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CIBC CI M.A.X. Deposit Notes TM Series 3 (CBL307) Series 3 total (CBL308)

CIBC CI M.A.X. Deposit Notes TM Series 3 (CBL307) Series 3 total (CBL308). Maximize Income & Growth. The information contained herein is confidential and for advisor use only. The information contained herein is not to be reproduced or distributed to the public or the press.

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CIBC CI M.A.X. Deposit Notes TM Series 3 (CBL307) Series 3 total (CBL308)

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  1. CIBC CI M.A.X.Deposit NotesTMSeries 3 (CBL307) Series 3total (CBL308) Maximize Income & Growth

  2. The information contained herein is confidential and for advisor use only. The information contained herein is not to be reproduced or distributed to the public or the press. This presentation is not an offer or a solicitation of an offer or a recommendation to buy or sell any securities or financial instrument, nor shall it be deemed to provide investment, tax or accounting advice. The information contained herein is intended as a summary only and is qualified entirely by, and should be read in conjunction with, the more detailed information appearing in the Information Statement. Details regarding the dynamic allocation strategy, calculation and payment of interest,, the notional portfolio, repayment of principal at maturity and certain risk factors are contained in the Information Statement. Any examples in this presentation are included for illustrative purposes only and are not intended to predict actual results, which may differ substantially from those reflected herein. “CI”, “CI Investments”, Signature”, “Signature”, “Signature Income & Growth Fund” and the CI Investments design are registered trademarks of CI Investments Inc. and have been licensed for use by CIBC. “M.A.X. Deposit Notes” is a trademark of CIBC.

  3. Key Features Diversified Source of Income: Signature Income & Growth Fund Dynamic Allocation Strategy: to enhance returns and protect capital Two Investment Options: • Income Option (Monthly Coupons) – • 75% of ordinary distributions made by the Fund paid monthly • All other distributions will be reinvested in the structure • Distributions do not affect principal protection • 8-year term to maturity • Growth Option (Dividend Reinvestment) – • 100% of distributions made by the Fund will be re-invested in the structure • Re-investment provides tax-efficient growth • 5.5-year term to maturity Final Variable Payment 100% Principal Protection: if held to maturity. Better than segs

  4. Signature Income & Growth Fund Approximate Annual Distribution of the Fund is 7.0%

  5. Advantages of CI M.A.X.Structure * MAXimizes Income • Potential for 200% exposure to the Fund through a dynamic allocation strategy potentially generating increased distributions and greater monthly coupons (Series 3 - Income Option only). * MAXimizes Protection • CIBC provides 100% principal protection at maturity. * MAXimizing Structure • Maximum all-inclusive fee of 2.95% is only 0.60% higher than the expected 2005 MER of the Class A units of the Fund. • Comparatively low fees and interest charges help prolong Fund exposure by making the structure less prone to de-leveraging or allocating to Bonds. Better than segs

  6. How Does CI M.A.X.Asset Allocation Work? Constant Proportion Portfolio Insurance (CPPI) Structure • On the Issue Date, $100 per Deposit Note will be used to notionally purchase Units of the Fund. • The Deposit Notes will dynamically allocate between Units of the Fund in the Fund Account and Bonds in a Bond Account. The Portfolio will be rebalanced from time to time in accordance with a pre-defined set of Portfolio Allocation Rules. • The leveraging or de-leveraging of the Fund Account will occur based on the “Distance” between the NAV of the Deposit Notes and the Floor Price (i.e., generally, the value of notional bonds maturing on the Maturity Date). • The dynamic allocation strategy provides 100% initial exposure (with potential for 200% exposure) to the Fund and 100% principal protection at maturity. • A reallocation will occur after a significant change in Distance has taken place.

  7. “Distance” is the Benchmark for Re-balancing Value Dynamic leveraging strategy Basket NAV Distance Initial Investment Principal Repayment Value ofNotional Bonds Leveraging Leveraging Leveraging - De Re Time Maturity

  8. How does CI M.A.X. Deposit Notes determine exposure? When “Target Exposure” differs from“Actual Exposure” by more than 25%, an Allocation Event will occur to bring Actual Exposure in line with Target Exposure.

  9. How does CI M.A.X. Deposit Notes determine exposure? (cont’d)

  10. How does CI M.A.X. Deposit Notes determine exposure? (cont’d)

  11. Two Investment Options Series 3: Income Option Series 3total: Growth Option

  12. Investment Options Income Option (Monthly Coupons): Series 3 • 75% of ordinary distributions by the Fund paid as Monthly Coupons(All other distributions reinvested in the structure) • 10.50% p.a. Potential Monthly Coupons* • 8-year term to maturity Growth Option (Dividend Reinvestment): Series 3total • 100% Reinvestment of Fund Distributions • Tax Deferral and Enhanced Performance • 5.5-year term to maturity * This value is determined as a percentage of NAV of the Deposit Notes, assumes 200% exposure to the Fund and an annual distribution of 7.00% is achieved on the Fund. As at March 6, 2006, the indicated distribution rate on the Fund was 6.43%. There is no guarantee that the Fund will achieve its 7.00% p.a. target yield or make any distributions, or that 200% leverage will be achieved on the Deposit Notes. Accordingly, the amount of interest paid for any month during the term of the Deposit Notes will likely vary and could be zero.

  13. Income Option (Monthly Coupons) • 75% of all ordinary distributions by the Fund will be paid as Monthly Coupons. • All other distributions reinvested in the structure. • Amount of Monthly Coupons will be dependent on the distribution rate of the Fund and the Deposit Note’s exposure to the Fund (i.e., number of Units held in the Fund Account). • Assuming 7.00% annual distributions and the maximum 200% exposure to the Fund – CI M.A.X. Deposit Notes can yield 10.5% p.a. of the NAV of the Deposit Notes. • Monthly Coupons will not reduce the amount of principal repaid at maturity. • Term-to-maturity: 8 years

  14. Example: Positive Performance This example assumes a constant yield to maturity for the Bonds of 4.50%, a constant borrowing rate on the Loan of 4.04%, and a constant yield on the Fund of 7.00% over the 8-year term of the Deposit Notes.

  15. Protection Event A “Protection Event” would occur when the “Distance” falls to within 1.50% of the “Floor”, at which point the assets would become fully allocated to Bonds until maturity, regardless of the subsequent performance of the Fund.

  16. Example: Protection Event This example assumes a constant yield to maturity for the Bonds of 4.50%, a constant borrowing rate on the Loan of 4.04%, and a constant yield on the Fund of 7.00% over the 8-year term of the Deposit Notes.

  17. Growth Option (Dividend Reinvestment) • 100% Reinvestment of Fund Distributions – 100% of any distributions that may be payable by the Fund will be re-invested in additional Units for the Fund Account. • Tax Efficient – Interest income will not be taxed until it is paid at maturity, providing the potential for tax deferred growth. • Enhanced Performance – Re-investment of Fund Distributions should increase Distance, providing the opportunity for increased exposure to the Fund. • Short term-to-maturity – 5.5 years

  18. Example: Positive Performance This example assumes a constant yield to maturity for the Bonds of 4.50%, a constant borrowing rate on the Loan of 4.04%, and a constant yield on the Fund of 7.00% over the 5.5-year term of the Deposit Notes.

  19. Protection Event A “Protection Event” would occur when the “Distance” falls to within 1.50% of the “Floor”, at which point the assets would become fully allocated to Bonds until maturity, regardless of the subsequent performance of the Fund.

  20. Example: Protection Event This example assumes a constant yield to maturity for the Bonds of 4.50%, a constant borrowing rate on the Loan of 4.04%, and a constant yield on the Fund of 7.00% over the 5.5-year term of the Deposit Notes.

  21. Benefits of the CI M.A.X. Structure Dynamic allocation strategy aims to provide benefits in different market circumstances… Scenario 1: In market conditions where the Fund performs well, additional exposure to the Fund may be achieved through leverage generating enhanced returns. In market conditions where the Fund performs negatively, reduced exposure to the Fund may dampen losses in an effort to allow participation in any subsequent recovery. Scenario 2: In a rising interest rate environment, continued exposure to the Fund increases growth potential to keep pace with higher interest rates. In a declining interest rate environment, reinvestment of all or a portion of any distributions will help preserve exposure to the Fund. Scenario 3: Comparatively low fees and interest charges help prolong exposure to the Fund by making the structure less prone to de-leveraging and allocating to Bonds. Scenario 4: 100% capital protection at maturity regardless of the performance of the Fund.

  22. Potential Investors • Conservative Investors: • Medium to long-term, risk-sensitive investors who are holding high levels of cash. • Fixed Income Investors: • Investors hesitant to lock in long-term rates at current levels. • Investors missing investment goals due to low interest rates. • Income trust investors wanting to lock in gains and maintain some exposure to the sector through the Fund. • Tax Efficient Investors: • Growth Option (Dividend Reinvestment) provides tax efficient exposure to Signature Income & Growth Fund as interest income will not be taxed until it is paid at maturity, providing the potential for tax deferred growth. • Retirement Accounts: • CI M.A.X. Deposit Notes offer attractive features for retirees: • Signature Income & Growth Fund provides stable, predictable distributions from a diversified asset mix (income trust and corporate bonds). • Principal protection at maturity that is not reduced by monthly coupons.

  23. Summary of Terms Selling period Mar 13th – May5th

  24. Advisor Compensation: • Income Option (Monthly Coupons) • Upfront Commission: 5.00% • Trailer: 0.50% p.a. of Fund Account Value • FundSERV Code: CBL307 • 8-year term • Growth Option (Dividend Reinvestment) • Upfront Commission: 3.00% • Trailer: 0.50% p.a.of Fund Account Value • FundSERV Code: CBL308 • 5.5-year term

  25. Advisor Tools • PowerPoint Presentation • Green Sheet • Advisor Summary • Client Summary • Prospecting Letter • Admat • Postcard • FAQs

  26. THANK YOU For more information please visit our website: www.ci.com/depositnotes

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