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Corporate Actions on CFDs

Rights Issues

On CFD Positions: New positions in the original instrument are granted and booked according to the ratio and the price of the underlying rights issue on the Effective Date (Ex-date), with the value date as payment date. No election required.

On CFD Positions in instruments with the status 'Non shortable'*: A cash amount equivalent to the value of the rights not received will be credited/debited to clients with long/short positions.

*Australian Listed Events
For certain event types including but not limited to Non Renounceable Rights Distributions, Subscription Offers, Entitlement Offers, Rapid Offers, Retail Offers, Australian Listed Companies have the right to reduce entitlements to zero in certain circumstances and CBS will therefore only be booking entitlements to clients on the Payment Date.

Note that Since March 2009 it is the policy of the ACSA (Australian Custodial Services Association) not to offer Share Purchase Plans Events (SPP) to underlying beneficial owner clients and thus CBS cannot participate in such events.

Cash Dividends

On CFD Positions: Cash adjustments are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay Date.

On CFD positions in instruments with the status 'Non shortable'*: Cash adjustments are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay Date.

Dividends on index trackers: When any underlying stock that is part of an Index CFD goes ex-dividend, the Index CFD will be price adjusted to reflect this dividend. The weighted proportion of the applicable dividend within the Index CFD will be credited to the client's account for long positions and debited for short. Please note that the DAX30 is a Total Return Index, meaning the index is automatically adjusted for dividends.

Index Dividend = Share Dividend * Shares in Index / Index Divisor*.

* Divisor: an amount used to stabilise the index value when its composition changes. The sum of all index members' prices is divided by the divisor to achieve the normalised index value. The divisor is adjusted when capitalisation amendments are made to the index members, allowing the index value to remain comparable at all times. To prevent the value of an index from changing due to such an event, all corporate actions that affect the market capitalisation of the index require a divisor adjustment to ensure that the index values remain constant immediately before and after the event.

Depositary Receipt fees

It is standard practice for US depositary receipts to charge an annual administration fee up to USD 0.02 per share depending on the issuing depositary bank. The intent of the fee is to cover costs for the banks that take on the operational processes necessary to issue and trade the depositary receipt line. Typically the fee is deducted when dividend payments are made, however, in case the depositary receipt does not pay a dividend or did not include the custodial fee in their dividend events, the fee will be administered through fee-only events.

The dividend fee is stipulated in the Deposit Agreement between the depositary bank and the company based upon industry standards. The Deposit Agreement is filed with the SEC and is readily accessible by the public.

The fee per depositary receipt is not dependent on the total amount of dividend being paid but the amount of shares held.

Stock Dividends

On CFD Positions: CFDs are allocated on the Ex-date for value on Pay Date. Clients with short positions will be debited and clients with long positions credited.

On CFD positions in instruments with the status 'Non shortable'*: Settlement will be made in cash, and will be booked on the Ex-date for value on Pay Date.

Optional Dividends

On CFD Positions: Cash adjustments are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay Date.

On CFD positions in instruments with status 'Non shortable'* : Cash adjustments are booked on the Ex-date reflecting the market price movement on the Ex-date, but the actual value of the payment will be settled on the Pay Date.

Bonus Issues

On CFD Positions: CFDs are allocated on the Ex-date. Clients with short positions will be debited and clients with long positions credited.

On CFD positions in instruments with status 'Non shortable'*: Settlement will be paid in cash.

Tender Offers

On CFD Positions: Clients will not be given a choice to tender.

On CFD positions in instruments with status 'Non shortable'* : Clients will not be given a choice to tender.

Mergers & Mergers with Elections

On CFD Positions: For mandatory mergers, clients are paid cash or new CFDs on the Ex-date. Clients will not have the possibility to vote on mergers with elections. The default term will be elected on behalf of the client. Clients with short positions will be debited and clients with long positions credited.

On CFD positions in instruments with status 'Non shortable'*: For mandatory mergers, clients are paid cash or new CFDs on the Ex-date. Clients will not have the possibility to vote on mergers with elections. The default term will be elected on behalf of the client. Clients with short positions will be debited and clients with long positions credited.

Stock Splits / Reverse Stock Splits / Spin Offs

On CFD Positions: CFDs are allocated on the Ex-date. Clients with short positions will be debited and clients with long positions credited.

On CFD positions in instruments with status 'Non shortable'*: CFDs are allocated on the Ex-date. Clients with short positions will be debited and clients with long positions credited.

Special Corporate Action Events

Special and infrequent Corporate Actions that do not come under the descriptions above may occur. CBS will handle such Corporate Actions in the best interest of the client to the extent that time and operational procedures will allow.

Taxes and Fees on Corporate actions

Taxes and fees may also occur on other corporate action other than cash dividends such as fee on a stock dividend or tax on a merger. When such taxes and fees occur CBS will debit the client's account accordingly.