GUIDE TO FILLING OUT THE "KNOW YOUR CLIENT" QUESTIONNAIRE

Welcome to Durham Asset Management Inc. Securities regulations require that we gather a   significant amount of information from each investor and update this information on an annual basis. Your information will always be kept strictly confidential and will be shared with no one except a Canadian securities regulator if required.

The purpose of this document is to guide you through the process of filling out the accompanying Know Your Client questionnaire (KYC). It is very important that the KYC be filled out correctly. It helps to ensure that Durham Asset Management Inc. is in compliance with applicable rules and regulations and assists us in understanding who you are, what your current financial situation is, and what your investment objectives and constraints are.

The information below should help you in filling out the forms. 

1. PRIMARY CONTACT INFORMATION. All applicable fields must be filled out. If you are retired, please indicate "Retired" under occupation and kindly indicate any recent employment activities.
2. LEGAL ADDRESS. This is important to determine your residency. The KYC must be clear in which province you are legally a resident since the securities regulations are significantly different among the provinces.
3. MAILING ADDRESS. You need only fill this out if you wish to receive correspondence from us at a different address than your legal address.
4. INVESTMENT PROFILE. This is a very important part of the KYC information collection process and assists us in determining what investment products may be suitable for you. Please take the time to ensure that you fill this section out accurately and in detail.
   1. Investment Knowledge. This is clearly a relative term. It does not ask you to compare your knowledge to a financial professional but rather to indicate how much experience and knowledge you have in investing. If you are involved in your investment decisions but not completely conversant in them, this may indicate that your knowledge is "good". If you do your own analysis on investment products, this suggests that you may be "sophisticated". If you read the papers and follow the news but aren't directly involved in your investments, you may have "limited" investment knowledge. Finally, if you are not involved in your investments and do not keep up-to-date on financial news, you may have "poor" investment knowledge.
   2. Risk Tolerance. This section documents your willingness and ability to assume risk and should reflect the relative weighting of the types of investments you wish to hold in the account. The value of the investments we recommend should not exceed the allocation thresholds described below. 
      1. Low: Low-risk investments demonstrate low volatility and are for investors who are willing to accept lower returns for greater safety of capital and may include such investments as Canada Savings Bonds, GICs, and money market mutual funds.
      2. Low to Medium: Low to Medium risk investments demonstrate a low to medium volatility, but higher volatility than those described above and may include bond or balanced funds. 
      3. Medium: Medium risk investments demonstrate medium volatility and are for investors who are looking for moderate growth over a longer period of time and may include Canadian dividends, Canadian equity, U.S. equity, and certain international equity funds.
      4. High: High-risk investments demonstrate high volatility and are for investors who are growth-oriented and are willing to accept significant short term fluctuations in portfolio value in exchange for potentially higher long term returns and may include labor sponsored venture capital funds or funds that invest in specific market sectors or geographic areas such as emerging markets, science, and technology, or funds that engage in speculative trading strategies including hedge funds that invest in derivatives, short sell or use leverage.
   3. Investment Objectives
      1. Income: Your objective is to generate current income from your investments, and you are less concerned with capital appreciation. Investments that will satisfy this objective include fixed-income investments such as funds that invest in bonds or money market instruments.
      2. Growth: Your objective is capital appreciation, and current income from investments is not a requirement. This may lead you to hold a relatively high proportion of investments in equities if you also have a higher risk tolerance and long-term time horizon.
      3. Balanced: Your objective is a combination of income and growth.
   4. Time Horizon. This section pertains to how long you intend to keep this investment and whether you will need the funds within a specified period of time. For example, if you will need the funds to make a purchase of a big-ticket item in the next few months, then this type of investment is not suitable for you. This investment is for the long term.
5. VERIFICATION OF IDENTITY. Please provide a government-issued photo ID (Passport, Drivers License, and others)

Should you have any inquiries, please contact Durham Asset Management Inc. Toll-Free: +1-800-444-DAMI or info@durhamasset.ca

PRIMARY CONTACT DETAILS

LEGAL ADDRESS

Residential Address

This address will determine your place of residency for regulatory purpose.

" FINANCIAL ASSET" VERSUS "NET ASSETS"

The Ontario Securities Commission (OSC) differentiates between “financial assets” and “net assets” as follows:
Financial assets include (i) cash, (ii) securities, or (iii) a contract of insurance, deposit or an evidence of a deposit that is not a security for the purposes of securities legislation. The value of an investor’s personal residence or other real estate is not included in the calculation of financial assets.By comparison, net assets include all of the investor’s assets, minus all of his or her liabilities, and so could include an investor’s personal residence and other real estate.

NET FINANCIAL ASSETS

INCOME INFORMATION

Individual Annual Income:

INVESTOR KNOWLEDGE, RISK, AND TIME HORIZON

VARIFICATION OF IDENTITY Please upload valid, government issed photo ID

CLIENT QUESTIONNAIRE: CONTROL PERSON

1. Are you an officer or director of a company whose shares are traded on an exchange or in the OTC Market?

1. Are you in a control position or part of a group in a control position of any such company?

CLIENT QUESTIONNAIRE: POLOTICALLY EXPOSED PERSON

CLIENT QUESTIONNAIRE: POLITICALLY EXPOSED PERSON

The Money Laundering Act of Canada, as amended and effective June 23, 2008, now requires us as a financial institution to determine if our clients may be a Politically Exposed Person (PEP) or Head of an International Organization (HIO). As such, we are required to ask such clients the following questions.

Do you or any members of your family (Defined below) hold or have held one of the following offices or positions in or on behalf of a foreign state?

• Head of state or head of government.
• Member of the executive council of government or member of a legislature.
• Deputy minister or equivalent rank.
• Ambassador or attaché or counsellor of an ambassador.
• A military officer with a rank of general or above.
• President of a state-owned company or a state-owned bank.
• Head of a government agency.
• Leader or president of a political party represented in a legislature.
• Holder of any prescribed office or position.

Family means Immediate Family, including Spouse or common-law partner; Mother or father; Child; Brother, sister, half-brother or half-sister; or Spouse’s or common-law partner’s mother or father.

A. THIRD-PARTY DETERMINATION: In opening this account, are you acting on the instructions of or on behalf of a third party?

B. Head of an International Organization (HIO): Are you or anyone you know the head of an international Organization (HIO) or a close associate of an HIO?

FAMILY, FRIENDS AND ASSOCIATES RELATIONSHIP

CLIENT ACKNOWLEDGEMENT

By signing this form, the Client(s) certify that all information disclosed in this form is complete and true and acknowledge that such information shall be deemed complete, true and unchanged until such time as Durham Asset Management Inc. is advised in writing by the Client(s) of any change pertaining thereto. The Client(s) certify that it is their responsibility to notify Durham Asset Management Inc. of any changes to the above information