download WA Blue Gum Project Product Disclosure Statement 2013

TABLE 2 - JOINT GROWERS: APPORTIONMENT OF FEES AND OTHER COSTS (PER HECTARE)JointGrowersTwo applicants may participate in the Project as Joint Growers. Under this arrangement, both JointGrowers enter into each of the Project Agreements (including Sub-lease and/or agreement to Sublease).The first Joint Grower is responsible for all the fees payable in respect of all activities associatedwith the Establishment of the Plantation. The second Joint Grower is responsible for the payment of allrent, tending and insurance fees. The Joint Growers will each be entitled to 50% of the proceeds ofsale of the timber from their Plantation.Directors' GuaranteeThe first Joint Grower is required to pay the Establishment Fee i.e. a minimum of $18,750 (includingGST) (being the amount necessary to Establish 3 hectares of plantations at $6,250 (including GST) andthereafter in multiples of $6,250 (including GST) (equivalent to 1 hectare). The Second Joint Grower isrequired to pay both an annual sum for rental of the leased property and fees for the ongoing tendingand insurance of the Plantations. The first annual sum for rental will be $462 (including GST) perhectare (Indexed from 30 June 2013) and is payable on 30 November 2013. The first annual sum fortending will be $121 (including GST) per hectare (Indexed from 30 June 2013) and will be payable on30 November 2013. Subsequent amounts for both rental and plantation tending will be Indexed in eachsubsequent year to take account of inflation.Each Joint Grower will be responsible for 50% of all Harvesting, transportation and supervision costsand incentive fees payable out of the proceeds of the sale of the timber.Throughout this Product Disclosure Statement, any reference to a Grower includes a reference to JointGrowers.Where the Grower is a corporation, one or more of the directors of that corporation may be required to provide aGuarantee and Indemnity in respect of the Grower's obligations under the Project Agreements.TaxationFor information about taxation and deductions, including the treatment of GST, you should read the section titled"General Taxation Information" on pages 10 to 11 of the PDS.CommissionsFor information about commissions, you should read the section titled "Commissions" on page 12 of the PDS.TABLE 3 - PRESCRIBED EXAMPLE OF ANNUAL FEES AND OTHER COSTS (PER ANNUM)This table gives an example of how the fees and other costs charged on participation in the Project can affect a Grower'sreturn. The table is based on the Project not offering a 'balanced investment option' (as defined in the Corporations Act).This table should be used to compare this product with other similar agribusiness managed investment products.In accordance with the requirements of the Corporations Act, this table is based on a $50,000 subscription. However itshould be noted that fractions of a hectare are not issued and it is not possible to make an application for hectares ofplantations where the application amount totals exactly $50,000.Please note that amounts in the table are for illustrative purposes and have been subject to rounding. All amounts in thetable are inclusive of GST.GROWEREXAMPLE - cost of fund in the financial year ending 30June 2013 for a Grower who holds 8.8 hectares at $6,250(including GST) per hectareContribution feesBALANCE OF $50,000 (excluding GST) with no furthercontributionsFor every $50,000 you put in you will be charged $0 inContribution FeesPlus Management Costs(for 8.80 hectares)Equals Cost of fund(for 8.8 hectares)1. Rent$462 (including GST) x 10= $4065.60 Indexed2. Tending Fees$121 (including GST) x 10= $1,064.80 IndexedFor every $50,000 you have invested in the Project you will becharged fees in the financial year ending 30 June 2014 of$5,130.40, Indexed.Note that the calculation has not taken into account insuranceexpenses which are approximately 0.7% of the insured value.Also note that additional fees will also apply in later years.If you had an investment of $50,000 (including GST) duringthe financial year ending 30 June 2014, you would be chargedfees and costs of $5,130.40 (including GST).