Dividend Reinvestment Plan (DRIP) and DRIP Q&A

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Dividend Reinvestment Plan DRIP Q&A

Dividend Reinvestment Plan

Dividend Reinvestment Plan - Information  
Canadian Western Bank's (the “Bank”) Dividend Reinvestment Plan (the “Plan”) provides holders of the Bank’s common shares, holders of each series of First Preferred shares and holders of any other class of shares deemed eligible by the Bank’s Board of Directors (collectively, “Eligible Shares”), with the opportunity to direct cash dividends paid on any class of their Eligible Shares toward the purchase of additional common shares. 

Common shares are purchased by the Plan Agent who acts on behalf of holders who have elected to participate in the Plan. The Plan Agent purchases such common shares, as directed by the Bank, directly from the Bank or on the open market through the facilities of the Toronto Stock Exchange. Common shares purchased by the Plan Agent from the Bank are purchased at the Average Market Price (as defined in Section 7(a) of the Plan), or at up to a 5% discount on the Average Market Price. Common shares purchased by the Plan Agent in the open market are purchased at the Average Purchase Price (as defined in Section 7(b) of the Plan). 

Please consult the Dividend Reinvestment Plan for more information around the Plan. The enrolment form is available here.

For any questions regarding the Plan, please phone, write or e-mail the Plan Agent: 

Computershare
100 University Avenue, 8th Floor
Toronto, ON M5J 2Y1
Attention: Investor Relations 
Telephone: 1-800-564-6253 
Fax: 1-888-453-0330 
Website: Computershare

DRIP Q&A

What is a dividend reinvestment plan (DRIP)?
A DRIP is a company sponsored stock purchase plan that gives eligible shareholders the option to direct their cash dividends towards the purchase of additional CWB common shares (or fractions thereof).
What are the potential advantages for shareholders who participate in the DRIP?
Lower cost investing – CWB incurs the costs of the plan which allows DRIP participants to buy shares without incurring brokerage, commission or other related fees. For dividends declared commencing in December 2014, CWB has elected to issue common shares for the Plan from treasury with no discount from the average market price, compared to a 2% discount in prior periods. 

Compounding – shares purchased through the DRIP are eligible for dividends on the next dividend date. 

Full reinvestment – where dividends are not divisible into whole shares, a participant receives a fractional share interest. 

Dollar cost averaging – dividends are reinvested at the applicable average market price on each dividend date. 

DRIP participation is voluntary - investors can also choose to terminate their enrollment at any time. 

CWB’s preferred shares are also eligible under the DRIP - participants may also choose to have their preferred share dividends directed toward the purchase of additional common shares
What are the risks for shareholders who participate in the DRIP?
As with any equity investment, CWB’s common and preferred shares are subject to various market and other risks, including market price volatility. Before participating, all shareholders are advised to consult their financial advisors and to read the complete text of the Dividend Reinvestment Plan
Are CWB dividends "eligible dividends" as defined in the Income Tax Act (Canada)?
Yes, CWB designates all dividends for both common and preferred shares paid to Canadian residents as “eligible dividends”, as defined in the Income Tax Act (Canada), unless otherwise noted.
Who may participate in the DRIP?
Currently, enrolment in the DRIP is limited to Canadian residents who hold CWB common shares, holders of each series of First Preferred shares and holders of any other class of shares deemed eligible by the Bank’s Board of Directors.
How can I enrol in the DRIP?
Registered holders — shareholders whose shares are registered in their name may enrol by completing the Authorization Form and submitting it to the Plan Agent. 

Beneficial holders — shareholders who hold their shares in the name of a nominee such as a broker, investment dealer or financial institution should contact their nominee to inquire about enrolment.