THE UNFUNDED REPLICATOR SHARE PLAN

The concept involves the establishment of a special purpose Employee Replicator Plan. Employees are issued with Participation Rights, the plan rules and the particular terms of issue of the Investment Units govern their entitlements to the investment benefits.

Participation Rights may or may not be issued with vesting conditions, based on time and/or performance measures. The terms of issue should be consistent with the employer’s particular remuneration strategies, underpinning the offer of participation in the Plan.

ADVANTAGES

• The plan is flexible and enabling – that is, it suits a wide range of strategic remuneration applications.
• Terms of participation may be flexible as allowed by the employer.
• Vesting, if applicable, is controlled by Terms of Issue of Participation Rights as instructed by the Employer.
• Funding by the Employer is made by payment of cash dividends and redemption of Participation Rights.
• Tax deferred indefinitely until income (e.g. dividends) is distributed and/or when rights redeemed.
• Termination of employment is usually a trigger for benefit payments.
• The plan provides a controlled downside risk protection for Participating Executives.
• No prospectus or other regulatory requirements.
• Tax deductible to the Employer when expense incurred.
• Fully outsourced administration.

EMPLOYER TYPE

• Public Companies
• Private Companies
• Not For Profits.
• Employers who are not Companies.

STRATEGY

• Retention Strategy.
• Deferred Bonus.