2. Diversification of risk by species
Three plantation species, each with distinct cashflow profiles and characteristics.

3. Diversification of risk by geography
Willmott Forests will establish and manage a number of plantations located in south eastern Australia, northern New South Wales and the Northern Territory on behalf of Growers.

4. Diversification of risk by pooling
Growers will be granted Woodlots which cover different areas of land, however the trees in respect of each Pool will be established, maintained and sold on a pooled basis.

5. Sale of the Radiata pine as standing timber
Willmott Forests will enter into an agreement to sell the standing Radiata pine in respect of a Pool to a Timberland Investment Management Organisation (“TIMO”) or an institutional investor, of which there is a number that are active in the secondary market for forestry assets. Willmott Forests will conduct a tender process for the sale of a Pool’s standing Radiata pine plantations during Year 15.

6. Radiata pine guarantee facility
The guaranteed sale facility provided by Willmott Forests is designed to ensure that the sale of the Radiata pine plantation is at a price that is at least equal to 90% of the market value determined by or verified by an independent valuer.

7. Stocking Guarantee and Insurance
Willmott Forests provides a Stocking Guarantee and for a period of 13 months from the date of completion of the planting of each species at its own expense. After this time, Willmott Forests will use its reasonable endeavours to obtain and maintain an insurance policy in respect of that species which will cover fire.