time), (iii) in the case of payments in Japanese Yen, 9:00 a.m. (London time), one Business
Day prior to the day on which payment is due to the Principal Paying Agent and (iv) for any other currency, at the time mutually
agreed between the Issuer and the Principal Paying Agent.

8.2             
Any funds paid by or by arrangement with the Issuer to the Principal Paying Agent under Section 8.1 will be held in the
relevant account referred to in Section 8.1 for payment to the Covered Bondholders or Couponholders, as the case may be, until
any Covered Bonds or Coupons become void under Condition 8. In that event the Principal Paying Agent will repay to the Issuer sums
equivalent to the amounts which would otherwise have been repayable on the relevant Covered Bonds or Coupons.

8.3             
The Issuer will ensure that no later than the third Business Day (as defined below) immediately preceding the date on which
any payment is to be made to the Principal Paying Agent, under Section 8.1, the Principal Paying Agent, will receive (i) a copy
of an irrevocable payment instruction to the paying bank of the Issuer and (ii) a notice setting out the amounts of principal and/or
(as the case may be) interest to be paid in respect of each relevant series of Covered Bonds on their relevant due dates. For the
purposes of this Article, Business Day means a day on which commercial banks and foreign exchange markets settle payments and are
open for general business in London and any Additional Business Centre specified in the applicable Final Terms Document.

8.4             
The Principal Paying Agent will notify the other Paying Agents, the Cash Manager, the Guarantor and the Bond Trustee immediately:

		(a)	if it has not by the relevant date set out in Section 8.1 received unconditionally the full amount
in the Specified Currency required for the payment; and

    	 

    	- 15 -

    

		(b)	if it receives unconditionally the full amount of any sum payable in respect of the Covered Bonds
or Coupons after that date and time.

The Principal Paying Agent
will, at the expense of the Issuer, immediately on receiving any amount as described in subparagraph (b), cause notice of
that receipt to be published in accordance with Condition 13.

8.5             
The Principal Paying Agent will ensure that payments of both principal and interest in respect of a Temporary Global Covered
Bond will only be made if certification of non-U.S. beneficial ownership as required by U.S. Treasury regulations (in the form
set out in the Trust Deed) has been received from Euroclear and/or Clearstream, Luxembourg in accordance with the terms of the
Temporary Global Covered Bond.

8.6             
Unless it has received notice under Section 8.4(a), each Paying Agent will pay or cause to be paid all amounts due in respect
of the Covered Bonds on behalf of the Issuer and the Guarantor in the manner provided in the Trust Deed and the Terms and Conditions.
If any payment provided for in Section 8.1 is made late but otherwise in accordance with the provisions of this Agreement, the
relevant Paying Agent will nevertheless make payments in respect of the Covered Bonds as stated in Section 8.4(b) following receipt
by it of such payment.

8.7             
If for any reason the Principal Paying Agent reasonably considers that the amounts to be received by it under Section 8.1
will be, or the amounts actually received by it are, insufficient to satisfy all claims in respect of all payments then falling
due in respect of the Covered Bonds, neither the Principal Paying Agent nor the Paying Agents will be obliged to pay any such claims
until the Principal Paying Agent has received the full amount of all such payments.

8.8             
Without prejudice to Sections 8.6 and 8.7, if the Principal Paying Agent pays any amounts to the Covered Bondholders or
Couponholders or to any other Paying Agent at a time when it has not received payment in full in respect of the relevant Covered
Bonds in accordance with Section 8.1 (the excess of the amounts so paid over the amounts so received being the “Shortfall”),
the Issuer will, in addition to paying amounts due under Section 8.1, pay to the Principal Paying Agent on demand interest (at
a rate which represents the Principal Paying Agent’s cost of funding the Shortfall provided that evidence of the basis of
such rate is given to the Issuer) on the Shortfall (or the unreimbursed portion thereof) until the receipt in full by the Principal
Paying Agent of the Shortfall.

8.9             
The Principal Paying Agent will on demand promptly reimburse each other Paying Agent for payments in respect of Covered
Bonds properly made by each Paying Agent in accordance with this Agreement and the Terms and Conditions unless the Principal Paying
Agent has notified the relevant Paying Agent, prior to its opening of business on the due date of a payment in respect of the Covered
Bonds, that the Principal Paying Agent does not expect to receive sufficient funds to make payment of all amounts falling due in
respect of the Covered Bonds.

8.10         
While any Covered Bonds are represented by Global Covered Bonds, all payments due in respect of the Covered Bonds will be
made to, or to the order of, the holder of the Global Covered Bonds and subject to and in accordance with the provisions of the
Global Covered Bonds. On the occasion of each payment, (i) in the case of a CGCB, the Paying Agent to which such Global Covered
Bond was presented for the purpose of making the payment will cause the appropriate Schedule to the relevant Global Covered Bond
to be annotated so as to evidence the amounts and dates of the payments of principal and/or interest as applicable or (ii) in the
case of

    	 

    	- 16 -

    

any Global Covered Bond which is an
NGCB, the Principal Paying Agent will instruct Euroclear and Clearstream, Luxembourg to make appropriate entries in their records
to reflect such payment.

8.11         
With respect to any Registered Global Covered Bond that is denominated in any currency other than U.S. dollars and that
is registered in the name of DTC or its nominee (a “DTC Covered Bond”), the Principal Paying Agent shall pay
to the Exchange Agent, and the Exchange Agent shall receive, all payments thereunder that are to be exchanged into U.S. dollars.

The Exchange Agent
shall, in accordance with normal DTC practice, be advised by the Principal Paying Agent on or prior to the fifth New York Business
Day (as defined below) after the relevant Record Date for any payment of interest, or the tenth New York Business Day prior to
the relevant payment date for any payment of principal by DTC or its nominee:

		(a)	if any Beneficial Owner of the DTC Covered Bond in respect of which payment is due has elected
to receive such payment in U.S. dollars and, if so, the amount of the payment (expressed in the Specified Currency) which the Beneficial
Holder wished to receive in U.S. dollars; and

		(b)	of the payment details for each Beneficial Owner.

The Exchange Agent
shall convert the relevant Specified Currency into U.S. dollars in an amount equal to the aggregate amount that Beneficial Owners
wish to receive in U.S. dollars (i.e. with respect to which DTC has notified the Exchange Agent that Beneficial Owners wish to
receive such amount in U.S. dollars) at its spot rate on the applicable payment date. The Exchange Agent shall, on the relevant
payment date:

		(a)	pay all amounts converted into U.S. dollars in accordance with the above to DTC or its nominee
for distribution to the relevant Beneficial Owners; and

		(b)	pay all the other amounts due which are denominated otherwise than in U.S. dollars direct to the
relevant Beneficial Owners in accordance with the payment instructions received from DTC or its nominee.

For the purposes of
this Clause, "New York Business Day" means a day (other than a Saturday or a Sunday) on which foreign exchange
markets are open for business in New York City that is neither a legal holiday nor a day on which banking institutions are authorised
or required by law or regulation to close in New York City and (i) with respect to Covered Bonds payable in a Specified Currency
other than euro, in the principal financial centre of the relevant Specified Currency or as otherwise specified in the applicable
Final Terms Document and (ii) with respect to Covered Bonds payable in euro, a day on which the TARGET System is open.

In the event that
the Exchange Agent is unable to convert the relevant Specified Currency into U.S. dollars, the Exchange Agent will notify DTC that
the entire payment will be made in the relevant Specified Currency, and the Exchange Agent will make the payment in accordance
with the payment instructions received from DTC following such notification.

8.12         
If the amount of principal and/or interest then due for payment is not paid in full (otherwise than by reason of (A) a withholding
or deduction required by law to be made therefrom in circumstances in which the Issuer or Guarantor is not obliged to gross-up
such payments in accordance with Condition 7 or (B) a certification required by the terms of a

    	 

    	- 17 -

    

Covered Bond not being received), (i)
in the case of CGCB, the Paying Agent to which a Covered Bond or Coupon (as the case may be) is presented for the purpose of making
such payment will make a record of such shortfall on the Covered Bond or Coupon and each record will, in the absence of manifest
error, be prima facie evidence that the payment in question has not to that extent been made or (ii) in the case of any
Global Covered Bond which is an NCGB, the Principal Paying Agent will instruct Euroclear and Clearstream, Luxembourg to make appropriate
entries in their records to reflect such shortfall in payment.

8.13         
Following service of a Notice to Pay on the Guarantor, this Article 8 will be amended as follows:

		(a)	Section 8.1 (above) will be deleted in its entirety and replaced with the following:

“8.1The Guarantor will,
before the Relevant Time on each date on which any payment in respect of any Guaranteed Amounts becomes Due for Payment, transfer
to an account specified by the Principal Paying Agent, such amount in the relevant currency sufficient for the purposes of the
payment of such Guaranteed Amounts in same day funds settled through such payment system as the Principal Paying Agent and the
Guarantor may agree.”;

		(b)	Section 8.3(above) will be deleted in its entirety and replaced with the following:

“8.3The Guarantor will ensure
that no later than the third Business Day (as defined below) immediately preceding the date on which any payment is to be made
to the Principal Paying Agent, under Section 8.1, the Principal Paying Agent will receive (i) a copy of an irrevocable payment
instruction to the paying bank of the Guarantor or other relevant party, and (ii) a notice setting out the amounts of principal
and/or (as the case may be) interest to be paid in respect of each relevant series of Covered Bonds on their relevant due dates.
For the purposes of this Section, Business Day means a day on which commercial banks and foreign exchange markets settle payments
and are open for general business in London, Toronto and any Additional Business Centre specified in the applicable Final Terms
Document.”; and

		(c)	Consequential amendments will be made pursuant to Article 34 (Amendments) to the remainder
of Article 8.

8.14         
If the Issuer determines, in its sole discretion, that it will be required to withhold or deduct any FATCA Withholding in
connection with the next scheduled payment, the Issuer will be entitled to re-direct or reorganize such payment in any way that
it sees fit in order that the payment may be made free from FATCA Withholding.

    	 

    	- 18 -

    

Article 9

Determinations and notifications in respect of Covered Bonds

and interest determination

	9.1             
	(a)	The Principal Paying Agent will, unless otherwise specified in the applicable Final Terms Document,
make all the determinations and calculations which it is required to make under the Terms and Conditions, all subject to and in
accordance with the Terms and Conditions.

		(b)	The Principal Paying Agent will not be responsible to the Issuer, the Guarantor, the Bond Trustee
or to any third party (except in the event of dishonesty, bad faith, willful misconduct, gross negligence or reckless disregard
of the Principal Paying Agent, as the case may be) as a result of the Principal Paying Agent having acted on any quotation given
by any Reference Bank which subsequently may be found to be incorrect.

		(c)	The Principal Paying Agent will promptly notify (and confirm in writing to) the Issuer, the Guarantor,
the Bond Trustee, the Registrar and the other Agents and (in respect of a Series of Covered Bonds listed on a stock exchange) the
relevant stock exchange or other relevant competent authority or quotation system on which the relevant Covered Bonds are for the
time being listed, posted and/or traded and to be published in accordance with Condition 13 as soon as possible after the determination
of each Rate of Interest, Interest Amount and Interest Payment Date and all other amounts, rates and dates which it is obliged
to determine or calculate under the Terms and Conditions and in no event later than the fourth Business Day thereafter. Each Interest
Amount and Interest Payment Date so notified may subsequently be amended (or appropriate alternative arrangements made by way of
adjustment) without notice in the event of an extension or shortening of the Interest Period. Any such amendment or alternative
arrangements will be promptly notified to the Bond Trustee, the Registrar, the other Agents and each stock exchange or other relevant
authority on which the relevant Floating Rate Covered Bonds are for the time being listed, quoted and/or traded or by which they
have been admitted to listing or trading and to Covered Bondholders in accordance with Condition 13.

		(d)	The Principal Paying Agent will use its reasonable endeavours to cause each Rate of Interest, Interest
Amount and Interest Payment Date and all other amounts, rates and dates which it is obliged to determine or calculate under the
Terms and Conditions to be published as required in accordance with the Terms and Conditions as soon as possible after their determination
or calculation.

		(e)	If for any reason at any relevant time after the Principal Paying Agent defaults in its obligation
to determine the Rate of Interest or the Principal Paying Agent defaults in its obligation to calculate any Interest Amount and/or
publish the Rate of Interest, Interest Amount and/or Interest Payment Date in respect of any Interest Period or any other amount,
rate or date as provided in this Article, it will immediately notify the Issuer, the Guarantor, the Bond Trustee and the other
Paying Agents of that fact. If, for any reason, the Principal Paying Agent does not at any time calculate an interest amount as
described in Section 9.1(a), the Bond Trustee will, in accordance with Condition 4.2(f), determine the Rate of Interest.

    	 

    	- 19 -

    

Each such determination or calculation
will be deemed to have been made by the Principal Paying Agent.

		(f)	Determinations with regard to Covered Bonds (including Floating Rate Covered Bonds) required to
be made by a Calculation Agent specified in the applicable Final Terms Document will be made in the manner so specified. Unless
otherwise agreed between the Issuer and the relevant Dealer or the Lead Manager(s), as the case may be, or unless the Principal
Paying Agent is the Calculation Agent (in which case the provisions of this Agreement will apply), those determinations will be
made on the basis of a Calculation Agency Agreement substantially in the form of Schedule 1. Covered Bonds of any Series may specify
additional duties and obligations of any Agent, the performance of which will be agreed between the Issuer and the relevant Agent
prior to the relevant Issue Date.

9.2             
Where Screen Rate Determination is specified in the applicable Final Terms Document as the manner in which the Rate of Interest
is to be determined, the Rate of Interest for each Interest Period will be determined as set out in Condition 4.2(b)(ii).

Article 10

Notice of any withholding or deduction

10.1         
If the Issuer or the Guarantor are, in respect of any payment in respect of Covered Bonds, required by law to withhold or
deduct any amount for or on account of Taxes, duties, assessments or governmental charges as specifically contemplated under the
Terms and Conditions, the Issuer or the Guarantor, as the case may be, will give notice of that fact to the Bond Trustee and the
Principal Paying Agent (who will give notice thereof to each Paying Agent) as soon as it becomes aware of the requirement to make
the withholding or deduction and will give to the Bond Trustee and the Principal Paying Agent such information as either of them
will require to enable the Bond Trustee and the Principal Paying Agent to comply with the requirement.

10.2         
If any Paying Agent or the Exchange Agent is, in respect of any payment of principal or interest in respect of the Covered
Bonds, required by law to withhold or deduct any amount for or on account of any Taxes, duties, assessments or governmental charges
as specifically contemplated under the Terms and Conditions, other than arising under Section 10.1 or by virtue of the relevant
holder failing to satisfy any certification or other requirement in respect of its Covered Bonds, it will give notice of that fact
to the Issuer, the Bond Trustee, the Guarantor and the Principal Paying Agent as soon as it becomes aware of the requirement to
withhold or deduct.

Article 11

Other duties of the Registrar

11.1         
The Registrar will perform such duties as are set out herein and the Terms and Conditions and, in performing those duties,
will act in accordance with the Terms and Conditions and the provisions of this Agreement.

11.2         
The Registrar will, so long as any Registered Covered Bond is outstanding:

		(a)	maintain outside the United Kingdom, a register (the “Register”) of the holders
of the Registered Covered Bonds which will show (i) the nominal amount of

    	 

    	- 20 -

    

Covered Bonds represented by each
Registered Global Covered Bond, (ii) the nominal amounts and the serial numbers of the Registered Definitive Covered Bonds, (iii)
the dates of issue of all Registered Covered Bonds, (iv) all subsequent transfers and changes of ownership of Registered Covered
Bonds, (v) the names and addresses of the holders of the Registered Covered Bonds, (vi) all cancellations of Registered Covered
Bonds, whether because of their purchase by the Issuer, their replacement or otherwise, and (vii) all replacements of Registered
Covered Bonds (subject, where appropriate, in the case of (vi), to the Registrar having been notified as provided in this Agreement);

		(b)	effect exchanges of interests between different Registered Global Covered Bonds of the same series
and interests in Registered Global Covered Bonds for Registered Definitive Covered Bonds and vice versa, in accordance with
the Terms and Conditions and this Agreement, keep a record of all exchanges and ensure that the Principal Paying Agent is notified
forthwith after any exchange;

		(c)	register all transfers of Definitive Covered Bonds;

		(d)	make any necessary notations on Registered Global Covered Bonds following transfer or exchange
of interests in them;

		(e)	receive any document in relation to or affecting the title to any of the Registered Covered Bonds
including all forms of transfer, forms of exchange, probates, letters of administration and powers of attorney;

		(f)	forthwith, and in any event within ten Business Days (being days when banks are open for business
in the city in which the specified office of the Registrar is located) of the relevant request (or such longer period as may be
required to comply with any applicable fiscal or other regulations), (i) upon receipt by it of Registered Definitive Covered Bonds
for transfer (together with any certifications required by it including, but not limited to, any applicable Transfer Certificates)
or (ii) following the endorsement of a reduction in nominal amount of a Registered Global Covered Bond for exchange into Registered
Definitive Covered Bonds, authenticate and deliver at its specified office to the transferee or (at the risk of the transferee)
send to the address requested by the transferee duly dated and completed Registered Definitive Covered Bonds of a like aggregate
nominal amount to the Registered Definitive Covered Bonds transferred and, in the case of the transfer of part only of a Registered
Definitive Covered Bond, authenticate and deliver at its specified office to the transferor or (at the risk of the transferor)
send to the address requested by the transferor a duly dated and completed Registered Definitive Covered Bond in respect of the
balance of the Registered Definitive Covered Bonds not so transferred;

		(g)	if applicable, charge to the holder of a Registered Covered Bond presented for exchange or transfer
(i) the costs or expenses (if any) of delivering Registered Covered Bonds issued on exchange or transfer other than by regular
uninsured mail and (ii) a sum sufficient to cover any stamp duty or Tax that may be imposed in relation to the registration;

		(h)	maintain proper records of the details of all documents and certifications (including, but not
limited to, Transfer Certificates) received by itself or any other

    	 

    	- 21 -

    

Transfer Agent (subject to receipt
of all other necessary information from the other Transfer Agents);

		(i)	prepare all such lists of holders of the Registered Covered Bonds as may be required by the Issuer,
the Guarantor or the Principal Paying Agent or any person authorized by any of them;

		(j)	subject to applicable laws and regulations at all reasonable times during office hours make the
Register available to the Issuer, the Bond Trustee, any holder of a Registered Covered Bond or any person authorized by any of
them for inspection and for the taking of copies of it or extracts from it, provided however that the Register may be closed by
the Issuer for such periods at such times (not exceeding in total 30 days in any one year) as it may think fit;

		(k)	make available for inspection (at all reasonable times during office hours) by Covered Bondholders
at its specified office copies of the Trust Deed, this Agreement and the then latest audited balance sheet and profit and loss
accounts of the Issuer;

		(l)	comply with the reasonable requests of the Issuer with respect to the maintenance of the Register
and give to the Paying Agents and the Transfer Agents such information as may be reasonably required by them for the proper performance
of their duties; and

		(m)	comply with the terms of any notice of transfer to the extent such notice of transfer is given
in accordance with the Terms and Conditions and the provisions of this Agreement.

11.3         
Notwithstanding anything to the contrary in this Agreement, in the event of a partial redemption of Covered Bonds under
Condition 6, the Registrar will not be required, unless so directed by the Issuer, (a) to register the transfer of Registered
Definitive Covered Bonds (or parts of Registered Definitive Covered Bonds) or to effect exchanges of interests in Registered Global
Covered Bonds for Registered Definitive Covered Bonds or vice versa during the period beginning on the sixty-fifth day
before the date of the partial redemption and ending on the day on which notice is given specifying the serial numbers of Covered
Bonds called (in whole or in part) for redemption (both inclusive) or (b) to register the transfer of any Registered Covered
Bond (or part of a Registered Covered Bond) called for partial redemption.

11.4         
Registered Covered Bonds will be dated:

		(a)	in the case of a Registered Definitive Covered Bond issued on the Issue Date, the Issue Date; or

		(b)	in the case of a Registered Definitive Covered Bond issued in exchange for an interest in a Registered
Global Covered Bond, or upon transfer, the date of registration in the Register of the exchange or transfer; or

		(c)	in the case of a Registered Definitive Covered Bond issued to the transferor upon transfer in part
of a Registered Covered Bond, the same date as the date of the Registered Covered Bond transferred; or

    	 

    	- 22 -

    

		(d)	in the case of a Registered Definitive Covered Bond issued pursuant to Article 18 (Issue of
Replacement Covered Bonds, Coupons and Talons), with the same date as the date of the lost, stolen, mutilated, defaced or destroyed
Registered Covered Bond in replacement of which it is issued.

Article 12

Duties of the Transfer Agents

12.1         
The Transfer Agents will perform such duties as are set out herein and in the Terms and Conditions and, in performing those
duties, will act in accordance with the Terms and Conditions and the provisions of this Agreement.

12.2         
Each Transfer Agent will:

		(a)	accept Registered Covered Bonds delivered to it, with the form of transfer on them duly executed,
together with, where applicable, any Transfer Certificate for the transfer or exchange of all or part of the Registered Covered
Bonds in accordance with the Terms and Conditions, and will, in each case, give to the Registrar all relevant details required
by it;

		(b)	keep a stock of the form of Transfer Certificate in the form set out in Schedule 4 where applicable,
and make such forms available on demand to holders of the Covered Bonds;

		(c)	immediately, and in any event within ten Business Days of the relevant request (or such longer
period as may be required to comply with any applicable fiscal or other laws or regulations), (i) upon receipt by it of Registered
Definitive Covered Bonds for transfer (together with any certifications required by it including, but not limited to, where applicable
Transfer Certificates) or (ii) following the endorsement of a reduction in nominal amount of a Registered Global Covered Bond for
exchange into Registered Definitive Covered Bonds, authenticate and deliver at its specified office to the transferee or (at the
risk of the transferee) send to the address requested by the transferee duly dated and completed Registered Definitive Covered
Bonds of a like aggregate nominal amount to the Registered Definitive Covered Bonds transferred and, in the case of the transfer
of part only of a Registered Definitive Covered Bond, authenticate and deliver at its specified office to the transferor or (at
the risk of the transferor) send to the address requested by the transferor a duly dated and completed Registered Definitive Covered
Bond in respect of the balance of the Registered Definitive Covered Bonds not so transferred;

		(d)	if applicable, charge to the holder of a Registered Covered Bond presented for exchange or transfer
(i) the costs or expenses (if any) of the Registrar in delivering Registered Covered Bonds issued on such exchange or transfer
other than by regular uninsured mail and (ii) a sum sufficient to cover any stamp duty or Tax that may be imposed in relation to
the exchange or transfer and, in each case, account to the Registrar for those charges; and

		(e)	at the request of any Paying Agent deliver new Registered Covered Bonds to be issued on partial
redemptions of Registered Covered Bonds.

    	 

    	- 23 -

    

Article 13

Regulations for transfers

and exchanges of Registered Covered Bonds

13.1         
Subject as provided below, the Issuer may from time to time agree with the Principal Paying Agent, the Bond Trustee and
the Registrar reasonable regulations to govern the transfer and registration of Registered Covered Bonds and the exchange of Registered
Covered Bonds. The initial regulations, which will apply until amended under this Section, are set out in Schedule 5 to this
Agreement. The Transfer Agents agree to comply with the regulations as amended from time to time.

Article 14

Duties of the Agents in connection with early redemption

14.1         
If the Issuer decides to redeem any Covered Bonds for the time being outstanding before their Final Maturity Date in accordance
with the Terms and Conditions, the Issuer will give notice of the decision to the Bond Trustee and the Paying Agents, and in the
case of redemption of Registered Covered Bonds, the Registrar, stating the date on which the Covered Bonds are to be redeemed and
the nominal amount of Covered Bonds to be redeemed, not less than 10 days before the date on which the Issuer will give notice
to the Covered Bondholders in accordance with the Terms and Conditions of the redemption in order to enable the Paying Agents and,
if applicable, the Registrar to carry out its duties in this Agreement and in the Terms and Conditions.

14.2         
If some only of the Covered Bonds are to be redeemed, the Principal Paying Agent will, in the case of Definitive Covered
Bonds, make the required drawing in accordance with the Terms and Conditions but will give the Issuer and the Bond Trustee reasonable
notice of the time and place proposed for the drawing and the Issuer and the Bond Trustee will be entitled to send representatives
to attend the drawing and will, in the case of Covered Bonds in global form, co-ordinate the selection of Covered Bonds to be redeemed
with Euroclear, DTC and/or Clearstream, Luxembourg, all in accordance with the Terms and Conditions.

14.3         
The Principal Paying Agent will publish the notice required in connection with any redemption and will, if applicable, at
the same time also publish a separate list of the serial numbers of any Definitive Covered Bonds previously drawn and not presented
for redemption. The redemption notice will specify the date fixed for redemption, the redemption amount, the manner in which redemption
will be effected and, in the case of a partial redemption of Definitive Covered Bonds, the serial numbers of the Covered Bonds
to be redeemed. The notice will be published in accordance with the Terms and Conditions. The Principal Paying Agent will also
notify the Bond Trustee, the other Paying Agents, the Registrar, the Transfer Agents and, if applicable, the Exchange Agent, of
any date fixed for redemption of any Covered Bonds.

Article 15

EXTENDABLE OBLIGATIONS

15.1         
The applicable Final Terms Document may provide that the obligations to pay the Final Redemption Amount of the applicable
Series of Covered Bonds on their Final Maturity Date may be deferred until the Extended Due for Payment Date, provided that any
amount representing the amount due on the Final Maturity Date as set out in the applicable Final Terms Document due

    	 

    	- 24 -

    

and remaining unpaid on the Final Maturity
Date may be paid on any Interest Payment Date thereafter up to (and including) the relevant Extended Due for Payment Date. Such
deferral will occur automatically if the Issuer fails to pay the Final Redemption Amount of the relevant Series of Covered Bonds
on its Final Maturity Date (subject to applicable grace periods) and if the Guarantor fails to pay in full on the Extension Determination
Date, Guaranteed Amounts equal to the Final Redemption Amount of the relevant series of Covered Bonds. Interest will continue to
accrue on any unpaid amount and will be payable on each Interest Payment Date falling after the Final Maturity Date up to (and
including) the Extended Due for Payment Date.

15.2         
The Issuer undertakes to notify the Paying Agents not less than four Business Days prior to the Final Maturity Date whether
(a) payment will be made of the Final Redemption Amount of the applicable Series of Covered Bonds in full on their (i) Final Maturity
Date or (ii) Extension Determination Date or (b) the obligation to pay the Final Redemption Amount of the applicable Series of
Covered Bonds on their Final Maturity Date will be deferred until the Extended Due for Payment Date (such notice, the “Extension
Notice”).

15.3         
Forthwith upon the receipt by the Principal Paying Agent of the Extension Notice, the Principal Paying Agent will notify
both Clearstream, Luxembourg and Euroclear and, if applicable, DTC, not less than three Business Days notice prior to the Final
Maturity Date whether (a) payment will be made of the Final Redemption Amount of the applicable Series of Covered Bonds in full
on their Final Maturity Date or (b) the obligation to pay the Final Redemption Amount of the applicable Series of Covered Bonds
on their Final Maturity Date will be deferred until the Extended Due for Payment Date.

15.4         
For the avoidance of doubt, a failure by the Issuer to make a notification under this Article 15 will not affect the validity
or effectiveness of any extension of a Series of Covered Bonds under Condition 6.1.

Article 16

Receipt and publication of notices

16.1         
Immediately after it receives a demand, notice or written request from any Covered Bondholder in accordance with the Terms
and Conditions, the Principal Paying Agent or the Registrar, as the case may be, will forward a copy to the Issuer, the Guarantor
and the Bond Trustee.

16.2         
On behalf of and at the request and expense of the Issuer (or following service of a Notice to Pay on the Guarantor, the
Guarantor), the Principal Paying Agent or the Registrar, as the case may be, will cause to be published all notices required to
be given by the Issuer, the Guarantor and the Bond Trustee to the Covered Bondholders in accordance with the Terms and Conditions,
the U.S. Registration Statement or Final Terms Document.

Article 17

Cancellation of Covered Bonds, Coupons and Talons

17.1         
All Covered Bonds which are redeemed, all Global Covered Bonds which are exchanged in full, all Registered Covered Bonds
which have been transferred, all Coupons which are paid and all Talons which are exchanged will be cancelled by the Agent by which
they are redeemed, exchanged, transferred or paid. In addition, the Issuer will immediately notify the Principal

    	 

    	- 25 -

    

Paying Agent and the Bond Trustee in
writing of all Covered Bonds which are purchased on behalf of the Issuer, the Guarantor or any of the Issuer’s Subsidiaries
and all such Covered Bonds surrendered to a Paying Agent or the Registrar for cancellation, together (in the case of Bearer Definitive
Covered Bonds) with all unmatured Coupons or Talons (if any) attached to them or surrendered with them, will be cancelled by the
Agent to which they are surrendered. Each of the Agents will give to the Principal Paying Agent details of all payments made by
it and will deliver all cancelled Covered Bonds, Coupons and Talons to the Principal Paying Agent or as the Principal Paying Agent
may specify.

17.2         
The Principal Paying Agent will deliver upon written request to the Issuer and the Bond Trustee as soon as reasonably practicable
and in any event within three months after the date of each repayment, payment, cancellation or replacement, as the case may be,
a certificate stating:

		(a)	the aggregate nominal amount of Covered Bonds which have been redeemed and the aggregate amount
paid in respect of them;

		(b)	the number of Covered Bonds cancelled together (in the case of Bearer Definitive Covered Bonds)
with details of all unmatured Coupons or Talons attached to them or delivered with them;

		(c)	the aggregate amount paid in respect of interest on the Covered Bonds;

		(d)	the total number by maturity date of Coupons and Talons cancelled; and

		(e)	(in the case of Definitive Covered Bonds) the serial numbers of the Covered Bonds.

17.3         
The Principal Paying Agent will destroy all cancelled Covered Bonds, Coupons and Talons and, immediately following their
destruction, send to the Issuer upon written request a certificate stating the serial numbers of the Covered Bonds (in the case
of Definitive Covered Bonds) and the number by maturity date of Coupons and Talons destroyed.

17.4         
Without prejudice to the obligations of the Principal Paying Agent under Section 17.2, the Principal Paying Agent will keep
a full and complete record of all Covered Bonds, Coupons and Talons (other than serial numbers of Coupons) and of their redemption,
purchase on behalf of the Issuer or the Guarantor or any of the Issuer’s Subsidiaries and cancellation, payment or replacement
(as the case may be) and of all replacement Covered Bonds, Coupons or Talons issued in substitution for mutilated, defaced, destroyed,
lost or stolen Covered Bonds, Coupons or Talons. The Principal Paying Agent will in respect of the Coupons of each maturity retain
(in the case of Coupons other than Talons) until the expiry of ten years from the Relevant Date in respect of such Coupons and
(in the case of Talons) indefinitely either all paid or exchanged Coupons of that maturity or a list of the serial numbers of Coupons
of that maturity still remaining unpaid or unexchanged. The Principal Paying Agent will subject to applicable laws and regulations
at all reasonable times during office hours make the record available to the Issuer, the Guarantor, the Bond Trustee or any Person
authorized by any of them for inspection and for the taking of copies of it or extracts from it. The Principal Paying Agent is
authorized by the Issuer and instructed to (a) in the case of any Global Covered Bond which is a CGCB, to endorse or to arrange
for the endorsement of the relevant Global Covered Bond to reflect the reduction in the nominal amount represented by it by the
amount so redeemed or purchased and cancelled and (b) in the case of any Global Covered Bond which is an NGCB, to instruct Euroclear
and Clearstream, Luxembourg to make appropriate entries in their records to reflect

    	 

    	- 26 -

    

such redemption or purchase and cancellation,
as the case may be; provided, that, in the case of a purchase or cancellation, the Issuer has notified the Principal Paying Agent
of the same in accordance with Section 17.1.

Article 18

Issue of replacement Covered Bonds,

Coupons and Talons

18.1         
The Issuer will cause a sufficient quantity of additional forms of (a) Bearer Covered Bonds, Coupons and Talons to be available,
upon request, to the Principal Paying Agent at its specified office for the purpose of issuing replacement Bearer Covered Bonds,
Coupons and Talons as provided below and (b) Registered Covered Bonds to be available, upon request, to the Registrar at its specified
office for the purpose of issuing replacement Registered Covered Bonds as provided below.

18.2         
The Principal Paying Agent and the Registrar will, subject to and in accordance with the Terms and Conditions and this Article 18,
cause to be delivered any replacement Covered Bonds, Coupons and Talons which the Issuer may determine to issue in place of Covered
Bonds, Coupons and Talons which have been lost, stolen, mutilated, defaced or destroyed.

18.3         
In the case of a mutilated or defaced Bearer Covered Bond, the Principal Paying Agent will ensure that (unless otherwise
covered by such indemnity as the Issuer may reasonably require) any replacement Bearer Covered Bond will only have attached to
it Coupons and Talons corresponding to those (if any) attached to the mutilated or defaced Bearer Covered Bond which is presented
for replacement.

18.4         
The Principal Paying Agent or the Registrar, as the case may be, will obtain verification in the case of an allegedly lost,
stolen or destroyed Covered Bond, Coupon or Talon in respect of which the serial number is known, that the Covered Bond, Coupon
or Talon has not previously been redeemed, paid or exchanged, as the case may be. Neither the Principal Paying Agent nor the Registrar
will issue any replacement Covered Bond, Coupon or Talon unless and until the claimant will have:

		(a)	paid the costs and expenses incurred in connection with the issue;

		(b)	provided it with such evidence and indemnity as the Issuer may reasonably require; and

		(c)	in the case of any mutilated or defaced Covered Bond, Coupon or Talon, surrendered it to the Principal
Paying Agent or, as the case may be, the Registrar.

18.5         
The Principal Paying Agent or, as the case may be, the Registrar will cancel any mutilated or defaced Covered Bonds, Coupons
and Talons in respect of which replacement Covered Bonds, Coupons and Talons have been issued under this Section and will furnish
the Issuer with a certificate stating the serial numbers of the Covered Bonds, Coupons and Talons cancelled and, unless otherwise
instructed by the Issuer in writing, will destroy the cancelled Covered Bonds, Coupons and Talons and give to the Issuer and the
Bond Trustee a destruction certificate containing the information specified in Section 17.3.

18.6         
The Principal Paying Agent or, as the case may be, the Registrar will, on issuing any replacement Covered Bond, Coupon or
Talon, immediately inform the Issuer and the other

    	 

    	- 27 -

    

Paying Agents (in the case of Bearer
Covered Bonds) or the Transfer Agents (in the case of Registered Covered Bonds) of the serial number of the replacement Covered
Bond, Coupon or Talon issued and (if known) of the serial number of the Covered Bond, Coupon or Talon in place of which the replacement
Covered Bond, Coupon or Talon has been issued. Whenever replacement Coupons or Talons are issued pursuant to this Article 18,
the Principal Paying Agent or, as the case may be, the Registrar will also notify the other Paying Agents (in the case of Bearer
Covered Bonds) or the Transfer Agents (in the case of Registered Covered Bonds) of the maturity dates of the lost, stolen, mutilated,
defaced or destroyed Coupons or Talons and of the replacement Coupons or Talons issued.

18.7         
The Principal Paying Agent and the Registrar will each keep a full and complete record of all replacement Covered Bonds,
Coupons and Talons issued and will subject to applicable laws and regulations at all reasonable times during office hours make
the record available to the Issuer, the Guarantor, the Bond Trustee or any person authorized by any of them for inspection and
for the taking of copies of it or extracts from it.

18.8         
Whenever any Bearer Covered Bond, Coupon or Talon for which a replacement Bearer Covered Bond, Coupon or Talon has been
issued and in respect of which the serial number is known is presented to a Paying Agent for payment, the relevant Paying Agent
will immediately send notice of that fact to the Issuer and the other Paying Agents and not make payment.

18.9         
The Paying Agents will issue further Coupon sheets against surrender of Talons. A Talon so surrendered will be cancelled
by the relevant Paying Agent who (except where the Paying Agent is the Principal Paying Agent) will inform the Principal Paying
Agent of its serial number. Further Coupon sheets issued on surrender of Talons will carry the same serial number as the surrendered
Talon.

Article 19

Copies of documents to be made available

19.1         
Each of the Paying Agents, the Registrar and the Transfer Agents will hold available for inspection at its specified office
during normal business hours copies of all documents required to be so available, including any supplements and documents incorporated
by reference, by the Terms and Conditions, the U.S. Registration Statement or Final Terms Document for any Covered Bonds or the
rules of any relevant Stock Exchange (or any other relevant authority). For these purposes, the Issuer and the Guarantor will provide
the Paying Agents, the Registrar and the Transfer Agents with sufficient copies of each of the relevant documents.

Article 20

Meetings of Covered Bondholders

20.1         
The provisions of Schedule 5 to the Trust Deed will apply to meetings of the Covered Bondholders and will have effect in
the same manner as if set out in this Agreement.

20.2         
Without prejudice to Section 20.1, each of the Paying Agents on the request of any holder of Bearer Covered Bonds will issue
voting certificates and block voting instructions in accordance with Schedule 5 to the Trust Deed and will immediately give
notice to the Issuer in writing (with a copy to the Bond Trustee) of any revocation or amendment of a block voting instruction.
Each of the Paying Agents will keep a full and complete record of all voting

    	 

    	- 28 -

    

certificates and block voting instructions
issued by it and will, not less than 24 hours before the time appointed for holding a meeting or adjourned meeting, deposit at
such place as the Bond Trustee will approve, full particulars of all voting certificates and block voting instructions issued by
it in respect of the meeting or adjourned meeting.

Article 21

Commissions and expenses

21.1         
The Issuer and, following service of a Notice to Pay on the Guarantor, the Guarantor agree(s) to pay to the Principal Paying
Agent such fees and commissions (including any applicable Taxes) as the Issuer, the Guarantor and the Principal Paying Agent will
separately agree in respect of the services of the Agents under this Agreement together with any reasonable out of pocket expenses
(including legal, printing, postage, facsimile, cable and advertising expenses) incurred by the Agents in connection with their
services under this Agreement.

21.2         
The Principal Paying Agent will make payment of the fees and commissions due under this Agreement to the other Agents (including
any applicable Taxes) and will reimburse their expenses promptly after the receipt of the relevant funds from the Issuer or the
Guarantor (as the case may be). Neither the Issuer, the Guarantor nor the Bond Trustee will be responsible for any payment or reimbursement
by the Principal Paying Agent to the other Agents.

Article 22

Indemnity

22.1         
The Issuer will indemnify each of the Agents against any losses, liabilities, costs, claims, or actions (together, “Losses”)
paid or incurred in disputing or defending any Losses) which it may incur or which may be made against it as a result of or in
connection with its appointment or the exercise of its powers and duties under this Agreement except for any Losses resulting from
the breach by it of the terms of this Agreement or from its own dishonesty, bad faith, willful misconduct, gross negligence or
reckless disregard hereunder or that of its officers, directors, employees or agents.

22.2         
Each of the Agents (other than the Registrar, the Exchange Agent and the Transfer Agent) will severally indemnify the Issuer
against any Losses which the Issuer may incur or which may be made against the Issuer under this Agreement as a result of the dishonesty,
bad faith, willful misconduct, gross negligence or reckless disregard of that Agent or of its officers, directors, employees or
agents or the breach by it of the terms of this Agreement. Notwithstanding the foregoing, no Agent will be liable to the Issuer,
the Guarantor or any other party to this Agreement for any consequential loss (including but not limited to lost profits) whether
or not foreseeable and however caused or arising.

22.3         
The indemnities set out above will survive any termination or expiry of this Agreement.

22.4         
Each Agent will only be liable to the Issuer for losses, liabilities, costs, expenses and demands arising directly from
the performance of its obligations under this Agreement suffered by or occasioned to the Issuer and/or the Guarantor resulting
from the dishonesty, bad faith, willful misconduct, gross negligence or reckless disregard of the Agent or any delegate (other
than any broker or other standardized service provider) in respect of its obligations under this Agreement or (as the case may
be) any agreement delegating duties set out in this Agreement.

    	 

    	- 29 -

    

Dishonesty, bad faith, willful misconduct,
gross negligence or reckless disregard will be judged by reference to standards prevailing in the jurisdiction of such delegate.
Each Agent will not otherwise be liable or responsible for any Liabilities or inconvenience which may result from anything done
or omitted to be done by it in connection with this Agreement.

22.5         
Liabilities arising under Section 22.4 will be limited to the amount of the Issuer’s and/or the Guarantor’s,
as applicable, actual loss (such loss will be determined as at the date of default of the Agent or, if later, the date on which
the loss arises as a result of such default) but without reference to any special conditions or circumstances known to the Agent
at the time of entering into the Agreement, or at the time of accepting any relevant instructions, which increase the amount of
the loss. In no event will the Agent be liable for any loss of profits, goodwill, reputation, business opportunity or anticipated
saving, of for special, punitive or consequential damages, whether or not the Agent has been advised of the possibility of such
loss or damages.

Article 23

Responsibility of the Agents

23.1         
No Agent will be responsible to anyone with respect to the validity of this Agreement or the Covered Bonds or Coupons or
for any act or omission by it in connection with this Agreement or any Covered Bond or Coupon except for its own dishonesty, bad
faith, willful misconduct, gross negligence or reckless disregard, including that of its officers and employees.

23.2         
No Agent will have any duty or responsibility in the case of any default by any of the Issuer or the Guarantor in the performance
of its obligations under the Terms and Conditions or the Trust Deed or, in the case of receipt of a written request from a Covered
Bondholder or Couponholder, with respect to such default, provided however that immediately on receiving any written request by
a Covered Bondholder in accordance with Condition 9, the Principal Paying Agent notifies the Issuer, the Guarantor and the Bond
Trustee of the fact and furnishes them with a copy of such written request.

23.3         
Whenever in the performance of its duties under this Agreement an Agent will deem it desirable that any matter be established
by the Issuer, any of the Guarantor or the Bond Trustee prior to taking or suffering any action under this Agreement, the matter
may be deemed to be conclusively established by a certificate signed by the Issuer, the Guarantor or the Bond Trustee and delivered
to the relevant Agent and the certificate will be a full authorization to such Agent for any action taken or suffered in good faith
by it under the provisions of this Agreement in reliance upon the certificate.

23.4         
No Paying Agent shall be required to make any payment in respect of a Covered Bond unless the funds required to make such
payment have actually been received by such Paying Agent in accordance with the Terms and Conditions of such Covered Bond.

Article 24

Conditions of appointment

24.1         
Each Agent will be entitled to deal with money paid to it by the Issuer or the Guarantor (as the case may be) for the purpose
of this Agreement in the same manner as other money paid to a banker by its customers except:

    	 

    	- 30 -

    

		(a)	that it will not exercise any right of set-off, lien or similar claim in respect of the money;

		(b)	that it will not be liable to account to the Issuer or the Guarantor for any interest on the money;
and

		(c)	that it will not be required to segregate any money held by it except as required by law.

24.2         
In acting under this Agreement and in connection with the Covered Bonds, each Agent will act solely as an agent of the Issuer,
the Guarantor (and, in the circumstances referred to in Sections 2.6 and 2.7, the Bond Trustee) and will not assume any obligations
towards or relationship of agency or trust for or with any of the owners or holders of the Covered Bonds, Coupons or Talons.

24.3         
Each Agent undertakes to the Issuer and the Guarantor and, in the circumstances referred to in Sections 2.6 and 2.7, the
Bond Trustee to perform its duties, and will be obliged to perform the duties and only the duties, specifically stated in this
Agreement (including Schedule 5 in the case of the Principal Paying Agent) and the Terms and Conditions, and no implied duties
or obligations will be read into any of those documents against any Agent, other than the duty to act honestly and in good faith
and to exercise the diligence of a reasonably prudent agent in comparable circumstances. Each of the Agents (other than the Principal
Paying Agent) agrees that if any information that is required by the Principal Paying Agent to perform the duties set out in Schedule
5 becomes known to it, it will promptly provide such information to the Principal Paying Agent.

24.4         
Each Agent may, at the Issuer’s expense, consult with legal and other professional advisers and the opinion of the
advisers will be full and complete protection in respect of any action taken, omitted or suffered under this Agreement in good
faith and in accordance with the opinion of the advisers.

24.5         
Each Agent will be protected and will incur no liability in respect of any action taken, omitted or suffered in reliance
on any instruction from the Issuer or the Bond Trustee (in the circumstances referred to in Sections 2.6 and 2.7) the Guarantor
or any document which it reasonably believes to be genuine and to have been delivered by the proper party or on written instructions
from the Issuer or the Guarantor.

24.6         
Any Agent, its affiliated companies and its officers, directors and employees may become the owner of, and/or acquire any
interest in, any Covered Bonds, Coupons or Talons with the same rights that it or he would have had if the Agent concerned were
not appointed under this Agreement, and may engage or be interested in any financial or other transaction with the Issuer or the
Guarantor and may act on, or as depositary, trustee or agent for, any committee or body of holders of Covered Bonds or Coupons
or in connection with any other obligations of the Issuer or the Guarantor as freely as if the Agent were not appointed under this
Agreement.

24.7         
The Issuer and the Guarantor will provide the Agents with a certified copy of the list of Authorized Signatories to execute
documents and take action on its behalf in connection with this Agreement and will notify the Agents immediately in writing if
any of those persons ceases to be authorized or if any additional person becomes authorized together, in the case of an additional
authorized signatory, with evidence satisfactory to the Agents that the person has been authorized.

    	 

    	- 31 -

    

24.8         
 Except as otherwise permitted in the Trust Deed and the Terms and Conditions or as ordered by a court of competent jurisdiction
or as required by law or applicable regulations, in the case of Bearer Covered Bonds, the Issuer, the Guarantor, the Bond Trustee
and each of the Agents will be entitled to treat the bearer of any Bearer Covered Bond or Coupon and the registered holder of any
Registered Covered Bond as the absolute owner of it (whether or not it is overdue and notwithstanding any notice of ownership or
writing on it or notice of any previous loss or theft of it).

24.9         
The amount of the Program may be increased by the Issuer in accordance with the procedure set out in the Program Agreement.
Upon any increase being effected, all references in this Agreement to the amount of the Program will be deemed to be references
to the increased amount.

24.10     
The Issuer hereby covenants with the Agents that it will provide the Agents with such information as may be available to
the Issuer so as to assist the Agents to determine whether or not such Agent is obliged, in respect of any payments to be made
pursuant to the Transaction Documents, to make any FATCA Withholding.

Article 25

Communications between the parties

25.1         
A copy of all communications relating to the subject matter of this Agreement between the Issuer, the Guarantor, the Bond
Trustee and any Agent (other than the Principal Paying Agent) will be sent to the Principal Paying Agent.

Article 26

Changes in Agents

26.1         
Each of the Issuer and the Guarantor agrees, for the benefit of the Bond Trustee, that, for so long as any Covered Bond
is outstanding, or until funds for the payment of all amounts in respect of all outstanding Covered Bonds have been made available
to the Principal Paying Agent and have been returned to the Issuer or the Guarantor, as the case may be, as provided in this Agreement:

		(a)	there will at all times be a Principal Paying Agent and a Registrar;

		(b)	it will so long as any Covered Bond is outstanding, maintain a Paying Agent (which may be the Principal
Paying Agent) having a specified office in a city approved by the Bond Trustee in Europe;

		(c)	so long as any Covered Bond is listed on any stock exchange or admitted to listing or trading by
any other relevant authority, there will at all times be a Paying Agent (in the case of Bearer Covered Bonds) and a Transfer Agent
(in the case of Registered Covered Bonds) with a specified office in such place as may be required by the rules and regulations
of the relevant stock exchange or, as the case may be, other relevant authority;

		(d)	so long as any of the Registered Global Covered Bonds payable in a Specified Currency other than
U.S. dollars are held through DTC or its nominee, there will at all times be an Exchange Agent; and

    	 

    	- 32 -

    

		(e)	it will ensure that it maintains a Paying Agent in a Member State of the European Union that will
not be obliged to withhold or deduct tax pursuant to European Council Directive 2003/48/EC on the taxation of savings income or
any other directive implementing the conclusions of the ECOFIN Council Meeting of 26 to 27 November 2000 or any law implementing
or complying with, or introduced in order to conform to any such directive, provided that the Issuer will not, under any circumstances,
be obliged to maintain a Paying Agent with a specified office in such Member State unless at least one European Member State does
not require a Paying Agent making payments through a specified office in that Member State to so withhold or deduct tax.

In addition, the Issuer and
the Guarantor will forthwith appoint a Paying Agent having a specified office in the United States in the circumstances described
in Condition 5.5. Any variation, termination, appointment or change will only take effect (other than in the case of insolvency
(as provided in Section 26.5), when it will be of immediate effect) after not less than 30 nor more than 45 days’ prior notice
will have been given to the Covered Bondholders in accordance with Condition 13.

26.2         
Each of the Principal Paying Agent and the Registrar may (subject as provided in Sections 26.1 and 26.4) at any time resign
by giving at least 60 days’ written notice to the Issuer, the Guarantor and the Bond Trustee specifying the date on which
its resignation will become effective.

26.3         
Each of the Principal Paying Agent and the Registrar may (subject as provided in Sections 26.1 and 26.4) be removed at any
time by the Issuer and the Guarantor with the prior written approval of the Bond Trustee, which approval will not be unreasonably
withheld, on at least 45 days’ notice in writing from the Issuer and the Guarantor specifying the date when the removal will
become effective.

26.4         
Any resignation under Section 26.2 or removal under Sections 26.3 or 26.5 of the Principal Paying Agent or the Registrar
will only take effect upon the appointment by the Issuer and the Guarantor of a successor Principal Paying Agent or successor Registrar,
as the case may be, approved in writing by the Bond Trustee, which approval will not be unreasonably withheld, and (other than
in cases of insolvency of the Principal Paying Agent or the Registrar, as the case may be) on the expiry of the notice to be given
under Article 29 (Notification of Changes to Agents). The Issuer and each of the Guarantor agree with the Principal Paying
Agent and the Registrar that if, by the day falling 10 days before the expiry of any notice under Section 26.2, the Issuer
and the Guarantor have not appointed a successor Principal Paying Agent or Registrar, as the case may be, approved in writing by
the Bond Trustee, which approval will not be unreasonably withheld, then the Principal Paying Agent or the Registrar, as the case
may be, will be entitled, on behalf of the Issuer and the Guarantor, to appoint in its place as a successor Principal Paying Agent
or Registrar, as the case may be, a reputable financial institution of good standing which the Issuer, the Guarantor and the Bond
Trustee will approve.

26.5         
In case at any time any Agent resigns, or is removed, or becomes incapable of acting or is adjudged bankrupt or insolvent,
or files a voluntary petition in bankruptcy or makes an assignment for the benefit of its creditors or consents to the appointment
of an administrator, liquidator or administrative or other receiver of all or a substantial part of its property, or admits in
writing its inability to pay or meet its debts as they mature or suspends payment of its debts, or if any order of any court is
entered approving any petition filed by or against it under the

    	 

    	- 33 -

    

provisions of any applicable bankruptcy
or insolvency law or if a receiver of it or of all or a substantial part of its property is appointed or if any officer takes charge
or control of it or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, a successor Agent
which will be a reputable financial institution of good standing may be appointed by the Issuer and the Guarantor with the prior
written approval of the Bond Trustee. Upon the appointment of a successor Agent and acceptance by it of its appointment and (other
than in case of insolvency of the Agent or when the Paying Agent is an FFI and does not become, or ceases to be, a Participating
FFI, when it will be of immediate effect) upon expiry of the notice to be given under Article 29 (Notification of Changes
to Agents), the Agent so superseded will cease to be an Agent under this Agreement.

26.6         
Subject to Section 26.1, the Issuer and the Guarantor may, with the prior written approval of the Bond Trustee, which approval
will not be unreasonably withheld, terminate the appointment of all or any of the Agents (other than the Principal Paying Agent
and the Registrar) at any time and/or appoint one or more further or other Agents by giving to the Principal Paying Agent and to
the relevant other Agent notice in writing to that effect. Notwithstanding the foregoing, the Guarantor may revoke the appointment
of any Agent in the event such Agent defaults in the performance or observance of its covenants or breaches its representations
and warranties made, respectively, under Section 2.10.

26.7         
Subject to Sections 26.1 and 26.4, all or any of the Agents (other than the Principal Paying Agent and the Registrar) may
resign their respective appointments under this Agreement at any time by giving the Issuer, the Guarantor, the Bond Trustee and
the Principal Paying Agent at least 60 days’ written notice to that effect.

26.8         
Upon its resignation or removal becoming effective, an Agent will:

		(a)	in the case of the Principal Paying Agent, any other Paying Agent and the Registrar, immediately
transfer all funds and records held by it under this Agreement to the successor Agent; and

		(b)	be entitled to the payment by the Issuer (and, following service of a Notice to Pay on the Guarantor,
the Guarantor) of the commissions, fees and expenses payable in respect of its services under this Agreement before termination
in accordance with the terms of Article 21 (Commissions and Expenses).

26.9         
Upon its appointment becoming effective, a successor or new Agent will, without any further action, become vested with all
the authority, rights, powers, duties and obligations of its predecessor or, as the case may be, an Agent with the same effect
as if originally named as an Agent under this Agreement.

26.10     
Notwithstanding anything to the contrary in this Agreement, if a Rating Agency has downgraded the unsecured, unsubordinated
and unguaranteed debt obligations or issuer default rating of a Paying Agent below the Paying Agent Required Ratings at any time
that (a) the Guarantor is Independently Controlled and Governed, the Guarantor may, and (b) the Guarantor is not Independently
Controlled and Governed, the Guarantor shall, terminate the appointment of such Paying Agent and appoint one or more further or
other Agents by giving to the Principal Paying Agent and to the relevant other Agent notice in writing to that effect.

26.11     
Notwithstanding anything to the contrary in this Agreement, if an Issuer Event of Default (A) occurs and is continuing,
or (B) has previously occurred and is continuing, at any time that

    	 

    	- 34 -

    

the Guarantor is Independently Controlled
and Governed, the Guarantor may terminate the appointment of an Agent which is the Issuer or an Affiliate of the Issuer and appoint
one or more further or other Agents by giving to the Principal Paying Agent and to the relevant other Agent notice in writing to
that effect.

26.12     
Upon any termination or resignation of an Agent hereunder, the Guarantor shall provide notice to CMHC of such termination
or resignation and of such Agent’s replacement contemporaneously with the earlier of (i) notice of such termination or resignation
and replacement to a Rating Agency, (ii) notice of such termination or resignation and replacement being provided to or otherwise
made available to Covered Bondholders, and (iii) five (5) Toronto Business Days following such termination or resignation and replacement
(unless the replacement Agent has yet to be identified at that time, in which case notice of the replacement Agent may be provided
no later than ten (10) Toronto Business Days thereafter). Any such notice shall include (if known) the reasons for the termination
or resignation of the Agent, and all information relating to the replacement Agent required by the CMHC Guide to be provided to
CMHC in relation to the Agent and this Agreement, including any new agreement with such replacement Agent or any amendments to
this Agreement in respect of such replacement Agent.

Article 27

Change of Bond Trustee

		27.1	Change of Bond Trustee

If there is any
change in the identity of the Bond Trustee in accordance with the Security Agreement or the Trust Deed (as applicable), the parties
to this Agreement will execute such documents and take such action as the successor Bond Trustee and the outgoing Bond Trustee
may reasonably require for the purpose of vesting in the successor Bond Trustee the rights of the outgoing Bond Trustee under this
Agreement.

		27.2	Limitation of Liability

It is hereby acknowledged
and agreed that by its execution of this Agreement the Bond Trustee will not assume or have any of the obligations or liabilities
of any of the other parties hereto under this Agreement and that the Bond Trustee has agreed to become a party to this Agreement
for the purpose only of taking the benefit of this Agreement and agreeing to amendments to this Agreement pursuant to Article 33
(Amendments). Any liberty or right which may be exercised or any determination which may be made under this Agreement by the Bond
Trustee may be exercised or made in the Bond Trustee’s absolute discretion without any obligation to give reasons therefor,
and the Bond Trustee will not be responsible for any liability occasioned by so acting, except if acting in breach of the standard
of care set out in Section 11.1 (Standard of Care) of the Security Agreement, or if acting in breach of the standard of care set
out Article 18 (Bond Trustee’s Liability) of the Trust Deed.

Article 28

Merger and consolidation

28.1         
Any corporation into which any Agent may be merged or converted, or any corporation with which an Agent may be consolidated,
or any corporation resulting from any merger, conversion or consolidation to which an Agent will be a party, or any corporation
to which an

    	 

    	- 35 -

    

Agent will sell or otherwise transfer
all or substantially all of its assets will, on the date when the merger, conversion, consolidation or transfer becomes effective
and to the extent permitted by any applicable laws, become the successor Agent under this Agreement without the execution or filing
of any paper or any further act on the part of the parties to this Agreement, unless otherwise required by the Issuer, the Guarantor
or the Bond Trustee and after the said effective date all references in this Agreement to the relevant Agent will be deemed to
be references to such successor corporation. Written notice of any such merger, conversion, consolidation or transfer will immediately
be given to the Issuer, the Guarantor, the Bond Trustee and the Rating Agencies by the relevant Agent.

Article 29

Notification of changes to Agents

29.1         
Following receipt of notice of resignation from an Agent and immediately after appointing a successor or new Agent or on
giving notice to terminate the appointment of any Agent, the Principal Paying Agent (on behalf of and at the expense of the Issuer
and, following service of a Notice to Pay on the Guarantor, the Guarantor) will give or cause to be given not more than 45 days’
nor less than 30 days’ notice of the fact to the Covered Bondholders in accordance with the Terms and Conditions.

Article 30

Change of specified office

30.1         
If any Agent determines to change its specified office it will give to the Issuer, the Guarantor, the Bond Trustee and the
Principal Paying Agent written notice of that fact giving the address of the new specified office which will be in the same city
and stating the date on which the change is to take effect, which will not be less than 45 days after the notice. The Principal
Paying Agent (on behalf of the Issuer (and, following service of a Notice to Pay on the Guarantor, the Guarantor)) will within
15 days of receipt of the notice (unless the appointment of the relevant Agent is to terminate pursuant to Article 26 (Changes
in Agents) on or prior to the date of the change) give or cause to be given not more than 45 days’ nor less than 30 days’
notice of the change to the Covered Bondholders in accordance with the Terms and Conditions.

Article 31

Communications

31.1         
All communications will be by facsimile, e-mail or letter delivered by hand. Each communication will be made to the relevant
party at the facsimile number, e-mail address or physical address or telephone number and, in the case of a communication by facsimile
or letter, marked for the attention of the person or department from time to time specified in writing by that party to the others
for the purpose. The initial telephone number, facsimile number and person or department so specified by each party are set out
in Schedule 2.

31.2         
A communication (if by facsimile or e-mail) when an acknowledgement of receipt is received, (if by telephone) when made
or (if by letter) when delivered, in each case in the manner required by this Article. However, if a communication is received
after business hours on any Business Day or on a day which is not a Business Day in the place of receipt it will be deemed to be
received and become effective at the opening of business on the next Business Day in the

    	 

    	- 36 -

    

place of receipt. Every communication
will be irrevocable save in respect of any manifest error in it.

31.3         
Any notice given under or in connection with this Agreement will be in English. All other documents provided under or in
connection with this Agreement will be:

		(a)	in English; or

		(b)	if not in English, accompanied by a certified English translation and, in this case, the English
translation will prevail unless the document is a statutory or other official document.

Article 32

Taxes and stamp duties

32.1         
The Issuer (and, following service of a Notice to Pay on the Guarantor, the Guarantor) agree(s) to pay any stamp, issue,
registration, documentary and other fees, duties or taxes of a similar nature (if any), including interest and penalties and other
Taxes or duties which may be payable in connection with the execution, delivery, performance and enforcement of this Agreement.

Article 33

ASSIGNMENT

		33.1	Assignment

Subject always to
the provisions of Article 13 (STEP Plans and Intercreditor Arrangements) of the Mortgage Sale Agreement and Section 33.2 (Assignment
under Security Agreement) herein, no party hereto will be entitled to assign all or any part of its rights or obligations hereunder
to any other party without the prior written consent of each of the other parties hereto (which will not, if requested, be unreasonably
withheld or delayed or made subject to conditions) save that the Guarantor will be entitled to assign whether by way of security
or otherwise all or any of its rights under this Agreement and all or any of its interest in the Loans and their Related Security
without such consent to the Bond Trustee pursuant to the Security Agreement and the Bond Trustee may at its sole discretion assign
all or any of its rights under or in respect of this Agreement and all or any of its interest in the Loans and their Related Security
without such consent in exercise of its rights under the Security Agreement.

		33.2	Assignment under Security Agreement

The parties hereto,
other than the Bond Trustee and the Guarantor, acknowledge that on the assignment pursuant to the Security Agreement by the Guarantor
to the Bond Trustee of the Guarantor’s rights under this Agreement, the Bond Trustee may enforce such rights in the Bond
Trustee’s own name without joining the Guarantor in any such action (which right such parties hereby waive) and such parties
hereby waive as against the Bond Trustee any rights or equities in its favour arising from any course of dealing between one or
more of such parties and the Guarantor.

    	 

    	- 37 -

    

Article 34

Amendments

34.1         
The Bond Trustee, each Agent, the Guarantor and the Issuer may also agree, without the consent of the Covered Bondholders
or Couponholders of any Series and without the consent of the other Secured Creditors (and for this purpose the Bond Trustee may
disregard whether any such modification relates to a Series Reserved Matter), to:

		(a)	any modification of this Agreement provided that in the opinion of the Bond Trustee such modification
is not materially prejudicial to the interests of any of the Covered Bondholders of any Series; or

		(b)	any modification of this Agreement which is of a formal, minor or technical nature or is made to
correct a manifest error or an error established as such to the satisfaction of the Bond Trustee or to comply with mandatory provisions
of law.

Any such modification will
be binding on all Covered Bondholders of all Series of Covered Bonds for the time being outstanding, the related Couponholders
and unless the Bond Trustee otherwise agrees, any such modification will be notified by the Issuer to the Covered Bondholders of
all Series of Covered Bonds for the time being outstanding in accordance with the relevant terms and conditions as soon as practicable
thereafter.

34.2         
Subject to the terms of the Security Agreement, any amendments to this Agreement will be made only with the prior written
consent of each party to this Agreement. No waiver of this Agreement will be effective unless it is in writing and signed by (or
by some Person duly authorized by) each of the parties. No single or partial exercise of, or failure or delay in exercising, any
right under this Agreement will constitute a waiver or preclude any other or further exercise of that or any other right.

34.3         
Each proposed amendment, variation or waiver of rights under this Agreement that is considered by the Guarantor to be a
material amendment, variation or waiver, will be subject to satisfaction of the Rating Agency Condition. The Guarantor and/or the
Issuer will deliver notice to the Rating Agencies from time to time of any amendment, variations or waivers with respect to which
satisfaction of the Rating Agency Condition is not required, provided that failure to deliver such notice will not constitute a
breach of the obligations of the Guarantor under this Agreement. The Guarantor and/or the Issuer will deliver notice to CMHC from
time to time of any amendment, variation or waiver with respect to which notice to CMHC is required by the CMHC Guide, provided
that failure to deliver such notice will not constitute a breach of the obligations of the Guarantor under this Agreement.

Article 35

further assurance

35.1         
From time to time, each party will do and perform any acts and execute any further instruments which may be required or
which may be reasonably requested by any other party to more fully give effect to the purpose of this Agreement.

    	 

    	- 38 -

    

Article 36

IMITATION
OF LIABILITY

36.1         
Scotiabank Covered Bond Guarantor Limited Partnership is a limited partnership formed under the Limited Partnerships
Act (Ontario), a limited partner of which is, except as expressly required by law, only liable for any of its liabilities or
any of its losses to the extent of the amount that the limited partner has contributed or agreed to contribute to its capital.

Article 37

non-petition

37.1         
The Issuer, the Bond Trustee and each Agent agree that they will not institute against, or join any other party in instituting
against, the Guarantor, or any general partners of the Guarantor, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceeding under any federal, provincial or foreign bankruptcy, insolvency or similar law, for one year and one day after all the
Covered Bonds have been repaid in full. The foregoing provision will survive the termination of this Agreement by any party.

Article 38

Governing law

		38.1	Governing Law

This Agreement shall
be governed by, and construed in accordance with, the laws of the Province of Ontario and the federal laws of Canada applicable
therein.

		38.2	Submission to Jurisdiction

Each party to this
Agreement hereby irrevocably submits to the non-exclusive jurisdiction of the courts of the Province of Ontario in any action or
proceeding arising out of or relating to this Agreement.

Article 39

AMENDMENT AND RESTATEMENT

39.1         
This Agreement amends and restates and supersedes the Original Agreement without prejudice to any actions taken under the
Original Agreement or any rights, entitlements or obligations arising under the Original Agreement prior to the date hereof.

Article 40

Counterparts

40.1         
This Agreement may be executed in any number of counterparts (manually or by facsimile or pdf format), each of which when
so executed will be deemed to be an original and all of which when taken together will constitute one and the same agreement.

[The remainder
of this page left intentionally blank]

    	 

    	- 39 -

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

 

IN WITNESS WHEREOF
the parties hereto have executed this Agreement on the day and year first before written.

	 	 	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner SCOTIABANK COVERED BOND GP INC.
	 	 	 
	 	 	 	By:	/s/ Jake Lawrence
	 	 	 	 	Name:Jake Lawrence
	 	 	 	 	Title: President and Secretary
	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, as Issuer
	 	 	 
	 	 	By:	/s/ Ian Berry
	 	 	 	Name:Ian Berry
	 	 	 	Title: Managing Director and Head, Funding and Liquidity Management
	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, LONDON BRANCH, as Principal Paying Agent, a Registrar and a Transfer Agent
	 	 	 
	 	 	By:	/s/ Jane Anne Negi
	 	 	 	Name:Jane Anne Negi
	 	 	 	Title: Managing Director & Head of Legal Europe
	 	 	 	 
	
         

         

         

         
	 	THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, as a Paying Agent, a Registrar, a Transfer Agent and the Exchange Agent
	 	 	 	 
	 	 	By:	/s/ William R. Ebbels
	 	 	 	Name:William R. Ebbels
	 	 	 	Title: Vice-President, US Operations
	 	 	 
	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA, as Bond Trustee 
	 	 	 
	 	 	 	By:	/s/ Sean Piggot
	 	 	 	 	Name:Sean Piggot
	 	 	 	 	Title: Corporate Trust Officer
	 	 	 
	 	 	 	By:	/s/ Stanley Kwan
	 	 	 	 	Name:Stanley Kwan
	 	 	 	 	Title: Associate Trust Officer

 

    	 

    	 

    

 

SCHEDULE 1

FORM OF CALCULATION AGENCY AGREEMENT

 

CALCULATION AGENCY AGREEMENT

 

[l]

 

U.S. $15,000,000,000

REGISTERED GLOBAL COVERED BOND PROGRAM

of

THE BANK OF NOVA SCOTIA

 

 

unconditionally and irrevocably guaranteed
as to payments of interest and principal by

 

SCOTIABANK COVERED BOND GUARANTOR
LIMITED PARTNERSHIP

 

 

 

 

    	 

    	 

    

CALCULATION AGENCY AGREEMENT

in respect of a

U.S. $15,000,000,000

REGISTERED GLOBAL COVERED BOND PROGRAM

THIS AGREEMENT is dated [  ]

BETWEEN:

		(1)	THE BANK OF NOVA SCOTIA (the “Issuer”);

		(2)	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner, Scotiabank
Covered Bond GP Inc. (acting in its capacity as guarantor, the “Guarantor”);

		(3)	COMPUTERSHARE TRUST COMPANY OF CANADA (acting in its capacity as bond trustee, the “Bond
Trustee”); and

		(4)	[ ] of [ ] (the “Calculation Agent”, which expression will include any successor
calculation agent appointed under this Agreement).

IT IS AGREED:

		1.	APPOINTMENT OF THE CALCULATION AGENT

The Calculation Agent
is appointed, and the Calculation Agent agrees to act, as Calculation Agent in respect of each Series of Covered Bonds described
in the Schedule (the “Relevant Covered Bonds”) for the purposes set out in Article 2 and on the terms
of this Agreement. The agreement of the parties that this Agreement is to apply to each Series of Relevant Covered Bonds will be
evidenced by the manuscript annotation and signature in counterpart of the Schedule.

		2.	DUTIES OF CALCULATION AGENT

The Calculation Agent
will in relation to each series of Relevant Covered Bonds (each a “Series”) perform all the functions and duties
imposed on the Calculation Agent by the terms and conditions of the Relevant Covered Bonds (the “Terms and Conditions”)
including endorsing the Schedule appropriately in relation to each Series of Relevant Covered Bonds. In addition, the Calculation
Agent agrees that it will provide a copy of all calculations made by it which affect the nominal amount outstanding of any Relevant
Covered Bonds which are identified on the Schedule as being NGCBs to the Principal Paying Agent to the contact details set out
on the signature page hereof.

		3.	EXPENSES

The arrangements in
relation to expenses will be separately agreed in relation to each issue of Relevant Covered Bonds.

    	 

    	 

    

		4.	INDEMNITY

 

	

4.1	

The Issuer will indemnify the Calculation Agent against any losses, liabilities, costs, claims, actions, demands or expenses (together, “Losses”) paid or incurred in disputing or defending any Losses) which it may incur or which may be made against it as a result of or in connection with its appointment or the exercise of its powers and duties under this Agreement except for any Losses resulting from the breach by it of the terms of this Agreement or from its own willful default, negligence, bad faith or fraud hereunder or that of its officers, directors, employees or agents.
	4.2	The Calculation Agent will indemnify the Issuer against any Losses which the Issuer may incur or which may be made against the Issuer as a result of the breach by the Calculation Agent of the terms of this Agreement or its willful default, negligence, bad faith or fraud or that of its officers, directors or employees or the breach by any of them of the terms of this Agreement. Notwithstanding the foregoing, the Calculation Agent will not be liable to the Issuer, the Guarantor or any other party to this Agreement for any consequential loss (including but not limited to lost profits) whether or not foreseeable and however caused or arising.
	4.3	Except as provided in Section 4.2 above, the Calculation Agent in acting hereunder will incur no liability in respect of any action taken, omitted or suffered to be taken in good faith in reliance upon:

1)the written
advice of any lawyer or professional adviser;

2)any instruction,
request or order from the Issuer, the Guarantor or the Bond Trustee; or

3)any relevant
Covered Bond or Coupon, notice, direction, consent, certificate, affidavit, endorsement, assignment, statement, resolution, letter,
facsimile transaction or other paper or document which it reasonably believes to be genuine and signed by the proper party or parties.

		5.	CONDITIONS OF APPOINTMENT

 

	

5.1	

In acting under this Agreement and in connection with the Relevant Covered Bonds, the Calculation Agent will act solely as an agent of the Issuer, the Guarantor and, in the circumstances described in Section 5.2, the Bond Trustee and will not assume any obligations towards or relationship of agency or trust for or with any of the owners or holders of the Relevant Covered Bonds or the coupons (if any) appertaining to the Relevant Covered Bonds (the “Coupons”).
	5.2	At any time after an Issuer Event of Default or Potential Issuer Event of Default will have occurred and is continuing or the Bond Trustee will have received any money from the Issuer which it proposes to pay under Article 11 (Application of Funds) of the Trust Deed to the relevant Covered Bondholders and/or Couponholders, the Bond Trustee may:

1)by notice in
writing to the Issuer, the Guarantor and the Calculation Agent require the Calculation Agent pursuant to this Agreement to act
thereafter as Calculation Agent of the Bond Trustee in relation to payments of such funds to be made by or on behalf of the Bond
Trustee under the terms of these presents mutatis mutandis on the terms provided in this Agreement (save that the Bond Trustee’s
liability under any provisions of this Agreement for the indemnification,

    	 

    	 

    

remuneration and payment of out-of-pocket
expenses of the Calculation Agent will be limited to the amounts for the time being held by the Bond Trustee on the trusts of these
presents relating to the Covered Bonds of the relevant Series and available for the purpose) and thereafter to hold all Covered
Bonds and Coupons and all sums, documents and records held by it in respect of Covered Bonds and Coupons on behalf of the Bond
Trustee; or

2)by notice in
writing to the Issuer require it (but not the Guarantor) to make all subsequent payments in respect of the Covered Bonds and Coupons
to or to the order of the Bond Trustee and not to the Principal Paying Agent and with effect from the issue of any such notice
to the Issuer.

	5.3	At any time after a Guarantor Event of Default or Potential Guarantor Event of Default will have occurred and is continuing or the Bond Trustee will have received any money from the Guarantor which it proposes to pay under Article 11 (Application of Funds) of the Trust Deed to the relevant Covered Bondholders and/or Couponholders, the Bond Trustee may:

3)by notice in
writing to the Issuer, the Guarantor and the Calculation Agent require the Calculation Agent pursuant to this Agreement to act
thereafter as Calculation Agent on behalf of the Bond Trustee in relation to payments of such funds to be made by or on behalf
of the Bond Trustee under the terms of the trust presents mutatis mutandis on the terms provided in this Agreement (save
that the Bond Trustee’s liability under any provisions thereof for the indemnification, remuneration and payment of out-of-pocket
expenses of the Calculation Agent will be limited to the amounts for the time being held by the Bond Trustee on the trusts of the
trust presents relating to the Covered Bonds of the relevant Series and available for such purpose) and thereafter to hold all
Covered Bonds and Coupons and all sums, documents and records held by them in respect of Covered Bonds and Coupons on behalf of
the Bond Trustee; or

4)by notice in
writing to the Guarantor require it to make all subsequent payments in respect of the Covered Bonds and Coupons to or to the order
of the Bond Trustee and not to the Calculation Agent and with effect from the issue of any such notice to the Guarantor.

	5.4	In relation to each issue of Relevant Covered Bonds, the Calculation Agent will be obliged to perform the duties and only the duties specifically stated in this Agreement and the Terms and Conditions and no implied duties or obligations will be read into this Agreement or the Terms and Conditions against the Calculation Agent, other than the duty to act honestly and in good faith and to exercise the diligence of a reasonably prudent expert in comparable circumstances. 
	5.5	The Calculation Agent may consult with legal and other professional advisers and the opinion of the advisers will be full and complete protection in respect of any action taken, omitted or suffered under this Agreement in good faith and in accordance with the opinion of the advisers.
	5.6	The Calculation Agent will be protected and will incur no liability in respect of any action taken, omitted or suffered in reliance on any instruction from the Issuer, the Guarantor or the Bond Trustee or any document which it reasonably believes to be genuine and to have been delivered by the proper party or on written instructions from the Issuer, the Guarantor or the Bond Trustee.
	5.7	The Calculation Agent and any of its officers, directors and employees may become the

 

    	 

    	 

    

 

	 	owner of, or acquire any interest in, any Covered Bonds or Coupons (if any) with the same rights that it or he would have had if the Calculation Agent were not appointed under this Agreement, and may engage or be interested in any financial or other transaction with the Issuer or the Guarantor and may act on, or as depositary, trustee or agent for, any committee or body of holders of Covered Bonds or Coupons or in connection with any other obligations of the Issuer or the Guarantor as freely as if the Calculation Agent were not appointed under this Agreement.

		6.	TERMINATION OF APPOINTMENT

 

	

6.1	

The Issuer and the Guarantor may, with the prior written approval of the Bond Trustee, terminate the appointment of the Calculation Agent at any time by giving to the Calculation Agent at least 45 days’ prior written notice to that effect, provided that, so long as any of the Relevant Covered Bonds is outstanding:

 

1)the notice will
not expire less than 45 days before any date on which any calculation is due to be made in respect of any Relevant Covered Bonds;
and

2)notice will
be given in accordance with the Terms and Conditions to the holders of the Relevant Covered Bonds at least 30 days before any removal
of the Calculation Agent.

	6.2	Notwithstanding the provisions of Section 6.1, if at any time:

 

1)the Calculation
Agent becomes incapable of acting, or is adjudged bankrupt or insolvent, or files a voluntary petition in bankruptcy or makes an
assignment for the benefit of its creditors or consents to the appointment of an administrator, liquidator or administrative or
other receiver of all or any substantial part of its property, or admits in writing its inability to pay or meet its debts as they
may mature or suspends payment of its debts, or if any order of any court is entered approving any petition filed by or against
it under the provisions of any applicable bankruptcy or insolvency law or if a receiver of it or of all or a substantial part of
its property is appointed or if any officer takes charge or control of the Calculation Agent or of its property or affairs for
the purpose of rehabilitation, conservation or liquidation; or

2)the Calculation
Agent fails duly to perform any function or duty imposed on it by the Terms and Conditions and this Agreement or is in breach of
any of its representation and warranty under this Agreement

the Issuer, with the prior
written approval of the Bond Trustee, may immediately without notice terminate the appointment of the Calculation Agent, in which
event notice of the termination will be given to the holders of the Relevant Covered Bonds in accordance with the Terms and Conditions
as soon as practicable.

	6.3	The termination of the appointment of the Calculation Agent under Section 6.1 or 6.2 will not entitle the Calculation Agent to any amount by way of compensation but will be without prejudice to any amount then accrued due.

 

    	 

    	 

    

 

	6.4	The Calculation Agent may resign its appointment under this Agreement at any time by giving to the Issuer, the Guarantor and the Bond Trustee at least 90 days’ prior written notice to that effect. Following receipt of a notice of resignation from the Calculation Agent, the Issuer will promptly give notice of the resignation to the holders of the Relevant Covered Bonds in accordance with the Terms and Conditions.
	6.5	Notwithstanding the provisions of Sections 6.1, 6.2 and 6.4, so long as any of the Relevant Covered Bonds is outstanding, the termination of the appointment of the Calculation Agent (whether by the Issuer, the Guarantor or by the resignation of the Calculation Agent) will not be effective unless upon the expiry of the relevant notice a successor Calculation Agent approved in writing by the Bond Trustee has been appointed. The Issuer and the Guarantor agree with the Calculation Agent that if, by the day falling 10 days before the expiry of any notice under Section 6.4, the Issuer and the Guarantor have not appointed a replacement Calculation Agent approved in writing by the Bond Trustee, the Calculation Agent will be entitled, on behalf of the Issuer and the Guarantor, to appoint as a successor Calculation Agent in its place a reputable financial institution of good standing which the Issuer, the Guarantor and the Bond Trustee will approve.
	6.6	Upon its appointment becoming effective, a successor Calculation Agent will without further action, become vested with all the authority, rights, powers, duties and obligations of its predecessor with the same effect as if originally named as the Calculation Agent under this Agreement.
	6.7	If the appointment of the Calculation Agent under this Agreement is terminated (whether by the Issuer and the Guarantor or by the resignation of the Calculation Agent), the Calculation Agent will on the date on which the termination takes effect deliver to the successor Calculation Agent any records concerning the Relevant Covered Bonds maintained by it (except those documents and records which it is obliged by law or regulation to retain or not to release), but will have no other duties or responsibilities under this Agreement.
	6.8	Any corporation into which the Calculation Agent may be merged or converted, or any corporation with which the Calculation Agent may be consolidated, or any corporation resulting from any merger, conversion or consolidation to which the Calculation Agent will be a party, or any corporation to which the Calculation Agent will sell or otherwise transfer all or substantially all of its assets will, on the date when the merger, consolidation or transfer becomes effective and to the extent permitted by any applicable laws, become the successor Calculation Agent under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement, unless otherwise required by the Issuer and the Guarantor, and after the said effective date all references in this Agreement to the Calculation Agent will be deemed to be references to such successor corporation. Written notice of any such merger, conversion, consolidation or transfer will immediately be given to the Issuer, the Guarantor, the Bond Trustee, the Principal Paying Agent and the Rating Agencies by the Calculation Agent.
	6.9	Upon any termination or resignation of the Calculation Agent hereunder, the Guarantor shall provide notice to Canada Mortgage and Housing Corporation (“CMHC”) of such termination or resignation and of the Calculation Agent’s replacement contemporaneously with the earlier of (i) notice of such termination or resignation and replacement to a rating agency, (ii) notice of such termination or resignation and

 

    	 

    	 

    

 

	 	replacement being provided to or otherwise made available
to holders of Covered Bonds, and (iii) five (5) business days following such termination or resignation and replacement (unless
the replacement Calculation Agent has yet to be identified at that time, in which case notice of the replacement Calculation Agent
may be provided no later than ten (10) business days thereafter). Any such notice shall include (if known) the reasons for the
termination or resignation of the Calculation Agent, and all information relating to the replacement Calculation Agent required
by the CMHC Guide to be provided to CMHC in relation to the Calculation Agent and this Agreement.  

		7.	COMMUNICATIONS

 

	

7.1	

All communications will be by facsimile, e-mail or letter delivered by hand. Each communication will be made to the relevant party at the facsimile number or address and marked for the attention of the Person or department from time to time specified in writing by that party to the others for the purpose. The initial facsimile number and Person or department so specified by each party are set out in Schedule 2 of the Agency Agreement or, in the case of the Calculation Agent, on the signature page of this Agreement. 
	7.2	A communication (if by facsimile) when an acknowledgement of receipt is received or (if by letter) when delivered, in each case in the manner required by this Section. However, if a communication is received after business hours on any Business Day or on a day which is not a Business Day in the place of receipt it will be deemed to be received and become effective at the opening of business on the next Business Day in the place of receipt. Every communication will be irrevocable save in respect of any manifest error in it.

		8.	CHANGE OF BOND TRUSTEE

 

	

8.1	

If there is any change in the identity of the Bond Trustee in accordance with the Trust Deed, the parties of this Agreement will execute such documents and take such action as the successor Bond Trustee and the outgoing Bond Trustee may reasonably require for the purpose of vesting in the successor Bond Trustee the rights of the outgoing Bond Trustee under this Agreement.
	8.2	It is hereby acknowledged and agreed that by its execution of this Agreement the Bond Trustee will not assume or have any obligations or liabilities to any of the other parties hereto under this Agreement and that the Bond Trustee has agreed to become a party to this Agreement for the purpose only of taking the benefit of this Agreement and agreeing to amendments thereto. Any liberty or right which may be exercised or any determination which may be made under this Agreement by the Bond Trustee may be exercised or made in the Bond Trustee’s absolute discretion without any obligation to give reasons therefor, and the Bond Trustee will not be responsible for any Liability occasioned by so acting but subject always to the provisions of Article 18 (Bond Trustee’s Liability) of the Trust Deed.

 

    	 

    	 

    

		9.	Representations, Warranties and Covenants

The Calculation Agent
represents and warrants to, and covenants with, each of the Issuer, the Guarantor and the Bond Trustee at the date hereof, and
for as long as it is a party to this Agreement, that:

	9.1	it possesses the necessary experience, qualifications, facilities and other resources to perform its responsibilities in relation to its duties and obligations hereunder and the other Transaction Documents to which it is a party;
	9.2	it is and will continue to be in regulatory good standing and in material compliance with and under all Laws applicable to its duties and obligations hereunder and the other Transaction Documents to which it is a party;
	9.3	it is and will continue to be in material compliance with its internal policies and procedures (including risk management policies) relevant to its duties and obligations hereunder and the other Transaction Documents to which it is a party;
	9.4	it will exercise reasonable skill and care in the performance of its obligations hereunder and the other Transaction Documents to which it is a party; and
	9.5	it will comply with the CMHC Guide and all material legal and regulatory requirements applicable to the conduct of its business so that it can lawfully attend to the performance of its obligations hereunder and the other Transaction Documents to which it is a party.

 

		10.	DESCRIPTIVE HEADINGS AND COUNTERPARTS

 

	

10.1	

The descriptive headings in this Agreement are for convenience of reference only and will not define or limit the provisions hereof.
	10.2	This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.

		11.	GOVERNING LAW

This Agreement shall be governed
by, and construed in accordance with, the laws of the Province of Ontario and the federal laws of Canada applicable therein.

		12.	SUBMISSION TO JURISDICTION

Each party to this Agreement
hereby irrevocably submits to the non-exclusive jurisdiction of the courts of the Province of Ontario in any action or proceeding
arising out of or relating to this Agreement.

 

    	 

    	 

    

THIS AGREEMENT has been entered
into on the date stated at the beginning of this Agreement.

	THE BANK OF NOVA SCOTIA, as Issuer	 	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner SCOTIABANK COVERED BOND GP INC.
	 	 	 
	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:
	 	 	 
	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:
	 	 	 
	THE BANK OF NOVA SCOTIA, LONDON BRANCH, as Principal Paying Agent, Calculation Agent, a Registrar and a Transfer Agent	 	COMPUTERSHARE TRUST COMPANY OF CANADA, as Bond Trustee and as Bond Trustee
	 	 	 
	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name:
	 	Title:	 	 	Title:
	 	 	 
	 	 	 
	By:	 	 	By:	 
	 	Name:	 	 	Name: 
	 	Title:	 	 	
        Title:

         

	 	 	[·], as Calculation Agent
	 	 	 	By:	 
	 	 	 	 	Name:
	 	 	 	 	Title:
	 	 	 	 
	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name: 
	 	 	 	 	Title: 

    	 

    	 

    

SCHEDULE TO THE CALCULATION AGENCY
AGREEMENT

 

	Series number	Issue Date	Maturity Date	Title and Nominal Amount	NGCB

[Yes/No]	Annotation
    by Calculation Agent/Issuer

 

    	 

    	 

    

 

SCHEDULE 2

TRADING DESK AND ADMINISTRATIVE INFORMATION

The Issuer

THE BANK OF NOVA SCOTIA

44 King Street West

Toronto, Ontario

M5H 1H1

Facsimile:416-945-4001

Attention:Managing Director, Alternate Funding

 

The Guarantor

SCOTIABANK COVERED BOND GUARANTOR
LIMITED PARTNERSHIP by its managing general partner, Scotiabank
Covered Bond GP Inc.

c/o The Bank of Nova Scotia

44 King Street West

Toronto, Ontario

M5H 1H1

Facsimile:416-945-4001

Attention:Managing Director, Alternate Funding

 

    	 

    	 

    

The Principal Paying Agent, a Registrar

and a Transfer Agent

THE BANK OF NOVA SCOTIA,

LONDON BRANCH

201 Bishopsgate, London EC2M 3NS

Facsimile:02-7826-5707

Attention:Kevin Sharples

A Paying Agent, a Registrar, the
Exchange Agent

and a Transfer Agent

THE BANK OF NOVA SCOTIA

TRUST COMPANY OF NEW YORK

One Liberty Plaza, 23rd Floor

New York, New York 10006

Facsimile:212-225-5436

Attention:Vice President

The Bond Trustee

COMPUTERSHARE TRUST COMPANY OF CANADA

100 University Avenue, 11th Floor

Toronto, Ontario M5J 2Y1

Attention:Manager,
Corporate Trust  

Facsimile:416-981-9777 

    	 

    	 

    

SCHEDULE 3

FORMS OF FINAL TERMS DOCUMENT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

PART A

FORM OF FINAL TERMS DOCUMENT 

FOR U.S. REGISTERED COVERED BONDS

- Attached -

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

PART B

FORM OF FINAL TERMS DOCUMENT 

FOR COVERED BONDS OTHER THAN U.S. REGISTERED COVERED BONDS BUT LISTED ON A REGULATED MARKET IN EUROPE

- Attached -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

PART C

FORM OF PRICING SUPPLEMENT FOR COVERED BONDS OTHER THAN U.S. REGISTERED COVERED BONDS AND NOT LISTED ON A REGULATED MARKET IN
EUROPE

- Attached -

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

SCHEDULE 4

FORM OF CERTIFICATE FOR EXCHANGE OR
TRANSFER

OF REGISTERED COVERED BONDS OR BENEFICIAL INTEREST IN REGISTERED COVERED BONDS

[Reserved]

[This certificate
is not required for transfers of interests in a Registered Global Covered Bond to persons who wish to hold the transferred interest
in the same Registered Global Covered Bond]

[DATE]

	To:	[ ]
	 	(as Registrar)
	 	[ ]
	 	(as Issuer)

 

THE BANK OF NOVA
SCOTIA (the “Issuer”)

[Title of Series of Covered Bonds] (the “Covered
Bonds”)

issued pursuant to a Registered Global Covered
Bond Program (the “Program”) 

guaranteed as to payments of interest and
principal by

SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP

Reference is made
to the terms and conditions of the Covered Bonds (the “Terms and Conditions”) set out in Schedule 1 to
the Amended and Restated Trust Deed dated as of September 12, 2013, as supplemented, amended
and restated from time to time between the Issuer and the other parties named therein relating to the Program. Terms defined in
the Terms and Conditions shall have the same meaning when used in this Certificate unless otherwise stated.

This Certificate relates
to [insert Specified Currency and nominal amount of Covered Bonds] of Covered Bonds which are held in the form of [one or
more Regulation S Definitive Covered Bonds] [beneficial interests in one or more Regulation S Covered Bonds (ISIN No. [specify])
represented by a Regulation S Global Covered Bond] [Rule 144A Definitive Covered Bonds] [beneficial interests in one or more Rule
144A Covered Bonds (ISIN No. [specify]; CUSIP No. [specify]) represented by a Rule 144A Global Covered Bond] in the
name of [transferor] (the "Transferor"). The Transferor has requested an exchange or transfer of such [Regulation
S Definitive Covered Bonds] [Rule 144A Definitive Covered Bonds] [beneficial interests in one or more Regulation S Covered Bonds]
[beneficial interests in one or more Rule 144A Covered Bonds] for [Regulation S Definitive Covered Bonds] [an interest in Regulation
S Covered Bonds represented by a Regulation S Global Covered Bond] [Rule 144A Definitive Covered Bonds] [an interest in Rule 144A
Covered Bonds represented by a Rule 144A Global Covered Bond].

In connection therewith,
the Transferor certifies that such exchange or transfer has been effected in accordance with the transfer restrictions set forth
in the Covered Bonds and in accordance with any applicable securities laws of the United States of America, any State of the United
States of America or any other jurisdiction and any applicable rules and regulations of DTC, Euroclear and Clearstream, Luxembourg
or any other relevant clearing system from time to time and, accordingly, the Transferor certifies as follows (terms used in this
paragraph that are defined in Rule 144A or in Regulation S are used herein as defined therein):

Either:

		1.	[the offer of the Covered Bonds was not made to a person in the United States;

 

    	 

    	- 2 -

    

		2.	either the transaction was executed in, on or through the facilities of a designated offshore
securities market and neither the Transferor nor any person acting on the Transferor's behalf knows that the transaction was pre-arranged
with a transferee in the United States or the transferee is outside the United States, or the Transferor and any person acting
on its behalf reasonably believes that the transferee is outside the United States;

		3.	no directed selling efforts have been made in contravention of the requirement of Rule 903 or 904
of Regulation S, as applicable; and

		4.	the transaction is not part of a plan or scheme to evade the registration requirements of the Securities
Act.]1

Or:

[Such Covered
Bonds are being transferred in accordance with Rule 144A to a transferee that the Transferor reasonably believes is purchasing
the Covered Bonds for its own account or any account with respect to which the transferee and any such account is a "qualified
institutional buyer" within the meaning of Rule 144A, in each case in a transaction meeting the requirements of Rule 144A
and in accordance with any applicable securities laws of any state of the United States or any other jurisdiction.]2

[The Covered Bonds are
being transferred in a transaction permitted by Rule 144 under the Securities Act.]3

The Transferor understands
that this Certificate is required in connection with certain securities or other legislation in the United States and/or in connection
with the Covered Bonds being eligible for clearance in one or more clearance systems. If administrative or legal proceedings are
commenced or threatened in connection with which this notice is or might be relevant, the Transferor irrevocably authorises the
entity to whom the Certificate is addressed to produce this Certificate or a copy hereof to any interested party in such proceedings.

This Certificate and
the statements contained herein are made for the benefit of the addressee hereof and the benefit of the Dealers of the above Covered
Bonds.

[Insert name of Transferor]

By:

Name:

Title:

Dated:

 

 

 

1
       Include as applicable. Relevant only if the proposed transfer or exchange is being made to a person holding in the form of
or for a beneficial interest in one or more Regulation S Global Covered Bonds or Definitive Regulation S Covered Bonds.

2
      Include as applicable. Relevant only if the proposed transfer or exchange is being made to a person holding in the form of
or for a beneficial interest in one or more Rule 144A Global Covered Bonds or Rule 144A Definitive Covered Bonds.

3
      Include as applicable.

 

    	 

    	 

    

SCHEDULE 5

REGISTER AND TRANSFER OF REGISTERED
COVERED BONDS

		1.	The Issuer will at all times ensure that the Registrar maintains outside the United Kingdom the
Register showing the amount of the Registered Covered Bonds from time to time outstanding and the dates of issue and all subsequent
transfers and changes of ownership thereof and the names and addresses of the holders of the Registered Covered Bonds. The holders
of the Registered Covered Bonds or any of them and any Person authorized by it or any of them may at all reasonable times during
office hours inspect the Register and take copies of or extracts from it. The Register may be closed by the Issuer for such periods
at such times (not exceeding in total 30 days in any one year) as it may think fit.

		2.	Each Registered Covered Bond will have an identifying serial number which will be entered on the
Register.

		3.	The Registered Covered Bonds are transferable by execution of the form of transfer endorsed thereon
under the hand of the transferor or, where the transferor is a corporation, under its common seal or under the hand of two of its
officers duly authorized in writing.

		4.	The Registered Covered Bonds to be transferred must be delivered for registration to the specified
office of the Registrar with the form of transfer endorsed thereon duly completed and executed and must be accompanied by such
documents, evidence and information (including, but not limited to, Transfer Certificates where applicable) as may be required
pursuant to the Terms and Conditions and such other evidence as the Issuer and/or the Registrar may reasonably require to prove
the title of the transferor or his right to transfer the Registered Covered Bonds and, if the form of transfer is executed by some
other Person on his behalf or in the case of the execution of a form of transfer on behalf of a corporation by its officers, the
authority of that Person or those Persons to do so.

		5.	The executors or administrators of a deceased holder of Registered Covered Bonds (not being one
of several joint holders) and in the case of the death of one or more of several joint holders the survivor or survivors of such
joint holders will be the only Person or Persons recognized by the Issuer as having any title to such Registered Covered Bonds.

		6.	Any Person becoming entitled to Registered Covered Bonds in consequence of the death or bankruptcy
of the holder of such Registered Covered Bonds may upon producing such evidence that he holds the position in respect of which
he proposes to act under this paragraph or of his title as the Issuer will require be registered himself as the holder of such
Registered Covered Bonds or, subject to the preceding paragraphs as to transfer, may transfer such Registered Covered Bonds. The
Issuer will be at liberty to retain any amount payable upon the Registered Covered Bonds to which any Person is so entitled until
such Person will be registered as aforesaid or will duly transfer the Registered Covered Bonds.

		7.	Unless otherwise requested by him, the holder of Registered Covered Bonds of any Series will be
entitled to receive only one Registered Covered Bond in respect of his entire holding of such Series.

 

    	 

    	 

    

		8.	The joint holders of Registered Covered Bonds of any Series will be entitled to one Registered
Covered Bond only in respect of their joint holding of such Series which will, except where they otherwise direct, be delivered
to the joint holder whose name appears first in the Register in respect of such joint holding.

		9.	Where a holder of Registered Covered Bonds has transferred part only of his holding of any Series
there will be delivered to him without charge a Registered Covered Bond in respect of the balance of such holding.

		10.	The Issuer will make no charge to the Covered Bondholders for the registration of any holding of
Registered Covered Bonds or any transfer thereof or for the issue thereof or for the delivery thereof at the specified office of
the Registrar or by post to the address specified by the holder. If any holder entitled to receive a Registered Covered Bond wishes
to have the same delivered to him otherwise than at the specified office of the Registrar, such delivery will be made, upon his
written request to the Registrar, at his risk and (except where sent by post to the address specified by the holder) at his expense.

		11.	The holder of a Registered Covered Bond may (to the fullest extent permitted by applicable laws)
be treated at all times, by all Persons and for all purposes as the absolute owner of such Registered Covered Bond notwithstanding
any notice any Person may have of the right, title, interest or claim of any other Person thereto. The Issuer will not be bound
to see to the execution of any trust to which any Registered Covered Bond may be subject and no notice of any trust will be entered
on the Register. The holder of a Registered Covered Bond will be recognized by the Issuer as entitled to his Registered Covered
Bond free from any equity, set-off or counterclaim on the part of the Issuer against the original or any intermediate holder of
such Registered Covered Bond.

		12.	A Registered Covered Bond may not be exchanged for a Bearer Covered Bond or vice versa.

 

    	 

    	 

    

SCHEDULE 6

Additional
duties of the Principal Paying Agent AND THE REGISTRAR

In relation to each
Series of Covered Bonds that are NGCBs and each series of Covered Bonds that are held under the New Safekeeping Structure, each
of the Principal Paying Agent and the Registrar will comply with the following provisions:

		1.	The Principal Paying Agent or the Registrar, as the case may be, will inform each of Euroclear
and Clearstream, Luxembourg (the ICSDs), through the common service provider appointed by the ICSDs to service the Covered
Bonds (the CSP), of the initial issue outstanding amount (IOA) for each Tranche on or prior to the relevant Issue
Date.

		2.	If any event occurs that requires a mark up or mark down of the records which an ICSD holds for
its customers to reflect such customers' interest in the Covered Bonds, the Principal Paying Agent and the Registrar will (to the
extent known to it) promptly provide details of the amount of such mark up or mark down, together with a description of the event
that requires it, to the ICSDs (through the CSP) to ensure that the IOA of the Covered Bonds (in the case of NGCBs) or the
records of the ICSDs reflecting the IOA (in the case of Covered Bonds held under the NSS) remains at all times accurate.

		3.	The Principal Paying Agent and the Registrar will at least once every month perform a reconciliation
process with the ICSDs (through the CSP) with respect to the IOA for the Covered Bonds and will promptly inform the ICSDs (through
the CSP) of any discrepancies.

		4.	The Principal Paying Agent and the Registrar will promptly assist the ICSDs (through the CSP) in
resolving any discrepancy identified in the IOA of the Covered Bonds (in the case of NGCBs) or in the records of the ICSDs reflecting
the IOA (in the case of the Covered Bonds held under the NSS).

		5.	The Principal Paying Agent and the Registrar will promptly provide to the ICSDs (through the CSP)
details of all amounts paid by it under the Covered Bonds (or, where the Covered Bonds provide for delivery of assets other than
cash, of the assets so delivered).

		6.	The Principal Paying Agent and the Registrar will (to the extent known to it) promptly provide
to the ICSDs (through the CSP) notice of any changes to the Covered Bonds that will affect the amount of, or date for, any payment
due under the Covered Bonds.

		7.	The Principal Paying Agent and the Registrar will (to the extent known to it) promptly provide
to the ICSDs (through the CSP) copies of all information that is given to the holders of the Covered Bonds.

		8.	The Principal Paying Agent and the Registrar will promptly pass on to the Issuer all communications
it receives from the ICSDs directly or through the CSP relating to the Covered Bonds.

		9.	The Principal Paying Agent and the Registrar will (to the extent known to it) promptly notify the
ICSDs (through the CSP) of any failure by the Issuer to make any payment or delivery due under the Covered Bonds when due.Exhibit 4.5

 

Execution Version

AMENDED AND RESTATED SECURITY AGREEMENT

 

SCOTIABANK COVERED BOND GUARANTOR
LIMITED PARTNERSHIP,

as Guarantor

- and -

COMPUTERSHARE
TRUST COMPANY OF CANADA,

as Bond Trustee

- and -

THE BANK OF NOVA SCOTIA,

as Issuer, Seller, Servicer, Cash Manager, Interest Rate Swap Provider, Covered Bond Swap Provider, Managing GP, Intercompany Loan
Provider,

GDA Provider and Account Bank

- and -

THE BANK OF NOVA SCOTIA, LONDON BRANCH,

as Principal Paying Agent, a Registrar and a Transfer Agent

- and -

THE BANK OF NOVA SCOTIA, NEW YORK
AGENCY,

as a Paying Agent, a Registrar, a Transfer Agent and the Exchange Agent

 

 

DATED AS OF SEPTEMBER
24, 2013

    	 

    	 

    

CONTENTS

	ARTICLE 1 INTERPRETATION	3
	1.1	Definitions	3
	1.2	Interpretation	3
	1.3	Schedules	3
	1.4	Amendment and Restatement	4
	ARTICLE 2 SECURITY	4
	2.1	Loans and Related Security	4
	2.2	Contractual Rights	4
	2.3	Accounts	5
	2.4	Excess Proceeds	5
	2.5	Substitute Assets	5
	2.6	Other Property	6
	2.7	Notice and Acknowledgement	6
	2.8	Bond Trustee’s Discretion	6
	2.9	Declaration of Trust	6
	2.10	Appointment of Agent	7
	2.11	Fondé de Pouvoir and Power of Attorney	7
	ARTICLE 3 RELEASE OF CHARGED PROPERTY	7
	3.1	On Payment and Discharge of Secured Obligations	7
	3.2	Disposal of Substitute Assets	7
	3.3	Withdrawals from Guarantor Accounts	8
	3.4	Sale of the Portfolio	8
	ARTICLE 4 CONTINUANCE OF SECURITY	8
	4.1	Continuing Security	8
	4.2	Acknowledgement	8
	4.3	Accession of New Secured Creditors	9
	ARTICLE 5 PAYMENTS OUT OF THE GUARANTOR ACCOUNTS PRIOR TO ENFORCEMENT	9
	5.1	Priorities of Payments	9
	5.2	Investments in Substitute Assets	9
	5.3	Management and Application of Funds	10
	5.4	Enforcement When Not All Amounts Due and Payable	10
	ARTICLE 6 PAYMENTS OUT OF THE GUARANTOR ACCOUNTS UPON ENFORCEMENT	10
	6.1	After a Guarantor Acceleration Notice	10
	6.2	Payment of Funds After Service of a Guarantor Acceleration Notice and Enforcement of Security	11

    	 

    	 

    

	ARTICLE 7 CONFLICT	14
	7.1	Secured Creditors	14
	7.2	Acknowledgement	15
	ARTICLE 8 THE BOND TRUSTEE’S POWERS	15
	8.1	Prior Notification	15
	8.2	Enforceability	15
	8.3	Application to Court	16
	8.4	Retention of Advisers	16
	8.5	Additional Powers of the Bond Trustee	16
	8.6	Scotia Total Equity Plan and STEP Loans	19
	ARTICLE 9 RECEIVER	19
	9.1	Appointment	19
	9.2	Removal and Replacement	19
	9.3	Extent of Appointment	19
	9.4	Agent of the Guarantor	20
	9.5	Remuneration	20
	9.6	Powers of Receiver	20
	ARTICLE 10 PROTECTION OF THIRD PARTIES	23
	10.1	Enquiry	23
	10.2	Receipts	23
	ARTICLE 11 PROTECTION OF BOND TRUSTEE AND RECEIVER	23
	11.1	Standard of Care	23
	11.2	Possession	23
	11.3	Mortgagee in Possession	23
	ARTICLE 12 EXPENSES	24
	12.1	Expenses	24
	12.2	Interest	24
	ARTICLE 13 PROTECTION OF SECURITY	25
	13.1	Protection of Security	25
	ARTICLE 14 POWER OF ATTORNEY, ETC.	25
	14.1	Execution of Power of Attorney	25
	14.2	Charged Property of the Guarantor	25
	ARTICLE 15 OTHER SECURITY, ETC.	26
	15.1	No Merger	26
	15.2	Change of Name, etc.	26

    	ii

    	 

    

 

	ARTICLE 16 AVOIDANCE OF PAYMENTS	26
	16.1	No Release	26
	16.2	Retention of Charges	26
	ARTICLE 17 EXERCISE OF CERTAIN RIGHTS	27
	17.1	No Enforcement by Secured Creditors	27
	17.2	Subordination	27
	17.3	Knowledge of Bond Trustee of an Guarantor Event of Default	28
	17.4	Discretionary Enforcement	29
	17.5	Mandatory Enforcement	29
	17.6	Mandatory other action	29
	17.7	Disposal of Charged Property	30
	ARTICLE 18 COVENANTS AND WARRANTIES	30
	18.1	Representations and Warranties of the Guarantor	30
	18.2	Representations, Warranties and Covenants of the Bond Trustee	30
	18.3	Negative Covenants of Guarantor	31
	18.4	Positive Covenants of Guarantor	32
	18.5	[Reserved.]	33
	18.6	Representations and Warranties, etc.	33
	18.7	Perfection	34
	18.8	Enforceability, etc.	34
	18.9	No Supervision	36
	18.10	Use of Proceeds	36
	18.11	Material Prejudice	36
	18.12	Deficiency or Additional Payment	36
	ARTICLE 19 THE BOND TRUSTEE	37
	19.1	Change of Bond Trustee	37
	19.2	Compliance with CMHC Guide	37
	ARTICLE 20 SUPPLEMENTAL PROVISIONS REGARDING THE BOND TRUSTEE	37
	20.1	Assumption of No Default	37
	20.2	Delegation	37
	20.3	Commercial Transactions	38
	20.4	Additional Powers	38
	20.5	Consent of Bond Trustee	38
	20.6	Modification, Waiver or Authorisation to Transaction Documents	39
	20.7	Authorisation or Waiver of Breach	41
	20.8	Deemed Consent	41
	20.9	Incorporation by Reference	42
	ARTICLE 21 REMUNERATION AND INDEMNIFICATION OF THE BOND TRUSTEE	42
	21.1	Remuneration	42

 

    	iii

    	 

    

	21.2	Additional Remuneration	42
	21.3	Disputes	43
	21.4	Expenses	43
	21.5	Indemnity	43
	21.6	Interest	44
	21.7	Survival	44
	21.8	Discretion	44
	21.9	Expenditures	44
	ARTICLE 22 APPOINTMENT OF NEW BOND TRUSTEE AND  REMOVAL OF BOND TRUSTEE	44
	22.1	Power of Guarantor	44
	22.2	Power of Bond Trustee	45
	22.3	Multiple Bond Trustees	45
	ARTICLE 23 RETIREMENT OF BOND TRUSTEE	45
	23.1	Retirement of Bond Trustee	45
	ARTICLE 24 NOTICES AND DEMANDS	45
	24.1	Notices	45
	24.2	Notice of Termination/Resignation to CMHC	46
	ARTICLE 25 COUNTERPARTS	46
	25.1	Counterparts	46
	ARTICLE 26 NON-PETITION	46
	26.1	Non-Petition	46
	ARTICLE 27 FURTHER PROVISIONS	47
	27.1	Evidence of Indebtedness	47
	27.2	Rights Cumulative, Waivers	47
	27.3	Invalidity of any Provision	47
	27.4	Liability	47
	27.5	Severability	48
	27.6	Variation	48
	27.7	Secured Creditors	48
	27.8	Further Assurance	48
	27.9	Assignment	48
	27.10	Limitation of Liability	49
	ARTICLE 28 GOVERNING LAW	49
	28.1	Governing Law	49
	28.2	Submission to Jurisdiction	49

 

    	iv

    	 

    

	SCHEDULE 1	1
	SCHEDULE 2	1
	SCHEDULE 3	1

    	v

    	 

    

THIS AMENDED AND RESTATED SECURITY
AGREEMENT is made as of September 24, 2013

BETWEEN:

		(1)	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP,
a limited partnership formed under the laws of the Province of Ontario, whose registered office is at 100 King Street West, Suite
6100, 1 First Canadian Place, Toronto, Ontario, M5X 1B8, by its managing general partner, Scotiabank
Covered Bond GP Inc. (in its capacity as the Guarantor);

		(2)	COMPUTERSHARE
TRUST COMPANY OF CANADA, a trust company incorporated under the laws of Canada, whose registered office is at
100 University Avenue, 11th Floor, Toronto, Ontario M5J 2Y1, in its capacity as Bond Trustee, which expression includes
such company and all other Persons or companies for the time being acting as bond trustee or bond trustees under this Agreement
and under the Trust Deed;

		(3)	THE BANK OF NOVA SCOTIA, a bank named in Schedule
I to the Bank Act, whose executive office is at Scotia Plaza, 44 King Street West, Toronto, Ontario, M5H 1H1, in its capacity
as Issuer, Seller, Servicer, Cash Manager, Interest Rate Swap Provider, Covered Bond Swap Provider, Managing GP, Intercompany
Loan Provider, GDA Provider and Account Bank;

		(4)	THE BANK OF NOVA SCOTIA, LONDON BRANCH, acting through
its office at 210 Bishopsgate, London EC2M 3NS, in its capacities as the Principal Paying Agent, Registrar and a Transfer Agent;

		(5)	THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, acting
through its office at One Liberty Plaza, 23rd Floor, New York, NY 10006, in its capacity as a Paying Agent, a Registrar,
a Transfer Agent and the Exchange Agent; and

WHEREAS:

		(A)	Pursuant to the Trust Deed, the Guarantor has provided a
guarantee covering all Guaranteed Amounts when the same become Due for Payment in respect of all Covered Bonds issued under the
Program from time to time;

		(B)	The parties hereto (other than The Bank of Nova Scotia,
New York Agency) entered into a security agreement made as of July 19, 2013 (the “Original Security Agreement”)
pursuant to which the Guarantor executed and delivered the Original Security Agreement to and in favour of the Bond Trustee (on
behalf of the Secured Creditors) as security for the payment and performance of the Guarantor's obligations under the Transaction
Documents to which the Guarantor is a party, including but not limited to the Trust Deed; and

		(C)	The parties hereto have agreed to amend and restate the
Original Security Agreement with effect from and after the date hereof;

    	 

    	 

    

AND WHEREAS:

		(A)	The Issuer has agreed to make available an Intercompany Loan to the Guarantor comprised of the Guarantee Loan and the Demand
Loan pursuant to the terms of the Intercompany Loan Agreement, upon and subject to the terms thereof.

		(B)	The Seller has agreed to sell the Initial Portfolio to the
Guarantor on the First Transfer Date pursuant to the Mortgage Sale Agreement. The Seller may also sell from time to time Additional
Loans and their Related Security to the Guarantor after the First Transfer Date.

		(C)	The Servicer has agreed to service the Loans and their Related
Security included in the Covered Bond Collateral on the terms set out in the Servicing Agreement.

		(D)	The Cash Manager has agreed to provide certain cash management
services to the Guarantor and the Bond Trustee on the terms set out in the Cash Management Agreement.

		(E)	The Managing GP has agreed to provide certain corporate
and management services to the Guarantor on the terms set out in the Administration Agreement.

		(F)	The Account Bank and the GDA Provider have agreed to provide
certain banking services to the Guarantor on the terms set out in the Bank Account Agreement and the Guaranteed Deposit Account
Contract, respectively.

		(G)	The Agents have agreed to provide certain agency services
on behalf of the Guarantor to the Guarantor for the benefit of the Covered Bondholders pursuant to the Agency Agreement.

		(H)	The Standby GDA Provider has agreed to pay interest on any
funds standing to the credit of the Standby GDA Account, if any, to the Guarantor on the terms set out in the Standby Guaranteed
Deposit Account Contract.

		(I)	The Standby Account Bank has agreed to make available a
Standby GDA Account and Standby Transaction Account to the Guarantor on the terms set out in the Standby Bank Account Agreement.

		(J)	New Secured Creditors (including, without limitation, New
Sellers, New Servicers, new Interest Rate Swap Providers and new Covered Bonds Swap Providers) will accede to this Agreement from
time to time on the terms set out herein.

		(K)	The Guarantor has agreed to grant the security described
in this Agreement to the Bond Trustee to secure the Guarantor’s obligations under the Transaction Documents, upon and subject
to the terms hereof. The Bond Trustee will hold such security on trust for the benefit of the Secured Creditors.

    	2

    	 

    

NOW THEREFORE, IT IS HEREBY AGREED
that in consideration of the mutual covenants and agreements herein set forth, the parties agree to amend and restate the Original
Security Agreement as follows:

Article
1

INTERPRETATION

		1.1	Definitions

The Amended and Restated Master Definitions
and Construction Agreement made between the parties to the Transaction Documents on September 24,
2013 (as the same may be amended, varied and/or supplemented from time to time with the consent of the parties thereto)
(the “Master Definitions and Construction Agreement”) is expressly and specifically incorporated into this Agreement
and, accordingly, the expressions defined in the Master Definitions and Construction Agreement (as so amended, varied and/or supplemented)
will, except where the context otherwise requires and save where otherwise defined herein, have the same meanings in this Agreement,
including the recitals hereto and this Agreement will be construed in accordance with the interpretation provisions set out in
Section 2 (Interpretation and Construction) of the Master Definitions and Construction Agreement.

		1.2	Interpretation

		(a)	For the purposes of this Agreement, “this Agreement”
has the same meaning as “Security Agreement” in the Master Definitions and Construction Agreement.

		(b)	In this Agreement, except where the context otherwise
requires:

		(i)	if the Bond Trustee considers that an amount paid by the
Guarantor to a Secured Creditor and/or the Bond Trustee and/or any Receiver under or pursuant to any Transaction Document or under
or pursuant to this Agreement is capable of being avoided or otherwise set aside on the liquidation or administration of the Guarantor
or otherwise and that there is a reasonable prospect of such liquidation or administration occurring and of such payment being
so avoided or set aside, then that amount will not be considered to have been irrevocably paid for the purposes of this Agreement;
and

		(ii)	a reference in this Agreement to any property, assets,
undertakings or rights includes, unless the context otherwise requires, present and future property, assets, undertakings or rights.

		1.3	Schedules

The Schedules attached to this Agreement
will, for all purposes of this Agreement, form an integral part of it.

    	3

    	 

    

		1.4	Amendment and Restatement

This Agreement amends and restates in
full and supersedes the Original Security Agreement, and it is hereby confirmed by the parties hereto that all prior actions of
the parties made pursuant to the Original Security Agreement are effective as if made under this Agreement on the date made.

Article
2

SECURITY

		2.1	Loans and Related Security

The Guarantor, by way of security for
the performance, payment and discharge of the Secured Obligations, subject to Article 3 (Release of Charged Property), hereby grants
to the Bond Trustee on behalf of the Secured Creditors a first priority mortgage, charge, assignment and security interest in all
of its right, title, interest and benefit, present and future, in, to and under the Portfolio in respect of the Loans and their
Related Security included in the Covered Bond Collateral from time to time and all other related rights under the same, and any
proceeds thereof, including all amounts which may become payable thereunder, all related insurance proceeds and claims (including
those arising from property insurance, title insurance and any other insurance policies held by the Guarantor or by the Seller
on its behalf) and the benefit of all covenants relating thereto and all powers and remedies for enforcing the same and the Customer
Files and other documents relating to a Mortgaged Property included in the Covered Bond Collateral including (without limiting
the generality of the foregoing) any consents, postponements, reports, valuations (including all Valuation Reports), opinions,
certificates and other statements of fact or opinion or both given in connection with the Loans and their Related Security included
in the Covered Bond Collateral from time to time (and all causes and rights of action of the Guarantor against any Person in connection
with the same) and any other contractual documents or any security documents in either case setting out the terms of the Loans
and their Related Security included in the Covered Bond Collateral from time to time.

		2.2	Contractual Rights

The Guarantor, by way of security for
the performance, payment and discharge of the Secured Obligations, subject to Article 3 (Release of Charged Property), hereby grants
to the Bond Trustee a first priority mortgage, charge, assignment and security interest in all of its right, title, benefit and
interest, present and future, in, to and under the Transaction Documents (other than this Agreement) and all other related rights
under the same, and any proceeds thereof, including all rights to receive payment of any amounts which may become payable to it
thereunder, all payments received by it thereunder, the benefit of all covenants relating thereto and all powers and remedies for
enforcing the same including, without limitation, all rights to serve notices and/or make demands thereunder and/or to take such
steps as are required to cause payments to become due and payable thereunder and all rights of action in respect of any breach
thereof and all rights to receive damages or obtain relief in respect thereof.

    	4

    	 

    

		2.3	Accounts

The Guarantor, by way of security for
the performance, payment and discharge of the Secured Obligations, subject to Article 3 (Release of Charged Property), hereby grants
to the Bond Trustee a first priority security interest in all of its rights, interest and benefit, present and future, in and to
all funds now or at any time hereafter standing to the credit of the Guarantor Accounts, and each other account (if any) in which
the Guarantor may at any time have or acquire any right, title, benefit or interest, and the debts represented by them together
with all rights relating or attached thereto (including the right to interest).

		2.4	Excess Proceeds

The Guarantor, by way of security for
the performance, payment and discharge of the Secured Obligations, subject to Article 3 (Release of Charged Property), hereby grants
to the Bond Trustee a first priority security interest in all of its right, title, interest and benefit, present and future in,
to and under any Excess Proceeds received by the Bond Trustee pursuant to the Trust Deed.

		2.5	Substitute Assets

The Guarantor, by way of security for
the performance, payment and discharge of the Secured Obligations, subject to Article 3 (Release of Charged Property), hereby grants
to the Bond Trustee a first priority security interest in all of its right, title, interest and benefit in, to and under or in
respect of all Substitute Assets for the time being owned by it, including all related securities entitlements and all credit balances,
financial assets and funds, income and proceeds payable thereunder or credited to any related securities account and all rights
in respect of or ancillary to such Substitute Assets, securities accounts, securities entitlements, credit balances and financial
assets.

The Guarantor shall hold any of its security
entitlements in a securities account that (i) is maintained in the name of the Guarantor at an office of a securities intermediary
located in Ontario, and (ii) together with all financial assets credited thereto and all related security entitlements, is subject
to a Securities Account Control Agreement (as defined below) among the Guarantor, the Bond Trustee and such securities intermediary
(“Controlled Securities Account”). The Guarantor shall, at the request of the Bond Trustee (in the Bond Trustee’s
sole discretion), (i) enter into and cause any securities intermediary holding a securities account in respect of Substitute Assets
to enter into a securities account control agreement in form and substance satisfactory to the Bond Trustee acting reasonably (a
“Securities Account Control Agreement”) in respect of all Substitute Assets constituting security entitlements
of the Guarantor, and (ii) deliver each such Securities Account Control Agreement to the Bond Trustee. The Guarantor shall cause
all Substitute Assets underlying any security entitlements acquired by the Guarantor after the date hereof to be credited to a
Controlled Securities Account. For greater certainty, at no time shall any Substitute Assets acquired by the Guarantor be held
in the name of the Seller.

The Bond Trustee will be entitled to
deal with any security entitlements, securities accounts and securities intermediaries holding security entitlements as if it were
the entitlement

    	5

    	 

    

holder thereof including making such entitlement orders as
it deems appropriate and instructing any such securities intermediary to transfer the securities accounts held in any Controlled
Securities Accounts into an account in the name of the Bond Trustee or as it may direct.

		2.6	Other Property

The Guarantor, by way of security for
the performance, payment and discharge of the Secured Obligations, subject to Article 3 (Release of Charged Property), hereby grants
to the Bond Trustee a first priority security interest in the whole of its undertaking and all of its property, assets, rights
and revenues, whatsoever and wheresoever, both present or future, other than any property or assets that is the subject of a security
interest pursuant to Sections 2.1 to 2.5 hereof.

		2.7	Notice and Acknowledgement

In consideration of the benefit of this
Agreement (the receipt of such benefit being evidenced by the Bond Trustee’s execution hereof), each Secured Creditor will
be deemed to have acknowledged the Security made or granted by the foregoing provisions of this Article 2 (Security) and each of
the Secured Creditors will further be deemed to have been notified of and undertaken to the Bond Trustee not to do anything inconsistent
with the Security given under or pursuant to this Agreement or knowingly to prejudice the Security in favour of the Bond Trustee
constituted hereunder or pursuant hereto or the Charged Property provided that, without prejudice to Article 17 (Exercise of Certain
Rights), nothing herein will be construed as limiting the rights or obligations of any of the Secured Creditors exercisable or
to be performed in accordance with and subject to the terms of any of the other Transaction Documents.

		2.8	Bond Trustee’s Discretion

Subject to Section 20.2 (Delegation),
without prejudice to the rights of the Bond Trustee after the Security created under or pursuant to this Agreement has become enforceable,
the Guarantor hereby authorises the Bond Trustee, prior to the Security created by or pursuant to this Agreement becoming enforceable,
to exercise, or refrain from exercising, all rights, powers, authorities, discretions and remedies of the Guarantor under or in
respect of the Transaction Documents referred to in Section 2.2 (Contractual Rights) in such manner as the Bond Trustee in its
absolute discretion will think fit. For the avoidance of doubt, the Bond Trustee will not be required to have regard to the interests
of the Guarantor in the exercise or non-exercise of any such rights, powers, authorities, discretions and remedies or to comply
with any direction given by the Guarantor in relation thereto.

		2.9	Declaration of Trust

The Bond Trustee hereby declares itself
trustee of all the covenants, undertakings, charges, assignments, assignations and other security interests made or given to it
or to be made or given to it under or pursuant to this Agreement and the other Transaction Documents for itself and the other Secured
Creditors in respect of the Secured Obligations owed to each of them respectively upon and subject to the terms and conditions
of this Agreement.

    	6

    	 

    

		2.10	Appointment of Agent

The Guarantor hereby appoints the Bond
Trustee as its agent to do, make and execute, in the name of and on behalf of the Guarantor, all such further acts, documents,
matters and things which the Bond Trustee may deem necessary or advisable to accomplish the purposes of this Agreement including
the execution, endorsement and delivery of documents and any notices, receipts, assignments or verifications of the accounts and
the delivery and transfer of any Charged Property to the Bond Trustee, its nominees or transferees.

		2.11	Fondé de Pouvoir and Power of Attorney

The Bond Trustee is hereby appointed
and accepts its appointment as a holder of an irrevocable power of attorney (fondé de pouvoir) of the Secured Creditors
as contemplated by article 2692 of the Civil Code of Québec to enter into, to take and to hold, on behalf of and
for the benefit of each of the Secured Creditors any hypothec granted on the Charged Property pursuant to the laws of the Province
of Québec to secure or evidence the Secured Obligations, and to exercise such powers and duties that are conferred upon
the Bond Trustee under any deed of hypothec, or under this Agreement or the other Transaction Documents. Any Person who becomes
a Secured Creditor will be deemed to have consented to confirm the Bond Trustee as fondé de pouvoir and to have ratified
as of the date such Person becomes a Secured Creditor all actions taken by the fondé de pouvoir. The execution by
the Bond Trustee, acting as fondé de pouvoir and mandatary, prior to the execution of this Agreement or any deeds
of hypothec, is hereby ratified and confirmed. Notwithstanding the provisions of Section 32 of An Act respecting the special
powers of legal persons (Québec), the Bond Trustee may acquire and be the holder of any bond issued by the Issuer (i.e.,
the fondé de pouvoir may acquire and hold the first bond issued under any deed of hypothec by the Issuer).

Article
3

RELEASE OF CHARGED PROPERTY

		3.1	On Payment and Discharge of Secured Obligations

Upon the irrevocable and unconditional
payment and discharge of all the Secured Obligations in full to the satisfaction of the Bond Trustee, the Bond Trustee will, at
the written request and cost of the Guarantor, release, reassign or discharge the Charged Property to, or to the order of, the
Guarantor.

		3.2	Disposal of Substitute Assets

Upon the Cash Manager, on behalf of the
Guarantor, making a disposal of any Substitute Assets charged pursuant to Section 2.5 (Substitute Assets) in accordance with the
Transaction Documents, the Bond Trustee will, if so requested in writing by the Cash Manager (but at the sole cost and expense
(on an indemnity basis) of the Guarantor), but without being responsible for any loss, costs, claims or liabilities whatsoever
occasioned and howsoever arising by so acting upon such request, release, reassign or discharge from the encumbrances constituted
by this Agreement the relevant Substitute Assets, provided that the proceeds of such disposal are

    	7

    	 

    

paid into the GDA Account (or, as applicable, the Standby
GDA Account), subject to and in accordance with the provisions of the Transaction Documents.

		3.3	Withdrawals from Guarantor Accounts

From time to time, for the avoidance
of doubt, there will be deemed to be released from the Security constituted by this Agreement all amounts which the Cash Manager,
on behalf of the Guarantor and the Bond Trustee, is permitted by the Transaction Documents to withdraw from the Guarantor Accounts
to apply them pursuant to the applicable Priority of Payments and otherwise in accordance with the Transaction Documents, any such
release to take effect immediately upon the relevant withdrawal being made provided that where the relevant amount is transferred
to another Guarantor Account, it will thereupon become subject to the Security constituted by this Agreement in respect of such
other Guarantor Account.

		3.4	Sale of the Portfolio

In the event of any sale of Loans (including
Selected Loans) and their Related Security (and any other related rights under the same) by or on behalf of the Guarantor pursuant
to and in accordance with the other Transaction Documents, such sold Loans and their Related Security (and any other related rights
under the same) will no longer form part of the Portfolio and the Bond Trustee will, if so requested in writing by the Guarantor
(at the sole cost and expense of the Guarantor), release, re-assign or discharge those Loans and their Related Security (and any
other related rights under the same) from the Security created by and pursuant to this Agreement on the date of any such sale and
such Loans and their Related Security will no longer form part of the Portfolio provided that the Bond Trustee will have received
from the Managing GP a certificate that such sale of Loans and their Related Security has been made in accordance with the terms
of the Transaction Documents and, in the case of Selected Loans only, that the Selected Loans are Randomly Selected Loans, and
that the proceeds of sale required to be paid pursuant to the Transaction Documents have been received and deposited into the GDA
Account (or, as applicable, the Standby GDA Account).

Article
4

CONTINUANCE OF SECURITY

		4.1	Continuing Security

The Security contained in or granted
pursuant to this Agreement will remain in force as continuing security for the Secured Creditors notwithstanding any settlement
of account or the existence at any time of a credit balance on any Guarantor Account or other account or any other act, event or
matter whatsoever.

		4.2	Acknowledgement

The Guarantor hereby acknowledges the
Security and undertakes to the Bond Trustee not to do anything inconsistent with the Security or knowingly to prejudice the Security
or the Charged Property or the Bond Trustee’s interest therein and the Guarantor covenants to maintain

    	8

    	 

    

the Security as a first priority and perfected Security Interest
against the Charged Property in priority of all Adverse Claims (subject to Permitted Encumbrances) and will not permit the validity,
effectiveness, or priority of the Security to be postponed, amended, terminated, impaired, released or discharged.

		4.3	Accession of New Secured Creditors

Any New Secured Creditor (excluding the
Covered Bondholders) will accede to the terms of this Agreement by executing an Accession Undertaking in the form or substantially
in the form set out in Schedule 2 to this Agreement.

Article
5

PAYMENTS OUT OF THE GUARANTOR ACCOUNTS PRIOR TO ENFORCEMENT

		5.1	Priorities of Payments

The parties hereto acknowledge that the
Guarantor Agreement sets out the Pre-Acceleration Revenue Priority of Payments, the Pre-Acceleration Principal Priority of Payments
and the Guarantee Priority of Payments (as may be amended from time to time in accordance with the terms of the Transaction Documents)
which will be binding on each of the parties hereto and all Secured Creditors from time to time.

		5.2	Investments in Substitute Assets

Notwithstanding the Security granted
pursuant to Article 2 (Security), the Cash Manager may, on behalf of the Guarantor, invest in the name of the Guarantor, funds
standing from time to time to the credit of the Guarantor Accounts in Substitute Assets in accordance with the Cash Management
Agreement and the Guarantor Agreement provided that:

		(a)	such Substitute Assets and all related securities entitlements
and all credit balances, financial assets and related proceeds credited to any related securities account be subject to the Security
at all times;

		(b)	any costs properly incurred by the Bond Trustee in making
and changing investments will be reimbursed to the Bond Trustee by the Guarantor; and

		(c)	all income from and proceeds following the disposal
or maturity of Substitute Assets will be credited to the relevant Guarantor Account.

Notwithstanding the Security and other
rights created by or pursuant to Article 2 (Security), Substitute Assets may, on any Toronto Business Day, be sold, redeemed, realised
or otherwise disposed of subject always to the other provisions hereof (including without limitation Sections 2.5 (Substitute Assets)
and 3.2 (Disposal of Substitute Assets)) and the other Transaction Documents.

    	9

    	 

    

		5.3	Management and Application of Funds

The Guarantor will take or cause to be
taken such action as may from time to time be necessary on its part to ensure that all amounts received by the Guarantor and falling
within any of the following categories shall from time to time either (i) be credited to the GDA Account (and/or as applicable,
the Standby GDA Account), or (ii) be applied directly in accordance with the applicable Priorities of Payments:

		(a)	all Revenue Receipts and all Principal Receipts;

		(b)	amounts received by the Guarantor pursuant to the Interest
Rate Swap Agreement;

		(c)	Excess Proceeds received from the Bond Trustee pursuant
to the Trust Deed;

		(d)	any other amount whatsoever received by or on behalf
of the Guarantor after the Program Date (including, without limitation, the proceeds of any Advances made to the Guarantor where
such funds have not been applied to acquire Additional Loans and their Related Security pursuant to the Mortgage Sale Agreement,
to make Additional Loan Advances or invest in Substitute Assets), but excluding any Tax Credits, Swap Collateral Excluded Amounts
and Third Party Amounts;

		(e)	the proceeds arising from the disposal of any Substitute
Assets and any and all income or other distributions received by the Guarantor in respect thereof or arising from the proceeds
of any Substitute Assets; and

		(f)	such other payments received by the Guarantor as are,
or ought in accordance with this Agreement to be, comprised in the Charged Property, including the proceeds from the sales of
Loans and their Related Security by the Guarantor.

		5.4	Enforcement When Not All Amounts Due and Payable

If the Bond Trustee enforces the Security
at a time when either no amounts or not all amounts owing in respect of the Secured Obligations have become due and payable, the
Bond Trustee (or any Receiver) may, for so long as no such amounts or not all such amounts have become due and payable, pay any
funds referred to in Article 6 (Payments out of the Guarantor Accounts Upon Enforcement) into, and retain such funds in, an interest-bearing
account to be held by it as security and applied by it in accordance with Article 6 as and when any of the amounts referred to
therein become due and payable.

Article
6

PAYMENTS OUT OF THE GUARANTOR ACCOUNTS UPON ENFORCEMENT

		6.1	After a Guarantor Acceleration Notice

From and including the time when the
Bond Trustee, following a Guarantor Event of Default, serves a Guarantor Acceleration Notice on the Issuer and the Guarantor or,
if there are

    	10

    	 

    

no Covered Bonds outstanding, following a default in the
payment or discharge of any other Secured Obligations on its due date (i) no amount may be withdrawn from the Guarantor Accounts,
save as directed by the Bond Trustee in accordance with the terms of this Agreement, and (ii) the Bond Trustee will have the sole,
exclusive and irrevocable authority to give directions to the Cash Manager in respect to all deposits and withdrawals of funds
with respect to the Guarantor Accounts.

		6.2	Payment of Funds After Service of a Guarantor Acceleration Notice and Enforcement of Security

All funds received or recovered by the
Bond Trustee or any Receiver, after a Guarantor Event of Default and service of a Guarantor Acceleration Notice on the Issuer and
the Guarantor, or, if there are no Covered Bonds outstanding, following a default in the payment or discharge of any other Secured
Obligations on its due date, for the benefit of the Secured Creditors in respect of the Secured Obligations (other than any Tax
Credit, Third Party Amount or Swap Collateral Excluded Amount), save to the extent required otherwise by Law, will be held by the
Bond Trustee and applied, in the following order of priority (and, in each case, only if and to the extent that payments or provisions
of a higher order of priority have been made in full) (the “Post-Enforcement Priority of Payments”):

		(a)	first, in or towards satisfaction of pro rata
and pari passu according to the respective amounts thereof of:

		(i)	all amounts due and payable or to become due and payable
to the Bond Trustee under the provisions of the Trust Deed and this Agreement with respect to the performance of its obligations
hereunder and under the Trust Deed together with interest and applicable GST (or other similar taxes) chargeable on the supply
in respect of which the payment is made as provided therein; and

		(ii)	all amounts due and payable or to become due and payable
to the Bond Trustee or any Receiver under the provisions of this Agreement together with interest and applicable GST (or other
similar taxes) chargeable on the supply in respect of which the payment is made as provided therein; and

		(b)	second, in or towards satisfaction of any remuneration
then due and payable to the Agents under or pursuant to the Agency Agreement together with applicable GST (or other similar taxes)
thereon as provided therein

		(c)	third, in or towards satisfaction pro rata
and pari passu according to the respective amounts thereof of:

		(i)	if the Servicer is not the Seller or an Affiliate thereof,
any remuneration then due and payable to the Servicer and any costs, charges, liabilities and expenses then due or to become due
and payable to the Servicer in the immediately succeeding Guarantor Payment Period under the provisions

    	11

    	 

    

of the Servicing Agreement together with applicable
GST (or other similar taxes) thereon to the extent provided therein, other than any Indemnity Amounts payable to the Servicer in
excess of $150,000;

		(ii)	any remuneration then due and payable to the Cash Manager
and any costs, charges, liabilities and expenses then due or to become due and payable to the Cash Manager under the provisions
of the Cash Management Agreement, together with applicable GST (or other similar taxes) chargeable on the supply in respect of
which the payment is made as provided therein, other than any Indemnity Amounts payable to the Cash Manager in excess of $150,000;

		(iii)	amounts (if any) due and payable to the Account Bank (or,
as applicable, the Standby Account Bank) (including costs) pursuant to the terms of the Bank Account Agreement (or, as applicable,
the Standby Bank Account Agreement), together with applicable GST (or other similar taxes) thereon to the extent provided therein,
other than any Indemnity Amounts payable to the Account Bank (or, as applicable, the Standby Account Bank) in excess of $150,000;

		(iv)	amounts due to the Custodian pursuant to the terms of
the Mortgage Sale Agreement, together with applicable GST (or other similar taxes) chargeable on the supply in respect of which
the payment is made as provided therein, other than any Indemnity Amounts payable to the Custodian in excess of $150,000;

		(d)	fourth, to pay pro rata and pari passu according to the respective amounts thereof, of:

		(i)	any amounts due and payable to the Interest Rate Swap Provider pro rata and pari passu according to the respective
amounts thereof (including any termination payment (but excluding any Excluded Swap Termination Amounts)) pursuant to the terms
of the Interest Rate Swap Agreement;

		(ii)	the amounts due and payable to the Covered Bond Swap Provider
pro rata and pari passu in respect of each relevant Series of Covered Bonds to the Covered Bond Swap Agreement (including
any termination payment due and payable by the Guarantor under the Covered Bond Swap Agreement (but excluding any Excluded Swap
Termination Amount)) in accordance with the terms of the Covered Bond Swap Agreement; and

		(iii)	the amounts due and payable under the Covered Bond Guarantee,
to the Bond Trustee or (if so directed by the Bond Trustee) the Paying Agent on behalf of the holders of the Covered Bonds pro
rata and pari passu in respect of interest and principal due and payable on each Series of Covered Bonds,

    	12

    	 

    

provided that if the amount available
for distribution under this paragraph (d) (excluding any amounts received from the Covered Bond Swap Provider in respect of
amounts referred to in (d)(ii) above) would be insufficient to pay the Canadian Dollar Equivalent of the amounts due and payable
under the Covered Bond Guarantee in respect of each Series of Covered Bonds under (d)(iii) above, the shortfall will be divided
amongst all such Series of Covered Bonds on a pro rata basis and the amount payable by the Guarantor in respect of each
relevant Series of Covered Bonds under (d)(ii) above to the Covered Bond Swap Provider will be reduced by the amount of the shortfall
applicable to the Covered Bonds in respect of which such payment is to be made;

		(e)	fifth, in or towards satisfaction pro rata and pari passu according to the respective amounts thereof,
of any Excluded Swap Termination Amounts due and payable by the Guarantor to the relevant Swap Provider under the relevant Swap
Agreement;

		(f)	sixth, to pay or provide for pro rata and pari passu according to the respective amounts thereof, any
Indemnity Amounts payable to the Servicer, the Cash Manager, the Account Bank (or, as applicable, the Standby Account Bank) and
the Custodian, to the extent not paid pursuant to paragraph (c) above;

		(g)	seventh, in or towards repayment in full of all amounts outstanding under the Intercompany Loan Agreement;

		(h)	eighth, towards payment of any indemnity amount due to the Partners pursuant to the Guarantor Agreement;

		(i)	ninth, in or towards payment of the fee due to the Corporate Services Provider; and

		(j)	tenth, thereafter any remaining moneys will be applied in or towards payment to the Partners pursuant to the Guarantor
Agreement.

If the Guarantor receives any Tax Credits
in respect of a Swap Agreement following the occurrence of a Guarantor Event of Default and service of a Guarantor Acceleration
Notice, such Tax Credits will be used to reimburse the relevant Swap Provider for any gross-up in respect of any withholding or
deduction made under the relevant Swap Agreement. Following the occurrence of a Guarantor Event of Default and service of a Guarantor
Acceleration Notice, any Swap Collateral Excluded Amounts in respect of a Swap Agreement will be returned to the relevant Swap
Provider subject to the terms of the relevant Swap Agreement, and any Third Party Amounts will be returned to the Seller, with
the Seller paying such Third Party Amounts to the relevant third party.

Any Third Party Amounts received by the
Bond Trustee or any Receiver after service of an Guarantor Acceleration Notice will be held by it on trust for the Seller until
they have been returned to the Seller.

    	13

    	 

    

Upon receipt of the benefit of this Agreement,
each Secured Creditor will be deemed to have acknowledged and concurred (A) with the provisions of this Section 6.2 and agrees
that it will have no claim against the Bond Trustee as a result of the application thereof; and (B) that the application of funds
pursuant to the Post-Enforcement Priority of Payments is without prejudice to the provisions set out in Section 7.2 (Mandatory
Repayment Upon Demand Loan Repayment Event) of the Intercompany Loan Agreement.

Article
7

CONFLICT

		7.1	Secured Creditors

		(a)	Notwithstanding any other provision in any Transaction
Document to the contrary, the Bond Trustee will, as regards the exercise and performance of all its powers, rights, trusts, authorities,
duties and discretions under or pursuant to this Agreement or any other Transaction Document to which the Bond Trustee is a party
or the rights or benefits which are comprised in the Charged Property, have regard only to the interests of the Covered Bondholders
while any of the Covered Bonds remains outstanding (save in relation to a proposed modification to, or waiver or authorisation
of any breach or proposed breach of, any provisions of the Covered Bonds of any Series or any of the Transaction Documents where
it will only have regard to the interests of the Covered Bondholders) and will not, subject to applicable law, be required to
have regard to the interests of any other Secured Creditor or any other Person or to act upon or comply with any direction or
request of any other Secured Creditor or any other Person while any amount remains owing to any Covered Bondholder.

		(b)	Where, in connection with such exercise or performance
by it of any of its powers, rights, trusts, authorities, duties, and discretions (including without limitation, any modification,
waiver, authorisation, determination or substitution) under or pursuant to this Agreement or any of the other Transaction Documents,
the Bond Trustee is required to have regard to Covered Bondholders (or any Series thereof), it will have regard to the general
interests of the Covered Bondholders of each Series as a class but will not have regard to any interests arising from circumstances
particular to individual Covered Bondholders or Couponholders (whatever their number) and, in particular but without limitation,
will not have regard to the consequences of any such exercise for individual Covered Bondholders or the related Couponholders
(whatever their number) resulting from their being for any purpose domiciled or resident in, or otherwise connected with, or subject
to the jurisdiction of, any particular territory or any political sub-division thereof and the Bond Trustee will not be entitled
to require, nor will any Covered Bondholder or Couponholder be entitled to claim, from the Issuer, the Guarantor, the Bond Trustee,
the Bond Trustee or any other Person any indemnification or payment in respect of any Tax or stamp duty consequences of any such
exercise upon individual Covered Bondholders and/or Couponholders, except to the extent already provided for in Condition 7 (Taxation)
and/or in any

    	14

    	 

    

undertaking or covenant given in addition to, or in substitution
for, Condition 7 (Taxation) pursuant to the Trust Deed.

		(c)	If, in connection with the exercise of its powers, trusts,
authorities or discretions, the Bond Trustee is of the opinion that the interests of the Covered Bondholders of any one or more
Series would be materially prejudiced thereby, the Bond Trustee will not exercise such power, trust, authority or discretion without
the approval of such Covered Bondholders so prejudiced by Extraordinary Resolution or by a direction in writing of such Covered
Bondholders so prejudiced of not less than 25 per cent. of the Canadian Dollar Equivalent of the Principal Amount Outstanding
of the Covered Bonds of the relevant Series then outstanding.

		(d)	The Bond Trustee shall perform its duties hereunder
with respect to the preservation, enforcement and application of proceeds of the Security in accordance with the Transaction Documents.

		7.2	Acknowledgement

Upon receipt of the benefit of this Agreement,
each Secured Creditor will be deemed to have acknowledged and concurred with the provisions of Section 7.1 (Secured Creditors)
and each of them agrees that it will have no claim against the Bond Trustee as a result of the application thereof.

Article
8

THE BOND TRUSTEE’S POWERS

		8.1	Prior Notification

The Bond Trustee will, if reasonably
practicable, give prior notification to the Sellers of the Bond Trustee’s intention to enforce the Security, provided always
that the failure of the Bond Trustee to provide such notification will not prejudice the ability of the Bond Trustee to enforce
the Security.

		8.2	Enforceability

The Security will become immediately
enforceable and will, in accordance with this Article 8, be exercisable by the Bond Trustee, in each case at any time following
a Guarantor Event of Default and service of a Guarantor Acceleration Notice on the Issuer and the Guarantor or, if there are no
Covered Bonds outstanding, following a default in the payment or discharge of any other Secured Obligations on its due date. Without
limiting the generality of the foregoing or any of the rights and remedies of the Bond Trustee set out herein or otherwise under
applicable Law, the Bond Trustee will have the same powers as a Receiver set out in Section 9.6 (Powers of Receiver) in respect
of any enforcement pursuant to this Section 8.2. Without prejudice to the effectiveness of any service of the Guarantor Acceleration
Notice, as soon as is reasonable thereafter and in any event no later than three Toronto Business Days thereafter, the Bond

    	15

    	 

    

Trustee will serve a copy of any Guarantor Acceleration Notice
on each of the Secured Creditors, the Guarantor, the Rating Agencies and the Asset Monitor.

		8.3	Application to Court

The Bond Trustee may at any time after
the Security created under or pursuant to this Agreement will have become enforceable apply to the court for an order that the
powers and trusts of this Agreement be exercised or carried into execution under the direction of the court and for the appointment
of a Receiver of the Guarantor and/or the Charged Property or any part thereof, as provided in Section 9.1 (Appointment) and for
any other order in relation to the execution and administration of the powers and trusts hereof as the Bond Trustee will deem expedient,
and it may assent to or approve any such application to the court made at the instance of any of the other Secured Creditors.

		8.4	Retention of Advisers

The Bond Trustee may in relation hereto
and the other Transaction Documents retain, rely and/or act on the advice or report or opinion of or any information obtained from
any auditor, lawyer, valuer, accountant, surveyor, banker, professional adviser, broker, financial adviser, auctioneer or other
expert whether obtained by the Issuer, the Guarantor, the Bond Trustee or otherwise and whether or not addressed to the Bond Trustee
will not be responsible for any liability occasioned by so acting or relying upon such advice, report, opinion or information,
provided the Bond Trustee has acted in its capacity as Bond Trustee in accordance with the standard of care set out in Section
11.1 (Standard of Care).

Any such advice, opinion or information
may be sent or obtained by letter, telex, telegram, facsimile transmission or cable and the Bond Trustee will not be liable for
acting on any advice, opinion or information purporting to be conveyed by any such letter, telex, telegram, facsimile transmission
or cable although the same will contain some error or will not be authentic.

		8.5	Additional Powers of the Bond Trustee

Except as otherwise provided or otherwise
in conflict or inconsistent with the Transaction Documents, the Bond Trustee has the following additional powers:

		(a)	The Bond Trustee may call for and will be at liberty to accept as sufficient evidence of any fact or matter or the expediency
of any transaction or thing a certificate signed by two Authorised Signatories of the Issuer or, as the case may be, the Guarantor,
two Authorised Signatories of the Managing GP (as the case may be) and the Bond Trustee will not be bound in any such case to call
for further evidence or be responsible for any Liability that may be occasioned by it or any other Person acting on such certificate.

		(b)	The Bond Trustee will not be bound to give notice to any Person of the execution of any documents comprised or referred to
herein or to take any steps to ascertain whether any Issuer Event of Default, Potential Issuer Event of Default, Guarantor

    	16

    	 

    

Event of Default or Potential Guarantor Event of Default
has occurred and, until it will have actual knowledge or express notice pursuant hereto to the contrary, the Bond Trustee will
be entitled to assume that no Issuer Event of Default, Potential Issuer Event of Default, Guarantor Event of Default or Potential
Guarantor Event of Default has occurred and that each of the Issuer and the Guarantor is observing and performing all of their
respective obligations hereunder.

		(c)	Save as expressly otherwise provided herein, the Bond Trustee will have absolute and uncontrolled discretion as to the exercise
or non-exercise of its trusts, powers, authorities and discretions hereunder (the exercise or non-exercise of which as between
the Bond Trustee and the Secured Creditors will be conclusive and binding on the Secured Creditors) and will not be responsible
for any Liability which may result from its exercise or non-exercise.

		(d)	Any consent or approval given by the Bond Trustee for the purposes hereof may be given on such terms and subject to such conditions
(if any) as the Bond Trustee thinks fit and notwithstanding anything to the contrary herein may be given retrospectively.

		(e)	Where it is necessary or desirable for any purpose in connection herewith to convert any sum from one currency to another it
will (unless otherwise provided herein or required by law) be converted at such rate or rates, in accordance with such method and
as at such date for the determination of such rate of exchange, as may be agreed by the Bond Trustee in consultation with the Bank
and any rate, method and date so agreed will be binding on the Issuer, the Guarantor and the Secured Creditors.

		(f)	The Bond Trustee as between itself and the Secured Creditors may determine all questions and doubts arising in relation to
any of the provisions hereof. Every such determination, whether or not relating in whole or in part to the acts or proceedings
of the Bond Trustee, will be conclusive and will bind the Bond Trustee and the Secured Creditors absent manifest error.

		(g)	The Bond Trustee will not be responsible for the execution, delivery, legality, effectiveness, adequacy, genuineness, validity,
enforceability or admissibility in evidence of this Agreement and any other Transaction Document or any other document relating
or expressed to be supplemental thereto and will not be liable for any failure of any other party to obtain any licence, consent
or other authority for the execution, delivery, legality, effectiveness, adequacy, genuineness, validity, performance, enforceability
or admissibility in evidence of this Agreement and any other Transaction Document or any other document relating or expressed to
be supplemental thereto.

		(h)	No provision herein will require the Bond Trustee to do anything which may (i) be illegal or contrary to applicable Law or
regulation, or (ii) cause it to expend or risk its own funds or otherwise incur any Liability in the performance of any of its
duties or in the exercise of any of its rights, powers or discretions, if it will have

    	17

    	 

    

reasonable grounds for believing that repayment of such
funds or adequate indemnity against such risk or Liability is not assured to it.

		(i)	The Bond Trustee will not be liable or responsible for, or for investigating any matter which is the subject of, any recital,
statement, representation, warranty or covenant of any Person contained herein, or any other agreement or document relating to
the transactions contemplated herein or under such other agreement or document.

		(j)	Subject to Section 11.2 (Standard of Care), the Bond Trustee will not be liable or responsible for any Liabilities or inconvenience
which may result from anything done or omitted to be done by it in accordance with the provisions hereof.

		(k)	The Bond Trustee will not be responsible for any loss, expense or liability, which may be suffered as a result of any Loans
or Related Security, or any deeds or documents of title thereto, being uninsured or inadequately insured or being held by clearing
organisations or their operators or by intermediaries such as banks, brokers or other similar Persons on behalf of the Bond Trustee.
The Bond Trustee will not be responsible for: (i) supervising the performance by the Issuer, the Guarantor, or any other party
to the Transaction Documents of their respective obligations under the Transaction Documents, and the Bond Trustee will be entitled
to assume, until it has received written notice to the contrary, that all such Persons are properly performing their duties; (ii)
considering the basis on which approvals or consents are granted by the Issuer, the Guarantor or any other party to the Transaction
Documents under the Transaction Documents; (iii) monitoring the Portfolio, including, without limitation, whether the Portfolio
is in compliance with the Asset Coverage Test and/or the Amortization Test; or (iv) monitoring whether Loans and Related Security
satisfy the Eligibility Criteria. The Bond Trustee will not be liable to any Covered Bondholder or any other Secured Creditor for
any failure to make or to cause to be made on their behalf the searches, investigations and enquiries which would normally be made
by a prudent chargee in relation to the Security and have no responsibility in relation to the legality, validity, sufficiency
and enforceability of the Security and the Transaction Documents.

		(l)	Where hereunder the Bond Trustee is required to consider whether any event or the exercise by it of any of its powers, authorities
or discretions is or will be materially prejudicial to the interests of the Covered Bondholders of one or more Series, the Bond
Trustee will be entitled to call for and rely and act upon the advice or opinion of any reputable financial or other adviser (whether
or not such financial adviser will be a Secured Creditor or otherwise party to any Transaction Document, except a member of the
Scotiabank Group) and if relied upon by the Bond Trustee will be binding on the Covered Bondholders and Couponholders of all Series
and the Bond Trustee will not incur any Liability by reason of so acting or relying.

    	18

    	 

    

		8.6	Scotia Total Equity Plan and STEP Loans

The Bond Trustee, following the occurrence
of a Guarantor Event of Default and the service of a Guarantor Acceleration Notice on the Guarantor, will (i) have the sole right
to take all enforcement actions and make all servicing decisions with respect to the STEP Loans, the related STEP Collateral Mortgages
and other Related Security to such STEP Loans, and (ii) allocate any monies received by it and otherwise realised from the
enforcement of the security for all of the related STEP Accounts and the same STEP Borrower in accordance with the priority arrangements
set out in Article 13 of the Mortgage Sale Agreement, including the allocation of such monies and any losses to all indebtedness
owing all STEP Accounts with the same STEP Borrower. In this regard, the Guarantor or the Servicer on its behalf and/or the Bond
Trustee may exercise or refrain from exercising any rights and remedies available to it under (i) the STEP Loans sold by the
Servicer, as Seller, to the Guarantor, or (ii) the related STEP Collateral Mortgages and the Related Security to such STEP
Loans in a manner adverse to the Seller or any Other STEP Creditor and neither the Guarantor nor the Servicer will have any liability
to the Seller or any Other STEP Creditors in respect thereof.

Article
9

RECEIVER

		9.1	Appointment

At any time after the Security created
under or pursuant to this Agreement will have become enforceable, the Bond Trustee may, at its absolute discretion (and will if
properly directed in accordance with Article 17 (Exercise of Certain Rights) and indemnified in accordance with Article 12 (Expenses
and Indemnity), appoint, by writing or by deed, or make an application for, such Person or Persons (including an officer or officers
of the Bond Trustee) as the Bond Trustee thinks fit, to be a Receiver of the Guarantor and/or the Charged Property or any part
thereof and, in the case of an appointment of more than one Person, to act together or independently of the other or others. In
the event that there is the presentation or filing of a petition or application to the court for a receivership order in relation
to the Guarantor and/or the Charged Property and such presentation or filing is notified to the Secured Creditors, the Secured
Creditors will forthwith notify the Bond Trustee.

		9.2	Removal and Replacement

Except as otherwise required by statute,
the Bond Trustee may by writing or by deed remove any Receiver and appoint another in its place or to act with any Receiver and
the Bond Trustee may apply to the court for an order removing and/or appointing any such Receiver.

		9.3	Extent of Appointment

The exclusion of any part of the Charged
Property from the appointment of any Receiver will not preclude the Bond Trustee from subsequently extending its appointment (or
that of any Receiver replacing it) to that part of the Charged Property or appointing another Receiver over any other part of the
Charged Property.

    	19

    	 

    

		9.4	Agent of the Guarantor

Any Receiver will, so far as the law
permits and unless the Bond Trustee otherwise approves, be the agent of the Guarantor and the Guarantor alone will be responsible
for such Receiver’s contracts, engagements, dishonesty, bad faith, wilful misconduct, negligence or reckless disregard and
for liabilities incurred by him and in no circumstances whatsoever will the Guarantor have the authority to terminate the Receiver
or change the terms of the Receiver’s appointment, or will the Bond Trustee be in any way responsible for or incur any liability
in connection with such Receiver’s contracts, engagements, dishonesty, bad faith, wilful misconduct, negligence or reckless
disregard, and if a Receiver of the Guarantor will be appointed, such Receiver will act, unless the Bond Trustee otherwise approves,
as principal and not as agent for the Bond Trustee. Notwithstanding the generality of the foregoing, such Receiver will in the
exercise of its powers, authorities and discretions conform to the regulations (if any) from time to time made and given in writing
by the Bond Trustee.

		9.5	Remuneration

The remuneration of any Receiver appointed
by the Bond Trustee will be fixed by the Bond Trustee and may be or include a commission calculated by reference to the gross amount
of all funds received or otherwise and may include remuneration in connection with claims, actions or proceedings made or brought
against such Receiver by the Guarantor or any other Person or the performance or discharge of any obligation imposed upon him by
statute or otherwise, but subject to Article 6 (Payments out of the Guarantor Accounts Upon Enforcement), such remuneration will
be payable hereunder by the Guarantor alone. The amount of such remuneration will be paid in accordance with the terms and conditions
and in the manner agreed from time to time between such Receiver and the Bond Trustee and in accordance with the Post-Enforcement
Priority of Payments.

		9.6	Powers of Receiver

Any Receiver of the Guarantor and/or
the Charged Property or any part thereof appointed by the Bond Trustee, in addition to any powers conferred on a Receiver by statute
or common law or equity, will have the following powers:

		(a)	to take possession of, get in and collect the Charged
Property (or such part thereof in respect of which it may be appointed) or any part thereof including income whether accrued before
or after the date of his appointment;

		(b)	to carry on, manage, concur in or authorise the management
of, or appoint a manager of, the whole or any part of the business of the Guarantor;

		(c)	to sell, exchange, license, surrender, release, disclaim,
abandon, return or otherwise dispose of or in any way whatsoever deal with the whole or any part of the Charged Property or any
interest in the Charged Property or any part thereof for such consideration (if any) and upon such terms (including by deferred
payment or payment by instalments) as it may think fit and to concur in any such transaction;

    	20

    	 

    

		(d)	to sell or concur in selling the whole or any part of
the Guarantor’s business whether as a going concern or otherwise;

		(e)	to appoint, engage, dismiss or vary the terms of employment
of any employees, officers, managers, agents and advisers of the Guarantor upon such terms as to remuneration and otherwise and
for such periods as he may determine;

		(f)	to insure, protect, maintain, repair, alter, improve,
replace, exploit, add to and develop or concur in so doing, the Charged Property or any part thereof in any manner and for any
purpose whatsoever;

		(g)	in connection with the exercise or the proposed exercise
of any of its powers or in order to obtain payment of its remuneration (whether or not it is already payable), to borrow or raise
money from any Person, including the Bond Trustee, without security or on the security of any of the Charged Property and generally
in such manner and on such terms as it may think fit;

		(h)	to bring, defend, submit to arbitration, negotiate,
compromise, abandon and settle any claims, disputes and proceedings concerning the Charged Property or any part thereof;

		(i)	to transfer all or any of the Charged Property and/or
any of the liabilities of the Guarantor to any other company or body corporate, whether or not formed or acquired for such purpose,
provided that such Charged Property remain subject to the Security;

		(j)	to sell on condition and to grant rights and options
over the whole or any part of the Charged Property and (with or without consideration) to rescind, surrender or disclaim or accept
or agree to accept surrenders or disclaimers of agreements relating to or affecting any of the Charged Property in such circumstances,
to such Persons (including, without limitation, to the Bond Trustee), for such purposes and upon such terms whatsoever as it may
think fit and also to vary the terms of any contract affecting any of the Charged Property;

		(k)	to redeem, discharge or compromise any Encumbrance from
time to time having priority to or ranking pari passu with this Agreement;

		(l)	to effect or maintain indemnity insurance and other
insurance and obtain bonds and performance guarantees;

		(m)	in connection with the exercise of any of its powers,
to execute or do, or cause or authorise to be executed or done, on behalf of or in the name of the Guarantor or otherwise, as
it may think fit, all documents, receipts, registrations, acts or things which it may consider appropriate;

		(n)	to exercise any powers, discretions, voting, conversion
or other rights or entitlements in relation to any of the Charged Property or incidental to the

    	21

    	 

    

ownership of or rights in or to any of the Charged Property
and to complete or effect any transaction entered into by the Guarantor and complete, disclaim, abandon or modify all or any of
the outstanding contracts or arrangements of the Guarantor relating to or affecting the Charged Property;

		(o)	to delegate its powers by way of power of attorney or
in any other manner to any Person any right, power or discretion exercisable by it under or pursuant to this Agreement on the
terms (including the power to sub-delegate) and subject to any regulations which such Receiver may think fit and such Receiver
will not be liable or responsible in any way to the Guarantor or the Bond Trustee for any loss or liability arising from any dishonesty,
bad faith, wilful misconduct, gross negligence or reckless disregard on the part of any such delegate or sub-delegate;

		(p)	generally to carry out, or cause or authorise to be
carried out, any transaction, scheme or arrangement whatsoever, whether similar or not to any of the foregoing, in relation to
the Charged Property which it may consider expedient as effectually as if he were solely and absolutely entitled to the Charged
Property;

		(q)	in addition:

		(i)	to do all other acts and things which it may consider
desirable or necessary for realising any Charged Property or incidental or conducive to any of the rights, powers or discretions
conferred on a Receiver under or by virtue of this Agreement; and

		(ii)	to exercise in relation to any Charged Property all the
powers, authorities and things which it would be capable of exercising if he were the absolute beneficial owner of the same,

and may use the name of the Guarantor for any of the
above purposes; and

		(r)	to pay and discharge out of the profits and income of
the relevant Charged Property and the funds to be made by it in carrying on the business of the Guarantor the expenses incurred
in and about the carrying on and management of the business or in the exercise of any of the powers conferred by this Section
9.6 or otherwise in respect of such Charged Property and all outgoings which it will think fit to pay and to apply the residue
of the said profits, income or funds in the manner provided by Article 6 (Payments out of the Guarantor Accounts Upon Enforcement)
hereof.

The Bond Trustee may pay over to a Receiver any funds constituting
part of the Charged Property to the extent that the same may be applied for the purposes referred to in Article 6 (Payments out
of the Guarantor Accounts Upon Enforcement) by such Receiver and the Bond Trustee may from time to time determine what funds such
Receiver will be at liberty to keep in hand with a view to the performance of his duties as such Receiver. All distributions of
funds made by the Receiver will be applied for the purposes referred to in Article 6 (Payments out of the Guarantor Accounts upon
Enforcement).

    	22

    	 

    

Article
10

PROTECTION OF THIRD PARTIES

		10.1	Enquiry

No purchaser from, or other Person dealing
with, the Bond Trustee or a Receiver will be concerned to enquire whether any of the powers exercised or purported to be exercised
has arisen or become exercisable, whether the Secured Obligations remain outstanding or have become payable, whether the Bond Trustee
or such Receiver is authorised to act or as to the propriety or validity of the exercise or purported exercise of any power by
the Bond Trustee or such Receiver.

		10.2	Receipts

Upon any dealing or transaction under
or pursuant to this Agreement, the receipt of the Bond Trustee or a Receiver, as the case may be, will be an absolute and a conclusive
discharge to a purchaser and will relieve him of any obligation to see to the application of any funds paid to or by the direction
of the Bond Trustee or such Receiver.

Article
11

PROTECTION OF BOND TRUSTEE AND RECEIVER

		11.1	Standard of Care

Neither the Bond Trustee nor any Receiver
will be liable to the Guarantor, except where the same arises out of a breach of the terms of this Agreement or any dishonesty,
bad faith, wilful misconduct, negligence or reckless disregard by the Bond Trustee or any Receiver in respect of such exercise,
attempted or purported exercise or failure to exercise, in respect of any loss or damage which arises out of the exercise or the
attempted or purported exercise of or failure to exercise any of their respective powers.

		11.2	Possession

Without prejudice to the generality of
Section 11.3 (Mortgagee in Possession), entry into possession of the Charged Property or any part thereof will not render the Bond
Trustee or any Receiver liable to account as mortgagee in possession. If and whenever the Bond Trustee or any Receiver enters into
possession of the Charged Property, it will be entitled at any time to go out of such possession.

		11.3	Mortgagee in Possession

Neither the Bond Trustee, the Secured
Creditors nor the Receiver will, by reason of any assignment or other security made under or pursuant to this Agreement or by the
exercise of any of its rights and remedies hereunder, be or be deemed to be a mortgagee in possession.

    	23

    	 

    

Article
12

EXPENSES

		12.1	Expenses

The Guarantor covenants with and undertakes
to the Bond Trustee to reimburse or pay to the Bond Trustee or any Receiver the amount (including applicable GST (or other similar
taxes) ) of all costs, charges, liabilities and expenses (excluding any corporation tax on remuneration paid to the Bond Trustee
or any Receiver pursuant to this Agreement) properly incurred or sustained by the Bond Trustee or any Receiver in connection with:

		(a)	the exercise or the attempted exercise, or the consideration
of the exercise by or on behalf of the Bond Trustee or any Receiver of any of the rights, remedies and powers of the Bond Trustee
or such Receiver under this Agreement or applicable Law, and the enforcement, preservation or attempted preservation of this Agreement
(or any of the charges contained in or granted pursuant to it) or any of the Charged Property or any other action taken by or
on behalf of the Bond Trustee or such Receiver with a view to or in connection with the recovery by the Bond Trustee or such Receiver
of payment of the Secured Obligations from the Guarantor, any other Person or the Charged Property; or

		(b)	the carrying out of any other act or matter which the
Bond Trustee or any Receiver may consider to be necessary for the preservation of the Charged Property.

		12.2	Interest

All sums payable by the Guarantor to
the Bond Trustee or the Receiver pursuant to this Agreement or otherwise under applicable Law will be payable on the date specified
in a demand by the Bond Trustee and/or the Receiver and in the case of payments actually made by the Bond Trustee prior to such
demand will carry interest at the Bank’s prime rate as determined from time to time by reference to the Reuters screen as
of 10:00 a.m. (Toronto Time) from the date specified in such demand, and in all other cases will carry interest at such rate from
the date 30 days after the date of the same being demanded or (where the demand specifies that payment by the Bond Trustee will
be made on an earlier date) from such earlier date (not being earlier than the date of such demand) to the date of actual payment.
Any amounts payable pursuant to Sections 21.1 (Remuneration) and 21.2 (Additional Remuneration) will (if so required by the Bond
Trustee) carry interest at the aforesaid rate from the due date thereof to the date of actual payment.

    	24

    	 

    

Article
13

PROTECTION OF SECURITY

		13.1	Protection of Security

The Guarantor further covenants with
and undertakes to the Bond Trustee from time to time (and, for the purposes mentioned in paragraph (a) below, notwithstanding that
the Bond Trustee may not have served a Guarantor Acceleration Notice) upon demand to execute, at the Guarantor’s own cost,
any document or do any act or thing (other than any amendment hereto) which the Bond Trustee may reasonably specify:

		(a)	with a view to registering, perfecting the priority of or perfecting (i) registered and/or documentary title to the Loans and
their Related Security transferred to the Guarantor pursuant to the terms of the Mortgage Sale Agreement and (ii) any Security
created or intended to be created by or pursuant to this Agreement; or

		(b)	with a view to facilitating the exercise or the proposed
exercise of any of its powers or the realisation of any of the Charged Property,

provided that the Guarantor will not be obliged to execute
any further documentation or take any other action or steps to the extent that it would breach a restriction in any Transaction
Document.

Article
14

POWER OF ATTORNEY, ETC.

		14.1	Execution of Power of Attorney

Immediately upon execution of this Agreement,
the Guarantor will execute and deliver to the Bond Trustee a power of attorney in or substantially in the form set out in Schedule
1. For the avoidance of doubt, the Bond Trustee confirms that it may only exercise the powers conferred under such power of attorney
in the circumstances set out in paragraph 1 of Schedule 1.

		14.2	Charged Property of the Guarantor

To the extent that it is permitted to
do so under the Transaction Documents, for the purpose of giving effect to this Agreement, the Guarantor hereby declares that,
after the Security created under or pursuant to this Agreement has become enforceable, it will hold all of the Charged Property
(subject to the right of redemption) upon trust for the Bond Trustee and agrees to convey, assign or otherwise deal with such Charged
Property in such manner and to such Person as the Bond Trustee will direct, and declares that it will be lawful for the Bond Trustee
to appoint a new trustee or trustees of the Charged Property in place of the Guarantor.

    	25

    	 

    

Article
15

OTHER SECURITY, ETC.

		15.1	No Merger

The Security contained in or created
pursuant to this Agreement is in addition to, and will neither be merged in, nor in any way exclude or prejudice any other security,
right of recourse, set-off or other right whatsoever which the Bond Trustee may now or at any time hereafter hold or have (or would
apart from this Agreement or any charge contained or created pursuant to this Agreement hold or have) as regards the Guarantor
or any other Person in respect of the Secured Obligations, and the Bond Trustee (subject to the provisions of Section 17.5 (Mandatory
Enforcement)) will not be under any obligation to take any steps to call in or to enforce any security for the Secured Obligations,
and will not be liable to the Guarantor for any loss arising from any omission on the part of the Bond Trustee to take any such
steps or for the manner in which the Bond Trustee will enforce or refrain from enforcing any such security.

		15.2	Change of Name, etc.

This Agreement will remain valid and
enforceable notwithstanding any change in the name, composition or constitution of the Bond Trustee, the Guarantor or any other
Person or any amalgamation or consolidation by the Bond Trustee, the Guarantor or any other Person with any other corporation (whether
permitted by the Transaction Documents or not).

Article
16

AVOIDANCE OF PAYMENTS

		16.1	No Release

No assurance, security or payment which
may be avoided or adjusted under the law, including under any enactment relating to bankruptcy, liquidation or insolvency and no
release, settlement or discharge given or made by the Bond Trustee or any Secured Creditor on the faith of any such assurance,
security or payment, will prejudice or affect the right of the Bond Trustee to recover the Secured Obligations from the Guarantor
and any costs payable by it pursuant to or otherwise incurred in connection therewith) or to enforce the Security created under
or pursuant to this Agreement to the full extent of the Secured Obligations.

		16.2	Retention of Charges

If the Bond Trustee will have reasonable
grounds for believing that the Guarantor may be insolvent, impaired or deemed to be insolvent or impaired pursuant to the provisions
of applicable legislation at the date of any payment made by the Guarantor to the Bond Trustee and that as a result, such payment
may be capable of being avoided, the Bond Trustee will be at liberty to retain the Security contained in or created pursuant to
this Agreement until the expiry of a period of one month plus such statutory period within which any assurance, security, guarantee
or payment can be avoided or invalidated after the payment and discharge in full of all Secured Obligations notwithstanding any
release, settlement, discharge or arrangement which

    	26

    	 

    

may be given or made by the Bond Trustee on, or as a consequence
of, such payment or discharge of liability provided that, if at any time within such period, a petition or application will be
presented to a competent court for an order for the winding up liquidation or dissolution or the making of a receivership order
in respect of the Guarantor or the Guarantor will commence to be wound up, liquidated or dissolved or to go into receivership or
any analogous proceedings will be commenced by or against the Guarantor, as the case may be, the Bond Trustee will be at liberty
to continue to retain such security for such further period as the Bond Trustee may determine and such security will be deemed
to continue to have been held as security for the payment and discharge to the Bond Trustee of all Secured Obligations.

Article
17

EXERCISE OF CERTAIN RIGHTS

		17.1	No Enforcement by Secured Creditors

Each of the Secured Creditors (other
than the Bond Trustee) hereby agrees with the Guarantor and the Bond Trustee that:

		(a)	only the Bond Trustee may enforce the Security in accordance
with the provisions hereof; and

		(b)	it will not take any steps, actions or proceedings for the purpose of:

		(i)	recovering any of the Secured Obligations (including,
without limitation, by exercising any rights of set-off); or

		(ii)	enforcing any rights and claims arising out of the Transaction Documents against the Guarantor or the Charged Property or procuring
the winding up, receivership or liquidation or dissolution of the Guarantor in respect of any of its liabilities whatsoever.

		17.2	Subordination

		(a)	Each of the Secured Creditors hereby acknowledges that
it has received a copy of the Guarantor Agreement and the Cash Management Agreement and hereby agrees to be bound by the terms
of the Priorities of Payment set out in the Guarantor Agreement and this Agreement and any other payments to be made in accordance
with the Cash Management Agreement and this Agreement. Without prejudice to Section 17.1 (No Enforcement by Secured Creditors),
each of the Secured Creditors further agrees with each other party to this Agreement that, notwithstanding any other provision
contained herein or in any other Transaction Document:

		(i)	it will not demand or receive payment of, or any distribution
in respect of or on account of, any amounts secured by this Agreement and payable by the Guarantor (or the Cash Manager on its
behalf) or the Bond Trustee, as applicable, to that Secured Creditor under the Transaction Documents, in

    	27

    	 

    

cash or in kind, and will not apply any funds or assets
in discharge of any such amounts payable to it (whether by set off or by any other method), unless all amounts payable by the Guarantor
to all other Secured Creditors ranking higher in the relevant Priorities of Payments have been paid in full;

		(ii)	without prejudice to the foregoing, whether in the liquidation
of the Guarantor or any other party to the Transaction Documents or otherwise, if any payment or distribution (or the proceeds
of any enforcement of any security) is received by a Secured Creditor in respect of any amount payable by the Guarantor (or the
Cash Manager on its behalf) or the Bond Trustee, as applicable, to that Secured Creditor under the relevant Transaction Document
at a time when, and the Secured Creditor has knowledge that, by virtue of the provisions of the relevant Transaction Document,
the Guarantor Agreement and this Agreement, no payment or distribution should have been made, the amount so received will be held
by the Secured Creditor upon trust for the entity from which such payment was received and will be paid over to such entity forthwith
upon receipt (whereupon the relevant payment or distribution will be deemed not to have been made or received); and

		(iii)	without prejudice to Section 17.1 (No Enforcement by Secured
Creditors), it will not claim, rank, prove or vote as creditor of the Guarantor or its estate in a manner which conflicts or is
inconsistent or in competition with any prior ranking Secured Creditors in the relevant Priority of Payments (it being acknowledged
and agreed that the Priority of Payments constitutes a binding and enforceable ranking of priority between such Secured Creditors),
the Bond Trustee or the Bond Trustee, as applicable, or claim a right of set-off until all amounts payable to Secured Creditors
who rank higher in the relevant Priority of Payments have been paid in full.

		(b)	Neither the Guarantor nor the Bond Trustee will pay
or repay, or make any distribution in respect of, any amount owing to a Secured Creditor under the relevant Transaction Documents
(in cash or in kind) unless and until all amounts payable by the Guarantor or the Bond Trustee to all other Secured Creditors
ranking higher in the relevant Priority of Payments have been paid in full.

		(c)	Each of the Secured Creditors acknowledges that this
Article is without prejudice to the provisions set out in Section 7.4 (Payments under Covered Bond Guarantee Discharge Obligations
of Guarantor under this Agreement) of the Intercompany Loan Agreement.

		17.3	Knowledge of Bond Trustee of an Guarantor Event of Default

The Bond Trustee will not be deemed to
have knowledge of the occurrence of a Guarantor Event of Default or Potential Guarantor Event of Default unless the Bond Trustee
has

    	28

    	 

    

received written notice from the Guarantor (or on its behalf)
or a Secured Creditor stating that an Guarantor Event of Default or Potential Guarantor Event of Default has occurred and describing
that Guarantor Event of Default.

		17.4	Discretionary Enforcement

Subject to the provisions of this Agreement,
the Bond Trustee may at any time, at its discretion and without notice, take such proceedings and/or other action as it may think
fit against, or in relation to, the Guarantor or any other Person to enforce their respective obligations under or pursuant to
this Agreement or any other Transaction Document in accordance with its terms. Subject to the provisions of this Agreement, at
any time after the Security has become enforceable, the Bond Trustee may, at its discretion and without notice, take such steps
as it may think fit to enforce such Security.

		17.5	Mandatory Enforcement

The Bond Trustee will not be bound to
take any steps to enforce any provision of this Agreement or to institute any proceedings or to enforce the Security unless the
Bond Trustee:

		(a)	will have been directed to do so by an Extraordinary
Resolution of all the Covered Bondholders of all Series (with the Covered Bonds of all Series taken together as a single Series)
or requested to do so in writing by the holders of not less than 25 per cent. of the aggregate Principal Amount Outstanding of
the Covered Bonds of all Series then outstanding (taken together as aforesaid and converted, if applicable, into Canadian Dollars
at the relevant Covered Bond Swap Exchange Rate); and

		(b)	will have been indemnified and/or secured to its satisfaction
against all Liabilities to which it may thereby render itself liable and all Liabilities which it may incur by so doing.

		17.6	Mandatory other action

The Bond Trustee will not be bound to
take any other steps (other than the steps referred to in Section 17.5 above) under or pursuant to this Agreement or any of the
other Transaction Documents unless the Bond Trustee will have been directed to do so by an Extraordinary Resolution of the Covered
Bondholders of the relevant one or more Series (with the Covered Bonds of such Series taken together as a single Series (if more
than one Series) and converted, if applicable, into Canadian Dollars at the relevant Covered Bond Swap Exchange Rate) or requested
to do so in writing by the holders of not less than 25 per cent. of the aggregate Principal Amount Outstanding of the Covered Bonds
then outstanding of the relevant one or more Series (taken together and converted into Canadian Dollars as aforesaid); and will
have been indemnified and/or secured to its satisfaction as aforesaid.

    	29

    	 

    

		17.7	Disposal of Charged Property

Notwithstanding Article 8 (The Bond Trustee’s
Powers), if the Security has become enforceable otherwise than by reason of a default in payment of any amount due on the Covered
Bonds, the Bond Trustee will not dispose of any of the Charged Property if it determines that it is in the best interests of the
Covered Bondholders to not dispose of such Charged Property and such determination will be binding on the Secured Creditors, and
may be reached after considering at any time and from time to time the advice of any financial adviser (or such other professional
advisers reasonably selected by the Bond Trustee for the purpose of giving such advice). The fees and expenses of the aforementioned
financial adviser or other professional adviser selected by the Bond Trustee will be paid by the Guarantor.

Article
18

COVENANTS AND WARRANTIES

		18.1	Representations and Warranties of the Guarantor

The Guarantor represents and warrants
to the Bond Trustee that it has taken all necessary steps to grant the Security in the Charged Property in accordance with Article
2 (Security), and that it has taken no action or steps to prejudice its right, title and interest in and to the Charged Property.

Schedule 3 sets out the place of business,
or if more than one, the chief executive office and address (i) at which the corporate books and records and senior management
of the Managing GP is located, (ii) at which the Managing GP conducts its deliberations and make their decisions with respect to
the business of the Guarantor, (iii) from which the administration of the Guarantor will be performed, and (iv) from which invoices
and accounts of each of them are issued.

		18.2	Representations, Warranties and Covenants of the Bond Trustee

The Bond Trustee hereby represents and
warrants to, and covenants with, the Guarantor at the date hereof, and so long as it remains the Bond Trustee, that:

		(a)	it possesses the necessary experience, qualifications, facilities and other resources to perform
its responsibilities in relation to its duties and obligations hereunder and the other Transaction Documents to which it is a party;

		(b)	it is and will continue to be in regulatory good standing and in material compliance with and under
all Laws applicable to its duties and obligations hereunder and the other Transaction Documents to which it is a party;

		(c)	it is and will continue to be in material compliance with its internal policies and procedures
(including risk management policies) relevant to its duties and obligations hereunder and the other Transaction Documents to which
it is a party;

    	30

    	 

    

		(d)	it will exercise reasonable skill and care in the performance of its obligations hereunder and
the other Transaction Documents to which it is a party; and

		(e)	it will comply with the CMHC Guide and all material legal and regulatory requirements applicable
to the conduct of its business so that it can lawfully attend to the performance of its obligations hereunder and the other Transaction
Documents to which it is a party.

		18.3	Negative Covenants of Guarantor

So long as any of the Secured Obligations
remain outstanding, the Guarantor will not, except as expressly permitted or expressly provided in the Transaction Documents or
with the prior written consent of the Bond Trustee:

		(a)	create or permit to subsist any Adverse Claim whatsoever
(unless arising by operation of law) upon the whole or any part of its assets, including the Charged Property, or its undertaking,
present or future;

		(b)	grant control over any Substitute Assets to any Person
other than the Bond Trustee;

		(c)	carry on any activities other than as described from
time to time in the Guarantor Agreement;

		(d)	sell, assign, transfer, convey, lend, part with, charge,
declare a trust over, create any beneficial interest in or otherwise dispose of, or deal with, or grant any option or present
or future right to acquire any of the Charged Property, or any of its interest, estate, right, title or benefit therein or thereto
or agree or attempt or purport to do so;

		(e)	incur any indebtedness in respect of borrowed money
whatsoever or give any guarantee or indemnity in respect of any indebtedness or of any obligation of any Person;

		(f)	permit any of the Transaction Documents to which it
is a party to become invalid or ineffective, or the priority of the Security created thereby to be impaired, postponed, subordinated
or otherwise adversely affected or consent to any variation of, or exercise any powers of consent or waiver pursuant to the terms
of any of the Transaction Documents to which it is a party, or permit any party to any of the Transaction Documents to which it
is a party or any other Person whose obligations form part of the Charged Property to be released from its respective obligations;

		(g)	have an interest in any bank account other than the
Guarantor Accounts, unless such account or interest therein is located in the Province of Ontario and subject to the Security;

    	31

    	 

    

		(h)	do any act or thing the effect of which would be to
make the location of the Guarantor resident in any jurisdiction other than Ontario;

		(i)	permit any Person other than the Guarantor and the Bond
Trustee to have any equitable or beneficial interest in any of its assets or undertakings or any interest, estate, right, title
or benefit therein;

		(j)	engage in any activities in the United States (directly
or through its agents) or derive any income from United States sources as determined under the United States income tax principles
or hold any property if doing so would cause it to be engaged or deemed to be engaged in a trade or business within the United
States as determined under United States tax principles; or

		(k)	change the governing law of the Guarantor Agreement.

		18.4	Positive Covenants of Guarantor

The Guarantor covenants and undertakes
with the Bond Trustee for the benefit of the Secured Creditors as follows:

		(a)	at all times to carry on and conduct its affairs in
accordance with the Guarantor Agreement, the CMHC Guide and all laws and regulations applicable to it;

		(b)	to give to the Bond Trustee within a reasonable time
after request such information and evidence as it will require and in such form as it will require, including without prejudice
to the generality of the foregoing the procurement by the Guarantor of all such certificates called for by the Bond Trustee under
or pursuant to this Agreement or any other Transaction Document for the purpose of the discharge or exercise of the duties, trusts,
powers, authorities and discretions vested in it under this Agreement or any other Transaction Document to which the Bond Trustee
is a party or by operation of law;

		(c)	at all times to keep or procure the keeping of proper
books of account and records and allow the Bond Trustee and any Person or Persons appointed by the Bond Trustee to whom the Guarantor
will have no reasonable objection free access to such books of account and records at all times during normal business hours upon
reasonable notice in writing provided that such inspection will only be for the purposes of carrying out its duties under or pursuant
to this Agreement and any information so obtained will only be used and passed on to any other Person for the purpose of the Bond
Trustee carrying out its duties under or pursuant to this Agreement;

		(d)	to give notice in writing to the Bond Trustee of the
occurrence of any Guarantor Event of Default, Potential Guarantor Event of Default and/or service of a Guarantor Acceleration
Notice (such notice to be effected by the delivery of a copy of the Guarantor Acceleration Notice to the Bond Trustee) immediately

    	32

    	 

    

upon becoming aware thereof and without waiting for the
Bond Trustee to take any further action;

		(e)	at all times to execute all such further documents and
do all such further acts and things as may in the opinion of the Bond Trustee be necessary at any time or times to give effect
to the terms and conditions of this Agreement and the other Transaction Documents, including the filing of any additional PPSA
registrations at the Guarantor’s expense;

		(f)	to provide prior written notice to each Rating Agency
if the location of the chief executive office of the Guarantor or the Managing GP is to be other than in the Province of Ontario
or if there is any change in the governing law of the Guarantor Agreement;

		(g)	obtain the prior written consent of the Bond Trustee
if the chief executive office of the Guarantor or the Managing GP is to be other than in the Province of Ontario;

		(h)	at all times to comply with the obligations and provisions
binding upon it under and pursuant to this Agreement, the CMHC Guide and the other Transaction Documents; and

		(i)	duly and promptly to pay and discharge all Taxes imposed
upon it or its assets unless such Taxes are being contested in good faith by the Guarantor.

		18.5	[Reserved.]

		18.6	Representations and Warranties, etc.

		(a)	The Bond Trustee will not be responsible for any recitals
or statements or warranties or representations of any party (other than the Bond Trustee) contained herein or in any other Transaction
Document or any other document entered into in connection therewith and may assume the accuracy and correctness thereof and will
not be responsible for the execution, legality, effectiveness, adequacy, genuineness, validity or enforceability or admissibility
in evidence of any such agreement or other document or any trust or security thereby constituted or evidenced. The Bond Trustee
may accept without enquiry, requisition or objection such title as the Guarantor may have to the Charged Property or any part
thereof from time to time and will not be required to investigate or make any enquiry into the title of the Guarantor to the Charged
Property or any part thereof from time to time whether or not any default or failure is or was known to the Bond Trustee or might
be, or might have been, discovered upon examination, inquiry or investigation and whether or not capable of remedy. Notwithstanding
the generality of the foregoing, each Secured Creditor will be solely responsible for making its own independent appraisal of
and investigation into the financial condition, creditworthiness, condition, affairs, status and nature of the Guarantor,

    	33

    	 

    

and the Bond Trustee will not at any time have any responsibility
for the same and each Secured Creditor will not rely on the Bond Trustee in respect thereof.

		(b)	The Bond Trustee will not be responsible for any loss,
expense or liability, which may be suffered as a result of any Loans or their Related Security, or any deeds or documents of title
thereto, being uninsured or inadequately insured or being held by clearing organisations or their operators or by intermediaries
such as banks, brokers or other similar Persons on behalf of the Bond Trustee. The Bond Trustee will not be responsible for (i)
supervising the performance by the Issuer, the Guarantor or any other party to the Transaction Documents of their respective obligations
under the Transaction Documents and the Bond Trustee will be entitled to assume, until it has written notice to the contrary,
that all such Persons are properly performing their duties of their respective obligations under the Transaction Documents; (ii)
considering the basis on which approvals or consents are granted by the Guarantor or any other party to the Transaction Documents
under the Transaction Documents; (iii) monitoring the Portfolio, including, without limitation, whether the Portfolio is in compliance
with the Asset Coverage Test and/or the Amortization Test; or (iv) monitoring whether Loans and Related Security satisfy the Eligibility
Criteria. The Bond Trustee will not be liable to any Secured Creditor for any failure to make or to cause to be made on their
behalf the searches, investigations and enquiries which would normally be made by a prudent chargee in relation to the Security
and have no responsibility in relation to the legality, validity, sufficiency and enforceability of the Security and the Transaction
Documents.

		18.7	Perfection

The Bond Trustee will not be bound to
give notice to any Person of the execution of this Agreement nor will it be liable for any failure, omission or defect in perfecting
the Security intended to be constituted by this Agreement including, without prejudice to the generality of the foregoing:

		(a)	failure to obtain any licence, consent or other authority
for the execution of the same;

		(b)	failure to register the same in accordance with the
provisions of any of the documents of title of the Guarantor to any of the Charged Property; and

		(c)	failure to effect or procure registration of or otherwise
protect any of the Transaction Documents by registering the same under any registration laws in any jurisdiction, or by registering
any notice, caution or other entry prescribed by or pursuant to the provisions of the said laws.

		18.8	Enforceability, etc.

Without prejudice to the generality of
the foregoing, the Bond Trustee will not be responsible for the genuineness, validity, suitability or effectiveness of any of the
Transaction

    	34

    	 

    

Documents or any other documents entered into in connection
therewith or any other document or any obligations or rights created or purported to be created thereby or pursuant thereto or
any security or the priority thereof constituted or purported to be constituted by or pursuant to this Agreement or any of the
Transaction Documents, nor will it be responsible or liable to any Person because of any invalidity of any provision of such documents
or the unenforceability thereof, whether arising from statute, law or decision of any court and (without prejudice to the generality
of the foregoing) the Bond Trustee will not have any responsibility for or have any duty to make any investigation in respect of
or in any way be liable whatsoever for:

		(a)	the nature, status, creditworthiness or solvency of
the Guarantor or any other Person or entity who has at any time provided any security or support whether by guarantee, charge
or otherwise;

		(b)	the title, ownership, value, sufficiency, enforceability
or existence of any Charged Property or any security (howsoever described) relating thereto;

		(c)	the execution, legality, validity, adequacy, admissibility
in evidence, sufficiency or enforceability of this Agreement or any other Transaction Document comprised within the Charged Property
or any other document entered into in connection therewith;

		(d)	the registration, filing, protection or perfection of
any security relating to this Agreement or the other Transaction Documents relating to the Charged Property or the priority of
the security thereby created whether in respect of any initial advance or any subsequent advance or any other sums or liabilities;

		(e)	the scope or accuracy of any representations, warranties
or statements made by or on behalf of the Guarantor or any other Person or entity who has at any time provided any Transaction
Document comprised within the Charged Property or in any document entered into in connection therewith;

		(f)	the performance or observance by the Guarantor or any
other Person with any provisions of this Agreement or any other Transaction Document comprised within the Charged Property or
in any document entered into in connection therewith or the fulfilment or satisfaction of any conditions contained therein or
relating thereto or as to the existence or occurrence at any time of any default, event of default or similar event contained
therein or any waiver or consent which has at any time been granted in relation to any of the foregoing;

		(g)	the existence, accuracy or sufficiency of any legal
or other opinions, searches, reports, certificates, valuations or investigations delivered or obtained or required to be delivered
or obtained at any time in connection with the Charged Property;

		(h)	the title of the Guarantor to any of the Charged Property;

		(i)	the failure to effect or procure registration of or
to give notice to any Person in relation to or otherwise protect the security created or purported to be created by

    	35

    	 

    

or pursuant to this Agreement or other documents entered
into in connection herewith;

		(j)	the failure to call for delivery of documents of title
to or require any transfers, assignments, assignations, legal mortgages, standard securities, charges or other further assurances
in relation to any of the assets the subject matter of this Agreement or any other document; or

		(k)	any other matter or thing relating to or in any way
connected with this Agreement or the Charged Property or any document entered into in connection therewith whether or not similar
to the foregoing.

		18.9	No Supervision

Subject to the provisions allowing the
Bond Trustee to appoint agents and delegates the Bond Trustee will be under no obligation to monitor or supervise the respective
functions of the Account Bank under the Bank Account Agreement, the Cash Manager under the Cash Management Agreement or of any
other Person under or pursuant to any of the other Transaction Documents.

		18.10	Use of Proceeds

The Bond Trustee will not be responsible
for the receipt or application by the Guarantor of the proceeds of the issue of any Advance.

		18.11	Material Prejudice

The Bond Trustee may determine whether
or not any event, matter or thing is, in its opinion, materially prejudicial to the interests of the Covered Bondholders or the
Swap Providers (provided that the relevant Swap Provider is not a member of the Scotiabank Group) and if the Bond Trustee will
certify that any such event, matter or thing is, in its opinion, materially prejudicial, such certificate will be conclusive and
binding upon the Secured Creditors.

		18.12	Deficiency or Additional Payment

The Bond Trustee will have no responsibility
whatsoever to any Secured Creditor as regards any deficiency or additional payment, as the case may be, which might arise because
the Bond Trustee is subject to any Tax in respect of the Charged Property or any part thereof or any income therefrom or any proceeds
thereof or is required by law to make any withholding or deduction from any payment to any Secured Creditor.

    	36

    	 

    

Article
19

the bond trustee

		19.1	Change of Bond Trustee

If there is a change in the identity
of the Bond Trustee in accordance with this Agreement, the parties to this Agreement will execute such documents and take such
action as the successor Bond Trustee and the outgoing Bond Trustee may reasonably require for the purpose of vesting in the successor
Bond Trustee the rights and powers of the outgoing Bond Trustee under this Agreement and releasing the outgoing Bond Trustee from
its future obligations under this Agreement.

		19.2	Compliance with CMHC Guide

The Bond Trustee covenants to take all
necessary action to ensure compliance by the Bond Trustee with the requirements of the CMHC Guide applicable to the Bond Trustee
from time to time, including providing notice to CMHC of any amendments or waivers hereunder.

Article
20

SUPPLEMENTAL PROVISIONS REGARDING THE BOND TRUSTEE

		20.1	Assumption of No Default

Except as herein otherwise expressly
provided, the Bond Trustee will be and is hereby entitled to assume without enquiry, and it is hereby declared to be the intention
of the Bond Trustee that it will assume without enquiry, unless it has written notice or actual knowledge thereof, that the Guarantor
and each of the other parties thereto is duly performing and observing all the covenants and provisions contained in this Agreement
and the other Transaction Documents to be performed and observed on their parts and that no event has occurred which constitutes
a Guarantor Event of Default or a Potential Guarantor Event of Default or which would cause a right or remedy to become exercisable,
whether by the Guarantor, the Issuer or the Bond Trustee, under or in respect of any of the Transaction Documents.

		20.2	Delegation

The Bond Trustee may, in the execution
of all or any of the trusts, powers, authorities and discretions vested in it by this Agreement or any of the other Transaction
Documents, act by responsible officers or a responsible officer for the time being of the Bond Trustee. The Bond Trustee may also,
whenever it thinks expedient in the interests of the Covered Bondholders, whether by power of attorney or otherwise, delegate to
any Person or Persons all or any of the trusts, rights, powers, duties, authorities and discretions vested in it by this Agreement
or any of the other Transaction Documents. Any such delegation may be made upon such terms and conditions and subject to such regulations
(including power to sub-delegate, provided that any instrument or deed of delegation documenting such delegation with such power
will provide that the relevant delegate will give prompt notice of any such sub-delegation to the Guarantor) as the Bond Trustee
may think fit in the interests of the Covered Bondholders or any of them and,

    	37

    	 

    

provided that the Bond Trustee will have satisfied the standard
of care set out in Section 11.1 (Standard of Care) in the selection of such delegate and, where a power to sub-delegate has been
given, has obliged the delegate to exercise reasonable care in the selection of any sub-delegate, the Bond Trustee will not be
bound to supervise the proceedings of such delegate or sub-delegate, however, the Bond Trustee will be responsible for any loss
incurred by any misconduct or default on the part of such delegate or sub-delegate. The Bond Trustee will give prompt notice to
the Guarantor and, if requested, the Rating Agencies of the appointment of any delegate as aforesaid.

		20.3	Commercial Transactions

The Bond Trustee will not by reason of
its fiduciary position hereunder be in any way precluded from:

		(a)	entering into or being interested in any contract or
financial or other transaction or arrangement with the Issuer or the Guarantor or any of the Subsidiaries or Affiliates of the
Issuer (including without limitation any contract, transaction or arrangement of a banking or insurance nature or any contract,
transaction or arrangement in relation to the making of loans or the provision of financial facilities or financial advice to,
or the purchase, placing or underwriting of or the subscribing or procuring subscriptions for or otherwise acquiring, holding
or dealing with, or acting as paying agent in respect of, the Covered Bonds or any other covered bonds, bonds, stocks, shares,
debenture stock, debentures or other securities of, the Issuer, the Guarantor or any of the Subsidiaries or Affiliates of the
Issuer); or

		(b)	accepting or holding the trusteeship of any other trust
deed constituting or securing any other securities issued by or guaranteed by, or relating to the Issuer or the Guarantor or any
of the Subsidiaries or Affiliates of the Issuer,

and will be entitled to exercise and enforce its rights,
comply with its obligations and perform its duties under or in relation to any such contract, transaction or arrangement as is
referred to in (a) above or, as the case may be, any such trusteeship or office of profit as is referred to in (b) above without
regard to the interests of, or consequences for the Covered Bondholders, Couponholders or any other Secured Creditors will be entitled
to retain and will not be in any way liable to account for any profit made or share of brokerage or commission or remuneration
or other amount or benefit received thereby or in connection therewith.

		20.4	Additional Powers

The powers conferred by this Agreement
upon the Bond Trustee will be in addition to any powers which may from time to time be vested in it by applicable law.

		20.5	Consent of Bond Trustee

If a request in writing is made to the
Bond Trustee by the Guarantor or any other Person to give its consent to any event, matter or thing, then:

    	38

    	 

    

		(a)	if the Transaction Document specifies that the Bond
Trustee is required to give its consent to that event, matter or thing if certain specified conditions are satisfied in relation
to that event, matter or thing, then the Bond Trustee will give its consent to that event, matter or thing upon being satisfied
that those specified conditions have been satisfied; and

		(b)	in any other case and subject as provided in Sections
20.6 (Modification, Waiver or Authorisation to Transaction Documents) and 20.7 (Authorisation or Waiver of Breach), the Bond Trustee
may give its consent if to do so would not, in its opinion, be materially prejudicial to the interests of the Covered Bondholders.

		20.6	Modification, Waiver or Authorisation to Transaction Documents

		(a)	Subject to paragraphs (b) and (c) below, the Bond Trustee may from time to time and at any time without any consent or sanction
of the Secured Creditors (other than any Secured Creditor that is a party to the relevant document) concur with any Person in making
or sanctioning any modification, waiver or authorisation (disregarding whether any such modification relates to a Series Reserved
Matter):

		(i)	to the Covered Bonds of any one or more Series, the related
Coupons or any of the Transaction Documents provided that the Bond Trustee is of the sole opinion that such modification, waiver
or authorisation will not be materially prejudicial to the interests of any Covered Bondholders of any Series or the Swap Providers
provided that the relevant Swap Provider is not a member of the Scotiabank Group; or

		(ii)	to the Covered Bonds of any one or more Series, the related
Coupons or any of the Transaction Documents which in the Bond Trustee’s sole opinion is of a formal, minor or technical
nature or is made to correct a manifest error or an error which is, in the opinion of the Bond Trustee, proven or to comply with
mandatory provisions of law. In establishing whether an error is established as such, the Bond Trustee may have regard to any
evidence which the Bond Trustee considers reasonable to rely upon and may, but will not be obliged to, have regard to all or any
of the following:

		(A)	a certificate from any of the Arrangers:

		(i)	stating the intention of the parties to the relevant Transaction
Document;

		(ii)	confirming nothing has been said to or by investors or
any other parties which is in any way inconsistent with the stated intention; and

		(iii)	stating the modification to the relevant Transaction Document
is required to reflect such intention; or

    	39

    	 

    

		(B)	satisfaction of the Rating Agency Condition in respect
of the modification.

		(b)	The prior consent of the Bond Trustee and the other Secured Creditors (other than the Bond Trustee) will not be required or
obtained in relation to the accession of any New Secured Creditor to this Agreement provided that the relevant conditions precedent
(if any) set out in this Agreement and any other Transaction Document are satisfied at the time of the intended accession and the
Rating Agency Condition is satisfied with respect thereto. Accordingly, each Secured Creditor (other than the Bond Trustee) will
be deemed to have consented to the admission of any company as a New Secured Creditor without the necessity for the Secured Creditor
to concur in or consent to any deed admitting any New Secured Creditor. In addition, each Secured Creditor hereby:

		(i)	consents to any consequential changes to the Priorities
of Payments set out in the Guarantor Agreement and/or this Agreement as are required and any other amendment as may be required
to give effect to the Accession Undertaking save to the extent that any such change or amendment results in an alteration to the
ranking of any such Secured Creditor in which event such change or amendment will not become effective without the prior written
consent of such Secured Creditor;

		(ii)	agrees that upon the accession of any New Secured Creditor
as provided above any deed, agreement or other document to which such New Secured Creditor is a party will be subject to the Security
set out in Article 2 (Security); and

		(iii)	agrees that upon the accession of any New Secured Creditor
as provided above each such New Secured Creditor will be a Secured Creditor.

		(c)	The Bond Trustee will be obliged to concur in and to effect any modifications to the Transaction Documents that are reasonably
required by the Guarantor or the Cash Manager to accommodate the accession of a New Seller to the Program subject to the provisions
of Section 20.6(a) being satisfied and provided that (i) the Interest Rate Swap Provider and the Covered Bond Swap Provider provide
written confirmation to the Bond Trustee consenting to such modification of those documents to which they are a party (such consent
not to be unreasonably withheld or delayed) (which consent will be deemed to be given by the Interest Rate Swap Provider and the
Covered Bond Swap Provider (as the case may be) if no written response is received by the Bond Trustee from each party, respectively,
by the tenth Business Day after the Bond Trustee’s request for such consent) and (ii) the Guarantor or the Cash Manager,
as the case may be, has certified to the Bond Trustee in writing that such modifications are required in order to accommodate the
addition of New Sellers to the Program and (iii) all other conditions precedent to the accession of a New Seller to the Program
set out in Article 12 of the Mortgage Sale Agreement (New Sellers) and the relevant New Mortgage Sale Agreement have been satisfied
at the time of the accession.

    	40

    	 

    

		(d)	Each Secured Creditor agrees that any such modifications
effected pursuant to this Section 20.6 will be binding on it and if, but only if, the Bond Trustee will so require, notice thereof
will be given by the Servicer to the Secured Creditors as soon as practicable after the modifications have been made.

		(e)	Each of the Secured Creditors agrees from time to time
to do and perform such other and further acts and execute and deliver any and all such other documents and instruments as may
be required by law or requested by the other party at the other party’s expense to establish, maintain and protect the rights
and remedies of the other party under, and carry out and effect the intent and purpose of, this Section 20.6.

		20.7	Authorisation or Waiver of Breach

The Bond Trustee may, without the consent
of the Secured Creditors and without prejudice to its right in respect of any further or other breach, from time to time and at
any time, but only if and in so far as in its sole opinion the interests of any Covered Bondholders of any Series or the Covered
Bond Swap Providers (provided that the relevant Swap Provider is not a member of the Scotiabank Group) will not be materially prejudiced
thereby, authorise or waive, on such terms and conditions (if any) as will seem expedient to it, any proposed or actual breach
of any of the covenants or provisions contained in this Agreement or any Transaction Document. Any such authorisation or waiver
will be binding on the Secured Creditors and, unless the Bond Trustee otherwise agrees, notice thereof will be given by the Cash
Manager to the Secured Creditors as soon as practicable thereafter.

		20.8	Deemed Consent

Where the Bond Trustee is unable to determine
whether any such modification referred to in Section 20.7 (Modification, Waiver or Authorisation to Transaction Documents) or any
such waiver or authorisation referred to in Section 20.8 (Authorisation or Waiver of Breach) is materially prejudicial to any of
the Swap Providers provided the relevant Swap Provider is not a member of the Scotiabank Group, it will give written notice to
such Swap Providers setting out the relevant details and requesting its consent thereto. Any such Swap Providers will, within ten
Business Days of receipt of such notice (the Relevant Period), notify in writing the Bond Trustee of:

		(a)	its consent (such consent not to be unreasonably withheld or delayed) to such proposed modification, waiver or authorisation;
or

		(b)	subject to paragraph (a), its refusal of such consent
and reasons for refusal (such refusal not to be unreasonably made and to be considered in the context of its security position
under this Agreement).

Any failure by the relevant Swap Provider to notify the Bond
Trustee as aforesaid within the Relevant Period will be deemed to be consent by the relevant Swap Provider to such proposed modification,
waiver or authorisation.

    	41

    	 

    

The Bond Trustee may (without further
enquiry) rely upon the consent or refusal in writing of any Swap Provider as provided above and will have no liability to any Covered
Bond Swap Provider, the Interest Rate Swap Provider or any other Secured Creditor for consenting or not consenting (as the case
may be) to a modification, waiver or authorisation on the basis of any such consent or refusal in writing or any deemed consent
as provided above.

		20.9	Incorporation by Reference

The provisions of the Guarantor Agreement
will be deemed to be incorporated in this Agreement and each of the Bond Trustee and the other Secured Creditors hereby agrees
to be bound by the terms of thereof as if they were set out herein. In the case of any conflict between the provisions of the Guarantor
Agreement and the provisions contained in this Agreement, the provisions of this Agreement will prevail.

Article
21

REMUNERATION AND INDEMNIFICATION OF THE BOND TRUSTEE

		21.1	Remuneration

Subject to the terms of the Guarantor
Agreement (and subject also as hereinafter provided), the Issuer (or, following service of an Issuer Acceleration Notice and service
of a Notice to Pay on the Guarantor, the Guarantor) will (subject as hereinafter provided) pay to the Bond Trustee an annual fee
payable on such dates and in such amounts as may be agreed to from time to time in writing by the Issuer and the Bond Trustee;
provided that if and for so long as the Bond Trustee are the same Person, no such fee will be payable under this Agreement. All
such remuneration will be payable in accordance with the applicable Priority of Payments. Such remuneration will accrue from day
to day and will be payable up to and including the date when all of the Secured Obligations have been paid and/or discharged and
the Bond Trustee has released, reassigned and/or discharged the Charged Property as provided in Article 3 (Release of Charged Property).

		21.2	Additional Remuneration

In the event of an Issuer Event of Default,
Guarantor Event of Default, Potential Issuer Event of Default or Potential Guarantor Event of Default occurring or in the event
of the Bond Trustee finding it expedient or necessary or being required by the Issuer or (as the case may be) the Guarantor to
undertake any duties which the Bond Trustee and the Issuer or (as the case may be) the Guarantor agree to be of an exceptional
nature or otherwise outside the scope of the normal duties of the Bond Trustee under or pursuant to this Agreement, the Issuer
or (as the case may be) the Guarantor will pay to the Bond Trustee such additional remuneration as will be agreed between the Bond
Trustee and the Issuer or (as the case may be) the Guarantor and in accordance with the applicable Priority of Payments.

    	42

    	 

    

		21.3	Disputes

In the event of the Bond Trustee and
the Issuer (or, following service of an Issuer Acceleration Notice and service of a Notice to Pay on the Guarantor, the Guarantor)
failing to agree upon the amount of any remuneration from time to time pursuant to Section 21.1 (Remuneration) or to agree in a
case to which Section 21.2 (Additional Remuneration) above applies, upon whether such duties are of an exceptional nature or otherwise
outside the scope of the normal duties of the Bond Trustee hereunder or upon the amount of such additional remuneration, such matters
will be determined by a chartered bank (acting as an expert and not as an arbitrator) selected by the Bond Trustee and approved
by the Issuer or the Guarantor (as the case may be) or, failing such approval, nominated by a sole arbitrator in accordance with
the ‘screened’ appointment procedure provided in the Simplified Arbitration Rules of the ADR Institute of Canada Inc.
then currently in effect, the expenses being involved in such nomination and the fees of such bank being payable by the Issuer
or the Guarantor (as the case may be), and the decision of any such bank will be final and binding on the Issuer or the Guarantor
(as the case may be) and the Bond Trustee.

		21.4	Expenses

In addition to remuneration hereunder,
the Issuer (or, following service of an Issuer Acceleration Notice and service of a Notice to Pay on the Guarantor, the Guarantor)
will on written request, pay all costs, charges, liabilities and expenses (excluding any Tax on remuneration paid to the Bond Trustee
pursuant to this Agreement) which the Bond Trustee may properly incur in relation to the negotiation, preparation and execution
of, the exercise of its powers and the performance of its duties under or pursuant to, and in any other manner in relation to,
this Agreement and any of the other Transaction Documents to which the Bond Trustee is a party.

		21.5	Indemnity

The Issuer or, following service of an
Issuer Acceleration Notice and service of a Notice to Pay on the Guarantor, the Guarantor will indemnify the Bond Trustee in full
in respect of all expenses and liabilities to which it (or any Person appointed by it to whom any trust, power, authority or discretion
may be delegated by it in the execution or purported execution of the trusts, powers, authorities or discretions vested in it by
or pursuant to this Agreement, including any Receiver) (each, an “Indemnified Party”) may be or become liable
or which may be incurred by such Indemnified Party in the execution or purported execution of any of its trusts, powers, authorities
and discretions hereunder or its functions under any such appointment or in respect of any other matter or thing done or omitted
in any way relating to this Agreement, or any such appointment and the Security, except where such expenses and liabilities arise
out of a breach of the Bond Trustee’s Standard of Care set out in Section 11.1 (Standard of Care) or any dishonesty, bad
faith, wilful misconduct, negligence or reckless disregard by the Indemnified Person in respect of such execution or purported
execution.

Each Indemnified Person will be entitled
to be indemnified in full out of the Charged Property in respect of any payment by the Guarantor under this Section. The Bond Trustee
will

    	43

    	 

    

not be entitled to be paid twice in respect of the same matter
or claim pursuant to the indemnity in this Section and the indemnity contained in Section 21.2 (Additional Remuneration).

		21.6	Interest

All sums payable by the Issuer under
this Article 21 (Remuneration and Indemnification of the Bond Trustee) will be payable on the date specified in a demand by the
Bond Trustee and in the case of payments actually made by the Bond Trustee prior to such demand will carry interest at the Issuer’s
prime rate from time to time from the date specified in such demand, and in all other cases will carry interest at the rate then
charged by the Bond Trustee on overdue accounts or (where the demand specifies that payment by the Bond Trustee will be made on
an earlier date) from such earlier date (not being earlier than the date of such demand) to the date of actual payment. Any amounts
payable pursuant to Sections 21.1 (Remuneration) and 21.2 (Additional Remuneration) will (if so required by the Bond Trustee) carry
interest at the aforesaid rate from the due date thereof to the date of actual payment.

		21.7	Survival

Unless otherwise specifically stated
in any discharge of this Agreement, the provisions of this Article 21 (Remuneration and Indemnification of the Bond Trustee) will
continue in full force and effect in relation to the period during which the Bond Trustee was Bond Trustee of this Agreement notwithstanding
such discharge and whether or not the Bond Trustee is then the Bond Trustee of this Agreement.

		21.8	Discretion

The Bond Trustee will be entitled in
its absolute discretion to determine in respect of which Series of Covered Bonds any Liabilities incurred under this Agreement
have been incurred or to allocate any such Liabilities between the Covered Bonds of any Series.

		21.9	Expenditures

None of the provisions contained in this
Security Agreement will require the Bond Trustee to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers, unless it has received adequate funds or indemnity
satisfactory to it, acting reasonably.

Article
22

APPOINTMENT OF NEW BOND TRUSTEE AND

REMOVAL OF BOND TRUSTEE

		22.1	Power of Guarantor

The power to appoint or remove the Bond
Trustee on any New Bond Trustee shall be governed in accordance with the terms of the Trust Deed.

    	44

    	 

    

		22.2	Power of Bond Trustee

Other than as specified herein, the powers
and obligations of the Bond Trustee will be governed in accordance with the terms of the Trust Deed.

		22.3	Multiple Bond Trustees

The determination of procedures, powers
and obligations of a Bond Trustee where there is more than one bond trustee will be governed in accordance with the terms of the
Trust Deed.

Article
23

retirement OF BOND TRUSTEE

		23.1	Retirement of Bond Trustee

The resignation of the Bond Trustee will
be governed in accordance with the terms of the Trust Deed.

Article
24

NOTICES AND DEMANDS

		24.1	Notices

Any notices to be given pursuant to this
Agreement to any of the parties hereto will be in writing and will be sufficiently served if sent by prepaid first class mail,
by hand, email or facsimile transmission and will be deemed to be given (if by email or facsimile transmission) when dispatched,
(if delivered by hand) on the day of delivery if delivered before 5:00 p.m. Toronto time on a Toronto Business Day or on
the next Toronto Business Day if delivered thereafter or on a day which is not a Toronto Business Day or (if by first class mail)
when it would be received in the ordinary course of the post and will be sent:

		(a)	in the case of The Bank of Nova Scotia in its capacity as Issuer, Seller, Servicer, Cash Manager, Interest Rate Swap Provider,
General Bond Swap Provider, Managing GP, Subordinated Loan Provider, Intercompany Loan Provider, GDA Provider and Account Bank,
to The Bank of Nova Scotia, at its Executive Offices, Scotia Plaza, 44 King Street West, Toronto, Ontario M5H 1H1 (facsimile number
416-945-4001) for the attention of Managing Director, Alternate Funding, e-mail: jake.lawrence@scotiabank.com;

		(b)	in the case of the Guarantor, to Scotiabank Covered Bond Guarantor Limited Partnership, c/o The Bank of Nova Scotia, at its
Executive Offices, Scotia Plaza, 44 King Street West, Toronto, Ontario M5H 1H1 (facsimile number 416-945-4001) for the attention
of Managing Director, Alternate Funding;

		(c)	in the case of the Bond Trustee, to Computershare
Trust Company of Canada, 100 University Avenue, 11th
Floor, Toronto, Ontario M5J 2Y1, (facsimile number

    	45

    	 

    

416-981-9777)
for the attention of Manager, Corporate Trust
Services, e-mail: corporatetrust.toronto@computershare.com;
and

		(d)	in the case of The Bank of Nova Scotia, New York Agency in its capacity as a Paying Agent, a Registrar, a Transfer Agent and
the Exchange Agent to The Bank of Nova Scotia, New York Agency, One Liberty Plaza, 23rd Floor, New York, NY 10006 (facsimile
number 212-225-5436) for the attention of Vice President;

or to such other address or facsimile number or for the attention
of such other person or entity as may from time to time be notified by any party to the others by written notice in accordance
with the provisions of this Article 24.

		24.2	Notice of Termination/Resignation to CMHC

Upon any termination or resignation of
the Bond Trustee hereunder, the Guarantor shall provide notice to CMHC of such termination or resignation and of the Bond Trustee’s
replacement contemporaneously with the earlier of (i) notice of such termination or resignation and replacement to a Rating Agency,
(ii) notice of such termination or resignation and replacement being provided to or otherwise made available to Covered Bondholders,
and (iii) five Business Days following such termination or resignation and replacement (unless the replacement Bond Trustee has
yet to be identified at that time, in which case notice of the replacement Bond Trustee may be provided no later than 10 Business
Days thereafter). Any such notice shall include (if known) the reasons for the termination or resignation of the Bond Trustee and
all information relating to the replacement Bond Trustee required by the CMHC Guide to be provided to CMHC in relation to the Bond
Trustee and this Agreement, including without limitation any applicable information with respect to any new agreement or amendments
to this Agreement to be entered into with such replacement Bond Trustee.

Article
25

COUNTERPARTS

		25.1	Counterparts

This Agreement may be executed in any
number of counterparts, each of which when so executed will be deemed to be an original, and such counterparts together will constitute
one and the same instrument.

Article
26

non-petition

		26.1	Non-Petition

All parties to this Agreement, with the
exception of the Guarantor and the Bond Trustee, agree that they will not institute against, or join any other party in instituting
against, the Guarantor, or any general partners of the Guarantor, any bankruptcy, reorganisation, arrangement, insolvency or liquidation
proceeding under any federal, provincial or foreign

    	46

    	 

    

bankruptcy, insolvency or similar law, for one year and one
day after all Covered Bonds have been repaid in full. The foregoing provision will survive the termination of this Agreement by
any party.

Article
27

FURTHER PROVISIONS

		27.1	Evidence of Indebtedness

In any action, proceedings or claim relating
to this Agreement or the Security contained in this Agreement, a statement as to any amount due to any Secured Creditor or of the
Secured Obligations or any part thereof or a statement of any amounts which have been notified to the Bond Trustee as being amounts
due to any Secured Creditor which is certified as being correct by an officer of the Bond Trustee or an officer of the relevant
Secured Creditor will, save in the case of manifest error, be conclusive evidence that such amount is in fact due and payable.

		27.2	Rights Cumulative, Waivers

The respective rights of the Bond Trustee,
the Secured Creditors and any Receiver are cumulative, and may be exercised as often as they consider appropriate and are in addition
to their respective rights under the general law. The respective rights of the Bond Trustee, the Secured Creditors and any Receiver
in relation to this Agreement (whether arising under or pursuant to this Agreement or under the general law) will not be capable
of being waived or varied otherwise than by express waiver or variation in writing and, in particular, any failure to exercise
or any delay in exercising any such rights will not operate as a variation or waiver of that or any other such right; any defective
or partial exercise of such rights will not preclude any other or further exercise of that or any other such right; and no act
or course of conduct or negotiation on their part or on their behalf will in any way preclude them from exercising any such right
or constitute a suspension or any variation of any such right.

		27.3	Invalidity of any Provision

If any of the provisions of this Agreement
become invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining
provisions will not in any way be affected or impaired.

		27.4	Liability

All the liabilities and obligations of
the Guarantor under or by virtue of this Agreement will not be impaired by:

		(a)	any failure of this Agreement to be legal, valid, binding
and enforceable as regards the Issuer or the Guarantor for any reason whatsoever; or

		(b)	any other matter or event whatsoever whether similar
to the foregoing or not which might have the effect of impairing all or any of its liabilities or obligations except proper and
valid payment or discharge of all Secured Obligations and

    	47

    	 

    

amounts whatsoever which this Agreement provides are
to be paid by the Issuer or the Guarantor or an absolute discharge or release of the Guarantor signed by the Secured Creditors
(other than the Covered Bondholders and Couponholders) and the Bond Trustee.

		27.5	Severability

Any provision of this Agreement which
is prohibited or unenforceable in any jurisdiction will, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
will not invalidate or render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable law,
the Guarantor hereby waives any provision of law but only to the extent permitted by law which renders any provision of this Agreement
prohibited or unenforceable in any respect.

		27.6	Variation

Any amendments to this Agreement will
be made only with the prior written consent of each party to this Agreement. No waiver of this Agreement will be effective unless
it is in writing and signed by (or by some Person duly authorised by) each of the parties. No single or partial exercise of, or
failure or delay in exercising, any right under this Agreement will constitute a waiver or preclude any other or further exercise
of that or any other right.

Each proposed amendment, variation or
waiver of rights under this Agreement that is considered by the Bond Trustee to be a material amendment, variation or waiver, will
be subject to satisfaction of the Rating Agency Condition. The Bond Trustee will deliver notice to the Rating Agencies from time
to time of any amendment, variations or waivers with respect to which satisfaction of the Rating Agency Condition is not required,
provided that failure to deliver such notice will not constitute a breach of the obligations of the Bond Trustee under this Agreement.

		27.7	Secured Creditors

Each Secured Creditor will be bound by
the provisions of this Agreement, the Conditions and the Guarantor Agreement as if it contained covenants by each Secured Creditor
in favour of the Bond Trustee and every other Secured Creditor to observe and be bound by all the provisions of this Agreement
expressed to apply to Secured Creditors.

		27.8	Further Assurance

From time to time, each party will do
and perform any acts and execute any further instruments which may be required or which may be reasonably requested by any other
party to more fully give effect to the purpose of this Agreement.

		27.9	Assignment

Neither the Guarantor nor any of the
other Secured Creditors may assign, encumber or transfer all or any part of its rights or benefits and/or transfer its obligations
under or pursuant to

    	48

    	 

    

this Agreement without (i) the prior written consent of the
Bond Trustee, and (ii) at least 10 Toronto Business Days’ prior written notice of such assignment having been provided to
DBRS.

		27.10	Limitation of Liability

Scotiabank Covered Bond Guarantor Limited
Partnership is a limited partnership formed under the Limited Partnerships Act (Ontario), a limited partner of which is,
except as expressly required by law, only liable for any of its liabilities or any of its losses to the extent of the amount that
the limited partner has contributed or agreed to contribute to its capital.

Article
28

GOVERNING LAW

		28.1	Governing Law

This Agreement will be governed by and
construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

		28.2	Submission to Jurisdiction

Each party to this Agreement hereby irrevocably
submits to the non-exclusive jurisdiction of the courts of the Province of Ontario in any action or proceeding arising out of or
relating to this Agreement.

 

[The remainder of this page left
intentionally blank]

    	49

    	 

    

IN WITNESS WHEREOF each of the
parties hereto has executed this Agreement as of the date first written above.

 

	 	 	THE BANK OF NOVA SCOTIA, as Issuer, Seller, Servicer, Cash Manager, Interest Rate Swap Provider, Covered Bond Swap Provider, Managing GP, Subordinated Loan Provider, Intercompany Loan Provider, GDA Provider and Account Bank
	 	 	 
	 	 	By:	/s/ Ian Berry
	 	 	 	Name: Ian Berry

Title: Managing Director and Head, Funding and Liquidity Management
	 	 	 
	 	 	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner SCOTIABANK COVERED BOND GP INC.
	 	 	 
	 	 	 	By:	/s/ Jake Lawrence
	 	 	 	 	Name: Jake Lawrence
	 	 	 	 	Title: President and Secretary
	 	 	 
	 	 	THE BANK OF NOVA SCOTIA, LONDON BRANCH, as Principal Payment Agent, Registrar and Transfer Agent
	 	 	 
	 	 	 	By:	/s/ Jane Anne Negi
	 	 	 	 	Name: Jane Anne Negi
	 	 	 	 	Title: Managing Director & Head of Legal Europe
	 	 	 	 	 
	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA, as Bond Trustee
	 	 	 
	 	 	By:	/s/ Sean Piggot
	 	 	 	Name: Sean Piggot

Title: Corporate Trust Officer
	 	 	 
	 	 	By:	/s/ Stanley Kwan
	 	 	 	Name: Stanley Kwan

Title: Associate Trust Officer
	 	 	 
	 	 	 

    	 

    	 

    

 

	
         

         
	 	THE BANK OF NOVA SCOTIA, NEW YORK AGENCY, as a Paying Agent, a Registrar, a Transfer Agent and Exchange Agent
	 	 	 
	 	 	By:	/s/ William R. Ebbels
	 	 	 	Name: William R. Ebbels

Title: Managing Director
	 	 	 

    	 

    	 

    

SCHEDULE 1

FORM OF SECURITY POWER OF ATTORNEY

THIS POWER OF ATTORNEY is made
on 201__, by SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP, a limited partnership formed under the laws of the Province
of Ontario, by its managing general partner, Scotiabank
Covered Bond GP Inc. (the “Guarantor”).

WHEREAS

		(1)	By virtue of an amended and restated security agreement dated as of September
24, 2013 (as amended, varied, supplemented or novated from time to time) (the “Security Agreement”) between,
among others, the Guarantor, the Issuer, the Bond Trustee, provision was made for the execution by the Principal of this Power
of Attorney.

(2)              
Words and phrases in this Power of Attorney will (save where expressed to the contrary) have the same meanings respectively
as the words and phrases in the Security Agreement.

NOW THIS POWER OF ATTORNEY WITNESSETH

		1.	The Guarantor hereby irrevocably and by way of security for the performance of the covenants, conditions, obligations and undertakings
on the part of the Guarantor contained in the Security Agreement (and the other Transaction Documents to which the Guarantor is
a party from time to time) appoints Computershare Trust Company of Canada and any other Person or Persons for the time being the
Bond Trustee or Bond Trustees of and under the Security Agreement (the “Attorney”) and any receiver including
any manager (the “Receiver”) appointed from time to time by the Attorney or on its behalf its true and lawful
attorney for and in the Guarantor’s name or otherwise jointly and severally to do any act, matter or thing which the Attorney
or Receiver considers in each case to be necessary for the protection or preservation of the Attorney’s and the Secured Creditors’
interests and rights (as described in the Security Agreement) in and to the Charged Property or which ought to be done under the
covenants, undertakings and provisions contained in the Security Agreement and the other Transaction Documents to which the Guarantor
is a party from time to time including (without limitation) any or all of the following:

		(a)	to do every act or thing which the Attorney or Receiver may deem to be necessary, proper or expedient for fully and effectually
vesting, transferring or assigning the Charged Property or any part thereof and/or the Guarantor’s estate, right, title,
benefit and/or interest therein or thereto in or to the Attorney and its successors in title or other Person or Persons entitled
to the benefit thereof in the same manner and as fully and effectually, vesting, transferring or charging, as the case may be,
in all respects as the Guarantor could have done; and

		(b)	the power by writing under its hand by an officer of the Guarantor’s or by any Receiver from time to time to appoint
a substitute attorney (each a “Substitute”)

    	 

    	 

    

who will have power to act on behalf of the Guarantor
as if that Substitute will have been originally appointed Attorney by this Power of Attorney and/or to revoke any such appointment
at any time without giving any reason therefore.

		2.	In favour of the Attorney, any Receiver and/or Substitute, or a Person dealing with any of them and the successors and assigns
of such a Person, all acts properly done and documents executed or signed by the Attorney, a Receiver, or a Substitute in the purported
exercise of any power conferred by this Power of Attorney will for all purposes be valid and binding on the Guarantor and its successors
and assigns.

		3.	The Guarantor irrevocably and unconditionally undertakes to indemnify the Attorney and each Receiver and/or Substitute appointed
from time to time by the Attorney and their respective estates (each an “Indemnified Party”) against all actions,
proceedings, claims, costs, expenses and liabilities of every description arising from the exercise, or the purported exercise,
of any of the powers conferred by this Power of Attorney, save where the same arises as the result of the dishonesty, bad faith,
wilful misconduct, gross negligence or reckless disregard of the relevant Indemnified Party or its officers or employees.

		4.	The power of attorney granted hereunder is coupled with an interest.

		5.	The provisions of Article 2 (Security) of the Security Agreement will continue in force after the revocation or termination,
howsoever arising, of this Power of Attorney.

		6.	The laws of the Province of Ontario and the federal laws of applicable therein Canada will apply to this Power of Attorney
and the interpretation thereof and to all acts of the Attorney and each Receiver and/or Substitute carried out or purported to
be carried out under the terms hereof.

		7.	The Guarantor hereby agrees at all times hereafter to ratify and confirm whatsoever the said Attorney or its attorney or attorneys
or any Receiver or Substitute will properly and lawfully do or cause to be done in and concerning the Charged Property.

 

[The remainder
of this page left intentionally blank]

    	 

    	 

    

 

IN WITNESS whereof this Power
of Attorney has been executed as of the day and year first before written.

 

	 	 	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner SCOTIABANK COVERED BOND GP INC.
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	 	Name: 
	 	 	 	Title: 
	 	 	 	 

 

    	 

    	 

    

SCHEDULE 2

FORM OF ACCESSION UNDERTAKING

THIS AGREEMENT is made on [ ]
20[ ]

BETWEEN

		(1)	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner SCOTIABANK COVERED BOND GP
INC. (the “Guarantor”);

		(2)	l TRUST COMPANY OF CANADA, in its capacities as Bond Trustee;

		(3)	[ ] in its capacity as [ ] (the “New Secured Creditor” [and “New Seller”]).

WHEREAS:

		(A)	Pursuant to the terms of a [describe agreement] (the “Agreement”) dated [ ] 20[ ] made between the
Guarantor and the New Secured Creditor, the Guarantor has agreed to [describe nature of the obligations of the Guarantor under
the Agreement].

		(B)	The Guarantor has agreed to provide the Bond Trustee with the benefit of the security described in the Security Agreement to
secure the Guarantor’s obligations to the Secured Creditors.

		(C)	The terms of the Security Agreement permit the Guarantor
to secure its obligations to a New Secured Creditor thereunder.

		(D)	The New Secured Creditor has agreed to enter into this Agreement
to accede to the provisions of the Security Agreement.

		(E)	[The New Seller has agreed to sell Additional Loans and
their Related Security to the Guarantor on [the relevant Transfer Date] pursuant to a New Mortgage Sale Agreement]. The consideration
for such sale includes payment of Deferred Consideration to the New Seller by the Guarantor.

		1.	INTERPRETATION

The Master Definitions and Construction
Agreement made between the parties to the Transaction Documents on the Program Date (as the same may be amended, varied and/or
supplemented from time to time, with the consent of the parties thereto) is expressly and specifically incorporated into this Agreement
and, accordingly, the expressions defined in the Master Definitions and Construction Agreement (as so amended, varied and/or supplemented)
will, except where the context otherwise requires and save where otherwise defined herein, have the same meanings in this Agreement,
including the recitals hereto and this Agreement will be construed in accordance with the interpretation provisions set out in
Section 2 (Interpretation and Construction) of the Master Definitions and Construction Agreement.

    	 

    	 

    

		2.	REPRESENTATIONS AND WARRANTIES

		2.1	The New Secured Creditor hereby represents and warrants
to the Bond Trustee and each of the Secured Creditors in respect of itself that as of the date of this Agreement:

		(a)	pursuant to the terms of the Agreement, the Guarantor
has agreed to pay to the New Secured Creditor the amount (if any) [describe in relation to the Agreement]; and

		(b)	the Agreement expressly provides that all amounts due
from the Guarantor thereunder are to be secured by the Security Agreement.

		2.2	The Guarantor hereby represents and warrants to the Bond
Trustee and each of the Secured Creditors that as at the date of this Agreement, the conditions to issuing further Covered Bonds
set out in the Program Agreement are satisfied and/or the conditions to entering into the New Mortgage Sale Agreement are satisfied.

		3.	ACCESSION

In consideration of the New Secured Creditor
being accepted as a Secured Creditor for the purposes of the Security Agreement by the parties thereto as from the date of this
Agreement, the New Secured Creditor:

		(a)	confirms that as from [date], it intends to be a party
to the Security Agreement as a Secured Creditor;

		(b)	undertakes to comply with and be bound by all of the
provisions of the Master Definitions and Construction Agreement (as the same may be amended, varied or restated from time to time)
and the Security Agreement in its capacity as a Secured Creditor, as if it had been an original party thereto;

		(c)	undertakes to perform comply with and be bound by all
of the provisions of the Security Agreement in its capacity as a Secured Creditor, as if it had been an original party thereto
as provided in [relevant Articles relating to Priorities of Payments]; and

		(d)	agrees that the Bond Trustee will be the Bond Trustee
of the Security Agreement for all Secured Creditors upon and subject to the terms set out in the Security Agreement.

		4.	SCOPE OF THE DEED OF CHARGE

The Guarantor, the New Secured Creditor
and the Bond Trustee hereby agree that for relevant purposes under the Security Agreement and the Master Definitions and Construction
Agreement:

		(a)	the Agreement will be treated as a Transaction Document;
and

		(b)	the New Secured Creditor will be treated as a Secured
Creditor.

    	 

    	 

    

		5.	APPLICATION

Prior to and following enforcement of
the Security all amounts at any time held by the Guarantor, the Cash Manager or the Bond Trustee in respect of the security created
under or pursuant to this Agreement will be held and/or applied by such Person subject to and in accordance with the relevant provisions
of the Guarantor Agreement, the Cash Management Agreement and the Security Agreement.

		6.	NOTICES AND DEMANDS

Any notice or communication under or
in connection with this Agreement, the Security Agreement or the Master Definitions and Construction Agreement will be given in
the manner and at the times set out in Article 24 (Notices and Demands) of the Security Agreement to the addresses given in this
Section or at such other address as the recipient may have notified to the other parties hereto and/or thereto in writing.

The address referred to in this Section
6 for the New Secured Creditor is:

[                       ]

 

For the attention of:[                        ]

Telephone:[                        ]

Facsimile:[                        ]

 

or such other address and/or numbers as the New Secured Creditor
may notify to the parties to the Security Agreement in accordance with the provisions thereof.

		7.	CHOICE OF LAW

This Agreement is governed by and will
be construed in accordance with the laws of the Province of Ontario and the federal laws of Canada applicable therein.

		8.	SUBMISSION TO JURISDICTION

Each party to this Agreement hereby irrevocably
submits to the non-exclusive jurisdiction of the courts of the Province of Ontario in any action or proceeding arising out of or
relating to this Agreement.

    	 

    	 

    

 

IN WITNESS whereof this Agreement
has been executed by each of the parties as of the day and year first before written.

	 	 	SCOTIABANK COVERED BOND GUARANTOR LIMITED PARTNERSHIP by its managing general partner SCOTIABANK COVERED BOND GP INC.
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	 	Name: 
	 	 	 	Title: 
	 	 	 	 
	 	 	 	 
	 	 	COMPUTERSHARE TRUST COMPANY OF CANADA, as Bond Trustee
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	 	Name: 
	 	 	 	Title: 
	 	 	 	 
	 	 	By:	 
	 	 	 	Name: 
	 	 	 	Title: 
	 	 	 	 
	 	 	 	 
	 	 	[NEW SECURED CREDITOR [NEW SELLER]]
	 	 	 
	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:
	 	 	 	 
	 	 	By:	 
	 	 	 	Name:
	 	 	 	Title:

 

    	 

    	 

    

SCHEDULE 3

 

Place of Business

Managing GP

44 King Street West

Scotia Plaza

Toronto, Ontario M5H 1H1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00228-of-00352.parquet"}]]