THE FUNDED REPLICATOR SHARE PLAN - DETAIL

The Employee Funded Replicator Share Plan is similar to the plan prepared for the Department of Employment and Workplace Relations, referred to as the Funded Replicator Plan (“FRP”).

The concept involves the establishment of a special purpose Employer Custodial Company. The Employer receives advances of moneys on behalf of Participating Employees.

The Employer invests those moneys in Approved Investments notified to the Employer. The Approved Investments are made in the name of the Participating Employee, but held by the Employer accounting to the FRP Plan Rules.

Income (for example, by way of dividends etc.) is distributed from time to time direct to Participating Employees, who own the investments.