Harvest Energy

Documents
(SEDAR filing: 19 January 2010) Notice of Change of Control Offer to purchase all outstanding 7.25% convertible debentures due 28 February 2014 ("7.25% Debentures") and 7.50% convertible debentures due 31 May 2015 ("7.50% Debentures," and collectively the "Debentures") of Harvest Energy Trust (the "Trust") (2267 K).
Summaries
Summary Under
Tax Topics - Public Transactions - Other - Issuer Bids - Change of Control Offer
Change of Control Offer for 7.25% and 7.50% convertible debentures of Harvest Energy Trust
Offer

A "Change of Control," as defined in the Debentures Indenture occurred on 22 December 2009 upon the acquisition of all outstanding units of the Trust by KNOC Canada Ltd. The Trust is making an offer (the "Repurchase Offer") to purchase for cash all Debentures for cash at a price equal to 101% of their principal amount plus accrued and unpaid interest up to but excluding 15 February 2010, which offer is open until 12:00 noon (Calgary time) on that date (the "Expiry Time").

90% Redemption Right

If 90% or more of the 7.25% Debentures or 7.50% Debentures are tendered at the Expiry Time, the Trust shall in accordance with the Debentures Indenture redeem all remaining 7.25% Debentures or 7.50% Debentures, as the case may be.

Existing Conversion Right

A holder of 7.25% Debentures (or 7.50% Debentures) who exercised today its conversion right would receive a cash payment of approximately $366.97 (or $364.96) for each $1,000 principal amount.

Canadian tax consequences

Capital gains (or loss) treatment based on the cash proceeds received (excluding accrued interest paid).