SEDAR® SUBSCRIBER UPDATE

February 3rd, 1999

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SEDAR YEAR 2000 READINESS

To: SEDAR Filing Service Subscribers, the Canadian Securities Administrators and Canadian Market Centres

In our Subscriber Update of November 27, 1998, we provided information on the Year 2000 readiness status of the System for Electronic Document Analysis and Retrieval, known as the SEDAR system. In that update, we stated our intention that the SEDAR system operated by CDS INC. (which consists of the SEDAR client/server application and its operating environment) would be ready for the Year 2000 by the end of December 1998, and that all Year 2000 testing would be completed by that date.

We are very pleased to advise you that all components of the SEDAR system (now in production, or scheduled for production by the end of February, 1999) are Year 2000 Ready in that they have passed Year 2000 testing in all material respects.

CDS INC. is continuing its work on the SEDAR system to ensure that it meets the challenges of the transition to the Year 2000. In the coming months, we will turn our attention to external testing with the SEDAR user community. We will provide Year 2000 testing support to SEDAR subscribers. In addition, any new SEDAR development or software upgrades or enhancements in 1999 will undergo regression testing to ensure Year 2000 readiness. A Year 2000 freeze of the SEDAR client/server application code and environment is scheduled to begin on July 31, 1999 and end on March 3, 2000.

This update is provided for informational purposes only and reflects CDS INC.'s current understanding of and intentions with respect to the matters outlined and does not constitute a certification and warranty of any kind. Since Year 2000 readiness is an on-going effort and information on Year 2000 is rapidly changing, the information provided in this letter is also subject to change.

Please consult our Web site at www.sedar.com for further information on the status of the SEDAR Year 2000 Readiness.

Sincerely,

Dean Peloso
General Manager, SEDAR

SEDAR® Year 2000 External Test

INTRODUCTION

CDS INC. has undertaken extensive internal testing on the Year 2000 readiness of all components of the SEDAR system (which consists of the SEDAR client/server application and its operating environment) and has reported on the progress of this project from time to time by Subscriber Update. Now, in order to support the Year 2000 testing of the SEDAR user community, CDS INC. will make a Year 2000 Test Server of the SEDAR system available for testing in 1999. The Year 2000 dates to be simulated by the SEDAR Test Server will be available for external testing in accordance with the test schedule set out below. Subscribers wishing to participate must enroll by returning the attached enrollment form (by fax or mail) to CDS INC. by February 26, 1999.

OBJECTIVE OF SEDAR YEAR 2000 EXTERNAL TEST

The objective of the SEDAR Year 2000 External Test is to provide SEDAR subscribers and recipient agencies (the Canadian provincial securities commissions and Canadian stock exchanges) with the opportunity to test the Year 2000 readiness of their own internal systems and environment which interface with the SEDAR system. It is not to test the Year 2000 readiness of the SEDAR system.

TESTING PROCESS

Upon receipt of a completed FORM 1-Y2K (attached at the back of this document) CDS INC. will process the Form and send a SEDAR Year 2000 test package to the Subscriber's designated Year 2000 Coordinator. The SEDAR Year 2000 test package will include instructions on setting up the subscriber's PC for SEDAR Year 2000 testing connectivity, all necessary ID's and passwords, guidelines and system requirements. ID's will be created by default as having 'Unlimited Payment Authority' on the SEDAR system.

Test subscribers will have an opportunity to submit filings and perform searches on the SEDAR Test Server. Please note that any fees entered in test projects will NOT be processed with any Financial Institutions. Test filings will not be made available on www.sedar.com for public viewing.

DATE CHANGE PROCESS

Because of the need to provide the Year 2000 Test Server to subscribers in multiple time zones, only one date rollover will occur in a 24-hour period. At 9:00 a.m. Eastern Standard Time, the Test Server will be brought up with a Year 2000 simulated date (e.g. December 31, 1999) and subscribers will be able to conduct testing. At 11:00 p.m. that evening, the Test Server will be shutdown and allowed to roll over to the next scheduled Year 2000 simulated date (e.g. January 1, 2000). At 9:00 a.m. the following day, subscribers can begin testing under the new simulated date. This procedure will continue daily from Monday to Friday, until all five Year 2000 test dates have been run in that week. The test cycle is planned to be repeated a total of four times (i.e. four Monday to Friday weeks), as per the stated test schedule below. The final two days of May 10, 1999 and May 11, 1999 will give subscribers the opportunity to conduct testing on two additional simulated test dates.

YEAR 2000 TEST SCHEDULE

The following table shows the planned test dates (in shading) and their corresponding Year 2000 simulated dates (beneath the shading) scheduled to be available on the SEDAR Test Server. There are four (4) scheduled cycles, each having the same five simulated Year 2000 dates.

In addition, the last two Year 2000 simulated dates of December 31, 2000 and February 28, 2001 will be available on the SEDAR Test Server once only, on the planned test dates of Monday, May 10, 1999 and Tuesday May 11, 1999, respectively. These last two Year 2000 simulated dates will not be repeated.

YEAR 2000 TEST SYSTEM SUPPORT

CDS will provide support for the Year 2000 Test Server in the same manner as is done for subscriber acceptance testing of SEDAR releases. More specifically, CDS will:

• Provide access to the Year 2000 Test Server via the IBM Global Network to subscribers who have enrolled in the test.
  
• Provide network test addresses and instructions on how they are to be defined.
  
• Provide a new Test User ID and password to the Year 2000 Test Server and the IBM Global Network.
  
• Administer the Test Server environment in accordance with the Test Schedule.
  
• Provide Help Desk support for investigation and resolution of SEDAR Year 2000 related errors (if any are found).

Support will not be provided for the creation, execution or verification of subscriber test plans and test scripts. Also, support for the subscriber's test environments (except for the SEDAR client application) is the sole responsibility of the subscriber.

TEST HARDWARE AND SOFTWARE REQUIREMENTS

Subscribers are strongly advised to use for the Test a dedicated Year 2000 ready PC (Windows 95 or Windows NT) on which the current release of the SEDAR client application will be installed. Performing any Year 2000 testing with Windows 3.1, Windows 3.11, and Windows 3.11 for Workgroups is NOT supported by CDS and should not be done. During testing, the date on the subscriber's PC must be set according to the Year 2000 Test Schedule (e.g., on Wednesday, April 14 the date must be set to January 4, 2000), reset to the next Year 2000 simulated date, and/or reset to the actual calendar date, as applicable. A dedicated PC will ensure that subscriber testing will not conflict with normal business operations (i.e., the subscriber's test PC will connect to the SEDAR Year 2000 Test Server). Using a non-dedicated, production PC will cause corruption of the subscriber's SEDAR client application database.

SUBSCRIBER RESPONSIBILITIES

• Return completed Enrollment Form to CDS by February 26, 1999
• Allocate the subscriber PC test system (see requirements above)
• Design and execute Year 2000 test scripts which may include sample defined on page 5
• Verify test results
• Pay CDS for all Year 2000 External Test Charges, as invoiced.
  

LIMITATIONS

Year 2000 readiness is an on-going effort and information on Year 2000 is rapidly changing. Information provided in respect to the Test is provided "as is", is subject to change and is not intended to provide any warranty or certification or to replace, modify, supplement or supersede any representations, warranties and agreements that may currently exist. CDS INC. is not responsible for ensuring that subscriber's systems, equipment and environment are Year 2000 ready. CDS is also not responsible for monitoring testing undertaken or not undertaken by subscribers or any other persons and will not be responsible for any subscriber Year 2000 noncompliance. It is subscriber's responsibility, prior to participating in the SEDAR Year 2000 External Test, to have conducted and successfully completed Year 2000 readiness testing on its own internal systems, including use of a PC having a Year 2000 ready operating system, and to set its PC clock to the particular Year 2000 simulated date then being tested with the Test Server, reset to the next simulated date and/or returned back to the actual date, where applicable. CDS INC. assumes no responsibility or liability resulting from Year 2000 related problems and/or errors and/or database corruption, whether or not related to improper PC setup by subscriber.

Y2K EXTERNAL TEST CHARGES

Subscribers participating in the SEDAR Year 2000 External Test will be invoiced at the completion of the testing period, for test charges set out below. All charges are non-refundable.

• Data Communication Line Usage Costs: $6.50 per hour (Note: It is estimated that a subscriber may incur approximately 2.5 hours to complete the minimum tests as outlined by CDS. Further testing would result in additional charges).
• One time account set up fee per subscriber: $20.00

SAMPLE YEAR 2000 TEST SCRIPT

UG = SEDAR Filer User's Guide (Release 5.0)

Note: The above is only a sample test script for SEDAR subscriber testing. This test script does not reflect complete subscriber functionality and Year 2000 testing. More testing is recommended. It is the subscriber's responsibility to ensure all facets of Year 2000 testing are complete and comprehensive enough to ensure the satisfaction of the subscriber organization's Year 2000 compliance standards.

SEDAR CDS CONTACT

Contact the SEDAR Help Desk with Year 2000 External Test questions at 1-800-219-5381. In addition, information on the status of the SEDAR Year 2000 Readiness Project will be posted on our web site at www.sedar.com.

FORM 1-Y2K
SEDAR® Year 2000 External Test Enrolment Form

Once completed, FORM 1-Y2K should be returned by February 26, 1999 by:

The undersigned subscriber hereby applies for enrolment in the SEDAR Year 2000 External Test scheduled to commence on Monday, April 12, 1999 and to conclude on Tuesday, May 11, 1999 (the "Test"). The undersigned acknowledges that its participation in the Test will be subject to the terms of the SEDAR Year 2000 Test Procedure, including the limitations set out in the procedures, below and SEDAR Form 2. The undersigned agrees to pay the charges invoiced to the undersigned for participation in the Test. The undersigned's use of any Test User IDs and passwords assigned by CDS shall further confirm acceptance of the foregoing, and the undersigned shall be permitted to access and use one additional copy of the SEDAR Filer Software, subject to SEDAR Form 2, solely for the purposes of this Test.

1. SUBSCRIBER INFORMATION

Legal Name of Subscriber:           _____________________________________________

Name of Principal Contact : _____________________________________________

2. SEDAR YEAR 2000 TESTING CONTACT
Please complete below the name of the person who is the primary contact for the SEDAR Year 2000 External Test. This person will be sent the package of Ids, passwords and other documents relating to participation in the Test from CDS.

Year 2000 Primary Contact Name:  ____________

Title:      ___________________________________________

Telephone:   ( )  ____________________  Internet E-mail: ____________________

3. TEST FILING SERVICE OPTIONS

Number of PC's Testing will be performed with: ________________________________

Documentation to be provided in what language: English French

4. EXTERNAL TEST CHARGES

The Subscriber agrees to pay the following non-refundable charges for participating in the Test, which will be invoiced by CDS INC.:

• Data Communications line usage costs: $6.50 per hour
• One time Account Set up fee: $20.00

5. LIMITATIONS

Year 2000 readiness is an on-going effort and information on Year 2000 is rapidly changing. Information provided in respect to the Test is provided "as is", is subject to change and is not intended to provide any warranty or certification or to replace, modify, supplement or supersede any representations, warranties and/or agreements that may currently exist. Subscriber acknowledges that CDS INC. is not responsible for ensuring that subscriber's systems, equipment and environment are Year 2000 ready. CDS is also not responsible for monitoring testing undertaken or not undertaken by subscriber or any other persons and will not be responsible for any subscriber Year 2000 non-compliance. It is Subscriber's responsibility, prior to participating in the Test, to have conducted and successfully completed Year 2000 readiness testing on its own internal systems, including use of a PC having a Year 2000 ready operating system, and to set the subscriber's PC clock to the particular Year 2000 simulated date then being tested with the SEDAR Test Server, reset to the next simulated date and/or returned back to the actual date, where applicable. CDS INC. assumes no responsibility or liability resulting from Year 2000 related problems and/or errors and/or database corruption, whether or not related to improper PC set-up by subscriber.

The Subscriber agrees with the terms of enrolment in the SEDAR Year 2000 External Test.

Signature of Principal Contact: ___________________________  Date: ______, 1999
                                                I/We have authority to bind the Subscriber

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