of Protected Deposit Notes, Advantage Y.I.E.L.D.® CAD (2 Year), BHPB Series 2 Investment Highlights

At Maturity, an investor will receive:

♦ Minimum interest payment of 1.5%

♦ A variable interest payment, o ranges from 0% to 8% o based on the price performance of a portfolio of securities Therefore, the variable return ranges from 1.5% to 9.5% 100% principal protection if held to maturity Term: 2 years Benchmark Portfolio

Below is the composition of the Benchmark Portfolio.

Name of the Company Ticker (TSX) Name of the Company Ticker (TSX) Tim Hortons Inc. THI Finning International Inc. FTT National Bank of NA EnCana Corporation ECA Dominion Bank (The) TD TransCanada Corporation TRP Inc. RCI.B Corporation TRI Research In Motion Limited RIM Royal RY

Investors will not have rights and benefits of a securityholder, including any right to receive dividends or to vote at or attend meetings of securityholders.

Other Information Last Selling Date/ On or about August 27, 2010/ September 1, 2010 Issue Date Maturity Date/Term September 4, 2012 (Approximately 2 years) Payment at Maturity At maturity, for each deposit note, holder will be entitled to receive the deposit amount and a variable return that consists of (i) a fixed component of 1.5% of deposit amount and (ii) a variable component, if any, that is based on the price performance of securities in the benchmark portfolio. Secondary Market Tradeable in a daily secondary market, subject to availability and an early trading charge may apply.

A 1.5% early trading charge on deposit amount will apply to secondary market redemption orders placed using the Early Trading Charge FundSERV network within the first 365 days from the closing date.

No CDIC These investments do not represent deposits insured under the Canada Deposit Insurance Corporation Act.

FundSERV Code JHN 1119

You may request information about the Deposit Notes or another copy of the Information Statement by contacting your local BMO Harris Investment Management Inc. Investment Counsellor at 1-800-844-6442, or calling BMO Capital Markets at 1-866-864-7760 to speak to someone in English and 1-866-529-0017 to speak to someone in French. A copy of the Information Statement is also posted at www.bmoharrisprivatebanking.com/InvestmentManagement/reports.asp. During the term of the Deposit Notes, you may inquire as to the net asset value of and the formula for determining variable return under the Deposit Notes by contacting BMO Harris Investment Management Inc. or BMO Capital Markets at the above numbers.

Variable Return At Maturity At maturity, investors will receive a minimum Variable Return of 1.5%. Investors may also be entitled to receive an additional return that ranges from 0% to 8%. As a result, at maturity investors will receive a Variable Return between 1.5% to 9.5%.

Variable Return

The Variable Return equals the Deposit Amount multiplied by the sum of a Fixed Component of 1.50% plus (if positive) a Variable Component which is based on the price performance of the securities in a Benchmark Portfolio. The Variable Component is the greater of (i) zero and (ii) the simple average of the return of each security in the Benchmark Portfolio. The simple average of the return of each security in the Benchmark Portfolio is based on the price performance (adjusted as indicated below) of each security in the Benchmark Portfolio measured from the date of the issuance of the Deposit Notes to the Final Valuation Date. If the price performance of a security is positive, then for the purpose of determining the Variable Return, the return of the security is deemed to be 8% regardless of the actual price performance of the security. If the price performance of a security is zero or negative, the actual price performance of the security is used for the purpose of determining the Variable Component. No interest will be paid during the term.

The following examples demonstrate the calculation of Variable Return at maturity:

Actual Effective Actual Effective Return Return Return Return EnCana Corporation 16.00% 8.00% EnCana Corporation -0.50% -0.50% Finning International Inc. 6.00% 8.00% Finning International Inc. -3.20% -3.20% 3.00% 8.00% National Bank of Canada 3.50% 8.00% Research In Motion Limited 7.00% 8.00% Research In Motion Limited -0.28% -0.28% Rogers Communications Inc. 0.00% 0.00% Rogers Communications Inc. -9.60% -9.60% 5.10% 8.00% Royal Bank of Canada -0.50% -0.50% Thomson Reuters Corporation 0.75% 8.00% Thomson Reuters Corporation -6.00% -6.00% Tim Hortons Inc. -2.30% -2.30% Tim Hortons Inc. 0.25% 8.00% TransCanada Corporation 1.00% 8.00% TransCanada Corporation -12.23% -12.23% Toronto-Dominion Bank (The) 0.50% 8.00% Toronto-Dominion Bank (The) -0.63% -0.63% Average Effective Return 6.17% Average Effective Return -1.69% Return for the period 6.17% Return for the period 0.00% Interest = 7.67%(1.5% + 6.17%) Interest = 1.50%(1.5%+0%)

In the positive price performance example above, a Holder In the negative price performance example above, a Holder would, in respect of a Deposit Note, be entitled to receive would only be entitled to receive the minimum Variable Variable Return of $7.67 at maturity. In addition, on maturity, Return of $1.50 and the Deposit Amount of $100 per Deposit a Holder would be entitled to receive the Deposit Amount of Note at maturity. $100 per Deposit Note.

The examples above assume that no special circumstances have occurred and are based on hypothetical Actual Returns of the securities and are not intended as a forecast of future return of the securities in the Benchmark Portfolio or as a forecast of any Variable Return that may be payable at maturity.

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Summary of Offering Overview: 1. The Protected Deposit Notes, Advantage Y.I.E.L.D. CAD (2 Year), BHPB Series 2 will be issued by Bank of Montreal on or about September 1, 2010 and will mature on September 4, 2012. The term of the Deposit Notes is approximately 2 years. At maturity, you will be entitled to receive the principal amount of $100 per Deposit Note plus a variable return for the term up to 9.50% and not less than 1.50% of the amount you deposited, as determined by a Variable Return Formula (provided no extraordinary event has occurred). 2. In determining the variable return at maturity, the Variable Return Formula multiplies the amount deposited by the sum of a fixed component of 1.50% plus (if positive) a variable component which is based on the price performance of the securities in a Benchmark Portfolio. The Benchmark Portfolio will initially consist of the common shares of 10 Canadian Issuers listed on the . The Issuers are: Research In Motion Limited Royal Bank of Canada EnCana Corporation Thomson Reuters Corporation Finning International Inc. Tim Hortons Inc. National Bank of Canada Toronto-Dominion Bank (The) Rogers Communications Inc. TransCanada Corporation 3. “Variable component” is the greater of (i) zero and (ii) the simple average of the return of each security in the Benchmark Portfolio from the closing date to the final valuation date, which is generally three business days prior to the maturity date. If the price performance of a security is positive, then for the purpose of determining the variable component, the return of the security is deemed to be 8% regardless of the actual price performance of the security. If the price performance of a security is zero or negative, the actual price performance of the security is used for the purpose of determining the variable component. Variable return will not reflect any dividends declared on the securities in the Benchmark Portfolio. You cannot elect to receive any payments prior to maturity. Fees and Expenses: 4. No expenses will be paid out of the proceeds of this offering of Deposit Notes. Secondary Market: 5. The Deposit Notes will not be listed on any stock exchange. Moreover, Bank of Montreal does not have the right to redeem the Deposit Notes prior to maturity and you do not have the right to require Bank of Montreal to redeem (that is, buy or repay) the Deposit Notes prior to maturity. However, BMO Capital Markets will use reasonable efforts to arrange for a secondary market for the sale of Deposit Notes. The price that BMO Capital Markets will pay for Deposit Notes sold in the secondary market prior to maturity will be determined by BMO Capital Markets, acting in its sole discretion, and will be based on factors described in the Information Statement. 6. If you sell your Deposit Notes prior to maturity in the secondary market, you may receive less than the amount deposited of $100 per Deposit Note, even if the price performance of the securities in the Benchmark Portfolio is positive. BMO Capital Markets is under no obligation to facilitate or arrange for a secondary market and may suspend any secondary market at any time. If there is no secondary market, you will not be able to sell your Deposit Notes. Early Trading Charge: 7. If you sell a Deposit Note within the first 365 days from the closing of this offering, the amount you will receive will be reduced by an early trading charge that will be equal to 1.50% of the Deposit Amount. Suitability: 8. An investment in the Deposit Notes may be suitable and appropriate for you if you: seek a short-term investment; seek principal protection at maturity and are prepared to hold the Deposit Notes to maturity; are prepared to receive a return at maturity that (i) is based on the price performance of the Benchmark Portfolio and not based only on a fixed, floating or other specified interest rate, (ii) is uncertain until the final valuation date, (iii) will not exceed 9.50% of the Deposit Amount, and (iv) will not be less than 1.50% of the Deposit Amount (unless an extraordinary event has occurred); and are prepared to accept the risks described in the Information Statement. Tax Consequences: 9. The Canadian income tax consequences of investing in Deposit Notes are described in the Information Statement. However, in summary, provided an extraordinary event has not occurred, (i) the fixed component of 1.50% should be included in income annually to the extent accrued to the end of the taxation year, or in the case of an individual, the “anniversary day” of the Deposit Notes in the applicable taxation year, (ii) generally, you should not have to report any additional amount of variable return in your tax return for any taxation year ending before the year in which the Deposit Notes mature, and (iii) while the matter is not free from doubt, a disposition of a Deposit Note prior to maturity should give rise to a capital gain (or capital loss) to the extent your proceeds of disposition, excluding accrued and unpaid interest, if any, exceed (or are less than) the aggregate of your adjusted cost base of the Deposit Note and any reasonable costs of disposition. Risk Factors: 10. The Deposit Notes may not be suitable for all investors and in deciding whether to invest in Deposit Notes you should take into account various risks associated with such an investment. The Information Statement contains a complete description of these risks, which include the following: Non-Conventional Deposit Notes The Deposit Notes are not conventional notes or debt securities in that they do not provide you with a return or income stream prior to maturity, or a return at maturity, that is calculated only by reference to a fixed or floating rate of interest that can be determined prior to the final valuation date. The return on the Deposit Notes, unlike that on many deposit liabilities of Canadian chartered , is uncertain and the Deposit Notes could provide no return except for the minimum variable return of $1.50 per Deposit Note (provided no extraordinary event has occurred). Variable Return Is Limited The amount of variable return payable to you at maturity will depend on the results of applying the Variable Return Formula. Variable return on each Deposit Note will be at least $1.50 (unless an extraordinary event occurs), and no greater than $9.50. Risk Factors Relating to Securities and the Issuers 3

Certain risk factors applicable to investors who invest directly in securities in the Benchmark Portfolio are also applicable to an investment in Deposit Notes. For a full description of these risk factors you should consult the disclosure documents made publicly available by each Issuer at www.sedar.com. Secondary Trading of Deposit Notes There is currently no market through which the Deposit Notes may be sold and it is possible that no such market will be arranged. Legislative, Regulatory and Administrative Changes Changes in laws, regulations or administrative practices, including with respect to taxation, could have an impact on you. Conflicts of Interest In the course of normal business operations, Bank of Montreal and BMO Capital Markets may hold interests linked to the Issuers of the securities in the Benchmark Portfolio or enter into other business dealings with these Issuers. If Bank of Montreal takes any such actions, Bank of Montreal and BMO Capital Markets will not necessarily take into account the effect, if any, that such actions could have on the Deposit Notes or the variable return payable on the Deposit Notes. Furthermore, BMO Capital Markets, which has undertaken to use reasonable efforts to arrange for a secondary market, is an affiliate of Bank of Montreal. Credit Rating There is no assurance that the Deposit Notes, if rated, would receive the same rating as other deposit liabilities of Bank of Montreal. Credit Risk The likelihood that you will receive all the payments owing to you under the Deposit Notes will depend on the financial health and creditworthiness of Bank of Montreal. No Deposit Insurance Unlike conventional bank deposits, the Deposit Notes are not insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure that depositors receive payment of all or a portion of their deposits if the deposit taking financial institution becomes insolvent. Not Eligible for Protection Under the Canadian Investor Protection Fund As is the case with other investments made through BMO Harris Investment Management Inc., your investment in the Deposit Notes will not be eligible for protection under the Canadian Investor Protection Fund. Special Circumstances In certain circumstances, BMO Capital Markets may, as it determines appropriate, (i) adjust the components or variables in the Variable Return Formula, (ii) defer the timing of the calculation of variable return, (iii) change the securities in the Benchmark Portfolio, or (iv) estimate the interest under a Deposit Note that when paid will extinguish the obligation of Bank of Montreal to pay variable return under a Deposit Note. No Independent Calculation Bank of Montreal will not retain an independent person to make or confirm the determinations and calculations made for the Deposit Notes. No Ownership of Benchmark Portfolio You will have no rights of ownership in the Benchmark Portfolio or any securities included in it. The Deposit Notes do not represent a substitute for an investment in the securities included in the Benchmark Portfolio. Other Important Information 11. Bank of Montreal may amend the terms of the Deposit Notes without your consent after the Deposit Notes have been issued if Bank of Montreal and BMO Capital Markets agree that the amendment would not materially and adversely affect your interests. In all other cases, amendments must be approved by the votes of holders representing at least two-thirds of the outstanding aggregate Deposit Amounts of the Deposit Notes represented at a meeting of holders for the purpose of considering such amendment. 12. If you place an order to purchase a Deposit Note in person or electronically, the agreement to purchase the Deposit Note will be deemed to have been entered into on the third day after the later of (i) the day your purchase order is received, and (ii) five business days after the postmark date, if the Information Statement is provided to you by mail, or the date the Information Statement is actually received by you, if it is provided other than by mail. If an order to purchase a Deposit Note is received by telephone, the agreement to purchase the Deposit Note will be deemed to have been entered into at the time your purchase order is received. 13. You may cancel an order to purchase a Deposit Note (or cancel its purchase if the Deposit Note has been issued) by providing instructions to Bank of Montreal through your financial advisor any time up to 48 hours after the later of (i) the day on which the agreement to purchase the Deposit Note is entered into, and (ii) deemed receipt of the Information Statement. You will receive the Information Statement by mail with the trade confirmation. 14. You may request information about the Deposit Notes or another copy of the Information Statement by contacting your local BMO Harris Investment Management Inc. Investment Counsellor at 1-800-844-6442, or calling BMO Capital Markets at 1-866-864-7760 to speak to someone in English and 1-866-529-0017 to speak to someone in French. A copy of the Information Statement is also posted at www.bmoharrisprivatebanking.com/InvestmentManagement/reports.asp. During the term of the Deposit Notes, you may inquire as to the net asset value of and the Variable Return Formula under the Deposit Notes by contacting BMO Harris Investment Management Inc. or BMO Capital Markets at the above numbers. The Deposit Notes are issued by and constitute direct, unconditional obligations of Bank of Montreal. This summary is issued for information purposes only to provide an overview of the Deposit Notes and does not constitute investment advice or an offer to sell or a solicitation to purchase. Details of certain risks of investing in the Deposit Notes, as well as complete disclosure of how the variable return on the Deposit Notes is calculated, is contained in the Information Statement which can be obtained through your financial advisor or on www.bmoharrisprivatebanking.com/InvestmentManagement/reports.asp. Capitalized terms used and not otherwise defined herein have the meanings given to them in the Information Statement. You should read the Information Statement carefully before investing and discuss the suitability of the investment with your financial advisor. The Deposit Notes may not be suitable for all types of investors; the prices, and value of the Deposit Notes may fluctuate and/or be adversely affected by a number of factors. The fluctuation of the price performance of the securities in the benchmark portfolio will directly impact the variable return on the Deposit Notes. It is possible that no variable return will be paid on the Deposit Notes other than the minimum variable return. Sales prior to maturity may be subject to an early sales charge. You should consult your tax advisors with respect to your particular circumstances if you plan to sell the Deposit Note prior to maturity. Bank of Montreal makes no assurances, representations or warranties with respect to the accuracy, reliability or completeness of information provided by a third party. Furthermore, Bank of Montreal makes no recommendations concerning the benchmark portfolio, the securities in the benchmark portfolio, or equity investments as an asset class or the suitability of investing in securities generally or the Deposit Notes in particular. In connection with the issue and sales of Deposit Notes by Bank of Montreal, no person has been authorized to give any information or to make any representation not contained in the Information Statement relating to the Deposit Notes and Bank of Montreal does not accept any responsibility for any information not contained in the Information Statement. “BMO (M-bar roundel symbol)”, “BMO” and “BMO Capital Markets” are registered trade-marks of Bank of Montreal. “Nesbitt Burns” and “Advantage Y.I.E.L.D.” are registered trade-marks of BMO Nesbitt Burns Corporation Limited used under license. 4