THE OPTION SHARE TRUST - OPERATION

Option Share Trust Diagram

Steps

  1. Employer makes loans or contributions to the OST.
  2. The OST makes an offer to selected Participating Employees nominated by Employer of units in the OST and an interest-free loan to acquire those units.
  3. The OST subscribes for shares in Employer. The OST then offers Share Units in the OST to the Participating Employees.
  4. The employees exercise the Options to acquire Shares through the OST.
  5. The employees subscribe for Share Units, funded by way of the interest-free loan.

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