Sovereign Computers ltd.

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1. Environmental Handling Fee Schedule

The values for the EHF are indicated in the table below:

Environmental Handling Fee (EHF) effective August 1, 2007

Desktop Computer: $10

Portable (notebook/tablet) Computer: $5

Monitor: $12

Desktop Printer: $8

TV by diagonal screen measurement

18” or less: $15

19” to 29”: $25

30” to 45”: $30

46” or more: $45

Combinations of these products would have a combined EHF. For example:

Desktop computer with bundled monitor: $10+$12=$22

Desktop computer with bundled monitor & printer: $10+$12+$8=$30

Desktop computer with integrated monitor (non-portable): $12+$10=$22

Desktop computer with integrated TV: $10+applicable TV EHF by screen size

2. Invoices

The EHF should be indicated on invoices for electronics on which the EHF applied. It is preferred the EHF is indicated on invoices for Eligible electronic products as follows: Environmental Handling Fee OR Electronics EHF

3. Remittance Responsibility

Remitters are required to submit monthly reports indicating all obligated product sales during the reporting period and remit the EHF payment to ESABC within 30 days following the month-end of the reporting period.

4. Suppliers Outside of BC

No EHF is payable on electronics shipped directly outside of B.C. The invoice must clearly state the out-of-province address and name of the carrier. The invoice must indicate the sale is not subject to EHF. Where an out-of-province resident buys an eligible electronic product in B.C. the EHF applies.

Supplies of electronics to points outside of B.C. do not have to be reported on the EHF Return, but records of exempt transactions must be kept in case of an audit or investigation. Therefore, a clear indication of the destination of the electronics should be specified on the invoice.

5. Product returns and warranty exchanges

Remitters may account for returned product by reporting returns on the subsequent EHF report, in which case, the remitter will only be required to submit payment on the net quantity.

If a product is exchanged for another product, both the supply and return should be reported and provided that the exchange is for a product with the same EHF, the amount owning will net to zero.

6. Goods and Services Tax (GST) & PST

The Canada Revenue Agency has indicated that GST & PST is payable on similar EHFs in other provinces. Therefore, both taxes are applicable on the products. Please direct your inquires to the Canada Revenue Agency and the Province of British Columbia.

7. Leased Electronics

Where a lessor of Eligible Electronic Products enters into a lease, the EHF is payable by the lessee.