1. What is the Distribution Reinvestment and Optional Unit Purchase Plan?
2. What are the benefits of the Plan?
3. Who is eligible to participate in the Plan?
4. How do I participate in the Plan?
5. What will be the price of new units purchased under the distribution reinvestment plan?
6. What statements will I receive under the Plan?
7. Will certificates be issued for new units purchased?
8. How can I make optional cash payments in the Optional Unit Purchase Plan?
9. Is it possible to have my reinvestment distributions or optional payments fully invested?
10. Do I have to participate in both the Distribution Reinvestment and the Optional Unit Purchase components of the plan?
11. What are the income tax consequences of my participation in the Plan?
12. Do I require separate authorization forms if I hold Inter Pipeline Fund Class A units in more than one account?
13. I have already began my participation in the DRIP but I would like to:
- Begin to contribute to the optional unit purchase component of the plan or
- Change my contribution to the optional unit purchase plan, or
- Change my address
14. How do I terminate my participation in the Plan? |
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| 1. What is the Distribution Reinvestment and Optional Unit Purchase Plan? |
If you hold Class A Units in Inter Pipeline Fund (or the "Partnership") and are an Eligible Investor, then the Distribution Reinvestment Plan will enable you to accumulate additional units by electing to reinvest your cash distributions in additional units which will be purchased, in the discretion of the Partnership, either at the average price that units are acquired through the facilities of the Toronto Stock Exchange (the ‘TSX') within 10 trading days following the distribution date or from the Partnership from treasury at a 5% discount to the then prevailing market price (this is calculated as the weighted average price of all units traded on the TSX for the 10 trading days prior to the distribution date) which will be held under the Distribution Reinvestment Plan for your account.
If you hold Class A Units in Inter Pipeline Fund and are an Eligible Investor, then the Optional Unit Purchase Plan will enable you to purchase additional units from the Partnership from treasury by directly investing additional amounts (‘optional cash payments') of between a minimum of $500 and a maximum of $100,000 per calendar year.
There is no obligation to participate in the Plan and if you do not participate you will continue to receive your distributions in the normal course. |
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| 2. What are the benefits of the Plan? |
The Plan is a convenient and cost efficient way to increase your investment in Inter Pipeline Fund without incurring additional brokerage fees. |
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| 3. Who is eligible to participate in the Plan? |
Only persons who are residents of Canada, or if partnerships, are Canadian partnerships, in each case for purposes of the Income Tax Act (Canada) who own at least one Class A Unit in Inter Pipeline Fund may enroll in the Plan at any time. |
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| 4. How do I participate in the Plan? |
If you are a Registered Unitholder, simply fill out the Distribution Reinvestment authorization form and, if you wish, the Optional Cash Payment authorization form (enrolment forms are located on the forms section or click HERE ). Please ensure that your signature corresponds exactly to the name(s) in which the units are registered, and mail to our Plan Agent, Computershare Trust Company of Canada (click HERE for Plan Agent address).
If you are a Beneficial Owner, with units held in a numbered account with a bank, trust company, or broker, and you would like to participate in the Distribution Reinvestment Plan or the Optional Unit Purchase Plan, you should contact your bank, trust company, or broker directly, as they must enroll on your behalf. Some banks, trust companies or brokerage firms will allow participation in the Plan and others will not. If you cannot participate as a non-registered holder, you must either transfer your units to hold them directly, or transfer them to an account that allows participation.
For information on how transfer units to your name directly, please contact the Plan Agent (click HERE for Plan Agent contact information). |
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| 5. What will be the price of new units purchased under the distribution reinvestment plan? |
The price at which new Units are purchased is based upon 95% of the weighted average price of all Units traded on the TSX on the 10 trading days preceding the cash distribution date. |
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| 6. What statements will I receive under the Plan? |
The Plan Agent will maintain an account for each participant in the Plan. A statement of account will be mailed by the Plan Agent to each participant approximately three weeks after each purchase of Units for a participant's account. The statement will set out the amount of the cash distributions paid on the participant's Units for the relevant period, the total amount of any optional cash payments received from the participant during the period, the number of new Units purchased through the Plan for the period, the dates of these purchases, the purchase price per Unit and the updated total number of Units being held for the participant in the Plan. In addition, each participant will receive the appropriate information annually for reporting distributions for tax purposes. |
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| 7. Will certificates be issued for new units purchased? |
Certificates for new units purchased through the plan are normally not issued to participants. Certificates are held by the Plan Agent for participants and reported on the statement of account. This service protects against loss, theft, or destruction of Unit certificates. Participants who require a Unit certificate but who do not wish to terminate participation in the Plan, may obtain a certificate for any number of whole Units held in their account by duly completing a withdrawal request form (the withdrawal request form can be located under the "forms section" or by clicking here) and delivering it to the Plan Agent five business days prior to the Record Date.
Certificates will generally be issued to participants within two weeks of receipt by the Plan Agent of a participant's written request. Both the new certificated Units and the Units remaining in a participant's account will continue to receive cash distribution reinvestment. A certificate will not be issued for a fraction of a Unit. |
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| 8. How can I make optional cash payments in the Optional Unit Purchase Plan? |
Optional Cash Payments can be made by any participant in the Plan by forwarding a certified cheque or money order to the Plan Agent, in Canadian dollars, payable to "Computershare Trust Company of Canada" together with an optional cash payment form. Optional cash payments may be made at any time but only those payments received five or more business days before a Record Date, will be applied to the purchase of Units on the cash distribution payment date for that Record Date. Payments received four or less business days before, or on or after, a Record Date, will be held by the Plan Agent for investment on the Cash Distribution Date following the next Record Date. Neither the Plan Agent nor the Partnership has any obligation to or will pay interest on these funds. |
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| 9. Is it possible to have my reinvestment distributions or optional payments fully invested? |
Yes, full investment of all funds is possible, since fractional units also will be credited to your account. |
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| 10. Do I have to participate in both the Distribution Reinvestment and the Optional Unit Purchase components of the plan? |
No, you can participate in the Distribution Reinvestment component of the plan, the Optional Unit Purchase component of the plan, or both components of the plan. |
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| 11. What are the income tax consequences of my participation in the Plan? |
The fact that distributions are reinvested in additional units, does not relieve you of any tax liabilities that may be payable on any distributions. To the extent that a distributions from Inter Pipeline Fund would be included on in a Unitholder's income for tax purposes of the Income Tax Act (Canada) (the "Tax Act"), such amounts will be included in the income of the Unitholder's who elect to reinvest such amounts. Unitholders are advised to consult their own tax advisors as to their particular tax situation. |
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| 12. Do I require separate authorization forms if I hold Inter Pipeline Fund Class A units in more than one account? |
Yes, you will need to complete a separate authorization form for every account you want to participate in the distribution reinvestment component of the Plan. As well, signature(s) must correspond exactly to the name(s) in which the units are registered. |
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| 13. I have already began my participation in the DRIP but I would like to: |
| a. Begin to contribute to the optional unit purchase component of the plan or |
| b. Change my contribution to the optional unit purchase plan, or |
| c. Change my address |
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To make any of the above revisions, call or write to the Plan Agent (click HERE for Plan Agent address). When corresponding with Plan Agent about any of the transactions listed above, please ensure that you include all pertinent information, such as: full name of the registered holder, complete address, phone and facsimile numbers, name of broker and brokerage account number (if applicable). |
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| 14. How do I terminate my participation in the Plan? |
You may terminate your participation in the Plan by duly completing a termination request form and delivering it to the Plan Agent (the termination request form is located on the forms section, or click HERE ). The termination request form should be signed by the registered holder or if you are a beneficial owner, this form must be completed by your broker. The termination request form must be received by the Plan Agent at least five business days before the Record Date, otherwise settlement of the participant's account will not commence until after the investment has been completed and statements generated.
Upon termination you will receive a certificate for the whole Units held in the participant's account, and a cash payment for any fraction of a Unit along with the return of any un-invested optional cash payments. The cash payment for any fraction of a Unit will be based on the sale price of the Units as confirmed by the Plan Agent less commission costs.
Generally, a termination will be processed within three weeks of receipt by the Plan Agent of a termination request form, or within two weeks after the investment has been completed. After termination of participation in the Plan, all cash distributions will be paid to the holder of the Units in cash. |
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