Growing your business with complementary EMD Licensing How

Growing your business with complementary EMD Licensing • • • How becoming Exempt Market licensed or signing a “ Referral Agreement” with Quadrexx Asset Management can help you grow your business Differentiates you from other financial services providers Allows better Asset Allocation for your clients through investment diversification and/or Wealth Management Enhances cash flow and rates of return for your clients Increases your revenues Partners you with a nationally recognized asset management firm and Portfolio Manager

• Exempt Market Dealer • Portfolio Management • Wealth Management • Investment Fund Manager • Estate Management • Education – Radius Financial Education Copyright Quadrexx Asset Management Inc.

Quadrexx Advantage • Full Service Investment Management Firm • High degree of accountability and Due Diligence • Mutual Fund Book Purchase Program • Active in the “Exempt Market” since 2003 (as LMD) • Highly competitive payout structure • Client aligned in-house and 3 rd Party Investments • Active Wealth Management expertise for Retail Clients Copyright Quadrexx Asset Management Inc.

Quadrexx Advantage • Quadrexx-$350 MM AUA/AUM • Higher Standard of Due Diligence • Non-Market Correlated Investments • PM is nationally known and rated in the 2 nd percentile in Canada • Radius Financial Education • Annual World Alternative Investment Summit Canada Copyright Quadrexx Asset Management Inc.

What are Exempt Market Products (EMP) • Securities sold with an “exemption” from a prospectus • Prospectus is full disclosure of risk, full disclosure of material facts and no misrepresentations – i. e. Mutual Funds • EMPs use Offering Memorandum instead – less information • As of Sept. 2009 and the introduction of National Instrument 31 -103 sellers MUST BE licensed • Licensee becomes a “Dealing Representative” (DR) • Types of product: MICs, Real Estate, Private Equity, Land Development, REITS Copyright Quadrexx Asset Management Inc.

What are Exempt Market Products (EMP) • Sold through Exempt Market Dealer (EMD)– registration category like MFDA, IIROC • EMD and product issuers must meet stringent requirements • EMDs responsible for due diligence on products • EMDs must supervise DRs and monitor suitability of ALL trades • DRs must also meet “Know Your Product” requirements • Products can be complex and considered “high risk” by regulators • Onus is on DR to determine if the client can handle the risk (KYC) • Products can be illiquid – many have five year exit strategies Copyright Quadrexx Asset Management Inc.

Top Reasons to Invest in Exempt Market Products • Diversification in asset classes that MFs do not provide • EMPS provide investors with cash flow from products like fixed income bonds, private REITS and mortgage investment corps • EMPS provide greater diversification with potential for long term growth and safety • Non-correlated to stock markets and mutual funds – less volatility • No annual sales fees • Investments that return the investors capital and not just a return on capital Copyright Quadrexx Asset Management Inc.

Suitability v. Eligibility • Must ensure the features, design and risk types are in line with client’s profile, investment objectives and risk tolerance • Client must use the proper “exemption” as these products cannot be sold to anyone • Exemptions include “Eligible Investor” – minimum income of $75, 000 (single) or $125, 000 (combined) OR minimum assets of $400, 000 • OM Exemption – For clients investing $10, 000 or less no income or asset requirements • Must sign Form 45 -106 F 4 (Risk Acknowledgment Form) to use OM Exemption • Not available in Ontario – must be Accredited – less than 2% of Canadian population actually qualifies as Accredited • Other exemptions as well – too many to mention here Copyright Quadrexx Asset Management Inc.

Quadrexx Funds • Quibik Funds – Professionally Managed by Jeff Parent • Quibik Opportunity Fund • Quibik Income Fund • QSA – Quadrexx Secured Assets Fund yielding 12% per annum (simple interest) for a total expected 60% return over 5 years • Urban. Star 1 st Mortgage Investment Corporation (MIC) with an 811% targeted yield Copyright Quadrexx Asset Management Inc.

3 rd Party Approved Products • • • Prime Funds – Fixed Income Investment with superior land security Urbanstar Capital – Residential & Commercial Land Banking Centurion Reit – Unincorporated Open-end Investment Trust Prestigious Properties – Buys and manages undervalued multi-family rentals Canadian Horizons MIC – Portfolio of Canadian Mortgages Pavilion Flow-Through LP – Maximizing tax benefits through flow-throughs Mineral Fields – Super Flow-Through of resources companies Productivity Media- portfolio of film and television tax credits Continued additions to the product shelf Copyright Quadrexx Asset Management Inc.

Three Ways to Access Benefits of Exempt Markets 1) Take Exempt Market Products course through IFSE - Cost is $325 • Pass exam and become licensed with Quadrexx • Commission payout based on your National Best grid 2) Take Canadian Securities Course – Cost is approximately $1000 • Pass exam and become licensed with Quadrexx • Commission payout based on your National Best grid 3) Sign a Referral Agreement with Quadrexx – Cost is $0 • Commission payout based on a Referral Fee and your National Best grid Copyright Quadrexx Asset Management Inc.

Caution: Referral Agreements Highly Regulated Before you “refer” a client you must have Agreement in place Agreement is between you and Quadrexx You cannot advise or “sell” any exempt product to your client You can make general statements to clients about exempt markets You can not determine or advise on suitability of exempt products If your client is interested you will provide them with the “Quadrexx Referral form” and they will then email or fax it to Quadrexx • The form gives Quadrexx permission to have a Quadrexx Dealing Representative contact the client to discuss exempt products • Quadrexx will only partner your client with a National Best agent that is licensed to sell exempt products • You will be paid a referral fee of 17. 7% of the total commission • • • Copyright Quadrexx Asset Management Inc.

How to initiate a Referral Agreement • Contact Karen Riva at Quadrexx – 403 -457 -4507 • Karen will send you a copy of the Referral Agreement • Once you sign the Agreement, please note that this Agreement is between you and Quadrexx • Caution: Once you earn up to $10, 000 in commission using the Referral Agreement, you will be required to become licensed • Why? Regulators will view you as being in the “business” of advising – this would be deemed as a “Trigger” • THANK YOU! Copyright Quadrexx Asset Management Inc.