download WA Blue Gum Project Product Disclosure Statement 2013

6.1 ReportsThe Project Manager will provide Growers with areport following completion of the planting of thePlantations setting out the areas which have beenplanted with Blue Gum trees in accordance with thePlantation Development and Tending Plan.Thereafter, the Project Manager will report to theGrowers no later than 30 November in each yeardetailing any changes to the PlantationDevelopment and Tending Plan, the actualoperations performed on the land, details regardingthe health and vigour of the Plantations and anyother matter which may affect the performance orviability of the Plantations.In addition, a consulting forester will provide aseparate professional report at least annually, andat other times if necessary.6.2 InsuranceEvery Grower is required to insure his Plantationsevery year against fire, if such insurance isavailable at a reasonable cost determined by theProject Manager. In recent years the annualpremium has been at a rate of about 0.7% of theinsured value. It is possible that in the future thepremiums will be more expensive. The ProjectManager will use its best endeavours to arrangesuch insurance at the best price and will be entitledto charge a fee equivalent to 10% of the premiumfor this service. As the trees mature the value ofthe Plantations is expected to rise. A decision willbe made separately each year as to the insuredvalue, which may be less than the full market value.However, the Project Manager will endeavour toensure that the insured value will not be less than$5,000 per hectare.6.3 The Responsible EntityThe Responsible Entity of the Project is responsiblefor the operation and management of the Project.The Responsible Entity is an unlisted publiccompany.The Responsible Entity was granted its AustralianFinancial Services Licence on 22 December 2003.The Responsible Entity's Australian FinancialServices Licence was varied by ASIC on:(a)(b)5 August 2004 to authorise the ResponsibleEntity, in addition to operating the Project, toprovide general product financial advice forinterests in the Project to wholesale andretail clients;9 June 2006 to ensure consistency with theextension of the "12 month rule" under theTax Laws Amendment (2005 Measures No.(c)(d)(e)(f)(g)(h)5) Act 2005 (Cth) and to incorporate the mostcurrent standard licence conditions that applyto licensees;6 February 2008 to extend the maximumperiod for registering members' interests inthe land to 15 months from the end of theincome year in which the member firstinvests in the Project and to incorporate themost current standard licence conditions thatapply to licensees;28 May 2010 to permit the ResponsibleEntity to act as the responsible entity foranother project (which did not proceed) andto add an additional "responsible manager";23 May 2011 to permit the ResponsibleEntity to act as the responsible entity for theW.A. Blue Gum Project 2011 ARSN 150 828283 and the Choice Forestry Project 2011ARSN 150 830 121;3 April 2012 to permit the Responsible Entityto act as the responsible entity for the W.A.Blue Gum Project 2012 ARSN 156 425 286;15 May 2012 to permit the ResponsibleEntity to act as the responsible entity for theChoice Forest Project 2012 (which did notproceed); and14 June 2013 to permit the ResponsibleEntity to act (inter alia) as the responsibleentity for the Project.The Responsible Entity, in its own capacity,maintains a cash deposit and cash equivalents toensure that it meets the financial requirementsunder its Australian Financial Services Licenceincluding the minimum net tangible assetrequirement of $150,000.Copies of the audited annual financial reports ofResponsible Entity are available from ASIC or bycontacting the Responsible Entity.WABG as trustee of the W.A. Blue GumManagement Trust ("Trust") is the Project Manager.The Project Manager receives fees and rent fromGrowers.Where the Project Manager receives amountspayable by Growers it holds those funds as trusteeof the Trust on the terms of the trust deed (referredto below) and utilises these funds to meetexpenses, including growing and tending expenses.Where the Trust makes a profit in a particularperiod, the Project Manager has the power todistribute those amounts to beneficiaries in theTrust.