Enervest

Overview

The Trust is the largest diversified closed-end investment fund in Canada. It is listed on the TSX. It is proposed that its Declaration of Trust be amended, subject to the approval of Unitholders, to give the Manager the specific authority to amend the Plan by adding the Premium Distribution Component to the Plan. This would entail units being issued at a 5% discount, but with provision for immediate cash sale at 102% of their cost.

Description of Plan

It is anticipated that the amended Plan, would permit Unitholders at their option and through the Plan Agent (expected to be Alliance Trust Company), to either (i) reinvest their distributions in new Units at a discount of up to 5% to the average market price of the Units on the TSX (the "Average Market Price", on the applicable distribution payment date under the distribution reinvestment component of the Plan and have such new Units credited to the participant's account, or (ii) reinvest their distributions in new Units at a 5% discount to the Average Market Price on the applicable distribution payment date under the Premium Distribution Component, which new Units will be disposed of through the plan broker (expected to be Canaccord Genuity Corp.) in exchange for a cash payment equal to 102% of the reinvested distributions.

Optional cash payment

In addition, the Manager proposes, concurrently with the amendments, to allow the optional cash payment available to be made by participants in the Plan at the time of each distribution date to increase from $1,000 to $10,000 and Units purchased under the optional cash payment to be made at a discount of up to 5% of the Average Market Price of such Units.

Canadian tax consequences

A description of Canadian federal income tax considerations will be set forth in the amended version of the Plan.A description of certain Canadian federal income tax considerations will be set forth in the amended version of the Plan, which should be review3ed by Unitholders wishing to participate in the Plan