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Debentures

Since December 31, 2008, the Fund has not made interest payments on either the December 2005 Series Unsecured Convertible Subordinated Debentures or the July 2007 Second Series Unsecured Convertible Subordinated Debentures. Management of the Fund is currently holding discussions with principal holders of both Series of Debentures with a view to restructuring the Debentures.

In December 2005, the Fund issued $75 million principal amount of 7.50% unsecured, convertible subordinated debentures, and an additional $10 million issued pursuant to the exercise of the underwriter's option.

In July 2007, the Fund issued a second series of convertible debentures, Series 2007, issuing $75 million principal amount of 7.00% unsecured, convertible subordinated debentures and an additional $5 million pursuant to the exercise of the underwriter’s option.

Upon maturity, the Fund has the option to repay each series of debentures in cash or through the issuance of units. The following table outlines some of the debentures particulars:

Issued

December 2005

July 2007

Size

$85 Million

$80 Million

Coupon Frequency

Semi-annual. Payable June 30 and December 31 each year.

Semi-annual. Payable June 30 and December 31 each year.

Interest Rate

7.5%

7.0%

Symbol

NPF.DB

NPF.DB.A

Conversion Price

Convertible into units at $9.50. This represents 105.2632 units per $1,000 principal amount of debentures.

Convertible into units at $6.90. This represents 144.9275 units per $1,000 principal amount of debentures.

Maturity Date

December 31, 2010

December 31, 2012

CUSIP #

65230PAA7

65230PAB5