Rural areas of Southgate have private wells and private sewage systems.

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10. Utility Services and Tax Rates 10.1 Water Services Water and sewer services in Dundalk are provided by the Township of Southgate. Dundalk is supplied by deep wells and water supply infrastructure operated by the Township. Rural areas of Southgate have private wells and private sewage systems. 10.1.1 Municipal Water Supply Dundalk Water Works is a ground water source consisting of two production wells, one monitoring well and a distribution system. The system is monitored by a SCADA system installed in 2006 which communicates through RF towers and PLC s in the wells to record data and monitor operations. The Dundalk water treatment has a capacity of 2,819 m 3 (620,575 gallons) per day. The current average daily consumption is 462 m 3 (101,705 gallons) per day. The peak consumption in 2014 was 1,126 m 3 (247,878 gallons per day). The system is currently at 16% of capacity based on average consumption or 40% of capacity based on peak consumption in 2014. Details on the quality, testing and water flows are available in the Dundalk Waterworks Annual Report. Consumption Rate Water Charge Southgate Water Charges, 2018-2020 Category 2018 Fees 2019 Fees 2020 Fees m 3 $1.78/m 3 $1.78/m 3 $1.79/m 3 gallons $8.08/1,000 gallons $8.11/1,000 gallons $8.14/1,000 gallons Base Charges - By meter size 5/8" to 3/4" $22.71 $24.70 $26.87 1" $56.77 $61.75 $67.17 1½" $113.53 $123.50 $134.34 2" $181.65 $197.60 $214.95 3" $363.31 $395.20 $429.90 4" $567.67 $617.50 $671.72 Source: Township of Southgate Public Works. Southgate Public Works 519-923-2110 waterworks@southgate.ca www.southgate.ca/content/water-wastewater 10.1.2 Private Water Supplies Most of Southgate outside of Dundalk is served by private water supplies usually from wells.

10.2 Sewage Services Water and sewer services in Dundalk are provided by the Township of Southgate. Southgate supplies sewage collection infrastructure to a municipal sewage treatment plant. Rural areas of Southgate have private sewage systems. 10.2.1 Municipal Sewage The Dundalk wastewater treatment has an annual design capacity of 208,500 m 3. The wastewater treatment system discharge was at 73.90% of total capacity in 2014. Details on the wastewater treatment are available in the Dundalk Wastewater Treatment Plant Annual Report. Consumption Rate Sewer Charge Source: Township of Southgate Public Works. Southgate Sewer Charges 2018-2020 Category 2018 Fees 2019 Fees 2020 Fees m3 $1.20/m3 $1.22/m3 $1.24/m3 gallons $5.47/1,000 gallons $5.55/1,000 gallons $5.64/1,000 gallons By meter size 5/8" to 3/4" $47.57 $54.54 $62.52 1" $118.93 $136.34 $156.30 1½" $237.87 $272.68 $312.59 2" $380.59 $436.29 $500.15 3" $761.17 $872.58 $1,000.30 4" $1,189.33 $1,363.41 $1,562.97 Southgate Public Works 519-923-2110 waterworks@southgate.ca www.southgate.ca/content/water-wastewater 10.3 Electricity Electricity is provided in Holstein by Wellington North Power Inc. and by Hydro One in the remainder of Southgate. 10.3.1 Hydro One Networks Inc. Hydro One Incorporated is an electricity transmission and distribution utility serving the Canadian province of Ontario. Hydro One Networks is their largest subsidiary, which is involved in the planning, construction, operation, and maintenance of our transmission and distribution network.

Our transmission system carries electricity from generating stations to local distribution companies and large industrial customers through our high-voltage network of transformer stations, transmission towers and wires. Hydro One Networks own 97% of transmission in Ontario with almost 30,000 km of high-voltage transmission lines. The distribution system delivers electricity at lower voltages to homes, farms and businesses through our network of hydro poles and power lines. Hydro One s network is the largest in the province, with 121,000 km of wires serving 1.4 million customers, mostly in rural areas. Electricity rates effective Jan 1, 2017 Electricity: Time-of-Use Prices (as of July 1, 2017) Hydro One Residential Electricity Rates Urban High Density Medium Density Low Density Off-Peak 6.5 6.5 6.5 Mid-Peak 9.5 9.5 9.5 On-Peak 13.2 13.2 13.2 Delivery: Distribution service charge: ($/month) $25.50 $34.59 $21.19¹ Smart metering entity charge $ 0.79 $ 0.79 $ 0.79 Distribution volume charge: (metered usage - /kwh) 0.91 2.28 3.74 Transmission connection charge (adjusted usage - / kwh) 0.47 0.47 0.44 Transmission network charge (adjusted usage - / kwh) 0.67 0.64 0.62 Adjustment Factor 1.057 1.076 1.105 Regulatory Charges: Standard Supply Admin Charge ($.25/month) $0.25 $0.25 $0.25 Rural Rate Protection Charge (c/kwh - adjusted) $0.21 $0.21 $0.21 IESO Wholesale Market Service Rate (c/kwh adjusted) $0.36 $0.36 $0.36 Ontario Electricity Support Program Charge ( adjusted) $0.00 $0.00 $0.00 Account set up charge: $30 $30 $30 1. A $60.50 credit for rural or remote rate protection has been applied to the distribution service charge. Source: Hydro One Networks.

Hydro One Small Business Electricity Rates (> 50 kw/month) Electricity rates effective Jan 1, 2017 General Service Demand Billed (50kW and above) Electricity - up to 250,000 kwh/year: Urban Demand Demand Time-of-Use Prices (as of July 1, 2017) Off-Peak 6.5 6.5 Mid-Peak 9.5 9.5 On-Peak 13.2 13.2 Regulated Price Plan Prices (as of Jan 1, 2017) First 750 kwh per month (adjusted usage - /kwh) 9.1 9.1 Additional kwh (adjusted usage - /kwh) 10.6 10.6 Electricity over 250,000 kwh/year with a conventional meter (c/kwh)¹ See note See note Electricity over 250,000 kwh/year with an interval meter (c/kwh)² See note See note Delivery: (as of Jan 1, 2017) Distribution service charge ($/month) $95.39 $90.85 Distribution volume charge (billed demand - $/kw) $9.1214 $16.0664 Transmission network charge (billed demand - $/kw)³ $2.0123 $1.6048 Transmission connection charge (billed demand - $/kw)⁴ $1.3239 $1.0743 Line loss adjustment factor⁵ $1.050 $1.061 Regulatory charges: (as of May 1, 2017) Standard supply service administration charge ($/month) $0.25 $0.25 Rural rate protection charge (adjusted usage - /kwh) 0.21 0.21 Wholesale market service rate (adjusted usage - /kwh) 0.36 0.36 Ontario Electricity Support Program Charge (adjusted usage - /kwh): 0.11 0.11 Debt retirement charge (metered usage /kwh) 0.70 0.70 1. Weighted average hourly spot market price (WAHSP) or retail contract plus Global Adjustment. 2. Hourly Ontario energy price (HOEP) or retail contract plus Global Adjustment. 3. Delivery rate are effective Jan 1, 2017. 4. Retail transmission rates shown have not been adjusted for line losses. 5. An adjustment for line losses is included under the Delivery line for low-volume customers who use less than 150,000 kwh of electricity a year. Customers paying the spot market price will have this adjustment included under the Electricity line. It is calculated as follows: {adjusted use in kwh x (PRR prices/spot price/retail contract price)} {metered use in kwh x RPP prices/spot price/retail contract price)} = line loss adjustment. 6. If you ve enrolled with a retailer, the $0.25 standard supply service administration charge will be deducted from the Regulatory charges on your bill. 7. The Ontario Electricity Support Program (OESP) reduces electricity costs for low-income customers. As part of the Fair Hydro Plan, the OESP charge has been removed from bills, effective May 1, 2017. The Province will fund the OESP through provincial revenues. 8. The Debt Retirement Charge will be removed from the electricity bills of businesses and other large users for electricity used after March 31, 2018. Source: Hydro One Networks. Hydro One Networks Inc. 1-888-664-9376 www.hydroone.com

10.3.2 Wellington North Power Inc. Wellington North Power Monthly Rates & Charges, in Holstein Residential General Service - Less Than 50 kw General Service - 50 to 999 kw General Service 1,000 To 4,999 kw Time-of-Use Prices (as of July 1, 2017) Off-Peak 6.5 6.5 6.5 6.5 Mid-Peak 9.5 9.5 9.5 9.5 On-Peak 13.2 13.2 13.2 13.2 Delivery Component effective July 1, 2017 Monthly Service Charge $27.95 $42.31 $279.90 $2,287.64 Rate Rider for Smart Metering Entity Charge - effective until October 31, 2018 $0.79 $0.79 Distribution Volumetric Rate () $0.0103 $0.0182 2.6697 3.0947 Low Voltage Service Rate () $0.0029 $0.0025 0.9952 1.0911 Retail Transmission Rate - Network $0.0065 $0.0060 $/kw 2.4881 $/kw 2.6426 Service Rate () Retail Transmission Rate - Line and Transformation Connection Service Rate Regulatory Component: Wholesale Market Service Rate Rural or Remote Electricity Rate Protection Charge Standard Supply Service - Administrative Charge (if applicable) 0.0046 0.0036 0.0021 Source: Derived from Wellington North Power rates on www.wellingtonnorthpower.com 10.4 Internet 0.0039 $/kw 1.5576 $/kw 1.7076 0.0036 0.0021 0.0036 0.0021 0.0036 0.0021 $0.25 $0.25 $0.25 $0.25 Southgate is served by several internet providers including Markdale Cable, EH!tel, Xplornet and Bell. 10.4.1 Markdale Communications Internet Markdale Communications Internet Rates, Dundalk Prices effective Aug. 2016 Ultimate Max Xtreme Basic Download Speed Up to 100Mbps Up to 60Mbps Up to 25Mbps Up to 10Mbps Upload Speed Up to 4 Mbps Up to 3 Mbps Up to 2 Mbps Up to 1 Mbps Usage Allowance per month Unlimited 300GB 200GB 150GB Unlimited Data n/a $10.00 $10.00 $20.00 Cable Subscribers - Monthly Fee $84.95 $69.95 $49.95 $39.95 Non Cable Subscribers - Monthly Fee $99.95 $84.95 $64.95 $54.95 All Residential Internet Packages include five (5) email addresses; Installation fee is $75.00. Modem purchase is extra. Source: www.markdalecommunications.com

Markdale Communications 519-986-2262 contact@markdalecable.com www.markdalecommunications.com/internet 10.4.2 EH!tel Internet EH!tel Internet Rates, Southgate Prices Ultimate Plus Ultimate Edge Prime Recommended for Surfing, research, news, email, Facebook, YouTube, Music, Skype, Gaming, HD Netflix, Android Box, Cloud and file sharing. Surfing, research, news, email, Facebook, YouTube, Music, Skype, Gaming, HD Netflix, Android Box, Cloud and file sharing. Surfing, research, news, email, Facebook, YouTube, Music, Skype, Gaming, Netflix and file sharing. Surfing, research, news, email, Facebook, YouTube, Music and Skype. Download Speed 25 Mbps 10 Mbps 5 Mbps Up to 3 Mbps Upload Speed 2 Mbps 1.5 Mbps 1 Mbps 0.5 Mbps Usage Allowance per month Unlimited Unlimited Unlimited Unlimited Monthly Price $119.99 $79.99 $54.99 $39.99 No contractual terms, free site survey & basic installation, unlimited data, no rental fees and live local support. Source: www.ehtel.ca EH!tel 392058 Grey Rd. 109, Holstein, ON N0G 2A0 519-594-0946 info@ehtel.ca www.ehtel.ca 10.4.3 Xplornet Internet Packages Recommended For Great for light Basic web streaming, web browsing, email, browsing, for 1-2 devices. downloading music and photos. LTE-25/300GB Great for average streaming, active web activity, downloading for 1-3 devices. Xplornet Internet Rates, Southgate LTE- LTE-5/50GB 10/200GB LTE- 25/500GB Great for streaming, web browsing, and multiplayer gaming for 1-3 devices. Download Speed (up to 5.0 Mbps 10.0 Mbps 25.0 Mbps 25.0 Mbps Upload Speed (up to) 1.0 Mbps 1.0 Mbps 1.0 Mbps 1.0 Mbps Monthly Usage Allowance 50GB 200GB 300GB 500GB Additional Usage $2.00/GB $2.00/GB $2.00/GB $2.00/GB Monthly Price (All contract terms) $64.99 $74.99 $84.99 $109.99 Technology LTE LTE LTE LTE One-Time Activation Fee (2-yr contract) $99 $99 $99 $99 E-mail Accounts 5 5 5 5 Source: www.xplornet.com

Xplornet 1-866-934-4293 support@xplornet.com www.xplornet.com 10.4.4 Bell Internet Bell Internet Rates Fibe 50 Fibe 25 Fibe Internet Download Speed Up to 50 Mbps Up to 25 Mbps Up to 10 Mbps Upload Speed Up to 10 Mbps Up to 10 Mbps Up to 0.93 Mbps Monthly Usage Unlimited 350 GB 350 GB' Monthly Price $89.95 $74.95 $74.95 One Time Activation Fee $49.95 $49.95 $49.95 ' Unlimited $84.95/month. Source: www.bell.ca Bell Canada 1-866-716-8383 www.bell.ca/bell_internet 10.5 Telephone Phone service in Southgate is provided by Bell Canada. Internet based phone service in generally available from the Internet providers in Section 10.4. Cell phone service is available from the national carriers. 10.6 Natural Gas The service areas for natural gas in Southgate are split between Enbridge and Union Gas. Enbridge serves Dundalk and the former Proton Township. Union Gas serves the former Egremont Township. Dundalk and the properties fronting onto Ida St. and Southgate Sideroad 75 outside Dundalk are supplied natural gas by Enbridge. Most of Southgate is rural and is not supplied with natural gas by either utility. Enbridge Gas Phone: 1-866-763-5427 Web: www.enbridgegas.com

Monthly Demand Charge Commercial and Industrial Natural Gas Rates Rates as of Apr. 1, 2018 Annualized Increase (Decrease) Customer Charge $70.00 No Change Gas Supply Charge 9.4665 /m³ ($146.75) Cap and Trade (included in Delivery Rates) 3.3518 /m³ No Change Transportation to Enbridge 4.7525 /m³ ($154.44) Delivery Breakdown (cents per m3) Amount of Gas used per month in cubic metres Cost in cents per cubic metre First 500 m 3 10.35 Next 1,050 m 3 8.2392 Next 4,500 m 3 6.7611 Next 7,000 m 3 5.8114 Next 15,250 m 3 5.3894 Over 28,300 m 3 5.2834 Cap and Trade Customer Related Charge (if applicable) 3.3181 Cap and Trade Facility Related Charge 0.0337 Cost Adjustment Breakdown Cost Adjustment (0.1079) /m³ ($116.53) Components of Cost Adjustment (cents per m³) Gas Supply (0.2169) Transportation (0.1119) Delivery 0.2209 Source: Enbridge Gas Residential Natural Gas Rates Monthly Demand Charge Rates as of Apr. 1, 2018 Annualized Increase (Decrease) Customer Charge $20.00 No Change Gas Supply Charge (cents/m3) 9.4452 ($15.57) Cap and Trade 3.3518 No Change Transportation to Enbridge 4.7525 ($16.40) Delivery Breakdown (cents per m3) Amount of Gas used per month Cost in cents per cubic metre First 30 m 3 11.0799 Next 55 m 3 10.4625 Next 85 m 3 9.9791 Over 170 m 3 3.3518 Cost Adjustment Breakdown Cost Adjustment 0.0885 /m³ ($11.98) Components of Cost Adjustment Gas Supply /m³ (0.2106) Transportation /m³ (0.1119) Delivery /m³ 0.2340 Source: Enbridge Gas

10.7 Fuel Oil and Propane Fuel Oil is available from: Highland Fuels 92 Main St. W., Dundalk, ON N0C 1B0 519-923-2240 Toll Free: 1-800-265-9154 info@highlandsupply.ca www.highlandsupply.ca 10.8 Municipal Taxes Township of Southgate Property Tax Rates, 2017 Tax Class (Occupied Only) Southgate Rate Grey County Rate Education Rate Total Rate Industrial 0.01330605 0.00680087 0.01390000 0.03400692 New Industrial Construction 0.01330605 0.00680087 0.00140000 0.03150692 Commercial 0.00935870 0.00478334 0.01390000 0.02804204 Farmlands 0.00179019 0.00091499 0.00044750 0.00315268 Residential 0.00716077 0.00365995 0.00179000 0.01261072 Multi-Residential 0.01032008 0.00527471 0.00179000 0.01738479 Managed Forest 0.00179019 0.00091499 0.00044750 0.00315268 Source: Township of Southgate, Finance Department. 10.9 Federal and Provincial Tax Rates Please check the original sources and current sources of the tax rate information to confirm its accuracy. Corporate Taxes - General Corporation - Rates 2018 Manufacturing & Processing Active Business Income Income Investment Income Federal rates General corporate rate 38.0% 38.0% 38.0% Federal abatement (10.0) (10.0) (10.0) After Fed. abatement 28.0 28.0 28.0 M&P deduction (13.0) 0.0 0.0 Rate deduction 0.0 (13.0) (13.0) Net federal rate 15.0 15.0 15.0 Provincial/Territorial Rates - Ontario Ontario 11.5 11.5 11.5 Source: Revenue Canada

Federal Rates Corporate Taxes - Canadian Controlled - Rates 2018 Small Business Small Business Income Income up to Between $400,000 and $400,000 $500,000 Active Business Income Investment Income General corporate rate 38.0% 38.0% 38.0% 38.0% Federal abatement (10.0) (10.0) (10.0) (10.0) 28.0 28.0 28.0 28.0 Small business deduction (17.0) 0.0 0.0 0.0 Rate reduction 0.0 (13.0) (13.0) 0.0 Refundable tax 0.0 0.0 0.0 6.7 Net federal rate 11.0 15.0 15.0 34.7 Provincial/Territorial Rates Ontario 3.5 3.5 11.5 11.5 Source: Revenue Canada Sales Tax Sales Tax 2018 HST (harmonized sales tax) 13% Source: www.fin.gov.on.ca/en/tax/hst/ Employee Benefit Costs Canada Pension Plan (CPP) to maximum premium of $2,593.80/year¹ Employment Insurance Commission to employer maximum premium of $858.22/year² Workplace Safety and Insurance Board (2017)ontario³ Vacation⁴ Paid Public Holidays⁵ Employer Payroll Related Expenses, 2018 ¹ Source : Revenue Canada table for CPP contribution rates, maximums and exemptions ² Source : Revenue Canada table for EI premium rates and maximums ³ Source : www.wsib.on.ca ⁴ Source : www.ontario.ca/document/your-guide-employment-standards-act-0 ⁵ Source : www.ontario.ca/document/your-guide-employment-standards-act-0 Minimum Wages, 2018 & 2019 Mandatory by Employer 4.95% 1.66% Rates range from $0.36 to $7.14 for manufacturers 2 weeks of vacation time after each year of entitlement; 3 weeks after 5 consecutive years 9 days Ontario Minimum Wage Rate 2018 2019 General Minimum Wage $14.00 per hour $15.00 per hour Student Minimum Wage $13.15 per hour $14.10 per hour Liquor Servers Minimum Wage $12.20 per hour $13.05 per hour Homeworkers Wage $15.40 per hour $16.50 per hour Source: www.ontario.ca/page/minimum-wage-increase