THE EMPLOYEE INVESTMENT TRUST - DETAIL

The Employee Investment Trust is similar to the plan prepared for the Department of Employment and Workplace Relations, referred to as the Loan Participation Plan.

The concept involves the establishment of a special purpose Employee Investment Trust (EIT). The EIT receives contributions or loans from Employer and purchases approved investments (for example, listed ASX shares). Those approved investments are to be held for the benefit of participating employees. Employees are in turn issued with units in the trust (investment units), the deed and the particular terms of issue of the Investment Units govern their entitlements to the investment benefits.

Investment Units may or may not be issued with vesting conditions, based on time and/or performance measures. These terms of issue should be consistent with the Employers particular remuneration strategies, underpinning the offer of participation in the EIT.

Income by way of dividends or other income may be declared and distributed from time to time. When benefits are to be realised, Investment Units are redeemed, investments encashed and cash benefits distributed.