Prospectus excerpt: Manulife Financial Corporation, which we refer to as MFC, is offering 8,000,000 Non-cumulative Rate Reset Class 1 Shares Series 3, which we refer to as the Series 3 Preferred Shares. The holders of Series 3 Preferred Shares will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the board of directors of MFC, which we refer to as the Board of Directors, for the initial period commencing on the Closing Date (as defined below) and ending on and including June 19, 2016, which we refer to as the Initial Fixed Rate Period, payable quarterly on the 19th day of March, June, September and December in each year (each three-month period ending on the 19th day of each such month, a Quarter), at an annual rate equal to $1.05 per share. The initial dividend, if declared, will be payable June 19, 2011 and will be $0.28767 per share, based on the anticipated closing date of March 11, 2011. See “Details of the Offering”.
For each five-year period after the Initial Fixed Rate Period, each of which we refer to as a Subsequent Fixed Rate Period, the holders of Series 3 Preferred Shares will be entitled to receive fixed non-cumulative preferential cash dividends, as and when declared by the Board of Directors, payable quarterly on the 19th day of March, June, September and December in each year, in an annual amount per share determined by multiplying the Annual Fixed Dividend Rate (as defined below) applicable to such Subsequent Fixed Rate Period by $25.00. The Annual Fixed Dividend Rate for the ensuing Subsequent Fixed Rate Period will be determined by MFC on the 30th day prior to the first day of such Subsequent Fixed Rate Period and will be equal to the sum of the Government of Canada Yield (as defined below) on the date on which the Annual Fixed Dividend Rate is determined plus 1.41%. See “Details of the Offering”.