The distribution & DRIP progams have been suspended due to the offer from KNOC to Unitholders as per the October 21, 2009 news release.
Conventional Distribution Reinvestment Plan
On April 11, 2007, Harvest announced that it amended its Distribution Reinvestment Plan (the "DRIP Plan") effective with the distribution payable June 15, 2007. The amendment to the conventional DRIP Plan enables unitholders resident in the U.S. to elect to reinvest their monthly distributions at a price equal to 95% of the weighted average trading price of the trust units on the TSX (for the period commencing on the second business day following the record date applicable to the distribution payment and the second business day immediately prior to the distribution payment date).
Harvest’s U.S. registered unitholders will be mailed a copy of the full text of the Plan and the enrolment forms, and the new plan documents and other materials are also available below.
This amendment does not include the Premium DistributionTM nor the Optional Trust Unit Purchase Plans.
Canadian resident unitholders may elect to participate in Harvest’s conventional DRIP Plan as referenced above, or may choose to participate in the Premium Distribution™ or Optional Trust Unit Purchase Plan (OTUPP).
Premium DistributionTM
The Premium DistributionTM Plan enables eligible Canadian unitholders to receive a cash payment equal to 102% of the regular distribution amount on the applicable distribution payment date. For unitholders electing to participate in the Premium Distribution™ component of the Plan, Harvest has been advised by legal counsel that the 2% premium cash payment is, in most cases, taxable as investment income (not as a capital gain), and should be reported as such by Unitholders on their individual income tax returns. For more details of the potential tax consequences of participation in the Premium Distribution™ component of Harvest’s Plan, please contact Harvest Energy Trust directly at 403-265-1178 or toll free at 1-866-666-1178.
Optional Trust Unit Purchases
Eligible Canadian unitholders who are enrolled in either the conventional DRIP or Premium DistributionTM Plan may also elect to purchase additional trust units from treasury for cash at a purchase price equal to the Average Market Price (with no discount) in minimum amounts of $5,000 per remittance and up to $100,000 aggregate amount of remittances by a unitholder in any calendar month, all subject to an overall annual limit of 2% of the outstanding trust units. Accordingly, participation may be prorated in certain circumstances. Generally, no brokerage fees or commissions will be payable by participants for the purchase of trust units under the Plan, but unitholders should make inquiries with their broker, investment dealer or financial institution through which their trust units are held as to any policies of such party that would result in any fees or commissions being payable.
Each of the components of the Plan is subject to prorating and other limitations on availability of new Units in certain events and Harvest reserves the right to limit the amount of new equity available under the Plan on any particular distribution date. Canaccord Capital Corporation has been designated as the plan broker under the Premium Distribution™ component of the Plan. This Plan supersedes and replaces the distribution reinvestment and optional trust unit purchase plan (the “Old Plan”) of the Trust dated November 25, 2002 .
DRIP / Premium Distribution Participation
To participate in the Distribution Reinvesment or Premium Distribution Plan, registered unitholders (those who are in possession of the physical share certificate, and whose units are not held in a brokerage account) must fax or otherwise deliver their properly completed and signed enrolment forms to Valiant Trust Company at the fax number or address specified in the enrolment forms no later than 3:00 p.m. (Calgary time) on the business day immediately following a distribution record date in order for the distribution to which such record date relates to be reinvested under the Plan. Harvest reserves the right to accept enrolment forms that are delivered after this time.
Owners of trust units that are held through a nominee such as a brokerage firm (or other such custodian) who wish to participate in the Plan should contact their broker, investment dealer, financial institution, or nominee through which their Harvest trust units are held to inquire about the applicable enrolment deadline and to request enrolment in the Plan.
Participation in the Plan does not relieve unitholders of any liability for taxes that may be payable on distributions. Unitholders should consult their own tax advisors concerning the tax implications of their participation in the Plan having regard to their particular circumstances.
Unitholders should carefully read the complete text of the Plan before making any decisions regarding their participation in the Plan. Click on the links below for a complete copy of the Plan, enrolment forms and the Question & Answer document.
NOTE- If you hold your trust units in a brokerage account, you do NOT need to complete these forms - you need to contact your brokerage firm to request enrollment
™ denotes trademark of Canaccord Capital Corporation
