DESCRIPTION OF THE SHARE CAPITAL

Common Shares

The Common Shares entitle holders to one (1) vote per share and are listed on the Toronto Stock Exchange (TSX) under the ticker symbol RON. The Common Shares give the holders the right to receive any dividend declared by the Corporation.

Dividends on the common shares
While the Board of Directors of the Corporation wishes to retain some of the Corporation’s earnings to take advantage of opportunities to develop and expand its business, it has decided to start declaring and paying cash dividends on a semi-annual basis. The Board of Directors will consider several factors when reviewing dividend payments, including the Corporation’s present and future earnings, cash flows and capital requirements, while complying with laws governing the Corporation. There can be no assurance as to the amount or timing of dividends in the future. The Board of Directors may review this policy from time to time.

For the purpose of the Income Tax Act (Canada) and any similar provincial and territorial legislation, RONA inc. designates all dividends (including deemed dividends) paid on the participating and voting shares in the 2011 calendar year and thereafter as "eligible dividends" unless RONA inc. indicates otherwise.

Our Board of Directors has declared, on December 7, 2010, the first cash dividend of $0.07 per share, payable on March 25, 2011 to holders of record at the close of business on March 10, 2011.
 

RECORD DATE
PAYMENT DATEDECLARED DIVIDEND PER SHARE
DIVIDEND TYPE
March 10, 2014March 25, 2014$0.07Eligible
September 10, 2013September 30, 2013$0.07Eligible
March 11, 2013March 25, 2013$0.07Eligible
September 10, 2012*September 25, 2012$0.07Eligible
March 9, 2012March 26, 2012$0.07Eligible
September 10, 2011September 26, 2011$0.07Eligible
March 10, 2011March 25, 2011$0.07Eligible

*Dividends on common shares are subject to Board of Directors' approval.


Stock Split
Since being listed on the stock exchange on November 5, 2002, RONA inc. has undertaken one two-for-one stock split on March 22, 2005.

Preferred Shares

The Series 6 Class A Preferred Shares pay fixed cumulative dividends of $1.3125 per share per annum, yielding 5.25% per annum, payable quarterly on the last business day of March, June, September and December of each year, as and when declared by the Board of Directors of RONA, for the initial five year period ending March 31, 2016. The dividend rate will be reset on March 31, 2016 and every five years thereafter at a rate equal to the sum of the then current five-year Government of Canada bond yield plus 2.65%.

The Series 6 Class A Preferred Shares are redeemable in whole or in part by RONA, at its option, on March 31, 2016, and on March 31 of every fifth year thereafter in accordance with their terms, at a cash redemption price per share of $25.00 together with all accrued and unpaid dividends. Holders of Series 6 Class A Preferred Shares will have the right, at their option, to convert their shares into Cumulative Floating Rate Series 7 Class A Preferred Shares (the "Series 7 Class A Preferred Shares"), subject to certain conditions and RONA’s right to redeem the Series 6 Class A Preferred Shares as described above, on March 31, 2016 and on March 31 of every fifth year thereafter.

For the purpose of the Income Tax Act (Canada) and any similar provincial and territorial legislation, RONA inc. designates all dividends (including deemed dividends) paid on the participating and voting shares in the 2011 calendar year and thereafter as "eligible dividends" unless RONA inc. indicates otherwise.

The Cumulative 5-Year Rate Reset Series 6 Class A Preferred Shares are listed on the Toronto Stock Exchange (TSX) under the ticker symbol RON.PR.A.

RECORD DATEPAYMENT DATEDECLARED DIVIDEND PER SHARE
DIVIDEND TYPE
March 17, 2014March 31, 2014$0.3281Eligible
December 16, 2013December 31, 2013$0.3308Eligible
September 16, 2013September 30, 2013$0.3308Eligible
June 14, 2013 July 2, 2013$0.3272Eligible
March 15, 2013April 1st, 2013$0.3237Eligible
December 17, 2012*December 31, 2012$0.3300
Eligible
September 14, 2012*
October 1, 2012 $0.3299Eligible
June 15, 2012June 2, 2012$0.3299
Eligible
March 15, 2012March 30, 2012$0.3227
Eligible
June 15, 2011June 30, 2011$0.3308
Eligible
September 15, 2011September 30, 2011$0.3308
Eligible
December 16, 2011January 4, 2012$0.4603
Eligible

*Dividends on preferred shares are subject to Board of Directors' approval.

 
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