The Distribution Reinvestment and Unit Purchase Plan (the “Plan”) adopted by Medical Facilities Corporation (the “Company”) permits eligible investors (“Participants”) to enrol in the Plan and have all distributions they receive from their IPS units used to purchase additional IPS units of the Company (“Plan Units”). Consult the DRIP Plan for the complete text.

DRIP Documents

DRIP Plan

DRIP Form

DRIP FAQ

The following are common questions and answers concerning the Plan. Please note that the answers provided are in summary form only and more detailed and complete information is available from the Plan itself.

1. What is the Plan?

The Plan allows the Company’s unitholders resident in Canada to automatically reinvest cash distributions paid on their units in additional units.

Unitholders who do not enrol their units in the Plan will continue to receive distributions in the usual manner.

The Plan is administered by Computershare Investor Services Inc. (the “Agent” or “Computershare”), which acts as agent for all Participants.

2. What are some of the advantages of participating in the Plan?

The Plan offers the Company’s unitholders a cost-effective means to purchase the Company’s units through the reinvestment of distributions on a regular basis and in a convenient manner.

Participants in the Plan will dollar cost-average their unit purchases by reinvesting distributions under the Plan on a regular monthly basis.

3. Who may “participate” in the Plan?

The company uses a “certificateless” book-entry only securities registration system in which all of the outstanding Units are held through the Canadian Depository for Securities (“CDS”) instead of being registered in the names of the beneficial Unitholders. As a result, Beneficial Unitholders may not directly enroll in the Plan through the company or the Plan Agent, but must enroll in the Plan via their CDS Participant.

Any holder of units in the Company (a “Unitholder”) who is a resident of Canada may enroll in the Plan at anytime. Unitholders who are resident outside of Canada are not permitted to participate in the Plan.

4. How does a Unitholder become a Participant in the Plan?

Beneficial Holders may participate in the Plan by (i) advising their CDS Participant of their desire to participate in the Plan and directing them to take all necessary actions to permit participation in the Plan; and (ii) completing Form A – Certificate of Beneficial Ownership and returning it to the Company.

5. When does participation in the Plan start once a Unitholder has taken the necessary steps to become a Participant and how is the Plan administered?

The rules of CDS dictate the timing of commencement in the Plan for Beneficial Holders. Such rules govern when CDS Participants must provide notice to CDS with respect to Beneficial Holders’ participation in the Plan. Generally, in order for participation to be effective for a given distribution, such advice must be communicated no later than 4:00 p.m. (Toronto time) on the fifth (5th) Business Day immediately preceding the Distribution Record Date (or such other deadline your broker/financial institution may set from time to time in respect of such distribution).

6. How does a Participant terminate participation in the Plan?

A Beneficial Holder may terminate participation at any time by providing written notice to his or her CDS Participant. The CDS Participant will then give notice to CDS in accordance with the rules and regulations of CDS. A Beneficial Holder who has terminated participation in the Plan will be credited with any Plan Units held for the Participant’s account in accordance with the operating policies of such CDS Participant.

7. How will Units be purchased for Participants under the Plan?

Cash distributions payable on units enrolled in the Plan will be aggregated and then used by the Agent, after deduction of applicable fees, to purchase units on the open market through the Toronto Stock Exchange.

8. When will Units be Purchased for Participants?

For distribution reinvestment, units purchased under the Plan will be purchased on the Toronto Stock Exchange during the four (4) business days following the relevant distribution payment date (if insufficient units are available for purchase during such period surplus funds will be returned to unitholders). Historically, the Company has paid distributions on its units on the 15th day (or the following business day if the 15th day is not a business day) of each month. The declaration of distributions and corresponding distribution record and payment dates are determined by the Company’s Board of Directors in its sole discretion.

9. What is the price of the Units under the Plan?

Plan Units are purchased on the Toronto Stock Exchange through a broker-dealer designated by the Agent. The price of the Units shall be the average of the price paid (excluding brokerage commissions, fees and all transaction costs) per Unit (the “Average Purchase Price”) for all of the Units purchase by the Agent in respect of the Plan on the Toronto Stock Exchange during the four (4) business days following the relevant distribution date preceding the purchase of Plan Units.

Plan Participants (CDS) will only receive the number of whole Units to which they are entitled and a cash payment equal to any fractional Plan Units to which it would be entitled multiplied by the Average Purchase Price.

10. What kind of statements will I receive if I participate in the Plan?

As a Beneficial Unitholder participating in the Plan, you will receive information regarding reinvestment of distributions from your intermediary in accordance with your intermediary’s administrative practices.

11. Can the Company amend, suspend or terminate the Plan?

The Company reserves the right to amend, suspend or terminate the Plan at any time, subject to the approval of the Toronto Stock Exchange, but such action shall have no retroactive effect that would prejudice the interest of Participants. All Participants will be sent written notice of any such amendment, suspension or termination. The Company, in conjunction with Computershare, may also from time to time adopt rules and regulations to facilitate the administration of the Plan.

12. What are the income tax consequences of the Plan?

Participants are urged to consult their tax advisors as to their particular tax position.

13. Who should be contacted for additional information about the Plan?

Should you have any additional questions or require additional information about the Plan, please contact:

Computershare Investor Services Inc.
510 Burrard Street, 2nd Floor
Vancouver, British Columbia
V6C 3B9
Phone: (604) 661 9400
Fax: (604) 661 9549