AlarmForce Industries Inc.

  • Date: 2016-01-21

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A final base shelf prospectus containing important information relating to the securities described in this document has been filed with the securities regulatory authorities in each of the provinces and territories of Canada. A copy of the final base shelf prospectus, any amendment to the final base shelf prospectus and any applicable shelf prospectus supplement that has been filed, is required to be delivered with this document. This document does not provide full disclosure of all material facts relating to the securities offered. Investors should read the final base shelf prospectus, any amendment and any applicable shelf prospectus supplement for disclosure of those facts, especially risk factors relating to the securities offered, before making an investment decision.

Bank of Montreal Canadian Banks Callable ROC Principal At Risk Notes, Series 66 (CAD), Due January 27, 2022 KEY TERMS Semi-Annual

AutoCall Feature* * Starting after the first Observation Date

Linked to

S&P/TSX Composite Index Banks (Industry Group) (Price Return Version)

8.00% per annum Contingent Partial Principal Repayment Paid Semi-annually

20% Contingent Protection at Maturity

FundSERV JHN9019

The objective of the Notes is to provide partial repayments of principal on a semi-annual basis while offering contingent protection against a slight to moderate decline in the Reference Index over the term of the Notes. The Principal Amount is not protected under the Notes.  Issuer: Bank of Montreal  Medium Term: 6-year term to maturity (subject to the Notes being automatically called by the Bank).  Reference Index: The S&P/TSX Composite Index Banks (Industry Group) is a market capitalization-weighted index comprised of ten (10) actively traded large-cap Canadian financial companies. The constituents of the S&P/TSX Composite Index Banks (Industry Group) are a subset of the constituents of the S&P/TSX Composite Index that have been classified according to the Global Industry Classification Standard as belonging to the Banks Industry Group.*  Contingent Partial Principal Repayments: Subject to the occurrence of an Extraordinary Event and the Notes being automatically called by the Bank, a holder of Notes will receive semi-annual partial repayments of principal on each Principal Repayment Date of 4.00% of the Principal Amount (equivalent to 8.00% per annum), provided that in each case the Closing Level of the Reference Index is equal to or above the Payment Threshold (i.e., 80% of the Initial Level) on the relevant Observation Date.  Remaining Principal Balance: Each Principal Repayment will reduce the Principal Amount and adjusted cost base of the Notes during the term of the Notes. Principal Repayments are considered return of capital and do not reflect the return on the Notes (if any). The return on the Notes will be the difference between the Maturity Payment (or Bid Price if sold prior to Maturity) and the Remaining Principal Balance. If the Maturity Payment is less than a Holder’s adjusted cost base of the Notes, the Holder will sustain a loss on the Notes. See “Certain Canadian Federal Income Tax Considerations” in the Prospectus.  AutoCall Feature: The Notes will be automatically called by the Bank if the Closing Level of the Reference Index is equal to or above the AutoCall Level (i.e., 110% of the Initial Level) on any Observation Date after the first Observation Date. If the AutoCall feature is triggered, Holders will receive on the Call Date a Maturity Payment of $100.00 plus an amount equal to 10% participation in any Index Return above 10% (meaning Holders will partially participate in such positive Index Return at the Call Date), together with the Principal Repayment otherwise payable on that date.  Contingent Protection: If the Index Return is negative, the Principal Amount will be protected so long as the Final Level is equal to or above the Barrier Level on the Final Valuation Date. If the Final Level is below the Barrier Level (i.e. 80% of the Initial Level) on the Final Valuation Date, the Maturity Payment will be equal to $100.00 reduced by the actual Index Return (which will be a negative amount equal to the decline in the Reference Index) and a Holder may sustain a loss on the Notes.  Daily secondary market: Provided by BMO Capital Markets at its discretion (may be subject to an Early Trading Charge of up to 3.50% declining to zero over 270 days after the Issue Date and other limitations as described in the Prospectus). * The dividend yield of the S&P/TSX Composite Index Banks (Industry Group) on January 5, 2016 was 4.31%, representing an aggregate dividend yield of 28.86% compounded annually over the term of the Notes (assuming the dividend yield remains constant). An investment in the Notes does not represent a direct or indirect investment in any of the constituent securities that comprise the Reference Index. Holders have no right or entitlement to the dividends or distributions paid on such securities.

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Available Until: Issue Date: Maturity Date: Currency: Minimum Investment:

January 22, 2016 January 27, 2016 January 27, 2022 Canadian Dollars $2,000.00

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Client Brochure January 8, 2016

ADDITIONAL DETAILS Issuer Issuer Rating

Bank of Montreal (the “Bank”). Moody’s: Aa3; S&P: A+; DBRS: AA (long‐term deposits > 1 year).

Issue Price

$100.00 per Note (the “Principal Amount”).

Partial Principal Repayments

Subject to the occurrence of an Extraordinary Event and to the Notes being automatically called by the Bank, a Holder will receive semi-annual partial repayments of principal (each, a “Principal Repayment”) on each Principal Repayment Date equal to 4.00% of the Principal Amount (equivalent to 8.00% per annum), provided that in each case the Closing Level of the Reference Index is equal to or above the Payment Threshold on the relevant Observation Date. If the Closing Level of the Reference Index is below the Payment Threshold on an Observation Date, then no Principal Repayment will be made to a Holder on the corresponding Principal Repayment Date. If the Closing Level of the Reference Index is below the Payment Threshold on all Observation Dates, there will be no Principal Repayments made to Holders during the term of the Notes. Each Principal Repayment will reduce the Principal Amount (and adjusted cost base of the Notes) during the term of the Notes. See “Description of the Notes — Partial Principal Repayments” and “Additional Risk Factors Specific to the Notes”. The Closing Level of the Reference Index will be observed every six (6) months after the Issue Date, subject to the occurrence of certain special circumstances (see “Special Circumstances”) and the Notes being automatically called by the Bank. The Notes cannot be automatically called by the Bank prior to the second Observation Date. The specific Observation Dates and the corresponding Principal Repayment Dates for the Notes will be as follows:

Observation Dates and Principal Repayment Dates

Period 1 2 3 4 5 6 7 8 9 10 11 12

Payment Threshold AutoCall Feature

Participation Rate

Barrier Level Maturity Payment

Observation Date July 22, 2016 January 24, 2017 July 24, 2017 January 24, 2018 July 24, 2018 January 23, 2019 July 24, 2019 January 22, 2020 July 22, 2020 January 22, 2021 July 22, 2021 January 24, 2022

AutoCall Level Not Callable 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level 110% of the Initial Level

Payment Threshold 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level 80% of the Initial Level

Principal Repayment Date /Call Date July 27, 2016 (Not Callable) January 27, 2017 July 27, 2017 January 29, 2018 July 27, 2018 January 28, 2019 July 29, 2019 January 27, 2020 July 27, 2020 January 27, 2021 July 27, 2021 January 27, 2022

See “Observation Dates and Principal Repayment Dates” in the Prospectus. 80% of the Initial Level. The Notes will be automatically called by the Bank if the Closing Level of the Reference Index is equal to or above the AutoCall Level on any Observation Date after the first Observation Date. If the AutoCall feature is triggered, Holders will receive on the Call Date a Maturity Payment of $100.00 plus an amount equal to participation in any Index Return above 10% (meaning Holders will partially participate in such positive Index Return at the Call Date), together with the Principal Repayment otherwise payable on that date. If the Notes are automatically called by the Bank before Maturity then, upon payment to Holders of the Maturity Payment, the Notes will be cancelled and Holders will not be entitled to receive any subsequent payments in respect of the Notes. If the Closing Level of the Reference Index is never equal to or above the AutoCall Level on any Observation Date after the first Observation Date, the Notes will not be automatically called by the Bank. 10%, resulting in participation by a Holder of 10% in any Index Return above 10% on the Call Date or at Maturity. 80% of the Initial Level, resulting in full principal protection against a decline in the Reference Index on the Final Valuation Date of up to 20% from the Initial Level. Subject to the occurrence of an Extraordinary Event, a Holder will receive a payment on either the Call Date or the Maturity Date based on the Closing Level of the Reference Index on the applicable Observation Date or the Final Valuation Date. In addition, if the Index Return is greater than 10%, the Maturity Payment will equal $100.00 plus 10% participation in any Index Return above 10% (meaning Holders will partially participate in such positive Index Return on the Call Date or at Maturity). The Maturity Payment per Note will be determined as follows: (i) If the Index Return is greater than 10%, a Holder will receive a Maturity Payment, calculated using the following formula: $100.00 + ($100.00 x Participation Rate x [Index Return - 10.00%]) (ii) If the Index Return is equal to or below 10% and the Final Level is equal to or above the Barrier Level, a Holder will receive a Maturity Payment equal to $100.00. (iii) If the Final Level is below the Barrier Level, a Holder will receive a Maturity Payment that will equal $100.00 reduced by the actual Index Return (which will be a negative amount equal to the decline in the Reference Index), subject to the Minimum Payment Amount, calculated using the following formula: $100.00 + ($100.00 x Index Return) The return on the Notes will be equal to the difference between the Maturity Payment and the Remaining Principal Balance, which will only be determinable on the Call Date or at Maturity.

Secondary Market

The Notes will not be listed on any exchange or marketplace. BMO Capital Markets will use reasonable efforts under normal market conditions to provide for a daily secondary market for the sale of the Notes through the order entry system operated by FundSERV but reserves the right to elect not to do so in the future, in its sole and absolute discretion, without prior notice to Holders.

Early Trading Charge

If a Note is sold within the first 270 days after the Issue Date, the Bid Price will be reduced by an Early Trading Charge equal to a percentage of the Subscription Price determined as set out below: If Notes sold within: 0 – 45 days 45 – 90 days 91 – 135 days 136 – 180 days 181 – 225 days 226– 270 days Thereafter

Early Trading Charge 3.50% 2.90% 2.30% 1.70% 1.10% 0.50% Nil

The Bid Price quoted in the secondary market will be before the application of any applicable Early Trading Charge. See “Secondary Market — Early Trading Charge” for a description of the Early Trading Charge.

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HOW DO THE NOTES WORK? The following hypothetical examples demonstrate how Principal Repayments and the Maturity Payment will be calculated and determined under four different scenarios. The hypothetical Closing Levels of the Reference Index used in these examples are for illustrative purposes only and should not be construed in any way as estimates or forecasts of the future price performance of the Reference Index or the Notes. All hypothetical examples assume that no events described under “Special Circumstances” have occurred during the term. Initial Level = 2,500.00

Payment Threshold / Barrier Level = 2,000.00 (80% of the Initial Level)

AutoCall Level = 2,750.00 (110% of the Initial Level)

Scenario 1: Negative Scenario (Not Automatically Called) Principal Repayments Observation Date 1 2 3 4 5 6 7 8 9 10 11 Final Valuation Date

Closing Level of Reference Index 2,300.00 2,350.00 2,125.00 1,550.00 1,675.00 1,525.00 1,725.00 1,650.00 2,050.00 1,700.00 1,625.00 1,500.00 TOTAL

Index Return -8.00% -6.00% -15.00% -38.00% -33.00% -39.00% -31.00% -34.00% -18.00% -32.00% -35.00% -40.00%

Principal Repayment $4.00 $4.00 $4.00 -----$4.00 ---$16.00

Remaining Principal Balance $96.00 $92.00 $88.00 $88.00 $88.00 $88.00 $88.00 $88.00 $84.00 $84.00 $84.00 $84.00 $84.00

Total Principal Repayments = $16.00 Remaining Principal Balance = $100.00 - $16.00 = $84.00 Maturity Payment calculated on the Maturity Date Final Level = 1,500.00 (an Index Return of -40.00%) Maturity Payment = $100.00 + ($100.00 x Index Return) = $100.00 - $40.00 = $60.00

Payment Summary Total Payments = Total Principal Repayments + Maturity Payment = $16.00 + $60.00 = $76.00

In this hypothetical scenario, a Holder would have received four Principal Repayments only (on the first, second, third and ninth Principal Repayment Dates) because the Closing Level of the Reference Index is below the Payment Threshold on the other Observation Dates during the term of the Notes.

Return = Maturity Payment - Remaining Principal Balance = $60.00 - $84.00 = -$24.00 (or an annualized loss of 4.47%)

Scenario 2: Principal Protected Scenario (Not Automatically Called) Principal Repayments Observation Date 1 2 3 4 5 6 7 8 9 10 11 Final Valuation Date

Closing Level of Reference Index 2,700.00 2,625.00 2,425.00 1,700.00 1,650.00 1,700.00 1,650.00 2,250.00 2,400.00 2,500.00 2,250.00 2,300.00 TOTAL

Index Return 8.00% 5.00% -3.00% -32.00% -34.00% -32.00% -34.00% -10.00% -4.00% 0.00% -10.00% -8.00%

Principal Repayment $4.00 $4.00 $4.00 ----$4.00 $4.00 $4.00 $4.00 $4.00 $32.00

Remaining Principal Balance $96.00 $92.00 $88.00 $88.00 $88.00 $88.00 $88.00 $84.00 $80.00 $76.00 $72.00 $68.00 $68.00

Total Principal Repayments = $32.00 Remaining Principal Balance = $100.00 - $32.00 = $68.00 Maturity Payment calculated on the Maturity Date Final Level = 2,300.00 (an Index Return of -8.00%) Maturity Payment = $100.00 On the Final Valuation Date, the Final Level was 2,300.00, which represents less than a 10% Index Return but is above the Barrier Level, so a Holder would receive a Maturity Payment of $100.00 per Note. Payment Summary In this hypothetical scenario, a Holder would have received a Principal Repayment on each Principal Repayment Date except for the fourth, fifth, sixth and seventh Principal Repayment Dates because the Closing Level of the Reference Index is below the Payment Threshold on the fourth, fifth, sixth and seventh Observation Dates.

Client Brochure

Total Payments = Total Principal Repayments + Maturity Payment = $32.00 + $100.00 = $132.00 Return = Maturity Payment - Remaining Principal Balance = $100.00 - $68.00 = $32.00 (or an annualized return of 4.73%)

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HOW DO THE NOTES WORK? Scenario 3: Positive Scenario (Not Automatically Called) Principal Repayments Observation Date 1 2 3 4 5 6 7 8 9 10 11 Final Valuation Date

Closing Level of Reference Index 2,700.00 2,675.00 2,400.00 2,275.00 2,100.00 2,125.00 2,250.00 2,500.00 2,600.00 2,725.00 2,725.00 2,625.00 TOTAL

Index Return 8.00% 7.00% -4.00% -9.00% -16.00% -15.00% -10.00% 0.00% 4.00% 9.00% 9.00% 5.00%

Principal Repayment $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $48.00

Remaining Principal Balance $96.00 $92.00 $88.00 $84.00 $80.00 $76.00 $72.00 $68.00 $64.00 $60.00 $56.00 $52.00 $52.00

Total Principal Repayments = $48.00 Remaining Principal Balance = $100.00 - $48.00 = $52.00 Maturity Payment calculated on the Maturity Date Final Level = 2,625.00 (an Index Return of 5.00%) Maturity Payment = $100.00 On the Final Valuation Date, the Final Level was 2,625.00, which represents less than a 10% Index Return but is above the Barrier Level, so a Holder would receive a Maturity Payment of $100.00 per Note. If the Index Return was greater than 10%, a Holder would have been entitled to receive 10% participation in the Index Return above 10% as part of the Maturity Payment. Payment Summary Total Payments = Total Principal Repayments + Maturity Payment = $48.00 + $100.00 = $148.00

In this hypothetical scenario, the Closing Level of the Reference Index was above the Payment Threshold on each Observation Date, so a Holder would have received a Principal Repayment on each corresponding Principal Repayment Date.

Return = Maturity Payment - Remaining Principal Balance = $100.00 - $52.00 = $48.00 (or an annualized return of 6.75%)

Scenario 4: Positive Scenario (Automatically Called Early) Principal Repayments Observation Date 1 2 3 4 5 6 7 8 9 10 11 Final Valuation Date

Closing Level of Reference Index 2,700.00 2,650.00 2,425.00 2,300.00 2,200.00 2,225.00 2,500.00 2,725.00 3,125.00

Index Return 8.00% 6.00% -3.00% -8.00% -12.00% -11.00% 0.00% 9.00% 25.00%

Principal Repayment $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00 $4.00

Remaining Principal Balance $96.00 $92.00 $88.00 $84.00 $80.00 $76.00 $72.00 $68.00 $64.00

AUTOMATICALLY CALLED $36.00

TOTAL

$64.00

Total Principal Repayments = $36.00 Remaining Principal Balance = $100.00 - $36.00 = $64.00 Maturity Payment calculated on the Call Date Closing Level on 9th Observation Date = 3,125.00 (an Index Return of 25.00%) On the Observation Date that triggered the Notes to be automatically called by the Bank, the Final Level was 3,125.00, which represents more than a 10% Index Return (meaning a Holder would have partially participated in the Index Return above the 10% Index Return on the Call Date). The Notes will be cancelled and Holders will not be entitled to receive any subsequent payments in respect of the Notes. Maturity Payment = $100.00 + ($100.00 x Participation Rate x [Index Return 10.00%]) = $100.00 + ($100.00 x 10% x [25.00% - 10.00%]) = $101.50 per Note

In this hypothetical scenario, the Reference Index closed above the AutoCall Level on the ninth Observation Date, resulting in the Notes being automatically called by the Bank on that date. Prior to the Notes being automatically called by the Bank, the Closing Level of the Reference Index was above the Payment Threshold on each Observation Date, so a Holder would have received a Principal Repayment on each corresponding Principal Repayment Date.

Payment Summary Total Payments = Total Principal Repayments + Maturity Payment = $36.00 + $101.50 = $137.50 Return = Maturity Payment - Remaining Principal Balance = $101.50 - $64.00 = $37.50 (or an annualized return of 7.33%)

The above examples show how the Principal Repayments and Maturity Payment would be calculated based on certain hypothetical values and assumptions set out above. These examples are for illustrative purposes only and should not be construed as an estimate or forecast of the future price performance of the Reference Index or the return that a Holder might realize on the Notes.

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Bank of Montreal Canadian Banks Callable ROC Principal At Risk Notes, Series 66 (CAD)

DISCLAIMER This document should be read in conjunction with the Bank’s short form base shelf prospectus dated April 27, 2015 (the “Base Shelf Prospectus”) and Pricing Supplement No. 222 dated January 8, 2016 (the “Pricing Supplement”). Amounts paid to Holders will depend on the price performance of the Reference Index. The Notes are not designed to be alternatives to fixed income or money market investments. Bank of Montreal does not guarantee that Holders will receive any return or repayment of their principal investment in the Notes at Maturity, subject to a minimum principal repayment of $1.00 per Note. The Notes provide contingent protection only, meaning that a Holder could lose some or substantially all of his or her principal investment in the Notes if the Final Level is below the Barrier Level on the Final Valuation Date. See “Certain Risk Factors” in the Base Shelf Prospectus and “Additional Risk Factors Specific to the Notes” in the Pricing Supplement. Prospective purchasers should carefully consider all of the information set forth in the Pricing Supplement and the Base Shelf Prospectus (collectively, the “Prospectus”) and, in particular, should evaluate the specific risk factors set forth under “Suitability for Investment” and “Risks Relating to the Offering” in the Pricing Supplement. BMO Nesbitt Burns Inc., one of the Dealers, is a wholly-owned subsidiary of the Bank. As a result, the Bank is a “related issuer” of BMO Nesbitt Burns Inc. for the purposes of National Instrument 33-105 - Underwriting Conflicts. See “Plan of Distribution” in the Prospectus. The Notes have not been and will not be rated by any credit rating organization. A rating is not a recommendation to buy, sell or hold investments, and may be subject to revision or withdrawal at any time by the relevant rating agency. The Notes will not be deposits that are insured under the Canada Deposit Insurance Corporation Act or any other deposit insurance regime designed to ensure the payment of all or a portion of a deposit upon the insolvency of the deposit taking financial institution. See “Description of the Notes — Rank; No Deposit Insurance” in the Pricing Supplement.

The above summary is for information purposes only and does not constitute an offer to sell or a solicitation to purchase Notes. The offering and sale of Notes may be prohibited or restricted by laws in certain jurisdictions. Notes may only be purchased where they may be lawfully offered for sale and only through individuals qualified to sell them. Unless the context otherwise requires, terms not defined herein will have the meaning ascribed thereto in the Pricing Supplement. A copy of the Pricing Supplement and the Base Shelf Prospectus can be obtained at www.sedar.com.

“BMO (M-bar roundel symbol)”, “BMO” and “BMO Capital Markets” are registered trademarks of the Bank used under license. S&P® is a registered trademark of S&P, Dow Jones® is a registered trademark of Dow Jones and “TSX” is a trademark of the TSX. These trademarks have been licensed for use by S&P Dow Jones Indices LLC. These trademarks have been sublicensed for certain purposes by Bank of Montreal and its affiliates. The Reference Index is a product of S&P Dow Jones Indices LLC, its affiliates and/or its third party licensors and has been licensed for use by Bank of Montreal and its affiliates. The Notes are not sponsored, endorsed, sold or promoted by S&P Dow Jones Indices LLC, Dow Jones, S&P, any of their respective affiliates or the TSX.

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