Choice Forestry PDS 2012 - WA Blue Gum Project

TABLE 2 - JOINT VENTURE GROWERS: APPORTIONMENT OF FEES AND OTHER COSTS (PER HECTARE)JointVentureGrowers:Two applicants may participate in the Project as Joint Venture Growers. Under this arrangement, the firstJoint Venture Grower is responsible for all activities associated with the Establishment of the Plantation andthe fees payable in respect of those activities and amounts payable in the application year (including prepaidrent) and the second Joint Venture Grower is responsible for ongoing rent, management andadministration fees payable in all subsequent years. Joint Venture Growers will be entitled to one half of theproceeds of sale of the timber from the Plantations.Each Joint Venture Grower will be responsible for their portion (being 40% for the first Joint Venture Growerand 60% for the second Joint Venture Grower) of all insurance, Harvesting, transportation and supervisioncosts and incentive fees payable out of the proceeds of the sale of the timber.The first Joint Venture Grower is required to pay the Application Money i.e. a minimum of $20,000 (includingGST) (being the amount necessary to Establish 2 hectares of plantations and to partly prepay rent at$10,000 (including GST) and thereafter in multiples of $10,000 (including GST) (equivalent to 1 hectare).The Second Joint Venture Grower is required to pay the ongoing rent, management and administration feesfor the Plantations. The first annual sum for ongoing rent, management and administration fees will be$445.50 (including GST) per hectare (Indexed from 30 June 2012) and is payable on 30 November 2012.Subsequent amounts for ongoing fees will be Indexed in each subsequent year to take account of inflation.Each Joint Venture Grower will be entitled to 50% of the proceeds of the sale of the timberfrom their Plantation.Throughout this Product Disclosure Statement, any reference to a Grower includes areference to Joint Venture Growers.GuaranteeThe Project Manager may require, where the Grower is a corporation, that one or more of the directors of that corporation 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 TaxationInformation” on pages 10 and 11 of the PDS.CommissionsFor information about commissions, you should read the section titled “Commissions” on page 12 of the PDS.