Dividend History

Div­i­dend Policy

Exchange’s div­i­dend pol­icy is to pay cash div­i­dends to Share­hold­ers in each monthly period based on funds gen­er­ated and received from the sub­sidiaries. In deter­min­ing the amount to send to the Com­pany the sub­sidiaries take into con­sid­er­a­tion their require­ments for main­te­nance and growth capital.

The level of div­i­dends is exam­ined on an ongo­ing basis by the direc­tors of the Com­pany, and should the cash gen­er­ated exceed the require­ments for invest­ment in main­te­nance and growth oppor­tu­ni­ties, the level of div­i­dends will be reevaluated.

Cash div­i­dends are made to the share­hold­ers of record on the last day of each month (unless such day is not a busi­ness day, in which case the date of record shall be the prior busi­ness day) and shall be payable on the 15th day of the fol­low­ing month or, if such day is not a busi­ness day, the prior busi­ness day or such other date as deter­mined from time to time by the direc­tors of the Company.

Eli­gi­ble Dividends

For the Novem­ber 2009 div­i­dend and unless stated oth­er­wise, all div­i­dends paid there­after are des­ig­nated as “eli­gi­ble” div­i­dends under the Income Tax Act (Canada) and any cor­re­spond­ing provin­cial leg­is­la­tion. Under this leg­is­la­tion, indi­vid­u­als res­i­dent in Canada may be enti­tled to enhanced div­i­dend tax cred­its which reduce income tax oth­er­wise payable.

Octo­ber 2009

The Octo­ber 2009 div­i­dend con­sists of two dividends:

“Eli­gi­ble dividend” $0.06
Non-​​eligible dividend $0.07
Total payable to all com­mon shareholders $0.13

For pur­poses of the enhanced div­i­dend tax credit rules con­tained in the Income Tax Act (Canada) and any cor­re­spond­ing provin­cial and ter­ri­to­r­ial tax leg­is­la­tion, the div­i­dend in the amount of $0.06 and payable on Novem­ber 13, 2009 to share­hold­ers of record on Octo­ber 31, 2009 to Cana­dian res­i­dents on all of our com­mon shares, are des­ig­nated as “eli­gi­ble dividends”.

Treat­ment of Div­i­dends for US Tax Purposes

Exchange Income Cor­po­ra­tion believes that its div­i­dends are “Qual­i­fied Div­i­dends” for U.S. tax pur­poses and there­fore could be eli­gi­ble for the reduced div­i­dend rate of tax, unless the fact sit­u­a­tion of a par­tic­u­lar U.S. indi­vid­ual share­holder deter­mines otherwise.

Refer to Page 22 of the IRS 2009 Form 1040 Instruc­tion book­let for exam­ples of indi­vid­ual sit­u­a­tions where the div­i­dends are not “Qual­i­fied Div­i­dends”. In the cases that the amount is not a “Qual­i­fied Div­i­dend” due to indi­vid­ual sit­u­a­tions, it should be reported on your U.S. fed­eral income tax return as an Ordi­nary Dividend.

Div­i­dend History

On July 29, 2009, Exchange was con­verted from an Income Trust to a cor­po­ra­tion. As such, prior to July 29, 2009, cash pay­ments to Unithold­ers were treated as income trust dis­tri­b­u­tions, and sub­se­quent to this date, the cash pay­ments to Share­hold­ers will be treated as dividends.

Below is the div­i­dend his­tory for 2014, 2013 and 2012 for Exchange. For Exchange’s div­i­dend and dis­tri­b­u­tion his­tory since its incep­tion on March 22, 2004 see the fol­low­ing link.

Period                    Record Date                 Dis­tri­b­u­tion Date        Pay­ment per share

April 2014               April 30, 2014                 May 15, 2014                        $0.14
March 2014            March 31, 2014               April 15, 2014                       $0.14
Feb­ru­ary 2014       Feb­ru­ary 28, 2014          March 14, 2014                     $0.14
Jan­u­ary 2014         Jan­u­ary 31, 2014            Feb­ru­ary 14, 2014                $0.14
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Period                    Record Date                 Dis­tri­b­u­tion Date        Pay­ment per share

Decem­ber 2013    Decem­ber 31, 2013        Jan­u­ary 15, 2013                   $0.14
Novem­ber 2013    Novem­ber 29, 2013        Decem­ber 13, 2013               $0.14
Octo­ber 2013        Octo­ber 31, 2013           Novem­ber 15, 2013               $0.14
Sep­tem­ber 2013   Sep­tem­ber 30, 2013      Octo­ber 15, 2013                   $0.14
August 2013          August 30, 2013            Sep­tem­ber 13, 2013              $0.14
July 2013               July 31, 2013                  August 15, 2013                     $0.14
June 2013              June 28, 2013                 July 15, 2013                          $0.14
May 2013               May 31, 2013                  June 14, 2013                        $0.14
April 2013              April 30, 2013                 May 15, 2013                         $0.14
March 2013           March 28, 2013               April 15, 2013                        $0.14
Feb­ru­ary 2013       Feb­ru­ary 28, 2013          March 15, 2013                    $0.14
Jan­u­ary 2013         Jan­u­ary 31, 2013            Feb­ru­ary 15, 2013                $0.14
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Period                    Record Date                 Dis­tri­b­u­tion Date        Pay­ment per share

Decem­ber 2012     Decem­ber 31, 2012       Jan­u­ary 15, 2013                    $0.14
Novem­ber 2012     Novem­ber 30, 2012       Decem­ber 14, 2012                $0.14
Octo­ber 2012        Octo­ber 31, 2012            Novem­ber 15, 2012              $0.135
Sep­tem­ber 2012   Sep­tem­ber 28, 2012       Octo­ber 15, 2012                  $0.135
August 2012          August 31, 2012             Sep­tem­ber 14, 2012              $0.135
July 2012               July 31, 2012                  August 15, 2012                      $0.135
June 2012              June 29,2012                 July 13, 2012                            $0.135
May 2012               May 31, 2012                 June 15, 2012                           $0.135
April 2012              April 30, 2012                May 15, 2012                            $0.135
March 2012           March 30, 2012              April 13, 2012                           $0.135
Feb­ru­ary 2012       Feb­ru­ary 29, 2012          March 15, 2012                       $0.135
Jan­u­ary 2012         Jan­u­ary 31, 2012            Feb­ru­ary 15, 2012                  $0.135
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