Membership fee proposal SAOGA Membership fee proposal

Membership structure and fees Pre Aquaculture Act 2002 – licence holder only Post Aquaculture Act 2002 – licence/lease holder member SAOGA (site rehabilitation fund for lease) These entities were usually related parties Licence Holder Operator Corresponding Lease Holder Entity (water) Licence Holder Operating Entity

Membership structure and fees Over time – the trading of leases and licences has resulted in a licence holding operating over corresponding lease which may or may not be owned by related parties. Bloggs’ Superfund Lease 1 related Operating entity holding Licence 1 Licence 2 Licence 3 Oyster Investments Pty Ltd Lease 2 unrelated unrelated Seafood Investments Pty Ltd Lease 3

Drivers for change SAOGA Member usually the Operating Entity (licence holders) - required to list all of their leases on their membership –often incomplete Corresponding leases often owned by different legal entities Lease holder entities are responsible for site rehabilitation and therefore for contribution to site indemnity fund PIRSA requires information about lease holder entities who are SAOGA members No membership =$10,000 bank guarantee to PIRSA

For example Natural Oysters is the Operating Partnership with 9 licences. Corresponding leases are owned by 3 different legal Entities. Coates Superfund 4 leases Operating entity Natural Oysters 9 licences e.g. FM0052 etc Coates Family Trust 2 leases e.g. AL 00023 JR Trust 3 leases

Membership structure and fees Summar Constitution Membership is licence/lease Interpretation: Membership is Licence/lease holder(s) – 1 vote or could be Lease holder only – 1 vote Rationale Major value of the investment lies in the lease. A lease holder who is a “silent” partner in terms of operation may still wish to have a significant involvement with the strategic direction of industry and therefore a vote.

Membership structure and fees Licence/lease holder member SAOGA (site rehabilitation fund for lease)- related parties Current Membership Fee would be $650 Proposed New Fee 1 vote Licence Fee: $500 + Lease Fee $100 Site Rehabilitation Fee: $20 plus $2.50 per hectare i.e. $20 + $2.50 x 10 = $45.00 Total Membership Fee $645.00 Licence Holder Operating Entity Corresponding Lease Holder Entity (water)

Membership structure and fees Fee Structure 1 vote: Licences Entity $500 Lease Entity 1 $100 + $45 SRF Lease Entity 2 $100 + $32.50 SRF Lease Entity 3 $100 + $27.50 SRF Total Membership Fee = $500 + $145 + $132.50 + $127.50 = $905 Lease Entity 1 Superfund 10 ha Operator/Licences holder Farm Fresh Oysters Lease Entity 2 Oyster Investments Pty Ltd 5 ha Lease Entity 3 Seafood Investment Pty Ltd 3 ha

Membership structure and fees Fee Structure 1 vote: Licence holder $500 Lease Holder 1 $100 + $45 SRF Lease Holder 2 $100 + $32.50 SRF Total Membership Fee = $500 + $145 + $132.50 = $777.50 Fee Structure 1 vote Lease Holder 3 Total Membership Fee = $532.50 Lease Entity 1 Superfund 10 ha Operator/Licences holder Farm Fresh Oysters Lease Entity 2 Oyster Investments Pty Ltd 5 ha Lease Entity 3 Seafood Investment Pty Ltd 3 ha

Membership structure and fees Summary Fees 1 Vote – 1 Member Licence $500 Corresponding lease entities related or unrelated parties endorsed on licence membership $100 SRF Fee is $20 fixed charge plus $2.50 per hectare per lease entity. Extra Vote per licenced member if a corresponding lease entity wishes to become a member in own right. Lease $500 plus SRF Fee.

Membership structure and fees Important Note: If a lease entity chooses not to become a member of SAOGA endorsed on licence holder membership or in own right then that entity will be required to provide PIRSA with a $10,000 bank guarantee as an alternative to the SAOGA SRF.

Questions for Industry Would industry support The new membership fee structure $500 per licence $100 per corresponding lease entity $20 fixed fee plus $2.50 per hectare SRF fee per lease entity. $500 per lease entity only membership plus SRF as per 3. above The voting structure Licence/lease holder Lease holder only