EXCHANGE RATES

The exchange rate used for funds transfers or for transactions is based on the net amount of the funds transfer or trade as indicated in the table below. The applied exchange rate will be the rate in effect at the time the funds transfer request is processed by Disnat or at the time the order is executed. Due to fluctuations in foreign exchange markets please note that exchange rate may change anytime during market hours. So a specific exchange rate is applied to each executed order or partial execution over the course of the day. The rules used are described in the following text.

Where there are multiple transactions or multiple executions, in the same day, the exchange rate will be applied as follow:

• For multiple transactions or multiple executions (all buys or all sales on the same or different securities), the applicable exchange rate is based on the rate tier corresponding to the aggregate value of these trades. The exchange rate is the one in effect at the time each trade was executed.

Example 1

A client places two buy orders for US securities in his RRSP. The first order for $10,000 USD is executed at 10:30am and the second order for $7,000.00 USD is executed at 2:00pm.

Since the executed trades are both buy orders, we add their values to determine the range of exchange rates we will use. For $17,000 USD ($10,000 trade plus the $7,000 trade) we will use the $10,000 - $24,999.99 USD exchange rate range.

The first order was executed at 10:30am, so we take the rate to buy US dollars that was in effect at that time, for the $10,000 - $24,999.99 USD range: 1.0452.

The second order was executed at 2:00pm, so we take the rate to buy US dollars that was in effect at that time, for the $10,000 - $24,999.99 USD range: 1.0422.

• For multiple buy and sell transactions, on the same or different securities, in the same account number (seven ou ten characters), the applicable exchange rate is based on the rate tier corresponding to the difference between buys and sells. If the total value of buys is greater than the total value of sales than the BUY rate from the appropriate tier will be assigned to all executions. If the total value of sells is greater than the total value of buys than the SELL rate for the appropriate tier will be assigned to all executions. The exchange rate is the one in effect at the time each trade was executed.

Example 2

A client places two buy orders for US securities in his RRSP and sells one US security. The first buy order, for $12,000 USD is executed at 11:30am, the second buy order for $8,000.00 USD is executed at 1:15pm and the last order for $6,000 USD, the sell, is executed at 3:30pm.

First we need to calculate the net value of the USD transaction, this works out to $14,000 USD ($12,000 + $8,000 - $6,000 = $14,000). Since the total value of buy orders is greater than the sell order we will be using the buy exchange rate for the range where the $14,000 USD net amount, $10,000 - $24,999.99 USD.

Now we apply the exchange rates to each trade: The first buy order was executed at 11:30am, so we take the $10,000 - $24,999.99 USD buy rate that was in effect at that time: 1.0452.

The second buy order was executed at 1:15pm, so we take the $10,000 - $24,999.99 USD buy rate that was in effect at that time: 1.0422.

For the sell order, which was executed at 3:30pm we will also be using the buy rate which was in effect at that time: 1.0442