THE UNFUNDED REPLICATOR SHARE PLAN - DETAIL

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

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 URP.

Income by way of dividends or other income may be declared and distributed from time to time.

When benefits are to be realised, Participation Rights are redeemed, encashed and cash benefits distributed as salary to the employee.