
CIBC FULPaY STAR CI InvestmentsLinked Deposit Notes, Series 1  October 2005
General Factors Affecting the Value of a Note during its Term*
The value of a Note at maturity will be equal to the principal amount of the
Note plus any interest that is payable. The amount of interest payable on a
Note at maturity is solely dependent on the performance of the linked fund or
funds (measured in accordance with the formula for calculating interest for
the Note). However, prior to maturity, the value of a Note will be dependent
on several factors, including volatility of the funds, interest rates, commission/cost
amortization (i.e., advisor commission) and fund performance. Although the effect
of volatility, interest rates and commission/cost amortization on the value
of a Note will decline over time, and will not affect the calculation of interest
payable on the Note at maturity, these factors may play a greater role in determining
the value of a Note than fund performance during the first few years of the
Note.
To date, the average of the “lockedin” total returns of the funds
is 9.43%. As of the last averaging date (March 31, 2006), the average of the
total returns of the funds (including reinvested distributions) from the issue
date was 24.23%. If the performance of the funds was to remain flat from the
last averaging date to maturity, the amount of interest payable on the Note
at maturity would be $19.47. If the funds generated a linear return equal to
one percent (1%) per quarter, the amount of interest payable on the Note at
maturity would be $28.43. If the funds generated a linear return equal to two
percent (2%) per quarter, the amount of interest payable on the Note at maturity
would be $38.54. So long as the funds generate a linear return of not less than
2.70% per quarter, at least some amount of interest will be payable at maturity.



