The City Pub EIS Fund

Information Memorandum with Application Form - Tranche 2

17 March 2016

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IMPORTANT NOTICE

IF YOU ARE IN ANY DOUBT ABOUT THE CONTENT OF THIS INFORMATION MEMORANDUM (THE"MEMORANDUM") AND/OR ANY ACTION THAT YOU SHOULD TAKE, YOU ARE STRONGLYRECOMMENDED TO SEEK ADVICE IMMEDIATELY FROM YOUR STOCKBROKER, SOLICITOR,ACCOUNTANTOROTHERPERSONAUTHORISEDUNDERTHEFINANCIALSERVICESANDMARKETSACT2000("FSMA")WHOSPECIALISESINADVISINGONOPPORTUNITIESOFTHISTYPE.ANINVESTMENTINTHE CITY PUB EIS FUND (THE "FUND") WILL NOT BE SUITABLE FOR ALL RECIPIENTS OF THISMEMORANDUM.

ThisMemorandumconstitutesafinancialpromotionpursuanttoSection21ofFSMAandisapprovedbyThompsonTarazManagersLimited (the"FundManager"),which isauthorisedandregulatedbytheFinancialConductAuthority("FCA")withfirmpermissionreferencenumber226978,onthebasisthat it is only for communicationby Intermediaries authorised and regulatedby the FCA to clients(including,butnotlimitedto,retailclients)inaccordancewiththeFCARules.

If youarenotaperson towhomtheabovecategoryapplies, this InformationMemorandum isnotintended for you and you should place no reliance upon it for any purposes. Distribution of thisInformationMemorandumotherthaninaccordancewiththerelevantexemptionsmentionedaboveisnotauthorisedbytheFundManagerandmaycontraveneFSMA.

TheCityPubEISFund

17March2016

MemorandumwithApplicationForm–Tranche2

Anyreferencestotax lawsor levels inthis InformationMemorandumaresubjecttochangeandanInvestor’s own personal circumstances. Past performance, in particular the performance of TheCapitalPubCompanyPLC,TheCityPubCompany(East)PLC,TheCityPubCompany(West)PLC,TheGalaxy (City) Pub Company Limited, The Pioneer (City) Pub Company Limited, The Sovereign (City)Pub Company Limited, The Liberty (City) Pub Company Limited, The Phoenix (City) Pub CompanyLimited and/or The Summit (City) Pub Company Limited is not a reliable indicator of futureperformanceandmaynotberepeated.ThevalueofSharescangodownaswellasupandyoumaynot get back the full amount invested. You should consider an investment through this Fund as amediumtolongterminvestment.InvestmentsmadebytheFundwillbeilliquid.

ThisMemorandumconstitutesanoffertoengage in investmentactivityanddoesnotconstituteanoffertosellorasolicitationofanoffertopurchasesecuritiesandinparticulardoesnotconstituteanofferinginanystate,countryorotherjurisdictionwhere,ortoanypersonorentitytowhom,anofferorsalewouldbeprohibited.

ThisMemorandumcontainsinformationrelatingtoaninvestmentthroughtheFund.Aninvestmentmayonly be made on the basis of this Memorandum and the Investor Agreement in Part 13 of theMemorandum.AllreasonablecarehasbeentakenbytheInvestmentConsultantandtheDirectorsoftheNewEIS Companies to ensure that the facts stated in thisMemorandumare true and accurate in allmaterialrespectsandthattherearenoothermaterialfactswhoseomissionwouldmakeanystatementoffactoropinioninthisMemorandummisleading.AllstatementsofopinionorbeliefcontainedinthisMemorandum and all views expressed and statements made regarding future events represent anassessment and interpretation of information available as at the date of this Memorandum. Norepresentation is made or assurance given that such statements or views are correct or that theobjectives of the Fund will be achieved. Prospective Investors must determine for themselves what

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reliance (if any) they should place on such statements, views or forecasts, and no responsibility isacceptedbytheFundManagerinrespectthereof.

NothinginthisMemorandumconstitutesinvestment,tax,legalorotheradvicebytheFundManagerandyourattentionisdrawntothesectionheaded"RiskFactors"onpages4to7ofthisMemorandum.

RAMCapitalPartnersLLP,whichisauthorisedandregulatedbytheFCA(withfirmpermissionreferencenumber470347),isactingasPromoterinconnectionwiththeFundandisnotactingforanyoneelseandwillnotberesponsibletoanyoneotherthantheFundManagerforprovidingtheprotectionsofferedtocustomers of RAM Capital Partners LLP or for providing advice in respect of the contents of thisdocument or the Fund. No liability is accepted by RAMCapital Partners LLP for the accuracy of anyinformationoropinionscontainedinorfortheomissionofanymaterialinformationfromthisdocument.

17March2016

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CONTENTS

Part1–RISKFACTORS............................................................................................................................4

Part2–TARGETTIMETABLEANDDETAILSOFTRANCHE2OFTHEFUND…………………...........................8

Part3–PARTIESANDPROFESSIONALADVISERS..………………………………………………...............................10

Part4–LETTERFROMCLIVEWATSON………………………..….....................................................................11

Part5–KEYTAXRELIEFS……………………………………………………………………………..……………………………………13

Part6–THESTRATEGY………..................................................................................................................14

Part7–KEYINDIVIDUALS……………………………….…………………………………………………….............................20

Part8–CONFLICTSPOLICY……………………………….……………………………………………………...........................23

Part9–THESTRUCTUREANDOPERATIONOFTHEFUND………………….……..........................................24

Part10–CHARGESANDFEES………….……………………………………………………………..………………..................29

Part11–TAXATION..............................................................................................................................31

Part12–DEFINITIONS..........................................................................................................................34

Part13–INVESTORAGREEMENT…………………………..............................................................................36

Appendix1–APPLICATIONFORM

Appendix2–AIFMDDISCLOSURES

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PART1-RISKFACTORS

PriortomakingadecisiontoinvestthroughtheFund,prospectiveInvestorsshouldcarefullyconsideralloftheinformationsetoutinthisMemorandumandshouldconsiderwhetheraninvestmentinTheLiberty (City) Pub Company Limited and/or The Phoenix (City) Pub Company Limited and/or TheSummit(City)PubCompanyLimited(the"NewEISCompanies")andasubscriptionthroughtheFundconstitutesasuitable investment in lightof theirpersonalcircumstances, their taxpositionandthefinancialresourcesavailabletothem.Investors’capitalisatrisk.

AninvestmentintheNewEISCompaniesinvolvesahighdegreeofriskandmaynotbesuitableforallInvestors. Potential Investors should therefore seek advice from a stockbroker, accountant or anyotherpersonauthorisedbyFSMAbeforemakinganydecisionto invest.Potential Investorsarealsorecommended to consult a professional adviser regarding their personal tax position and theconsequencesofanEISinvestment.

This section contains the material risk factors associated with an investment in the New EISCompanies through the Fund. If any of the following events or circumstances arise, the business,financial condition and/or results of operations of theNewEIS Companies invested in through theFundcouldbemateriallyandadverselyaffected,ascouldtheavailabilityoftaxreliefstoApplicants.Insuchacase,anInvestormayloseallorpartoftheirinvestmentand/oranInvestormayloseallorpartoftheirtaxrelief.Additionalrisksanduncertaintiesnotpresentlyknown,orpresentlydeemedimmaterial,mayalsohaveanadverseeffecton thebusinessesof theNewEISCompanies and therisks belowdonot necessarily comprise all the risks associatedwith an investment in theNewEISCompanies.

RiskrelatingtotheinvestmentintheNewEISCompanies

ThevalueofinvestmentsintheNewEISCompaniesandanyincomederivedfromthemmaygodownaswellasup.Investorsmay,therefore,realiselessthantheiroriginalinvestment.PastperformanceisnoguidetofutureperformanceandthereisnoguaranteethattheFund’sobjectiveswillbeachieved.

Risksrelatingtodebt

TomaximisereturnsforInvestors,itisintendedthattheNewEISCompanieswillutilisebankdebttopart-finance their operations. This will be done on a conservative basis and it is anticipated thataverage gearing per New EIS Company will be 25% to 30% of paid-up share capital and sharepremium (with the gearingof eachNewEISCompany limited to amaximumof 50%of its paid-upsharecapitalandsharepremium).

Thelevelofdebtwillsignificantlyincreaserisk.ThepotentialdebtofeachNewEISCompanyislikelytobesecuredagainstanypropertyheldbythatNewEISCompany,thevalueofwhichmayfluctuate.Itisalsopossiblethatthedebtwillbesubjecttofluctuatinginterestrates.

RisksrelatingtothebusinessesoftheNewEISCompanies

Dependenceonkeyexecutivesandpersonnel

The future success of each New EIS Company will be substantially dependent on the continuingservicesandperformanceof the InvestmentConsultant, theNewEISCompanies’DirectorsandthepubmanagementteamsandtheabilityoftheNewEISCompaniestoattractandretainhighlyskilledandqualifiedpubmanagers. ItcannotbeguaranteedthatCliveWatsonwill remainthe Investment

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Consultant to the Fund. It cannot be guaranteed that the New EIS Companies’ Directors normembersofthepubmanagementteamswillremainwiththeNewEISCompanies,althoughtheNewEISCompanies’DirectorsbelievetheNewEISCompanies’cultureandremunerationpackageswillbeattractive. The loss of the services of CliveWatson, any of theNewEIS Companies’Directors, pubmanagersandotherkeyemployeescoulddamagethebusinessesoftheNewEISCompanies.

FinanceAct2015Following reforms set out in the Finance (No. 2) Act 2015 (the "Act"), investing under the EIS incompanies which acquire existing trades using funds raised from EIS investors is no longerpermissible. Prior to any investment into the New EIS Companies through the Fund, the New EISCompanieswillobtainadvanceassurancefromHMRevenue&CustomsthattheyareEISqualifyinginvestments. As is the casewith any investment under the EIS, there is no guarantee that EIS taxreliefsmaybeclaimed,obtainedorretainedinanyevent.

WheretheEuropeanCommissionbelievesthatRiskFinanceStateAidhasbeenprovidedwhichisnotinaccordancewiththeEURiskFinanceGuidelines,theymayrequiretheUKGovernmenttorecoverthatRiskFinanceStateAid.There iscurrentlynomechanism inplace for this,but recoverymaybefromtheNewEISCompaniesortheInvestors.

Growthstrategyandrisksrelatingtopotentialfutureacquisitionsanddisposal

The growth of the New EIS Companies will be largely dependent on their ability to identify andexecuteacquisitionsofassetsqualifyingundertherevisedEIScriteria,namelyunlicensedpremisesorpubs which have previously been closed, and successfully convert these sites into free-of-tie,managed pubs in cities and major provincial towns primarily in southern England. If the New EISCompanies are unable to find suitable acquisition targets at acceptable prices, this will have amaterialandadverseeffectontheNewEISCompanies’futuresuccessandthereturnstheInvestorsreceivefromtheFund.Thepriceofsuchsitesmaybeaffectedbyinterestrates, inwardinvestmentintotheUK,thedemandforpubsandotherfactorsoutsideoftheNewEISCompanies’control.

Market

It is possible that economic factors may decrease the disposable income that customers haveavailable to spend on drinking and eating out and other leisure activities or may adversely affectcustomers’ confidence and willingness to spend. This could affect the performance of any sitesacquiredbytheNewEISCompanies.

The New EIS Companies are likely to face competition from other sources of alcohol and entitiesoperating in theirbusinesssector,whichmayhavegreater resources thantheNewEISCompanies,such as supermarkets and off-licences. As a result, the New EIS Companies could be adverselyaffectedbyincreasedcompetitivepressures.

Alcohol

TheGovernment is likely tocontinue toconsider initiatives todealwithso-called ‘‘bingedrinking’’.WhilsttheInvestmentConsultantdoesnotconsiderthattheseinitiativeswillbedirectlyrelevanttotheNewEISCompanies’pubportfoliosgiventheirplannedlocationsandcustomerprofile,anyfocusonthepotentiallyharmfuleffectsofalcoholmayreducesalesofalcoholicbeverages.

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Licences,permitsandapprovals

Thepub industry in theUK is highly regulated at bothnational and local levels andpuboperatorsrequirelicences,permitsandapprovals.DelaysandfailurestoobtaintherequiredlicencesorpermitscouldadverselyaffecttheoperationsoftheNewEISCompanies.Theselawsandregulationsimposeasignificantadministrativeburdenoneachpubandadditionalormorestringent requirementscouldbeimposedinthefuture.EachoftheNewEISCompanies’siteswillberequiredtoobtainalicensetopermit,amongstotherthings,thesaleofliquor.ShouldanyoftheNewEISCompanies’sitelicencesbe refused, withdrawn or amended, the profitability of any such site or pub could be adverselyimpacted.TheNewEISCompanieswillhaveprocesses inplace toensureallnecessary licencesareobtainedonatimelybasis,andtomonitorcompliancewithallrelevantlawsandregulations.

Acquisitionofunlicensedpremises

When considering the purchase of unlicensed premises or other sites it may not be possible toascertain whether licensing permission will be granted at the time of purchase and there may,therefore,beariskthatalicencemayberefusedandthepurchaseaborted.Furthermore,therewillbe no established trade at the premises to build from, nor will there necessarily be any provenhistoricaltradeatsuchpremisesandeachsuchpremiseswillrequireafullrefurbishment.However,theNewEISCompanies’commonDirectorshaveanestablishedtrackrecordofobtaininglicencesinsuchcircumstances,mostrecentlyinOctober2015forTheFireStationsiteinCheltenhampurchasedbyoneoftheExistingEISCompanies(asdefinedonpage34).Further,inhiscapacityasChairmanofTheCityPubCompany(East)PLCandTheCityPubCompany(West)PLC("TheCityPubCompaniesEast and West"), the Investment Consultant has had several recent experiences of identifyingunlicensed premises which having been acquired by The City Pub Companies East andWest havegeneratedturnoverinexcessof£1millionperyear(thesepremisesarenotrelatedtotheFundandarenotownedbyeithertheExistingEISCompaniesandtheNewEISCompanies).

RisksrelatingtoTaxation

ThisMemorandum has been prepared in accordance with an interpretation of current legislation,rules and practice. It is always possible that legislation, rules and practice may change. Any suchchangesand,inparticularanychangestothebasesoftaxation,taxrelief,ratesoftaxoranInvestor’staxposition,mayaffecttheavailabilityoftaxreliefsanddeferralsandmayalsoaffectthenetreturnsreceivedbyInvestorsfromtheNewEISCompanies.

There can be no certainty thatHMRCwill agree that an Investor’s or theNew EIS Companies’ taxpositionisasdescribedinthisMemorandum,althoughthereisnoreasontoexpectthattheywillnotdoso.ChangesinthefinancialandtaxpositionofeitheranInvestororanyoftheNewEISCompaniesmayalsoaffecthisorheroritsrespectivereturns.

The taxationbenefitsdescribedaredependentuponan Investor’sparticular circumstances, and somaynotbeavailabletoallInvestors.Allreasonablestepshavebeentaken,basedontheinformationavailable, to ensure that the taxation benefits described will be available to all Investors (whereapplicable).However,eligibility forsuchreliefscannotbeguaranteed,and it is theresponsibilityofprospective Investors to obtain their own independent taxation advice to confirm that they areeligible,andwillcontinuetobeeligible,tobenefitfromtherelevantreliefs.

TherearecertaincircumstancesinwhichanInvestormaynotqualifyforthetaxationbenefitsundertheEIS.ThesewillincludesituationsinwhichsuchanInvestorisconnectedwithanyoralloftheNewEISCompaniesatanytimeinhisorherThreeYearPeriod(asdefinedonpage35) byvirtueofthe

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factthatheorsheandhisorherAssociatesacquirebetweenthemmorethan30%oftheOrdinarySharesinanEISCompany.

It isenvisagedthat Investorsshouldnotbeconnectedwithanyof theNewEISCompaniesbut thiscannot be guaranteed. No Investor (togetherwith his or her Associates)will be permitted to ownmorethan30%ofthesharecapitalofanEISCompany(unlesstheyindicatethattheydonotwishtoclaim the income tax relief and the CGT exemption); however, no responsibility can be taken forInvestorsbecomingconnectedtoeachotherbyvirtueofconnectionsthathavenotbeendisclosedinanApplication.IfanInvestorisindoubtaboutwhatitmeanstobeconnected,heorsheshouldseekindependentadvice fromtheirstockbroker,solicitor,accountantoranyotherpersonauthorisedbyFSMAbeforemakinganydecisiontoinvest.

IfanyEISCompanydoesnotsatisfythecriteriaformaintaininganEISTrade,thenthiscouldprejudicethe EIS-qualifying status of the relevant EIS Company and, therefore, the tax benefits available toInvestorsundertheEIS.

Dependingon individual circumstances, income tax relief is available for the tax yearduringwhichOrdinarySharesare issuedtoasubscribing InvestorandthroughEIS ‘carryback’totheprevioustaxyear(seetheEIS‘carryback’provisionsdescribedinPart11).

RisksrelatingtorealisationofanInvestment

OpportunitiesforInvestorstodisposeoftheirinvestmentintheNewEISCompaniesarelikelytobeconstrainedandtherewillbenoexternalmarketforsuch investments. ItmaybedifficulttoobtainaccurateinformationaboutthevalueofanyshareholdinginaNewEISCompany.Furthermore,ifanInvestor disposes of his or her shareholding in a New EIS Company within the Three Year Periodapplicabletothatshareholding,suchInvestormaybesubjecttoclaw-backbyHMRCofany incometaxrelieforiginallyclaimedandcrystallisationofanydeferredcapitalgains.

Investorsshouldnot,therefore,consider investing if theycouldrequireaccesstotheir fundswithinapproximatelyfiveyearsfromthecloseoftheFundraising.InvestmentsmadethroughtheFundwillbeinunquotedcompaniesthatareconsideredtobehigherriskthansecuritieslistedontheLondonStockExchange.

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PART2–TARGETTIMETABLEANDDETAILSOFTRANCHE2OFTHEFUND

Target initial Investment date, unless fullysubscribed earlier or extended at the discretionoftheFundManager

30June2016

Final closingdate forApplicationsandreceiptofcleared funds, unless fully subscribed earlier orextendedatthediscretionoftheFundManager

5.00pmon30March2017*

Minimum individual Subscription Amount(subjecttothediscretionoftheFundManager)

£25,000

Minimum Tranche 2 size, unless increased ordecreasedatthediscretionoftheFundManager

£3,000,000

Maximum Tranche 2 size, unless increased ordecreasedatthediscretionoftheFundManager(amaximumof£5millionperNewEISCompanycanbeallottedpercalendaryear)

£15,000,000

Targetexitproceeds Fromlate2020

Thedatesabovearetargetsonlyandmaybesubjecttochange

*or5.00pmon16March2017inrespectofInvestorsthatdonotindicateontheirApplicationFormthattheywishtowaivetheir14daycancellationperiod

EarlyBirdDiscount

InvestorswillreceivecomparativelymoresharespursuanttoApplicationsreceivedandacceptedbytheFundManageronorbefore31May2016,becausetheywillsubscribefortheirsharesintheNewEISCompaniesatapricepershareof£0.98.Applicationsreceivedandacceptedafterthisdateshallbesubscribedat£1.00pershare.

TaxReliefsundertheEnterpriseInvestmentScheme

InformationabouttaxreliefsundertheEISissetoutinPart11ofthisMemorandum.

ClaimingIncomeTaxRelief

OncesuccessfulApplicantshavereceivedtheirEIS3forms,theyshouldentertheamountinvestedontheirtaxreturnfortheyeartheyareentitledtoclaimtheincometaxrelief.IfInvestorshavealreadysubmittedtheirtaxreturn,thentheclaimsectionoftheEIS3formshouldbecompletedandsenttotheirtaxoffice.

PleasenotethatsuccessfulApplicantswillreceiveoneEIS3formperNewEISCompany(i.e.InvestorsdonotreceiveoneformfortheirentireinvestmentthroughtheFund),andthesearelikelytoarriveseparately.

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Claimingcapitalgainstaxdeferralrelief

TheclaimsectionoftheEIS3FormshouldbecompletedandsenttotheInvestor’staxoffice.

FundManager’sContactDetails47ParkLaneMayfairLondonW1K1PR

Telephone:+44(20)79078777Email:london@thompsontaraz.co.ukWeb:www.thompsontaraz.co.uk

Please note: Applications will only be accepted if the details of the Investor's FCA authorisedIntermediaryarecompletedontheApplicationForminAppendix1tothisMemorandum.

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PART3–PARTIESANDPROFESSIONALADVISERSFundManagerThompsonTarazManagersLimited47ParkLaneLondonW1K1PRInvestmentConsultantCliveWatsonBar&KitchenLimitedWestHallFarmChurchLanePirbrightSurreyGU240JJNewEISCompaniesTheLiberty(City)PubCompanyLimited,ThePhoenix(City)PubCompanyLimited,andTheSummit(City)PubCompanyLimitedEsselHouse2ndFloor29FoleyStreetLondonW1W7THDepositaryThompsonTarazDepositaryLimited47ParkLaneLondonW1K1PR

PromoterRAMCapitalPartnersLLP4StapleInnLondonWC1V7QHSolicitorstotheNewEISCompaniesDWFLLP20FenchurchStreetLondonEC3M3AGTaxAdviserstotheNewEISCompaniesPhilipHare&AssociatesLLP4-6StapleInnLondonWC1V7QH

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PART4–LETTERFROMCLIVEWATSON

CliveWatsonInvestmentConsultanttotheFundManager

17March2016

DearPotentialInvestor

IampleasedtointroducethesecondtrancheoffundraisingofTheCityPubEISFundforthetaxyear2016/17.

TheFundwasformedjustoverayearagoandduringthattimetherehasbeenaverypositiveuptakeof subscriptions from Investors,with just under £14.3million raised under Tranche 1. These fundshavebeeninvestedintothreecompanies,TheGalaxy(City)PubCompanyLimited,ThePioneer(City)Pub Company Limited and The Sovereign (City) Pub Company Limited (together, the "Existing EISCompanies") and at the time of writing the Existing EIS Companies have between them acquiredsevensites,ofwhichfivearefreehold.Fiveofthesitesaretrading,whilstthesixthsiteiscurrently,andtheseventhsitewillshortlybe,undergoingrefurbishment.

Due to recent legislative changesmentioned below, the Fundwill now target investments in newcompanieswhich, subject toobtainingadvanceassurance fromHMRevenue&Customsunder theEnterpriseInvestmentScheme(the"EIS"),willseektoacquire,convert,licenseandoperatenewpubsintendedtogiveInvestorsexposuretoinvestmentsinpredominantlyfreeholdsiteslocatedinaffluentcitiesorlargertownsacrosssouthernEngland.

ThenewstrategyforthisTranche2oftheFundisdrivenbytheFinance(No.2)Act2015(the"Act")which received Royal Assent in November 2015. The Act introduced significant changes to the EISqualifying requirements and it is no longer possible for the Existing EIS Companies to utilise fundsraisedfromEISinvestorssince18November2015topurchasebusinessesorcertainassetsthatareinuseinatrade.TheFundManagerandIbelieveitis,therefore,bettertopursueopportunitiesthroughnewcompaniesthathadnotpreviouslytradedand,thus,threecompanieshavebeenincorporated:TheLiberty(City)PubCompanyLimited(Liberty),ThePhoenix(City)PubCompanyLimited(Phoenix),andTheSummit(City)PubCompanyLimited(Summit)(together,the"NewEISCompanies").

In practical terms, the New EIS Companies will not be able to use newmonies raised to acquiretradingpubs.However, theNewEIS Companies are permitted to buy formerpubs that havebeenclosed for a period prior to purchase and/or unlicensed sites used for a different trade prior topurchase,forconversionintonewpubs.

The geographical areas in which the New EIS Companies are expected to operate are as follows:Liberty fromCentralandSouth-East London to theSouth-EastCoast;Phoenix inNorthLondonandthe surrounding Home Counties; and Summit from Central and South-West London to the South-WestofEngland.Thetypicalofferingisexpected,again,tobethatofpremiumdrinksandfoodaimedatthe localmarket,andusing localsuppliers.However,whereappropriate,thesitesmay introduceelementstocaterforcustomers’broadeningtastes,suchas‘popup’bars,specialistpremiumcoffeesandawiderrangeofdishesincorporatingmorevegetarianandstreetfood.

TheNewEISCompanies’ commonDirectorshavestrongexperienceof converting formerpubsandunlicensed premises into cash generative pubs. Within the past twelve months, of the assetspurchased by TheCity PubCompany (East) PLC, The City PubCompany (West) PLC ("TheCity Pub

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Companies East andWest") and the Existing EIS Companies, theDirectors believe that nearly halfwouldbeeligibleunderthenewEIScriteria.ThreeofsuchpubsacquiredbyTheCityPubCompaniesEastandWesthaveeachsubsequentlygeneratedturnoverinexcessof£1millionperyear.Assuch,we are confident that theNewEIS Companies can continue to build attractive anddiversified pubportfoliosinaccordancewiththerevisedEISrequirements.

TheFund iscurrentlyseekingforthisTranche2toraiseupto£15millionof investmentduringthe2016/17 tax year. The strategy of the Fund will be to invest up to £5million into two or, at thediscretionoftheFundManager,allthreeoftheNewEISCompanies,which,goingforward,willseektoacquire,convert, licenceandoperatesites intendedtoachievehigh returnsoncapital. ItwillbetheintentionofeachNewEISCompanytobuildupaportfolioofhighqualitypubs,whichcanprovidesustainableincomeoverthemediumtolongtermandcreateanexitstrategyforInvestors,whichwillbeconsideredfromlate2020.Inmyexperience,thistimescalewillallowtheNewEISCompaniestobuildupaportfolioofquality,managedpubs,andpreparethemselvesforatradesaleor, ifmarketconditionsaresuitable,aflotation.I am continuing to provide my expertise to the Fund as the Investment Consultant to the FundManager. It is intended that the board of each New EIS Company will be led by David Bruce asChairman.DavidandIco-foundedTheCapitalPubCompanyPLCinDecember2000,whichachievedfor its original EIS shareholders a total return of £2.43 per £1 invested (excluding tax relief). Thisrepresented for those original EIS investors a threefold return on their net of tax investment,equivalenttoanetIRRofapproximately12%.Additionally,itisintendedthattheNewEISCompanieswill employPeterMcDonald asChiefOperatingOfficer and,mybrother, JamesWatsonas FinanceDirector, each of whom have over fifteen years’ experience in the licensed trade, themajority ofwhichhasbeenintheEISpubsector.

Theminimuminvestment intheFund is£25,000 inrespectofapplicationsforallotments inthetaxyear2016/17receivedonorbefore5.00pmon30March2017.Aninvestmentmadeinthetaxyear2016/17 may be used against the previous year’s income tax liability or in the current tax year,subjecttotheInvestor’sindividualcircumstances.

Pleasenotethatforvalidapplicationsreceivedandacceptedonorbefore31May2016,Investorswillsubscribe for their shares in theNewEISCompanies at adiscountedpriceof £0.98per share, andthereafterthepricewillbe£1.00pershare.

Withbestwishes,

Yourssincerely,

CliveWatsonInvestmentConsultanttotheFundManager

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PART5–KEYTAXRELIEFS

TheEIStaxreliefsprovidedbytheUKgovernmentinclude:Incometaxrelief30%incometaxreliefontheamountsubscribedtoEISCompaniesisavailableonanaggregatemaximuminvestmentof£1,000,000inthetaxyearending5April2017,providedtheinvestmentsareheldfortheThreeYearPeriod.Inaddition,subscriptionsmaybecarriedbacktothetaxyearended5April2016forinvestmentsmadeinthetaxyearended5April2017,subjecttoamaximumclaimof£1,000,000pertaxyear.IncometaxreliefislimitedtotheInvestor’sincometaxliabilityintherelevanttaxyear.Tax-freecapitalgainsTax-freecapitalgainsonEISinvestmentsheldthroughtheFund.InheritancetaxreliefThevalueofinvestmentsheldthroughtheFundfortwoyearsormoreatthedateofdeathshouldqualifyforIHTreliefprovidedtherelevantEISCompaniescontinuetoundertakeanEISTrade.Undercurrent legislation,proceedsreceivedonexit fromacompanyundertakinganEISTradecanbere-investedintoNewEISCompaniestomaintaintheIHT-freestatus.CGTdeferralreliefTheopportunitytodeferunlimitedcapitalgainsrealiseduptothreeyearsbefore,oruptooneyearafter,thedateoftheinvestmentintoEISCompanies.LossreliefA loss (after taking account of any income tax relief initially obtained) on the sale of any EISInvestmentintheportfolio,irrespectiveoftheoverallperformanceoftheportfolio,canbeoffsetbyindividualsagainstincome(attheindividual’smarginaltaxrate)orcapitalgains.

CGTdeferralreliefandinheritancetaxreliefarenotlimitedinsize,otherthanbypersonalcircumstances.

ThiskeytaxreliefssectionprovidesonlyaverybriefsummaryoftheEIStaxreliefs.Furtherdetailsare setout inPart11of thisMemorandum.Thevalueof the tax reliefswilldependonpersonalcircumstances which may change. Tax legislation is also subject to change. In addition, theavailability of tax reliefs depends on the New EIS Companies obtaining and maintaining theirqualifyingstatus.PleaserefertotheHMRevenue&CustomswebsiteforfurtherguidanceonthetaxreliefsavailableonEISinvestmentsorconsultyourfinancialadviser.

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PART6–THESTRATEGY

Background

InDecember2011,DavidBruceandCliveWatsonco-foundedTheCityPubCompany(East)PLCandTheCity PubCompany (West) PLC ("TheCity PubCompanies East andWest"), successfully raisingsome£27.8millionofEISfundsbetweenthetwocompaniesduringthefollowingthreeyears.Thesebusinesses comprise 24 pubs at the date of this document and turnover was in aggregate £15.26millionfortheyearended28December2014.HavingcompletedtheirfundraisingundertheEIS,TheCity Pub Companies East and West have now built up two good portfolios of pubs which theirDirectorsbelievewillprovideanattractivereturnforInvestors.

TheCityPubEISFundwasestablishedinNovember2014inthebeliefthatgreatopportunitiesexistinthemarket for furtherpubs. InCliveWaton'sopinion,bybuildingaportfolioofqualitysitesacrossthe threeExistingEISCompanies (Galaxy,PioneerandSovereign),Tranche1of theFundhas takengood advantage of this potential. So far, the Existing EIS Companies have acquired, in aggregate,seven sites, all ofwhicharebelieved tobeof greatquality andpromise. First, the freeholdof TheGarrison inBermondseywaspurchased in June2015andhas tradedatahigh levelaveragingover£40,000grosssalesperweek.OthersitestradingcompriseVertuinBirmingham,TheAleksandernearRichmond,TheCaseisAlterednearPinner,MiddlesexandWalker’sofWhitehall,Westminster,whichhaveallhadencouragingstarts.Thesixthsite,TheLordCardiganinBow,iscurrently,andtheseventhsite,TheFireStationinCheltenham,willshortlybe,undergoingrefurbishment.Itisalsoanticipated,that an eighth site will be exchanged in Warwick in the near future. Thereafter, the Existing EISCompanieswillhavethecollectivecapacitytomaketwoorthreemoreselectivepurchases.

It isanticipated that theFund'sNewEISCompanies (Liberty,PhoenixandSummit)will alsobuildaquality portfolio by creating new units from a combination of closed pubs, conversions and newbuilds.TheNewEISCompanieswillseektoemulatethegrowthoftheExistingEISCompaniesandTheCity Pub Companies East andWest, albeit through a new strategy, benefiting from the Directors’industryknowledgetoenhancetheirpurchasingpower.

The key individuals behind the Fund have a successful history of founding and growing EIS pubcompanies.InDecember2000,DavidBruceandCliveWatsonco-foundedTheCapitalPubCompanyPLC.Having raised £15.4million under the EIS, David and Clive developed the company through aflotationonAIM into a successful companywhichownedaportfolioof 35primarily freeholdpubsacrossGreaterLondon.

InJuly2011,TheCapitalPubCompanyPLCwassoldtoGreeneKingPLCforanenterprisevalueof£93millionprovidingtheoriginalEISinvestorswithareturnof£2.43(inclusiveofdividendspaid)per£1investedbeforeanytaxreliefs.ThisrepresentedforthoseoriginalEISinvestorsathreefoldreturnontheirnetoftaxinvestment,equivalenttoanetIRRofapproximately12%.

TheFund

CliveWatsoncontinuestosharehisexpertisethroughhisappointmentasInvestmentConsultanttotheFundManager(the"InvestmentConsultant").ThestrategyinrespectofTranche2oftheFundistoinvestintwoor,atthediscretionoftheFundManager,allthreeoftheNewEISCompanies,whichdependingonthelevelofsubscriptionsreceivedthroughtheFundwilleachreceiveinvestmentofupto£5millioninthetaxyear2016/17,undertheEIS,toacquiresitesidentifiedbyCliveWatson,withtheintentionofbuildingupaportfolioofhighqualitypubswhichcanprovideasustainableincome

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over themedium to long term. It is the FundManager’s intention to consider an exit strategy forInvestorsfromlate2020.

CliveWatsonbelievesthatthisfourtofiveyeartimescalewillenableeachoftheNewEISCompaniestobuildupaportfolioofqualitymanagedpubsthatwillbeattractive,inparticular,toatradebuyer.Alternatively, ifmarketconditionsaresuitable,thentheFundManagerandeachNewEISCompanymayconsideraflotation.

AswithTheCityPubCompaniesEastandWestandtheExistingEISCompanies,thebusinessplansofthe New EIS Companies are expected to focus on operating predominantly unthemed pubswhichappeal to their local markets. For each of the New EIS Companies, the pubs are expected to betypicallynon-brandedandcaterspecificallyfortheneedsoftheirlocalcommunities.

ItwillbetheobjectiveoftheboardofeachNewEISCompanytodevelopandoperateahighquality,managedpubestatewhich is free-of-tie to anybrewer. CliveWatsonbelieveshehas identified anexcellentopportunitytoacquiresitesanddevelopfurthernon-brandedpubsthatcatertotheirownlocalmarket.

BoardsoftheNewEISCompanies

ThecommonDirectorsofeachNewEISCompanyareDavidBruce(Chairman),PeterMcDonald(ChiefOperatingOfficer)andJamesWatson(FinanceDirector).DetailsoftheexperienceofDavid,PeterandJamesaresetoutonpages21to23.

CliveWatsonhasadvisedtheFundManagerthatNewEISCompaniesareexpectedtoexpandfasterifeachNewEISCompanyrecruitsitsownoperationalmanagementteam,reportingtoPeterMcDonald.Bygiving themtheirown focusedmanagement, it isanticipated that thesededicatedmanagementteamswillsignificantlystrengthentheNewEISCompanies.

TheConcept

Onaverage,atleast80%oftheNewEISCompanies’aggregatedevelopmentprogrammeisexpectedtobe in freeholdpremises,with thebalancebeing in long leaseholdpremises, free-of-tie.All pubsopenedbytheNewEISCompaniesareexpectedtobeappropriatelyfittedout.

Theanticipatedoverallfocusofthenewpubswillbetotargetawiderangingconsumergroup.Oncedeveloped, these sites are expected to offer beer festivals, supported bymicro-breweries in somecaseswithanemphasisonprovidingagoodrangeofaleswhicharenotavailableinmostotherpubsin their local market. Staff are expected to be recruited who have experience in operating highvolume pubs that identify with their local communities. Themajority of each New EIS Company’ssaleswillbefromliquorwithareasonableproportionfromfoodsales.

Theofferingwouldvaryslightlytosuiteachlocalmarket,butthecorewouldincludeseveralrelativelyinnovativeideas,namely:aninitial‘popup’style-offeringwheredifferenttypesofdrinks,alternativefood offerings and ambient surroundings would be implemented with a strong nod to the localmarket.Anemphasisisexpectedtobeplacedonservingthecurrentlyunder-providedvegetarianandveganmarket.Anotherkey featurewouldbe to introducestreet foodand flavours,manyofwhichwould not previously have been prominent in the area. Clive Watson believes there is still anastonishing lackof variety inmost townandcountrypubs,wheredrinkersanddinersdonotgetadistinctive enough choice, and that the same is true for coffee drinkers and teetotallers. Sites are,

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thereforeexpectedtoofferavariedselectionofhome-madecordialsandsoftdrinks,complimentedbybothpremiumandeclecticcoffeeandhotbeveragechoicesetc.EachNewEISCompany is expected tooffer an interestingandvaried choiceof traditionaldraughtbeerstogetherwithanimaginativeselectionofwinesandsoftdrinks,soastoappealtoawiderangeof customers. Draught beers are anticipated to be sourced from local brewers and local winemerchantsareexpectedtoalsobeusedtohelpdevelopthelocalappealofthedevelopedsiteandtohelpsupportlocalbusinesses. Thecreationofawarmandfriendlyambience isofparamount importance.Whetherrefurbishingaformer pub or converting other buildings, such as former fire and railway stations, any existingfeaturesandnaturaldécorwhichcanbeusedtoenhancetheappearanceandretaincharacterwillbepreservedasfaraspossible.Refurbishmentswillbeintendedtoblendinwiththeexistingcharacterof the building and are not expected to be overly designer-led. An additional advantage ofrefurbishinginthismanneristhat,inCliveWatson’sopinion,thedevelopmentcoststendtobelowerandthemoretraditionalstyleofdécorisusuallylongerlasting.

OperationalManagement

At the operational level, each of the newly created pubs owned by the New EIS Companies areexpectedtobeindividuallyoperatedbyamanagementteamledbyPeterMcDonald.

Peter McDonald has been involved in the pub sector for fifteen years. In 2001 Peter joined TheCapital Pub Company PLC as a site manager and went on to operate and develop several verysuccessful sites. In 2006 he became an operations manager and oversaw a number of successfulredevelopments.AfteritssaletoGreeneKingin2011,PeterstayedwiththerebrandedMetropolitandivisionofTheCapitalPubCompanyPLCforthreemoreyears,becomingsenioroperationsmanagerresponsibleforanumberofsitesandrefurbishments.PeteriscurrentlyChiefOperatingOfficeroftheFund'sthreeExistingEISCompanies.

Operational support teams for eachNewEISCompanywill be recruitedbyPeteron thebasis thatthey have experience in operating pubs of the type the relevant New EIS Company wishes toestablish.Also,itisimportantthattheteamshavegeographicalknowledgeoftheirrespectivetargetareas,withagoodunderstandingoflocalcharacteristicsofthatarea.

Membersoftheteamsareexpectedtohaveoperationalexperienceintheirtargetareasandhaveatrackrecord intheir field.Theywillhaveday-to-dayautonomyonwhatpromotionstheyrun inthepubsuchaswine-tasting,whisky-tasting,bespokequiznightsetc.Pubmanagersareexpectedtobeincentivisedbyreceivingashareofthepub’snetprofit,subjecttosatisfactorywagelevelsandstockresults.InPeter’sexperience,notonlydoesthishelptomotivategoodstaffbutalsohelpstoretainthemaswell. Inorder tohelpnurturea corporate culture, apolicyofpromoting staff fromwithineachNewEISCompanywillbefollowedwhereverpossible.

Each New EIS Company is expected to be supported by a head office and will develop its ownoperationsteam.

AcquisitionandExpansion

TheNewEISCompaniesareexpectedtopredominatelyacquireone-offpremiseslocatedinaffluentcitiesorlargetownsacrosssouthernEngland.CliveWatsonwilladvisetheFundManagerastowhichlocations he believes lack good quality independent free houses and should provide good

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opportunities for the New EIS Companies to grow and develop their portfolios over the next fewyears.

It is intended that, on average, at least 80% of each New EIS Company’s acquisitions will be infreehold sites, with the balance being in long leasehold sites. This is expected to ensure that theretailing activity is complemented by the relative security of property assets and will, in CliveWatson’sopinion,maketheNewEISCompaniesattractivetopotentialpurchasersintheeventofatradesale.Theacquisitionprogrammewillfocusonbuildingupaqualityportfoliooffree-of-tiepublichousesintendedtogenerateahighreturnoncapitalwhilethebusinessesgrowanddevelop.

InCliveWatson’sopinion,therecontinuetobegoodopportunitiestopursuethestrategyandexpandanestateofpubs for the threeNewEISCompanies.Therearealways transactionsoccurring in theproperty and pub sectors. It is Clive Watson’s opinion that these transactions will provideopportunities for the EIS Companies to acquire new sites. Clive Watson has vast experience inacquiringsitesandenjoysgoodcontacts inthe licensedtradethatthatheanticipateswillhelphimidentifysitescompliantwiththerelevantEIScriteriafortheNewEISCompaniestoacquire,utilisingbankdebt and funds raised.CliveWatson is confidentdeal flowwill remainbuoyant forqualifyingopportunities under the new EIS restrictions, as demonstrated by the £4.6 million of investmentmade by the Existing EIS Companies in the last 12months which the Directors understandwouldqualifyunderthenewEISrules.

RetailStrategy

CliveWatsonhasadvisedtheFundManagerthattherearetoomanypubsthatdonotidentifywiththeirlocalmarketandthatmanyconsumerswouldprefertogotowell-refurbished,qualitypubsthatareoperatedonanindividualbasis. It is,therefore, intendedthattheNewEISCompanieswillbuildupaportfolioofindividualpubsthatenjoylocalcharacteristicsandappealtothelocalmarket.Wherenecessary and with all new sites intended to comply with the new EIS criteria, premises will berefurbishedtorealisetheiroperationalpotential,butthiswillbedoneinamannersympathetictotheparticularfeaturesofthebuilding.Localpromotionsandmarketingisexpectedtobeundertakentostimulatetrade.

Awideandvariedselectionofbeers,winesandspiritsisexpectedtobeavailabletotheconsumertoensureeachpubgenerates anair of individuality. It is intended that certainpubswill have,wherepossible,anopenplankitchenrunningadailyfreshfoodmenuwhich,CliveWatsonbelieves,willhelptocreatearelaxeddrinkinganddiningatmospheresuitableforfamilies.Inordertohelpachievegoodoperatingmarginsatpublevel,itisalsointendedthatthepubswill,incontrast,offertraditionalpubfood,requiringfewercateringstaff,tosupportatypicallyliquor-ledoffer.

ItisCliveWatson’sviewthatstafftrainingisanessentialpartofimprovingtheretailperformanceofapublic house and this is expected to be achieved through the provision of appropriate trainingcourses by the New EIS Companies. Managers of the pubs are expected to be incentivised byreceiving a share of the pub’s net profit subject to satisfactorywage levels and stock results. ThepromotionofstafffromwithintheNewEISCompanieswillbeencouragedastheportfoliosgrowanddevelop.

FinancialStrategy,BankBorrowingsandControls

TomaximisereturnsforInvestors,itisintendedthattheNewEISCompanieswillutilisebankdebttopart-finance their operations. This will be done on a conservative basis and it is anticipated thataveragegearingperNewEISCompanywillbe25%to30%of theirpaid-upsharecapitalandshare

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premiumwith the gearing of eachNew EIS Company limited to amaximumof 50% of its paid-upsharecapitalandsharepremium.TheboardofeachNewEISCompanyhasextensiveknowledgeofwhattheyregardasthenecessaryfinancialcontrolsrequiredtoensurethathighoperatingprofitsareachieved.

The Fund Manager, Clive Watson and the board of each New EIS Company expected to receiveperiodic management accounts. The Fund Manager will authorise all acquisitions and any capitalexpenditure on any one item, or a series of related items, in excess of £25,000 by the New EISCompanies, having obtained advice from CliveWatson. The board of each New EIS Company hasextensiveexperience inoperatinggrowingpubcompaniesandwillensure that theproper financialcontrolsareinplacetodealwiththeirrespectivegrowthstrategies.

ManagementIncentivesandAlignmentofInterests

CliveWatsonbelieves that themanagement teamswillbeable tocombinetheir retailingskillsandentrepreneurialabilitytobuildahighlyprofitableportfolioofqualitypubswhicheventuallymaybecapable of being sold to larger operators. The management teams’ remuneration packages areexpectedtobedesignedtoensurethatthereisastrongincentivetodeveloptheconceptandhelpmaketheNewEISCompaniesasuccess.

CliveWatsonbelievesthatit isimportanttoavoidhighfixedcostsattheearlystageoftheNewEISCompanies’ growth. Therefore, the Directors of each New EIS Company are expected to agree tolowersalaries,withaprofitrelatedbonusentitlingeachofthemtoashareofanannualbonuspoolwhichwillnotexceed,inaggregate,15%oftherelevantNewEISCompany’sEBITDA.Thisisexpectedtoensure that theDirectorsofeachof theNewEISCompanieswillbe rewarded if their respectiveNewEISCompanygeneratessignificantprofits.

EachNewEISCompanyisexpectedtointroduceanincentiveshareoptionschemeforthebenefitofits executive directors and employees.Nomore than 5%of eachNewEIS Company’s issued sharecapitalwillbeputunderoptionpursuanttoanysuchscheme.

ExitStrategy

ItistheFundManager’sintentiontoconsideranexitstrategyforInvestorsfromlate2020,howeverthe actual exit timingmay differ. In the Investment Consultant’s experience, this four to five yearplannedtimescalewillalloweachoftheNewEISCompaniestobuildupportfoliosofqualitymanagedpubsandpreparethemselvesforatradesaleor, ifmarketconditionsaresuitable,aflotation.CliveWatsonandDavidBrucehaveexperienceoffloatingandoperatingcompaniesonAIManddisposingofsuchcompaniestotradebuyers.

OperationoftheFund

TheFundiscurrentlyseekingtoraiseuptoafurther£15millionofinvestment,undertheEIS,tobeallottedduringthe2016/17taxyearequallyacrosstwoor,atthediscretionoftheFundManager,allthreeoftheNewEISCompanies.

It isanticipatedthattheFundwillraiseuptoafurther£15millioninthetaxyear2017/18,underathird tranche,meaningamaximumof£30millionpossiblybeingraised for theNewEISCompaniesacrosstwotaxyears.

FurtherdetailsoftheoperationoftheFundarecontainedinPart9ofthisdocument.

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FurtherinformationabouttheFundManager,CliveWatsonandtheNewEISCompanyDirectorsaresetoutinPart7ofthisdocument.

TheRoleofRAMCapital

RAMCapitalisthepromoterandmarketingadvisertotheFund.RAMCapitalhasastrongrecordinpromotingandmarketingEIS(andVCT)productshavingraisedapproximately£805millionoverthelasteightyears.RAMCapital isamemberoftheEISAssociationandisauthorisedandregulatedbytheFinancialConductAuthority.

Requests for further copies of this Memorandum can be made by contacting RAM Capital bytelephone on 020 3006 7530 or by sending an e-mail to taxsolutions@ramcapital.co.uk. NoinvestmentortaxadvicecanbegivenbyRAMCapital.

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PART7–KEYINDIVIDUALS

TheFundManager

The Fund Manager of the Fund is Thompson Taraz Managers Limited ("Thompson Taraz"), anindependentfirmprovidingfundmanagementandadministrationservicesbasedinLondon.

Establishedasacharteredaccountancypracticein1993,ThompsonTarazhasgrowntobecomeoneof the UK’s largest independent providers of fund management and associated administrationservices to the collective investment scheme sector. Thompson Taraz has beeninstructedtoadministerinvestmentstotallingover£2billion.Currentlyworkingwithover70limitedpartnershipsor similar undertakings and 300 independent financial advisers, Thompson Taraz looks after over7,000individualinvestors.

TheFundManagerprovidesinvestmentmanagementservicestotheFund,havingfirstbeenprovidedwithwrittenstrategicadvicefromitsInvestmentConsultant,CliveWatson.

SimonWebber

SimonisresponsibleforthestrategicdirectionandmanagementofThompsonTaraz.Specialisinginfund management operations, he has recently been developing and implementing strategic andoperationalchangeforfirmsregulatedunderAIFMD.

He has particular expertise in strategic compliance and risk matters and sits on the InstitutionalCommitteeoftheAssociationofProfessionalComplianceConsultants.Simonhasalsotwiceactedasa'SkilledPerson'appointedtopreparereportsfortheUKfinancialservicesregulatorandhasbeenaDirector or Board Adviser to a number of high-profile, multi-national fundmanagement and fundservicesbusinesses.

AmirZaidi

Amirisresponsibleforfundmanagementandhasawealthofexperienceinfundstructuringandset-up,financialmodelling,andinvestmentanalysis.HeisaCharteredFinancialAnalystandaCharteredAccountant.

HavinginitiallytrainedinDeloitte’sM&ACorporateFinanceTeamwhereheworkedonseveralhighprofile Private Equity transactions, Amir has held a number of board positions overseeing theadministrationofover£2billionacross60fundsincludingholdingaGeneralPartnerdirectorshipandInvestmentCommitteepositionona€450millionAXAfund.

TheInvestmentConsultanttotheFundManager

CliveWatson

ClivequalifiedasaCharteredAccountantwithPriceWaterhouseinLondonin1986,thenjoinedtheinvestmentbankManufacturersHanoverLimitedwherehespentthreeyears.

InDecember2000,Cliveco-foundedwithDavidBruceTheCapitalPubCompanyPLC.Hewasfinancialdirectoruntil June2007,managingdirectoruntil June2008,and thereafterchiefexecutive. In June2007, The Capital Pub Company PLC was listed on AIM. Clive helped to develop The Capital PubCompanyPLCfromastart-upto35pubsalltradingintheGreaterLondonarea.In2010,TheCapitalPubCompanyPLCwasawarded "BestManagedPubCompanyof theYear" (20 to99pubs) at The

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PublicanAwards. InJuly2011,ClivenegotiatedthesaleofTheCapitalPubCompanyPLCtoGreeneKingPLC foranenterprisevalueof£93million,providing theoriginalEIS investorswitha returnof£2.43(inclusiveofdividendspaid)per£1investedbeforeanytaxbreaks.Thisrepresentedforthoseoriginal EIS investors a threefold return on their net of tax investment, equivalent to a net IRR ofapproximately12%.

CliveistheChairmanofTheCityPubCompaniesEastandWest.AsChairman,Cliveisresponsibleforsite acquisitions and deals with the legal and financial aspects of the transactions. He is alsoresponsiblefortheoverallstrategiesofTheCityPubCompaniesEastandWest,aswellasoverseeingfundraisingandinvestorrelations.

BoardofeachEISCompany

ThecommonDirectorsofeachNewEISCompanyareDavidBruce(Chairman),PeterMcDonald(ChiefOperatingOfficer)andJamesWatson(FinanceDirector).

CliveWatsonhasadvisedtheFundManagerthatEISCompaniesareexpectedtoexpandfasterifeachNewEISCompanyrecruits itsownoperationalmanagementteam,reportingtoPeterMcDonald.Bygiving them their own focused management, it is anticipated that these dedicated managementteamswillsignificantlystrengthentheNewEISCompanies.

DavidBruce,Chairman

ItisintendedthatDavidBrucewillbeappointedastheChairmanoftheNewEISCompanies.David’sfifty-yearentrepreneurialcareerintheinternationalbrewingandlicensedtradestartedin1966whenhe joined Courage, Barclay & Simonds in Reading, Berkshire, as a brewery management trainee.Havinglearnttobrew,hebecametheBrewerandSalesManageratTheakston’sBreweryinYorkshirebefore co-founding not only Bruce’s Brewery and the Firkin Pubs but also the Small IndependentBrewersAssociation(SIBA).FollowingthesaleofBruce’sBreweryandTheFirkinPubsfor£6.6millionbytheageofforty,Davidbecameaco-founderandinvestorinstart-upbreweriesinParis,Brooklyn,DenverandSeattlebeforereturningtotheUKtodevelophispubinterests.In1993,Davidbecame the largestprivate shareholder inGrosvenor InnsPLCand,asDevelopmentandMarketingDirector,was responsible for rolling out The Slug& Lettuce chain of branded bars.David was a co-founder and Chief Executive in December 2000 of The Capital Pub Company PLC,whichraised£15.4millionunderEIS,wasfloatedonAIMin2007andsoldinJuly2011toGreeneKingPLCforanenterprisevalueof£93million,providingtheoriginalEIS investorsathreefoldreturnontheirnetoftaxinvestment.InNovember2006,DavidbecameafoundinginvestorintheEIS-fundedCountryFood&Dininggroupofcompanies,ofwhichhe isChairman.Todate,thisgroupofcompanieshasraisedover£8millionwhichhasbeeninvestedinsevenfarmshopsprovidingnotonlyprimarilylocally-sourcedproducebutalsocafésandavineyard.InDecember2011,Davidco-foundedandbecameChairmanofTheCityPubCompany(East)PLCandThe City Pub Company (West) PLC which raised between them £27.8 million under the EIS andcurrently own 24 free houses, including four microbreweries, between Bristol and Norwich viaLondonandBrighton.

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In 1994, David received the highest award from The Publican for "Outstanding Services to theIndustry". In 1996, Grosvenor Inns PLC was voted "The UK’s Best Independent Operator" by ThePublican.In2010,TheCapitalPubCompanyPLCwasvoted"BestManagedPubCompanyoftheYear"atThePublicanAwards.InadditiontohisappointmentsastheNon-ExecutiveChairmanoftheExistingEISCompanies,DavidiscurrentlytheSeniorIndependentDirectorofbothTheCityPubCompany(East)PLCandTheCityPubCompany (West) PLC, having stepped down from the role of Chairman of both companies inSeptember 2014. David has also been Chairman of TheWest Berkshire Brewery PLC sinceMarch2013.PeterMcDonaldIt is intendedthatPeterMcDonaldwillbeappointedas theChiefOperatingOfficerof theNewEISCompanies.Peterhasbeeninvolvedinthepubsectorfor15years.In2001,hejoinedTheCapitalPubCompanyPLCasasitemanagerandwentontodevelopandoperateseveralverysuccessfulsites.In2006, Peter became an operationsmanager and oversaw a number of successful redevelopments.After itssaletoGreeneKing in2011,PeterstayedwiththerebrandedMetropolitandivisionofTheCapitalPubCompanyPLC,wherehebecamesenioroperationsmanagerresponsibleforanumberofsitesandrefurbishments.PeterisalsotheChiefOperatingOfficeroftheExistingEISCompanies. JamesWatsonIt is intended that JamesWatson, Clive’s brother,will be appointed as the FinanceDirector of theNewEISCompanies.Jameshasbeeninvolvedinthepubsectorfor18years.In2003,hejoinedTheCapitalPubCompanyPLC,becomingheadof financeandwasheavily involved inbuilding theheadofficeteam,itsAIMflotationin2007anditssaletoGreeneKingin2011,afterwhichhestayedonforafurthersixmonthstoconcludethesubsequenthandoverandintegration.Jamesjoinedtheboardsof The City Pub Company (East) PLC and The City Pub Company (West) PLC in 2012 as part-timeFinance Director responsible for taxation. James is also the Finance Director of the Existing EISCompanies. JamesDudgeonJamesDudgeonwasappointedastheCompanySecretaryoftheExistingEISCompaniesinMay2015and it is intended that hewill be appointedas theCompany Secretaryof theNewEISCompanies.James is a Non-Executive Director of Galaxy, of the Existing EIS Companies, and was previouslycompanysecretaryofTheCapitalPubCompanyPLCandisalsocurrentlycompanysecretaryofTheCity Pub Company (West) PLC and The City Pub Company (East) PLC. He has an accountingbackgroundandiscurrentlyfinancedirectorofseveralprivatecompanies.

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PART8–CONFLICTSPOLICY

ConflictsPolicy

The FundManager and Investment Consultant have recognised potential conflicts arising from theoperationandmanagementoftheFund.Asdisclosed indetail inPart7ofthisMemorandum,CliveWatson,DavidBruceandJamesWatsonareDirectorsofTheCityPubCompaniesEastandWest.Itispossible,therefore,thattheinterestsofCliveWatson,DavidBruceandJamesWatsonandthedutiesthat they owe to The City Pub Companies East and West will potentially conflict. The followingpoliciesaremaintainedtoresolvetheseconflicts:

• The City Pub Companies East andWest have first refusal on all pubs prior to them beingrecommendedtotheFundManagerbytheInvestmentConsultant.

• TheNewEISCompanieswillnotdisposeofinterestsinpubstoTheCityPubCompaniesEastandWestortheExistingEISCompanies.

CliveWatsonhasadvisedtheFundManagerthattherearesufficientopportunitiestoensurethattheNewEIS Companieswill beoffered attractiveopportunities. Furthermore, TheCity PubCompaniesEastandWesthaveconfirmedthat,asatthedateofthisdocument,theequitytheyhavepreviouslyraisedthroughtheEnterpriseInvestmentSchemehasbeendeployedinfullandthatbothcompanieswouldnotqualifyforfurtherfundraisingundertheEnterpriseInvestmentScheme.

AnyconflicthasbeenfurtherdilutedbytherecentrulechangestotheEISwhichmeanthatcertainopportunitieswillonlybeavailabletoTheCityPubCompaniesEastandWestandnottotheNewEISCompanies. TheCity PubCompanies East andWestwill be able to continue tobuy existing tradesusingtheirexistingmoney,whereastheNewEISCompaniesinvestedinthroughthisFundwillnotbeableto.

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PART9–STRUCTUREANDOPERATIONOFTHEFUND

StructureoftheFundTheFundisadiscretionarymanagedportfolioofEISCompaniesand,therefore,investmentthroughthe Fundwill be at the discretion of the FundManager,with Investors’ shares held by a nomineecompany.TheFundisnotanunregulatedcollectiveinvestmentscheme.In the event that the Fund Manager, as an FCA-authorised entity, fails to meet its liabilities, theInvestorsmayhaverecoursetotheFinancialServicesCompensationScheme.ThisFund isgovernedby the InvestorAgreement,pursuant towhich theFundManager intends toinvestInvestors’SubscriptionAmountsintwoor,atitsdiscretion,threeoftheNewEISCompanies.ItwillbetheFundManager’sdiscretionastowhichNewEISCompaniestoinvestinanditisintendedthat the Investor’s Subscription Amounts will be broadly divided equally across the New EISCompanies.Shares subscribed by Investors through the Fundwill again be aggregated and held by a nomineecompany. Although investment decisions, such as the acquisition and disposal of shares, and theexerciseofrights(subjecttolimitations) inrespectofshareswillbeentirelyatthediscretionoftheFundManager,theInvestorswillatalltimesremainthebeneficialownersoftherelevantshares.An Investormay not require the FundManager to dispose of his or her shares until the Fund hasdisposed of its overall position in connection with the relevant New EIS Companies in which anInvestorholdsshares.AlthoughtheFundManagermaytakeintoconsiderationanInvestor’srequesttomakeadisposal, thiswillbesubjecttotheFundManager’sdiscretionandthe Investormay loseanyEIStaxreliefsandincurtaxliabilitiesasaresultofthecrystallisationofanydeferredgainonanydisposalpermittedbytheFundManager.

The FundManager reserves the right to return a surplus of cash if it concludes that it cannot beproperlyinvested.

InvestmentfundstatusTheFundhasnotbeenapprovedbyHMRCunder Section251of ITA2007and therefore InvestorsmayonlyclaimEISincometaxreliefinthetaxyearinwhicheachunderlyinginvestmentismade,ortheprevioustaxyearifcarriedback,ratherthaninthetaxyearinwhichanapprovedfundcloses.

Once a New EIS Company has been trading four months and clearance has been obtained fromHMRC, EIS3 forms will be distributed to Investors by the Fund Manager, each setting out thatInvestor’sentitlementtoanyEIStaxrelief.TheEIS3formswillshowtheInvestor’sentitlementtoanyEIStaxrelief.AlternativeInvestmentFundManagersDirectiveAIFMDwasimplementedintheUKbetweenJuly2013andJuly2014.AIFMDanditssubsidiaryregulationswerecreatedbytheEUParliament,theEUCommissionandtheEuropeanSecuritiesandMarketsAuthorityasareactiontovariousaspectsofthefinancialcrisis.AIFMDaimstoofferseveralprotectionstoinvestorsinAlternativeInvestmentFunds("AIFs"),asdefinedinAIFMD):

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Firstly,itintroducesdirectEuropeanregulationofthefundmanagementindustryforthefirsttime,greatlyincreasingthenumberanddetailofreportsthatAlternativeInvestmentFundManagers("AIFMs")mustmaketoregulators.Secondly, it requires that each AIF appoint a regulated depositary ("Depository") tomonitor its cash,safeguarditsassetsandoverseeitsfundmanager.Thirdly, it requires that AIFMs implement a range of new policies, procedures and practices, includingseparatingouttheirportfoliomanagementandriskmanagementfunctions.Finally, it introduces much higher standards in relation to pre-investment and ongoing disclosures toinvestors inAIFs, includingtheneedfortheAIF’sfinancialstatementstobeaudited, irrespectiveoftheAIF’ssize.As required under the FCA Rules, the Fund Manager will treat the Fund as its client for regulatorypurposes.TheFundisanAIFforthepurposesoftheAIFMD.TheFundManageristheAIFMandrecentlybecameafull-scopeUKAIFM.AsaFullScopeAIFM,theFundManagerisrequiredtoappointaDepositary(whichwillbeThompsonTarazDepositaryLimited,anaffiliateoftheFundManager),thecostforwhichwillbemetoutoftheAnnualManagementFee.Fundsinvestinginunquotedequities,suchastheFund,enjoya lighter-touchregime inrelationtoDepositariesand,assuch,theDepositary’ssafeguardingrolewillbelimitedtoestablishingtheownershipoftheAIF’sassetsandcashmonitoringandoversightoftheFundManager.InvestmentamountsTheminimum Subscription Amount for an individual Investor in the Fund is £25,000. There is nomaximuminvestmentthatmaybemadebyan individual Investor,however, themaximumamountonwhichanInvestorcanobtainEIStaxreliefsislimitedto£1,000,000foranytaxyear,includinganycarrybackclaim.Eachspousehashisorherownlimitandtheyarenotaggregated.Thislimitappliesfor all EIS investmentsmadewithin a given tax year. This limit does not apply to capital gains taxdeferralorIHTrelief.TheminimumaggregateSubscriptionAmountrequiredfromInvestorsforthisTranche2oftheFundto proceed is £3,000,000, unless increased at the discretion of the FundManager. Themaximumaggregate Subscription Amount for this Tranche 2 of the Fund is £15,000,000. Both theminimumSubscriptionAmountandmaximumaggregateSubscriptionAmountmaybealteredatthediscretionoftheFundManager,subjecttotheavailabilityofattractiveinvestmentopportunities.

Exitconsiderations

InordertoretaintheEIStaxreliefs,InvestorsmustholdSharesforatleasttheThreeYearPeriodanditisintendedthatInvestorswillsubscribeforSharesintheNewEISCompaniesuptolate2017inthisTranche2oftheFund.Althoughtheactualtimingmaydiffer,thetargetlifeoftheFundisthereforeup to late2020andno Investorshould invest if theymightneedaccess to theircapitalbefore late2020.

Intheeventofarequesttoexitearly,theFundManagerwillcooperatewithanInvestorwishingtoselltheirSharesbutInvestorsshouldbeawarethatthereisnomarketforsuchsharesandtheyarenotreadilyrealisable.EvenintheeventthatabuyercanbefoundbytheInvestor,theInvestormay

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havetoacceptasignificantdiscountontheirSharesinordertorealisetheir investmentearly.NotethatSharesmustbeheldforaminimumofthreeyearstoretaintheinitialincometaxrelief.

It istheFundManager’s intentiontoconsideropportunitiesforInvestorstoexittheFundfromlate2020.ItisanticipatedthiscouldbethroughasaleorflotationofeachoftheNewEISCompanies,oralternatively through share buybacks funded by selling pubs and/or raising new equity or debt.Investorsshouldnotethatnoneoftheseoptionsmaybeavailable.

OperationoftheFund

WithdrawalsPartialwithdrawals from the Fund are not permitted.However, by giving the FundManager threemonths’notice,an Investormayterminatetheir InvestorAgreementandmakeanearlywithdrawalfromtheFundbytransferringtheirshareholdingsintheNewEISCompaniesintotheirownname.IntheeventSharesaresoldtoathirdpartybeforetheendoftheThreeYearPeriod, Investorswillhave to repay the initial income tax relief (if it has been claimed). Any deferred gains will becrystallisedonadisposalofShares,resultinginafurthertaxliability.

TheFundManagerwillhavealienonallassetsbeingwithdrawnbyanInvestorandshallbeentitledtodisposeofsomeoralloftheassetsandapplytheproceedsindischarginganInvestor’sliabilitytothe Fund Manager in respect of damages or accrued but unpaid fees. The balance of any saleproceedsandcontrolofanyremaininginvestmentswillthenbepassedtotheInvestor.

Clientaccount

AdesignatedclientaccountoftheFundManagerwillholdall Investors’SubscriptionAmountspriortoinvestment and all proceeds from realisation of the investments before being distributed to theInvestors.NointerestwillbepayabletoInvestorsonthisaccount.

AlldocumentsoftitlewillbeheldbytheNomineeandwillberegisteredinthenameoftheNominee.

Allocations

TheFundManagerwillmaintainaccounts,whichwillbeopentoinspectionbyeachInvestor,showingtheamountcontributedbythatInvestorandtheamountsinvestedandyettobeinvestedonthatInvestor’sbehalf.

ThenumberofSharesineachNewEISCompanyallocatedtoaparticularInvestorshall,wherepossible,becalculatedbyreferencetotheproportionwhichtheInvestor’sSubscriptionAmountbearstothetotalSubscriptionAmountsofall Investors inTranche2of theFundat the time the relevant Investment ismade.However,thismaynotalwaysbepossiblewhereinvestmentsaremadefromfundsreceivedfromearlyInvestors.ItisintendedthatmoniesreceivedfromeachInvestorwillbeinvestedonapro-ratabasistohisorherSubscriptionthroughtheFund,asinvestmentopportunitiesarise.VariationstothisstandardprocedurewilloccurtoavoidissuingfractionsofShares,orifanInvestorissubjecttoprofessionalrulespreventinghimorherfrommakinganinvestmentinaparticularNewEISCompany.

Timingofinvestment

TheFundManagerintendstoinvestSubscriptionAmountsreceivedpursuanttothisTranche2oftheFundinthe2016/17taxyear.Thereis,however,noguaranteethatthiswillbeachieved.

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Shouldan Investordiebeforehisorher SubscriptionAmount is fully invested,alluninvested sumssubscribed by him or her will be repaid by the Fund Manager upon receipt of notice from theInvestor’spersonalrepresentatives.

Investmentinselectedcompanies

The Fund Manager has selected suitable New EIS Companies recommended by the InvestmentConsultant,withappropriatetermsandconditionsnegotiatedanditwillsubscribefornewordinarysharesintheseNewEISCompaniesonbehalfofInvestors.

SharecertificateswillbeissuedinthenameoftheNomineeforeachInvestor.Anydividendsreceivedby the FundManager or the Nominee from the New EIS Companieswill be forwarded directly toInvestors,subjecttoaretentiontocoveranyaccruedbutunpaidfeesorexpenses.TheFundManagerdoesnot,however,anticipateanydividendsbeingpaidbytheNewEISCompanies.

Investmentmonitoringagreement

Asapreconditionofinvestment,eachNewEISCompanyhasenteredintoaninvestmentmonitoringagreement regulating, to the extent possible, the conduct of its business. It is intended that thisagreement will remain in place until the investment is realised. The agreement gives the FundManagertherighttoappointtotheboardofeachNewEISCompanywhicheverpersonnelitdeemssuitable,and the right to receive regularmanagementaccountsandother information to theFundManagertoenableittomonitortheNewEISCompany.

Itisexpected,butitcannotbeguaranteed,thattheNewEISCompanieswillcomplywiththeEISrulesandareappraisedoftheconsequencesshouldthereliefbewithdrawn.TaxreliefmaybewithdrawnincertaincircumstancesandtheFundManagerdoesnotacceptanyliabilityforanylossordamagesufferedbyanyInvestororotherpersoninconsequenceofsuchreliefbeingwithdrawnorreduced.Inthisregard,Investorsarestronglyadvisedtoreadtheriskfactorssetoutinthisdocument.

Documentationandcommunication

EachInvestorwill receivefromtheFundManagerareportdetailingeachnewinvestmentmadeontheirbehalfasandwheninvestmentsaremade.

TheFundManagerwill also sendeach Investorhalf-yearly reports containingdetailsofall investmentsmadebytheFund,togetherwithacommentaryontheprogressofeachofthoseinvestments.

SubjecttoandfollowingthereceiptofHMRCclearanceforeachNewEISCompany,InvestorswillbeprovidedwithanEIS3form, intheformrequiredbyHMRC,whichmaybeusedtoclaimtaxreliefs,subjecttoeachInvestor’spersonalcircumstances.

TheCustodianandNominee

BycompletingtheApplicationFormappendedtothisMemorandumprospectiveInvestorswill,interalia,bedeemedtohaveirrevocablyagreedtotheFundManagerbeingappointedasCustodiantoexercisethepowers, and to carry out duties, on behalf of the Investors in accordance with the provisions of theInvestorAgreement.

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EISCompaniesInordertoqualifyunderEIS,atthetimeofissueofthesharesbyanEISCompany,thatcompanymustcomplywiththefollowingcriteriainordertoqualifyundertheEIS:

- notbelistedonarecognisedstockexchange;- noarrangementsmustbeinplacetobecomelisted;- itmustnotbeasubsidiaryof,orcontrolledby,anothercompany;- noarrangementsmustbeinplacefortheEISCompanytobecomeasubsidiaryorcontrolledby

anothercompany;- notuseEISmoneytoacquireshares,atradeorcertainintangibleassetsinuseinatrade;- itstrademustbelessthansevenyearsoldatthetimeofthefirstEIS(orotherRiskFinanceState

Aid)investment;and- itmusthaveapermanentestablishmentintheUKandeitherexisttocarryonanEISTradeor

elsebetheparentcompanyofatradinggroup.

EISCompaniesarelimitedastosize:themaximumnumberoffull-timeemployeesinanEISCompanyatthetime of fundraising is restricted to a maximum of 249 and there is a limit of £15,000,000 on an EISCompany’sgrossassetsimmediatelybeforetheinvestment,and£16,000,000immediatelyafterwards.

Thequalifyingbusinessactivity forwhichthemoney is raisedbythesharesubscriptionmustbeatradecarried on by an EIS Company or certain of its subsidiaries and the trade must be conducted on acommercialbasisandwithaviewtotherealisationofprofit.ThemaximumfundraisingperEISCompany is restrictedto£5,000,000peryearand£12,000,000 intotal,andthemonies raisedby theshare issuemustbeutilised for thequalifying tradewithin twoyearsoftheshareissue.

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PART10–CHARGESANDFEESTheFundManagerandInvestmentConsultantAll fees payable to the FundManager and the Investment Consultant are disclosedbelow and theamountofeachchargeisspecifiedwherepossible.Otherthanassetoutbelow,theFundManagerandtheInvestmentConsultantwillnotchargeanyadditionaladministrative,service,dealingorexitfees to theFundor to theNewEISCompanies inwhich itwill invest. Feespayableby theNewEISCompanies,andnotbyInvestorsdirectly,will,ineffect,reducethereturnsgeneratedbytheNewEISCompanies for Investors. Any unpaid fees due to the Fund Manager will be recouped from anyproceedsofthesaleofinvestments.InitialChargeTheInitialChargepayabletotheFundManagerwillbe2.75%(exclusiveofVAT,ifapplicable)oftheamountsinvestedineachNewEISCompanythroughtheFund.FromtheInitialChargetheFundManagerwillwithholdanamountequalto£75perInvestorandpaythe remainder to the Investment Consultant who has incurred the costs of establishing the Fund,including promoter’s fees, legal and tax advisory fees related to the preparation and issue of thememoranduminrelationtoTranche1oftheFund.TheInitialChargewillbepaidbytheNewEISCompaniesandshouldnotaffecttheleveloftaxreliefs. AnnualManagementFeeTheAnnualManagementFeepayabletotheFundManagerwillinitiallybe1.5%(exclusiveofVAT,ifapplicable)perannumoftheamountsinvestedineachNewEISCompanythroughtheFund.FromtheAnnualManagementFee,theFundManagerwillwithhold:

(a) 0.25%perannumoftotal InvestorSubscriptionAmounts(subjecttoaminimumof£20,000(plusVATifany);

(b) £149perEIS1formand£15perEIS3formcompletedinrelationtotheFund;and

(c) amountsnecessaryinordertomeetanybonafidethirdpartycostsorexpensesincurredbytheFundManagerinrelationtothepropermanagementoftheFund,

andpaytheremaindertotheInvestmentConsultant.ToaligntheinterestsoftheFundManagerandthe Investment Consultant with Investors, from 31 May 2021 the Annual Management Fee willbecome0.75%ratherthan1.5%perannum.TheAnnualManagementFeewillbepaidbytheNewEISCompaniesandshouldnotaffecttheleveloftaxreliefs.PerformanceIncentiveFeeThePerformanceIncentiveFeepayabletotheInvestmentConsultantwillbeequalto0.5%(exclusiveofVAT, if applicable) per annum (for amaximumof five years) of the amounts subscribed in eachNewEISCompanybyInvestorsthroughtheFund.ToaligntheinterestoftheInvestmentConsultantwithInvestors,thePerformanceIncentiveFeewillbeappliedtoInvestorsthatreceive,netofthePerformanceIncentiveFee,returnsequaltoorgreaterthan£1.30per£1.00subscribedthroughthisTranche2oftheFund.ThePerformance IncentiveFeewillbedeductedbytheFundManagerfromsuch Investors’returnsandshouldnotaffecttheleveloftaxreliefs.

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IntermediariesCommissionisnotpermittedtobepaidtoIntermediarieswhoprovideapersonalrecommendationtoUKretailclients inrespectoftheFund. Insteadofcommissionbeingpaid,afeewillusuallybeagreed between the Intermediary and the Investor for advice and related services (the"IntermediaryCharge").TheIntermediaryChargeistobeagreeddirectlybetweentheInvestorandtheIntermediaryandcaneitherbepaiddirectlybytheInvestortotheIntermediaryorfacilitatedbytheFundManageroutoftheInvestor’sApplicationMonies.IfthepaymentoftheIntermediaryChargeistobefacilitatedbytheFundManager:

• theIntermediaryChargemayconsistofan initialamountand/oron-goingamountspayableonthefirstthreeanniversariesofthedateoftherelevantInvestment;

• the Investor is required tospecify the totalamount (inclusiveofVAT, ifapplicable)andthe

splitbetweentheinitialamountandanyon-goingamountsoftheIntermediaryChargeontheApplicationFormappendedtothisMemorandum;and

• theIntermediaryChargewillbedeductedfromtheApplicationMoniesandtheamountnetof the Intermediary Charge will be invested in the New EIS Companies and be subject toincometaxreliefof30%.Therefore,bywayofanexample,if£100,000ofApplicationMonieswere receivedwitha£2,000 IntermediaryCharge tobe facilitatedby theFundManager, aSubscription Amount £98,000 would be invested into the New EIS Companies and anyavailableincometaxreliefwouldbe£29,400(30%of£98,000).

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PART11–TAXATION

Note:thetaxreliefsavailabledependontheindividualcircumstancesofeachInvestorandmaybesubjecttochangeinthefuture.ThefollowinginformationisbasedoncurrentUKlawandpracticeand is subject to changes therein. The information and examples in this section are generic incharacter and do not represent advice to any Investor on his or her personal tax circumstances.Investorsshouldseektheirowntaxadvicebeforeinvesting.

TheEnterpriseInvestmentScheme("EIS")isagovernmentschemethatprovidesarangeoftaxreliefsfor investorswhosubscribe forordinary shares inQualifyingCompanies.Thereare fivecurrent taxreliefspotentiallyavailabletoInvestorsinQualifyingCompanies,whicharesummarisedbelow:

1. EISIncomeTaxRelief

Individualscanobtain incometaxreliefontheamountsubscribedforshares inQualifyingCompaniesprovidedtheyarenotconnectedwiththeissuingcompany,andmustnothaveanyexistingshares intheQualifyingCompanyforwhichtheydidnotclaimEIS incometaxrelief. This is subject to the limit of £1,000,000 across all EIS investments in a tax year.Husbandsandwives,andcivilpartners, caneachsubscribeup to£1,000,000,butwillnotqualify for EIS income tax relief if together they holdmore than 30%of the issued sharecapital of either Company. The rate of relief is 30%. The relief is given against theindividual’s income tax liability for the tax year inwhich the shares are issuedunless theindividualmakesacarrybackclaimtotheprevioustaxyear,inwhichcasetheclaimmustbewithin the applicable annual investment limit for that previous tax year (which was£1,000,000forthe2014/15taxyear),andtherelief isgivenattherateapplicableforthatearlieryear.Thereliefcannotexceedanamountwhich reduces the Investor’s incometaxliabilitytonil.ToretaintheEISincometaxrelief,aQualifyingInvestmentmustbeheldforthe ThreeYear Period (i.e. no less than three years from thedateof issue, or until threeyearsfromcommencementoftrade,iflater).

Example:

Initialinvestment £100,000

Lessincometaxrelief@30% (£30,000)

Netcostofinvestment £70,000

2. CGTfreedomforSharesforwhichIncomeTaxReliefobtained

Any capital gains realised on a disposal of shares in the Qualifying Companies after theThreeYearPeriod,andonwhichEIS incometaxreliefhasbeengivenandnotwithdrawn,will be capital gains tax-free. The opportunity for a CGT free gain can be an extremelyvaluablebenefitfromsubscribingforsharesinasuccessfulQualifyingCompany.

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Initialinvestment £100,000

Lessincometaxrelief@30% (£30,000)

Netcashoutlayforinvestment £70,000

Realisedvalueofinvestmentafter3years £160,000

Totalgain £90,000

Taxfreeprofitbeinggainof£60,000andincometaxreliefof£30,000

3. InheritanceTaxRelief–IHTRelief

Shares in Qualifying Companies will generally qualify for business property relief forInheritance Tax (IHT) purposes at rates of up to 100% after two years of holding suchinvestment,sothatany liability for IHT isreducedoreliminated inrespectofsuchshares.ForasimpleexampleoftheimpactofIHTrelief:

Initialinvestment £100,000

Lessincometaxrelief@30% (£30,000)

Netcashoutlayforinvestment £70,000

Hypotheticalvalueofinvestment £160,000

Gainoninvestment £90,000

IHTreliefat40% £64,000

4. CGTDeferralReliefundertheEIS

• TotheextenttowhichUKresidentInvestors(includingcertaintrustees)subscribeforqualifying shares, they can claim to defer paying tax on all or part of a chargeablegain. The gain may have arisen on the disposal of another asset or a previouslydeferredgainmayhavebeenbroughtintocharge.

• Deferralreliefisunlimited,inotherwords,thisreliefisnotlimitedtoinvestmentsof£1,000,000perannumandcanalsobeclaimedbyInvestors(individualsortrustees)whoseinterestinthecompanyexceeds30%.

• Thesharesmustbe issuedwithinoneyearbeforeandthreeyearsafterthedateofthedisposalwhichgivesrisetothegainorthedateuponwhichapreviouslydeferredgain crystallises. The gain is deferred until there is a chargeable event, such as adisposalofthesharesoranearlierbreachoftheEISrules.

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Example-£100,000capitalgaininvested,assumingincometaxreliefisalsoclaimed

Initialinvestment £100,0005April2016

Lessincometaxrelief@30% (£30,000)

Illustrative capital gains deferral (up to 28%) of2015/16gain

(£28,000)

Netcashoutlayforinvestment £42,000

SharessoldMay2020

Hypotheticalvalueofinvestment £160,000

Chargeablegain £0 – tax free if held for more than 3years from issueor commencementoftradeiflater

Deferred gain from 2015/2016 becomeschargeable2020/2021

£100,000

Tax payable at 28% (assuming rate currentlyeffectiveapplies)

(£28,000)

5. LossRelief

• If EIS shares on which EIS income tax relief has been claimed and retained aredisposedofatanytimeataloss(aftertakingintoaccountincometaxrelief),suchlossmaybesetagainsttheInvestor’scapitalgains,orhisincomeintheyearofdisposalorthepreviousyear.

• Forlossesoffsetagainstincome,theneteffectistolimittheinvestmentexposureto42pinthe£1fora40%taxpayerorto38.5pinthe£1fora45%taxpayer,ifthesharesweretobecometotallyworthless.

• TheFinanceAct2013hasintroducedacaponamountsreliefwhichmaybeclaimedfor income tax purposes. The cap restricts reliefs which includes some losses andrestricts income tax loss relief in any tax year to either £50k or 25% of income,whicheveristhegreater.EISincometaxreliefisnotsubjecttothecap,norarelosseson the disposal of shares on which EIS income tax relief has been claimed andretained. However, losses arisingon thedisposal of shareswhereEISCGTdeferralreliefonlyhasbeenclaimedcomewithinthecaponlosseseligibleforrelief.Thecapappliestolossesthatariseafter5April2013.

• Alternatively, the losses can be offset against capital gains at the prevailing rate ofCGT,whichiscurrently28%forhigherratetaxpayers.

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PART12–DEFINITIONS

"AIFMD" theAlternativeInvestmentFundManagersDirective"AIM" theLondonStockExchangeAlternativeInvestmentMarket"Application" meansanapplicationthroughtheFundwithacompletedApplicationForm"ApplicationForm" meanstheapplicationformappendedtothisMemorandum"ApplicationMonies" meanstheSubscriptionAmountand(ifapplicable)theIntermediaryCharge"ApprovedInvestmentFund" investmentfundapprovedbyHMRCunderSection251ofITA2007"CGT" capitalgainstax"ClosingDate" finaldateuponwhichapplicationswillbeacceptedbytheFundManagerbeing

the earlier of (i) the date on which aggregate Subscription Amounts reach£15,000,000;or(ii)5.00pmon30March2017(or16March2017,inrespectofInvestorsthatdonotindicateontheirApplicationFormthattheywishtowaivetheir14daycancellationperiod);orasotherwiseextendedatthediscretionoftheFundManager

"Custodian" theFundManagerorsuchpersonastheFundManagermayappointtoprovide,andwithwhomithasagreedtermsfor,safecustodyorcustodialornomineeservicesinrespectoftheFund

“EBITDA” means the consolidated earnings before interest and taxation depreciationamortisation(ofgoodwillandotherintangibleassets)andexceptionalitemsofeachEISCompany)

"EIS" EnterpriseInvestmentScheme,asdescribedinPart5ITA2007"EISCompanies" meansacompanymeetingtheconditionsinChapter4ofPart5ITA2007"EISInvestments" investmentsmadeinEISCompanies"EISTrade" businesstradewhichqualifiesforEIStaxreliefs"ExistingEISCompany" meansanyofGalaxy,Pioneerand/orSovereign(asapplicable)and"ExistingEIS

Companies"meansallofthem"EURiskFinanceGuidelines" means the European Commission’s guidelines on State aid to promote risk

financeinvestments2014/C19/04"FCA" FinancialConductAuthority"FCARules" theRulesoftheFCA"FSMA" FinancialServicesandMarketsAct2000"Fund" TheCityPubEISFund"FundManager" ThompsonTarazManagersLimited,whichisauthorisedandregulatedbythe

FinancialConductAuthorityintheUnitedKingdom"Galaxy" means The Galaxy (City) Pub Company Limited, a private limited company

incorporatedinEnglandandWalesundercompanynumber09359693"HMRC" HMRevenue&Customs"IHT" inheritancetax"IHTA1984" InheritanceTaxAct1984"Intermediary" anFCAauthorisedintermediarywhosedetailsaresetoutintheApplication

Form"IntermediaryCharge" means the amount of the charge to be deducted from the Application

MoniesandthepaymentofwhichistobefacilitatedbytheFundManageron behalf of the Investor to his or her Intermediary, as indicated by theInvestorintheApplicationForm

"Investor" an individual (and in certain circumstances a trustee or corporate) whocompletesanApplicationFormwhichisacceptedbytheFundManagerandso enters into the Investor Agreement and invests in the EIS CompaniesthroughtheFund

"Investment" an allotment of Shares subscribed by the Fund Manager on behalf of anInvestorpaidupwiththeInvestor'sSubscriptionAmount

"InvestorAgreement" agreementtobeenteredintobetweeneachInvestorandtheFundManager,inthetermssetoutinPart13ofthisMemorandum

“InvestmentConsultant” CliveWatsonorBar&KitchenLimited,asthecontextpermits(theservicesofCliveWatsonareprovided to theFundManagerpursuant to the termsofaconsultancyagreementbetweenCliveWatson,Bar&KitchenLimitedandtheFundManager)

"ITA2007" IncomeTaxAct2007,asamended"Liberty" means The Liberty (City) Pub Company Limited, a private limited company

incorporatedinEnglandandWalesundercompanynumber09359989"Memorandum" thisdocumentrelatingtoTranche2oftheFund"MLRegulations" MoneyLaunderingRegulations2007

35

"NewEISCompany" means any of Liberty, Phoenix and/or Summit (as applicable) and "New EISCompanies"meansallofthem

"Nominee" TTNomineesLimitedorsuchnomineeastheFundManagermayappointtoactastheInvestor’snomineefromtimetotime

"PerformanceIncentiveFee" the feepayable to the InvestmentConsultant as described in Part 10of thisMemorandum

"Phoenix" means Phoenix (City) Pub Company Limited, a private limited companyincorporatedinEnglandandWalesundercompanynumber10004916

"QualifyingCompanies" companiesthatqualifyfortaxreliefunderEIS "RAMCapital" RAMCapital Partners LLP, a limited liability partnership registered in England

andWalesundernumberOC329154of4StapleInn,LondonWC1V7QH(whichisauthorisedandregulatedbytheFinancialConductAuthority),whichisactingaspromotertotheOffer

"RiskFinanceStateAid" meansStateaidreceivedbyacompanyasdefinedinSection173AofITA2007"Sovereign" meansTheSovereign(City)PubCompanyLimited,aprivate limitedcompany

incorporatedinEnglandandWalesundercompanynumber09359669"Shares" ordinary shares in a New EIS Company subscribed by the FundManager on

behalfofInvestors"Subscription" meansInvestmentpursuanttotheApplicationForm"SubscriptionAmount" means the amount of the Application Monies to be used for Investment

throughthisTranche2oftheFund,assetoutintheApplicationForm"Summit" means The Summit (City) Pub Company Limited, a private limited company

incorporatedinEnglandandWalesundercompanynumber09360077"TheCityPubCompaniesEast meansbothTheCityPubCompany(East)PLCandTheCityPubCompany(West)AndWest" PLC"ThreeYearPeriod" periodbeginningonthedatetheSharesintheNewEISCompanyareissuedand

endingthreeyearsafterthatdate,or threeyearsafterthecommencementoftheEISCompany’strade,whicheverislater

"Tranche1" Subscription through the Fund pursuant to the memorandum dated 25November2014

"Tranche2" SubscriptionthroughtheFundpursuanttothisMemorandum"VCT" VentureCapitalTrust,asdefinedbySection259ITA2007Wordsused in thisMemorandumdenotinganygendershouldbe readas includingallgendersandincludesindividuals,trustsandlimitedcompanies.

36

PART13–INVESTORAGREEMENT

This InvestorAgreement (the "Agreement") setsout the termsand conditions for The City Pub EIS Fund (the "Fund") underwhich Thompson Taraz Managers Limited, as Fund Manager,provides its discretionary investment management services toyou,asaninvestorintheFund(the"Investor").

1. DEFINITIONSANDINTERPRETATION

1.1 The followingwordsandexpressionswhereused inthis Agreement have the meanings given to thembelow. Words and expressions used in theInformation Memorandum and in the FCA Ruleswhicharenototherwisedefinedforthepurposesofthis Agreement, shall, unless the context requiresotherwise, have the same meaning in thisAgreement.

ApplicationForm meanstheapplicationform(or

substantiallythesameform)asattached to the InformationMemorandum;

Administrator Thompson Taraz Managers

Limitedor suchotherparty asassumes the role andresponsibilities of theAdministrator;

Associate means any person or entity

that controls is controlled byor is under the commoncontrol with the FundManager. "Control" refers tothe ability to exercisesignificant influence over theoperating or financial policiesofanypersonorentity;

BusinessDay means a day, other than

Saturday, Sunday or publicholiday, on which clearingbanksareopenforbusiness intheCityofLondon;

ClosingDate means the earlier of (i) the

date on which Subscriptionsinto the Fundpursuant to thisTranche 2 reach £15,000,000;or (ii) 5.00 pm on 30 March2017 (or 16 March 2017, inrespect of Investors that donot indicate on theirApplication Form that theywish to waive their 14 daycancellation period); or asotherwise extended at thediscretion of the FundManager;

CommencementDate means the date that the Fund

Manager determines andnotifiestotheInvestorthathis

Application Form has beenacceptedbytheFundManager(orsuchlaterdateastheFundManager determines andnotifiestotheInvestor);

Confidential meansallinformationandInformation materials of any party

(whether oral or recorded inany medium), which aremarked confidential or whichare by their nature clearlyconfidential,obtainedunderorin connection with thisAgreementorwhichotherwisecome to the attention of theotherparty;

Custodian Thompson Taraz Managers

Limited,(orsuchotherpartyasassumes the role andresponsibilities of theCustodian);

Disposal adisposalofallorsubstantially

all of the Fund’s holding in aPortfolio Company in onetransaction or a series oftransactions;

ExecutionPolicy means the order execution

policy that the Fund Manageris required to establish underthe Conduct of BusinessSourcebookoftheFCARulesacopy of which may berequestedbytheInvestor;

Exit means a Sale, Disposal or

ListingofaPortfolioCompany;ForceMajeureEvent has themeaning given to it in

clause15.2;FCA the Financial Conduct

Authority and any statutorysuccessor of it (or any otherbody to which its statutoryfunctions have beendelegated);

FCARules means the rules and guidance

issued and modified by theFCAfromtimetotime;

Fees the fees payable as set out in

Part 10 of the InformationMemorandum;

Fund meanstheCityPubEISFund,a

discretionary investmentmanagement servicemanagedby the Fund Manager, asdescribed in the InformationMemorandum;

Information meanstheInformation

37

Memorandum Memorandum dated 15January2016 andissuedinrespectoftheFund;

Intermediary means the amount of the

charge to be deducted fromthe Application Monies andthepaymentofwhich is tobefacilitated by the FundManager on behalf of theInvestor to his or herIntermediary, as indicated bythe Investor in theApplicationForm;

IntermediaryCharge means the amount of the

chargepaymentofwhich is tobe facilitated by the FundManager on behalf of theInvestor to his or herIntermediary, as indicated bythe Investor in theApplicationForm;

InvestmentPeriod means the period from the

date of the first Investmentandending5April2017;

Investments means ordinary shares

acquiredbytheFundManageronbehalfoftheInvestorusingtheSubscriptionMoniesinanyPortfolio Company, and"Investment" shall beconstruedaccordingly;

InvestmentConsultant CliveWatsonorBar&Kitchen

Limitedifapplicable;Listing meanstheadmissionofanyor

all of the issued share capitalofaPortfolioCompanytradingon a recognised investmentexchange (as such term isdefined in Section 285 of TheFinancialServicesandMarketsAct 2000) or such other sharetrading facility, exchange ormarket on which the sharesare publicly traded as may beapproved by the FundManager;

Loss means any damages, loss,

costs, claims or expenses(excludingany lossofbusinessor profits or any indirect orconsequential loss or damage,in each case whether arisingfrom negligence, breach ofcontractorotherwise);

Nominee means TT Nominees Limited,

(or such other party asassumes the role andresponsibilities of theNominee);

PortfolioCompany meansany limitedcompany inwhich Investments are made,and the term "PortfolioCompanies"shallbeconstruedaccordingly;

SimpleMajority meansasimplemajorityofthe

Investors calculated on thebasis that each Investor shallhave one vote for every onethousand pounds ofSubscription Monies in theFund;

Sale means the transfer (whether

throughasingletransactionora series of transactions) ofshares in a Portfolio Companyasaresultofwhichanyperson(or persons connected witheachotherorpersonsactinginconcert with each other)would hold or acquirebeneficialownershipoforoverthat number of shares in suchPortfolio Company which inaggregate confers 50 per centor more of the voting rightsnormallyexercisableatgeneralmeetings of such PortfolioCompany or would otherwiseexercise control over thatPortfolioCompany;

Services means the management

services required to operatetheFundandotherservicestobe provided by the FundManager and its associatesunderthisAgreement;

Subscription meansInvestmentpursuantto

theApplicationForm;SubscriptionMonies means the total of all

subscription monies for theFundprovidedbytheInvestorswhose Application Forms areacceptedbytheFundManagernot including the amount ofanyIntermediaryCharge;and

USPerson means any person who the

Fund Manager reasonablybelieves tobeacitizenand/orresident and/or domiciled intheUnitedStatesofAmerica.

1.2 In thisAgreement,any reference toa "person" shallbe

construed as a reference to any natural person,partnership, joint venture, corporation, limited liabilitycompany or partnership, trust, firm, association orgovernmentalagencyordepartmentoranytwoormoreoftheforegoing.

1.3 The clause headings in this Agreement are for ease ofreferenceonlyandshallnotaffectitsinterpretation.

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1.4 Any references in this Agreement to the parties,numbered clauses or the Schedules are to the parties,clausesofortheSchedulestothisAgreement.

1.5 Any reference in this Agreement to any statute orstatutory provision shall, unless the context otherwiserequires,beconstruedasareferencetosuchstatuteorstatutory provision (including all instruments, orders orregulations made thereunder or deriving validitytherefrom)as in forceat theCommencementDateandassubsequentlyre-enactedorconsolidated.

1.6 Words denoting any gender include all genders. Thesingularshallincludetheplural(andviceversa).

1.7 Section993oftheIncomeTaxAct2007andCorporationTaxes Act 1988 shall apply to determine whether oneperson is "connectedwith"another for thepurposesofthisAgreement.

1.8 TheCity Codeon Takeovers andMergers in force fromtime to time shall apply to determinewhether personsare "acting in concert" for the purposes of thisAgreement.

2. SUBSCRIPTIONBYTHEINVESTOR

2.1 By signing the declaration contained in the ApplicationForm,theInvestoragreestobeboundbythetermsandconditionsofthisAgreement.

2.2 The Investor hereby appoints the Fund Manager tomanage the monies invested in the Fund and theinvestmentsmadethroughtheFundfortheInvestoronthetermssetoutinthisAgreement.TheFundManageragreestoacceptitsappointmentandobligationsonthetermssetoutinthisAgreement.

2.3 TheFundManager is authorisedand regulatedby theFinancialConductAuthorityinrespectofitsinvestmentbusiness (with a Firm Reference Number of 226978).The address of the Financial Conduct Authority is 25TheNorthColonnade,CanaryWharf,LondonE145HS.

2.4 The Investor is classified by the Fund Manager as aretail client for the purposes of the FCA Rules. TheInvestor has the right to request a different clientcategorisation.However, if the Investordoessoand ifthe Fund Manager agrees to such categorisation theInvestorwill losecertainprotectionsafforded to retailclientsbycertainFCArules.

2.5 Theminimum amount thatmay be subscribed to theFund is £25,000 but is subject to the FundManager’sdiscretion. Subscriptions above the minimum shallnormallybe in£1,000 increments. Until invested, theSubscription Monies will be held in a client bankaccountinthenameoftheFundManager,heldwithaUK bank authorised and regulated by the PrudentialRegulation Authority, and in accordance with FCAClient Money Rules. The Fund Manager will not beliabletoanInvestorintheeventofanylossinvalueoffunds invested or any insolvency of any bank withwhich funds are deposited in accordance with thisAgreement, nor in the event of any restriction on theFund Manager’s ability to withdraw funds from such

bankforreasonsreasonablybeyondthecontroloftheFundManager.

2.6 The FundManager reserves the right not to proceedwith the Fund, in which case the FundManager shalltreat the Investors’ aggregate subscription as beingsubject to a withdrawal request validly received inaccordancewithClause12,andthisAgreementwillbeterminated.Any interestpayableoncreditbalances inthesaidaccountwillberetainedbytheFundManager.

2.7 The Investor shall subscribe in full to the Fund on orprior totheCommencementDate for theSubscriptionMonies set out in their respective Application FormswhereupontherelevantInvestorshall:

(a) deliver to the Fund Manager the relevantcompletedApplication;

(b) make payment of the subscriptionmonies totheFundManagerbybanktransferorcheque;and

(c) where applicable, provide to the FundManager(a)avalidcertificateforthepurposesoftheFinancialServicesandMarketsAct2000(Financial Promotion) Order 2005 (asamended), and (b)with such informationanddocumentation toallowtheFundManager tosatisfyitsanti-moneylaunderingrequirementsinrespecttotheInvestor.

2.8 TheFundManager isentitledat itsdiscretiontoreject(inpartorinfull)anyApplicationForm.

2.9 On the Fund Manager notifying an Investor that hisApplication Form is accepted then, subject to clauses2.18(a) and 2.20, the payment of the SubscriptionMonies hereunder shall be irrevocable if outside thefourteen (14)day cancellationperiodand immediatelyifsuchperiodhasbeenwaived,andsuchInvestorshallnot under any circumstances be able to demandrepayment of them. In the event that an ApplicationForm is not accepted then any Subscription Moniespaid by such Investor to the Fund Manager shall bereturned to the relevant Investor (after deduction ofanycosts inrespectofreturningsuchmonies incurredin respectof such Investor) andon thedateof returnsuchpersonshallceasetobeaPartytothisAgreementforthepurposesofreceivingbenefitsand/orenforcingrights.

2.10 TheInvestor’sparticipationintheFundshallbeonthebasisof thedeclarationmadeby the Investor inhisorherApplicationFormwhichincludesstatementsbytheInvestorinrelationtothefollowingmatters,namely:

(a) whetherornottheInvestorwishestoseekEISRelieffortheInvestments;

(b) that he or she agrees to notify the FundManagerifanInvestmentismadebytheFundin any company with which the Investor isconnectedwithin themeaning of section 163andsections166to170oftheIncomeTaxAct2007;

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(c) that he or she agrees to notify the FundManager if,within three years of the date ofissue of shares to his Portfolio by an EISQualifying Company or within three years ofcommencement of that EIS QualifyingCompany’s Qualifying trade if later, theInvestor becomes connected with thecompany or receives value from suchcompany;and

(d) the Investor’s tax district, tax referencenumberandNationalInsuranceNumber.

TheInvestorconfirmsthatthe informationstated intheApplicationForminthese(andallother)respectsistrueandaccurateasatthedateofthisAgreement.

2.11 The Investor agrees immediately to inform the FundManager inwriting of any change of tax status, othermaterialchangeincircumstanceandanychangeintheinformationprovidedintheApplicationForm.

2.12 In addition, the Investor agrees to provide the FundManager with any information which it reasonablyrequests for the purposes of managing the FundpursuanttothetermsofthisAgreement.

2.13 ThebeneficialinterestintheInvestmentsshallbeheldby the Investors on a pro rata basis according to theamount of SubscriptionMonies paid by the InvestorsrespectivelyatthedateoftherelevantInvestment(andsuch number of shares which are beneficially ownedshallbeadjustedeitherupordownatthediscretionoftheFundManager toavoid Investorsholding fractionsofshares).

2.14 TheNominee shall have legal title to the Investmentsandshallholdanytitledocuments(orothertitletotheInvestments).TheInvestorhereby:

(a) consentstohisInvestmentsbeingregisteredinthe name of the Nominee (or any othernominee company selected by the FundManager and as notified to the Investor) forthe purpose of simplifying the shareadministrationoftheFund;

(b) subject to clause 3.10, and only for purposesofadministrativeconvenience,empowersandauthorises the FundManager to exercise anyconversion,subscription,votingorotherrightsrelatingtoInvestments,subjectalways:

(i) to the Fund Manager’sconflicts of interest policy (asdescribedinclause10);and

(ii) the Investor’s right toexercisehis voting rights himself bygiving written notice to theFund Manager stating such apreference;

(c) subject to clause 3.10 acknowledges andagreesthattheFundManagerisnotobligedto

seekany instructionordirectiondirectly fromthem to exercise any rights in respect of anyInvestment.

2.15 Subject to the consent of the Fund Manager, theInvestor may also be able to invest in any PortfolioCompany in his own name but such investment (the"Private Investment") shall not constitute part of theFundandsuchInvestorshall:

(a) be registered inhisownnameas theholdersof the Private Investment in the PortfolioCompany;

(b) receive share certificates direct from thePortfolio Company in respect of the PrivateInvestment;

(c) notbeable to include thePrivate Investmentin calculating such Investor’s share of thedistributionofproceedspursuanttoClause7;and

(d) not relyontheresultsof theFundManager’sdue diligence investigations in decidingwhether tomake the Private Investment andno claim shall be made by such InvestoragainsttheFundManager.

2.16 In the event that the Investor (or his spouse or civilpartner)isorbecomesconnectedwithoneormoreofthe Portfolio Companies then the Investor mustimmediatelynotifytheFundManagerofthenatureofsuchconnection.

2.17 TheInvestoracknowledgesthatheorshehasreadandunderstandstheriskwarningswhicharesetoutintheInformationMemorandum.

2.18 Subject to the terms of this Agreement, the followingprovisionsshallapplyinrespectoftheappointmentorreplacementoftheFundManager:

(a) the Investors shall be entitled to remove andreplace the FundManager with the approvalof75%oftheInvestors;and

(b) prior to the 3rd anniversary of the date onwhich the final Investment was made,Investors are not permitted to makewithdrawals from the Fund and allSubscriptionMonieswillbefullycommittedtothe Fund upon subscription (subject to anystatutorycancellationrights).

2.19 An Investor who submits an Application Form has,assuming he has not waived such right on theApplication Form, fourteen (14) days from the dateupon which the Application Form is received by theFund Manager in which to cancel his Subscription tothe Fund. The Investor may exercise this right ofcancellation inwritingandwithout feeorpenalty, thewritten instructionmust arrive at the FundManager’sofficeswithinthefourteen(14)daycancellationperiod.

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In the event that an Investor exercises their statutorycancellationrightsthensuchInvestorshall:

(a) cease tobeaParty to thisAgreement for thepurposes of receiving benefits and enforcingrights from the date that such Investorexercisessuchcancellationrights(butwithoutprejudice to any benefits or rights accruedpriortosuchdate);and

(b) be entitled to repayment of his, her or itsSubscription Monies, which repayment shallbeimplementedbytheFundManagerthroughthe Administrator and Custodian, and whichwillbeeffectedno laterthanthirtydaysafterhiswrittennoticeofcancellationisreceivedattheofficeoftheFundManager.

2.20 TheFundManagerreservestherighttoreturnanypartof the SubscriptionMonies to the relevant Investor(s)on a pro rata basis where (a) the whole of theSubscription Monies cannot be invested during theInvestmentPeriod,or(b)professionalrulesapplyingtoanInvestor(s)preventsuchInvestor(s)frommakinganInvestment.

3. THEFUNDS

3.1 With effect from the Commencement Date, the FundManager will manage the Fund and provide theServices on the terms and conditions of thisAgreement. In the event of a conflict between thisAgreement, the Information Memorandum and theApplication Form, the terms of this Agreement shallprevail.

3.2 TheFundManagerwillseekconsultancyservicesfromtheInvestmentConsultantinrelationtoperformingthetasks of screening of investments, undertaking duediligenceandpostinvestmentmonitoring,asmorefullydescribedintheInformationMemorandum.

3.3 No contractual rights exist between the Investor andthe Investment Consultant (under this Agreement orotherwise).

3.4 Subject to this Agreement, the Fund Manager willexercise all discretionary powers in relation to theselection of, or the exercising of rights relating to,Investments (including the execution of contracts onbehalfof Investors). TheFundManagerwillnot takeanydecisionsonaproposedInvestmentunless:

(a) due diligence has been carried out to thesatisfactionoftheFundManager;and

(b) aduediligence report has been submitted tothe Fund Manager with recommendation forInvestment.

3.5 Notwithstandingclause3.4,theFundManagershallnotproceedwithany Investmentwhich fails tosatisfy theFundManager’scriteriaforInvestment.

3.6 Where, upon receipt of the relevant evidence ofrecommendation pursuant to Clause 3.4, the FundManager has made a decision to proceed with anInvestment, the FundManager shall (in the followingorder):

(a) enter into and execute the investmentdocuments togetherwithancillarydocumentstogiveeffecttotheInvestment;and

(b) release investment monies to a solicitornominated by the Portfolio Company ordirectly to the bank account of the PortfolioCompanyoncompletionoftheInvestment;

3.7 In respectofaDisposal, theFundManagershallenterinto and execute such documents on behalf of theInvestors to give effect to the disposal of theInvestment.

3.8 TheFundManagershall:

(a) subjecttoclause3.10ineffectingInvestmentsact in accordance with the obligationsregardingbestexecutionunder theFCARulesandtheExecutionPolicy.

(b) actingoodfaithandperformtheServiceswithreasonable care and skill in accordance withgenerallyrecognisedcommercialpracticesandstandards in the industry for similar services,including theprocurementofany informationon matters envisaged by the InvestmentConsultancyAgreement;

(c) observe and comply with all applicable lawsand regulations, including but not limited totheFCARules(asmodifiedfromtimetotime);

(d) where an Investment has been approved bythe Fund Manager, invest in each PortfolioCompany in exchange for a shareholding inthatPortfolioCompany;

(e) usereasonableendeavourstoinvest

(i) in a minimum of three PortfolioCompanies;and

(ii) at least90%of the total SubscriptionMonies;

duringtheInvestmentPeriod.

(f) where reasonable, employ agents, includingAssociates, to perform any administrative,custodial or ancillary services to assist theFund Manager in performing its services, inwhich case it will act in good faith and withdue diligence in the selection, use, andmonitoring of agents. Any such use of agentsshall not affect the liability of the FundManagerunderthetermsofthisAgreement.

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(g) Appointanauditor,depositaryorotherserviceproviders to the Fund as required to complywiththeFCARules.SuchappointmenttobeattheexpenseoftheInvestors.

3.9 The Fund Manager and Custodian shall devote such

time and attention and have all necessary competentpersonnelandequipmentasmayberequiredtoenablethem to provide their management and fundadministration and custodian services properly,efficientlyandincompliancewithFCARules.

3.10 TotheextentallowableundertheFCARulestheFundManager will be responsible for the safe-keeping ofFund Investments and cash comprised in the Fund,includingthesettlementoftransactions,thecollectionof income and the effecting of other administrativeactionsinrelationtotheInvestments.

3.11 The Fund Manager may not lend any Investments ortitle documentation to a thirdpartyorborrowagainstthesecurityofsuchInvestmentsordocuments.

3.12 AnInvestmentmayberealisedinordertodischargeanobligation of the Investor under this Agreement, forexample in relation to payment of fees, costs andexpenses.

4. REPORTSANDINFORMATION

4.1 The Investorwillbesenta reporteverysixmonths, incompliance with the FCA Rules. Reporting willcommenceinrespectoftheperiodendingonadatenolater than six months following the Closing Date andthefirstreportwillbeissuedwithintwomonthsofthisdate.Reportswillincludeameasureofperformanceinthe later stagesof theFund if valuationsareavailableforFundInvestments.

(a) Contract notes will be provided for eachInvestment which is of a type thatconventionally generatesa contractnote. Inothercases,theFundManagerwillconfirmtothe Investor when a transaction has beenentered into and the number of shares orsecurities under that transaction which havetherebybeenallocatedto,orsoldonbehalfof,theInvestor’sPortfolio.

(b) Investors who are Retail Clients of the FundManager may request that reports areprovided every threemonths. Such requestsshould be made in writing to the FundManager. Investors should note, however,thatas theFundManagerwill receivereportsontheperformanceofPortfolioCompaniesnomore frequently than six-monthly, anyquarterly reports requested are unlikely toincludeanynewand/ormaterialinformation.

(c) Any statements, reports or informationprovidedunderthisClausetotheInvestorwillstate the basis of any valuations ofInvestmentsprovided.

5. FEESANDCHARGES

FeeswillbedebitedfromtheSubscriptionMoniesthatentertheFund,chargedtoPortfolioCompaniesand/ortheproceedsofExitsasthecasemaybeassetoutinPart10oftheInformationMemorandum.

6. DISTRIBUTIONOFPROCEEDSANDINCOME

6.1 The proceeds from each Exit in respect of a PortfolioCompanyshallbepaidinthefirstinstancetotheclientbankaccountinthenameoftheFundManager.

6.2 SubjecttoClause6.4,onanExitofeachInvestmenttheFundManagershallforthwithdistributeallproceedstothe Investors on each Exit (after payment of theexpensesandliabilitiesoftheFund).

6.3 AnyamounttobedistributedtotheInvestorspursuantto Clause 6.2 shall be distributed pro rata to theInvestorsaccordingtotheirbeneficialshareholdings intherelevantPortfolioCompany.

6.4 AnytaxationwhichmaybecomepayablebyaPartyasaresult of (a) the receipt of any distribution under thisAgreement; or (b) an Exit; shall be the responsibilityandliabilityofsuchParty.Fortheavoidanceofdoubt,where an Investment ceases to be an EIS qualifyinginvestmenttheneachInvestorshallbeliabletoaccountto HMRC for their respective tax liability and neithertheFundManager,norInvestmentConsultantshallbeliable to the Investors or HMRC for any sums due inrespectthereof.

6.5 ThisClause6shallnotapplytotheproceedsrelatingtoanyPrivateInvestment.

7. TRANSFEROFINTERESTS

7.1 On the death or bankruptcy of an Investor, being anatural person, such Investor’s personalrepresentatives or trustee (as the case may be) shallbecomean"Investor"inhisorherplaceandentitledtoreceive any distribution of monies hereunder as an"Investor".

7.2 On termination of this Agreement, the Investmentsshall (unless otherwise agreed by the Parties) betransferred into the names of the Investors (as theunderlying beneficial owners of the Investments) andsuchnumberofsharesinthePortfolioCompaniestobeheld by each Investor shall be calculated pursuant toClause2.13.

7.3 SubjecttoClauses7.1and7.2andexceptonanExit,nosale,assignmentor transferbyanyof the Investorsofthe underlying beneficial ownership of an InvestmentoranyotherrightshereundershallbevalidoreffectiveandtheFundManagershallnotrecognisethesameforthe purposes of making distributions of monieshereunderorthemaintenanceofrecords.

7.4 ExceptonterminationofthisAgreement,notransferofthe registered interest in any shares in a PortfolioCompany by the Nominee (or any other nominee

42

company of the Fund Manager) shall be made to anInvestor (being the beneficial owner of such interest)withoutthepriorwrittenconsentoftheFundManagerandonsuch transfer (a) the Investorshall continueasan "Investor" and party to this Agreement, (b) suchtransferredinterestshallremainpartof"theFund"forthepurposesofthisAgreement,and(c)thetransfereeshall enter into a Deed of Adherence to thisAgreement,unlessotherwiseagreedinwritingoremailbytheFundManager.

8. POWEROFATTORNEY

8.1 SubjecttoClause2.14(b),eachoftheInvestorsherebyappointstheFundManager(andanysubsequentFundManageroftheFund)asitstrueandlawfulattorneyto:

(a) consider, negotiate, vary, agree and executeanydocumentsrequiredinconnectionwithanInvestmentoranExit;

(b) transfer funds held by the FundManager onbehalfof the Investors inconnectionwiththesettlementofanyInvestmentorExit;and

(c) enforce any rights, conduct claims or settlelitigation pursuant to any investmentagreementorancillarydocument,

and the Investors shall ratifywhat the FundManagershall lawfully do pursuant to such power of attorneyand the Fund Manager shall incur no responsibilityunder Clauses (a), (b) and (c) above in respect of itsacts,omissionsorerrors (exceptbyvirtueof theFundManager’snegligence,wilfuldefaultorfraud).

8.2 Thispowerofattorneyisrevocablebutshallremainin

full force and effect from the Commencement Dateuntil (a)terminationofthisAgreement, (b)removalorresignationofaFundManageroftheFund(inrespectof that Fund Manager’s appointment as attorneyhereunder), or (c) written revocation has beendeliveredbytherelevantInvestortotherelevantFundManageroftheFund.Fortheavoidanceofdoubt,thepowerofattorneysetoutinthisclauseshallbegrantedby the Investors to any new or replacement FundManageroftheFund.

9. EXCLUSIVITY

Subject to clause 2.18, the Investors shall not duringthe termof this Agreement appoint any person otherthantheFundManagertoperformtheServices(oranypartofthem)pursuanttothisAgreement.

10. CONFLICTSOFINTEREST

10.1 The Fund Manager may provide investmentmanagementorotherservicestoanypersonandshallnotinanycircumstancesberequiredtoaccounttoanyotherPartytothisAgreementforanyprofitsearnedinconnection therewith. The FundManagerwill use allreasonable endeavours to ensure fair treatment asbetween the Parties to this Agreement and its othercustomers. In handling conflicts, the Fund ManagerwarrantsthatitwillactincompliancewithFCARules.

10.2 The Fund Manager is required by FCA Rules toestablish, implement and maintain a conflicts ofinterestpolicy.Acopyofthispolicywillbeprovidedonrequest. The Fund Manager’s conflicts of interestpolicysetsoutthetypesofactualorpotentialconflictsofinterestwhichaffecttheFundManager.

10.3 The Fund Manager, Investment Consultant or anypersons connected with the Fund Manager or theInvestment Consultant, may hold investments withinthe Fund or outside the Fund, in any PortfolioCompany.

10.4 TheFundManagerandDepositaryareundercommonownership,howevertheyareorganisationallyseparateandeachofthemoperatesaconflictsofinterestpolicydesigned to ensure that they act honestly, fairly,professionally, independently and in the interests oftheFundandInvestors.

11. LIABILITY

11.1 Intheeventofanyfailure,interruptionordelayintheperformance of the Fund Manager’s obligationsresulting from acts, events or circumstances notreasonablywithin itscontrol (includingbutnot limitedto a ForceMajeure Event, war, riot, civil commotion,terrorismor threat thereof, acts or regulations of anygovernmental or supranational bodies or authoritiesand breakdown, failure or malfunction of anytelecommunications or computer service or systems),the Fund Manager shall not be liable or have anyresponsibility of any kind for any loss or damagetherebyincurredorsufferedbytheInvestor.

11.2 TheFundManagershallnotbeliableforanydefaultsofany counterparty, agent, banker, nominee or otherperson or entity which holds money, investments ordocumentsoftitlefortheFund,otherthansuchpartywhichisitsAssociate.

11.3 Subject to Clause 11.4, the Fund Manager andInvestment Consultant shall have no liability to theother Investors, whether in contract, tort (includingnegligence),breachofstatutorydutyorotherwise, foranylossofprofit,orforanyindirectorinconsequentiallossarisingunderorinconnectionwiththisAgreement.

11.4 Nothing in this Agreement will operate to exclude orrestrictanyParty’sliabilityfordeathorpersonalinjurycaused by its negligence, or the negligence of itsemployees,orsubcontractorsoritsfraud,wilfuldefaultor fraudulentmisrepresentation, or any liabilitywhichcannotbe limitedorexcludedunder theFCARulesorany liabilityof theDepositarywhichcannotbe limitedorexcludedundertheAIFMDirective.

11.5 Neither the FundManager nor Investment Consultantgive any representations or warranty as to theperformanceof thePortfolioCompanies. The Investoracknowledges that the Portfolio Companies are highrisk investments, being non-readily realisableinvestments. There is a restricted market for suchinvestmentsanditmaythereforebedifficulttoselltheInvestments or to obtain reliable information abouttheirvalue.TheInvestorundertakesthathehashimself

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considered the suitability of the investment in thePortfolio Companies carefully and has noted the riskwarnings set out in the Information Memorandumabout the Fund. Neither the Fund Manager norInvestmentConsultantshallberesponsibleor liabletothe Investors for the economic performance of theInvestments.

11.6 The Fund Manager has carried out an assessment ofthe suitability of the Fund as an investment for theInvestor,bymeansof:

(a) obtaining appropriate answers to relevantquestions in a form of questionnaireaccompanyingthe InformationMemorandum;and/or

(b) relianceuponthe introductionofthe Investorby an FCA regulated firm which has beenprepared to make a suitability assessment oftheInvestorforitselfandwhichhassharedtheconclusionthereofwiththeFundManager.

12. TERMANDTERMINATION

12.1 Unlessterminatedearlierinaccordancewiththisclause12,thisAgreementwillterminateontheearlierof:

(a) the date on which the last Investment isrealised;or

(b) the seventhanniversaryof thedateonwhichthefinalInvestmentwasmade,or

(c) thedateonwhichtheInvestorterminatesthisAgreementbygivingtheFundManager,atanytime, and for no cause, not less than threemonths’ written notice of its intention toterminate its appointment as Fund ManagerunderthisAgreement.

12.2 On termination of the Fund, any Investments whichhave not been realised will be transferred into thenames of the Investors or as each Investor mayotherwisedirect.

12.3 This Agreement shall commence on theCommencementDateandcontinueuntilterminationofthe Fund pursuant to clause 12.1 above, unlessterminatedearlierinaccordancewiththisclause.

12.4 The Fund Manager’s appointment hereunder may beterminated (a) by the Investors if the Fund ManagerceasestobepermittedbylaworauthorisedbytheFCAtoactastheFundManager,or,(b)atanytime,andfornocause,bytheFundManagergivingtheInvestorsnotless than threemonths’writtennoticeof its intentionto terminate its role as Fund Manager under thisAgreement.

12.5 Intheeventthat(a)theFundManagerhasresignedoris removed pursuant to this Agreement, or (b) thisAgreement is capable of being terminated, then theremaining or non-defaulting or unaffected Parties (as

the case may be) may agree to continue thisAgreementonthefollowingbasis:

(a) theresigning, removed,defaultingoraffectedParty(asthecasemaybe)shallceasetobeaParty to this Agreement for the purposes ofreceiving benefits and enforcing rights fromthedatethathe,sheoritceasestoholdsuchpositionorisindefault,butwithoutprejudiceto any benefits and rights enjoyed prior tosuchcessation;

(b) where the resigning, removed, defaulting oraffected Party is the FundManager then theFundManagershall(andshallprocurethatitsnomineecompanyshall)forthwith(a)transferthe Investments to the replacementmanagerappointed by the Investors; (b) transfer theuninvestedSubscriptionMoniestoanaccountnominated by the replacement manager, (c)send all documentation relating to theInvestments and Portfolio Companies to thereplacement manager, and (d) provide thereplacement manager with such otherdocumentationand/orinformationreasonablyrequired by the replacement manager inrespect of the closing of the Investors’accounts;and

(c) wheretheFundManagerceasestobeapartytothisAgreementthentheotherPartiesshallhave the right to appoint another managerpursuant to Clause 2.18(a) subject to thereplacement manager (as the case may be)signing a deed of adherence to thisAgreement.

(d) Whereit isnotpossibletofindareplacementmanager for the Fund, this Agreement shallterminate forthwith, and the Investments inthe Fund shall be transferred into theInvestor’s name or as the Investor mayotherwisedirect.

12.6 US Persons are not permitted to invest through theFund. In respect of any Investor that becomes a USPersonduringthetermoftheFund,theFundManagerreserves the right to terminate thisAgreement at anytimewithoutcauseoranyperiodofnoticeand,insuchcase,anyInvestmentsheldbytheInvestorintheFundshall be transferred into the Investor's name and anycash balance held by the Fund Manager or theDepositary(lessanyapplicablefeesandcosts)returnedtotheInvestor.

13. CONSEQUENCESOFTERMINATION

13.1 On termination of this Agreement pursuant to Clause12, theFundManagerwilluse reasonableendeavourstocompleteall transactions inprogressatterminationexpeditiouslyonthebasissetoutinthisAgreement.

13.2 UponterminationofthisAgreementtheFundManagerwill as soon as practicable deliver all documentationandanycopiesthereofrelatingtotheFundinwhateverformitisheldtothereplacementmanager.

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13.3 UponterminationofthisAgreement,thePartieswillassoon as practicable return or destroy (as directed bythe supplying Parties) all Confidential Information tothePartywhichsuppliedsuchConfidentialInformationsubject to the FundManager’s obligation tomaintainrecordsinaccordancewiththeFCArules.

13.4 On termination, the Fund Manager may retain orrealise such Fund Investments as may be required tosettle transactions already initiated and to pay theInvestor’s outstanding liabilities, including any fees,costsandexpensespayableunderthisAgreement.

13.5 Notwithstanding this Clause, the provisions of Clauses10, 11, 13, 14, 20, 21 and 22 shall survive theterminationofthisAgreement.

14. CONFIDENTIALITY

14.1 Exceptasprovidedbyclauses14.2and14.3,eachPartyshallatalltimesduringthetermofthisAgreementandaftertheterminationorexpiryofthisAgreement:-

(a) treat in confidence the other's ConfidentialInformation and not disclose the other'sConfidential Information to anyotherperson;and

(b) not use any Confidential Information for anypurpose other than for the performance of itsobligationsunderthisAgreement.

14.2 Any Confidential Informationmay be disclosed by theParty towhom it is disclosedor towhose attention itcomes(the"Recipient")to:-

(a) anycourt,governmentalorotherauthorityorregulatorybody (including,without limitation,theFCAandtheLondonStockExchange);or

(b) any employees, agents, consultants or sub-contractorsoftheRecipient.

to such extent only as is necessary for the purposescontemplated by this Agreement, or as is required bylaw, and subject in each case to theRecipient using itsreasonable endeavours to ensure that the person towhom it discloses Confidential Information keeps thesameconfidential.

14.3 Subject to clause 14.2, any Confidential Information

may be used by the Recipient for any purpose, ordisclosedby theRecipient toanyotherperson, to theextentonlythat:-

(a) it is at the date of this Agreement, orthereafterbecomes,publicknowledgethroughno fault of the Recipient (provided that indoing so the Recipient shall not disclose anyConfidential Information which is not publicknowledge);or

(b) it can be shown by the Recipient, to thereasonable satisfaction of the disclosing Party,to have been known to the Recipient (other

thanasaresultofabreachofconfidence)priorto itsbeingdisclosedby thedisclosingParty toor otherwise coming to the attention of theRecipient under or in connection with thisAgreement.

14.4 Upon termination or expiry of this Agreement, eachParty shall ensure that all Confidential Informationbelonging to another Party (in whatever medium thesame is recorded or held) is returned, deleted ordestroyed according to thewritten instructions of theotherParty.

15. FORCEMAJEURE

15.1 Unless otherwise provided and subject to clause 15.3below, no Party shall be in default by reason of itsfailuretoperformpromptlyanypartofthisAgreementifandto theextent thatsuch failure isduetoaForceMajeure Event provided that it notifies the otherPartiesofthenatureandextentofthecircumstancesinquestion as soon as reasonably practicable in thecircumstances.

15.2 For the purposes of this clause, a "Force MajeureEvent" shall mean any event or circumstance beyondthe reasonable control of the affected Party includinganactofGod,explosion, revolution, insurrection, riot,civil commotion, war, national or local emergency,terrorist act, or threat thereof, act of government,strike, fire or flood, as well as any breakdown in ordiscontinuance or suspension of computer orcommunications systems which is beyond thereasonable control of the Party claiming to rely upontheForceMajeureEventinquestion.

15.3 If any Party is affected by a Force Majeure Event orEvents, it shall use all reasonable endeavours tomitigate and/or eliminate the consequences of suchForce Majeure Event or Events and inform the otherPartiesof the stepswhich it is takingandproposes totaketodoso.

15.4 If the affected Party is prevented by a ForceMajeureEvent from performance of its obligations for acontinuous period in excess of 30 days, the otherParties (other than the affected party)may terminatethisAgreement forthwith,onserviceofwrittennoticeupon the affected party, in which case no Party shallhave any liability to the others except rights andliabilitieswhichaccruedpriortosuchterminationshallcontinuetosubsist.

16. GENERAL

16.1 TheFundManagermayassignthisAgreementinwholeor in part and at its sole discretion to any Associatewhich is appropriately regulated to perform theServices hereunder. In such circumstances, the FundManagerwillnotifytheInvestoroftheassignment.

16.2 No omission or delay by any Party in exercising anyright, power or privilege under this Agreement shalloperate as a waiver thereof, nor shall any partialexerciseofanysuchright,powerorprivilegeprecludeany other or further exercise thereof or of any other

45

right, power or privilege. The rights and remediesherein provided are cumulative with and are notexclusive of any other rights or remedies provided bylaw.

16.3 NothinginthisAgreementshallbeconstruedtocreatea partnership, agency or joint venture between theParties.

16.4 Apersonwho isnotaParty to thisAgreementhasnoright under the Contracts (Right of Third Parties) Act1999,toenforceanyprovisionofthisAgreement.

16.5 ThisAgreement(anditsSchedules)andthedocumentsreferred to in it constitutes the entire agreementbetween the Parties relating to the provision of theServices and supersedes all earlier meetings, anycorrespondences, or discussions or other agreementsandunderstandingsbetweenthePartiesthatmayhavetaken place prior to the signing of the ApplicationForm.

16.6 If any term, condition or provision of this Agreementshallbeheldtobeinvalid,unlawfulorunenforceabletoanyextent,suchterm,conditionorprovisionshallnotaffect the validity, legality or enforceability of theremainderofthisAgreement.

16.7 The Fund Manager may amend this Agreement bygiving the Investor not less than thirty business days’writtennotice.TheFundManagermayalsoamendthisAgreement by giving the Investor written notice withimmediate effect if such is necessary to comply withHMRCrequirementsortheFCARules.

16.8 The Fund Manager will hold cash subscribed by theInvestor in accordance with the Client Money Rulescontained in CASS 7 of the FCA Rules. Such cashbalance will be deposited with an authorised creditinstitutioninabankaccount(oraccounts)openedandmaintained in the name of the Fund Manager. TheFundManagermaydebitorcreditthesaidaccountforall sums payable by or to the Investor (includingdividends receivable in cash and fees and otheramountspayablebytheInvestor).

16.9 Any interest payable on credit balances in the saidaccountwillberetainedbytheFundManager.

16.10 Any bank charges incurred in the said accountwill bemetbytheFund.

16.11 The Fund Manager may pay away to a registeredcharityofitschoiceanInvestor’sclientmoneybalanceprovidedithashelditforatleastsixyearsfollowingthelastmovementonthe Investor’saccount(disregardingany payment or receipt of interest, charges or similaritems), theFundManagercandemonstratethat ithastakenreasonablestepstotracetheInvestorconcernedand to return the balance, and the Fund Managerundertakes to pay the Investor a sum equal to thebalancepaidawayintheeventoftheInvestorseekingtoclaimthebalanceinfuture.TheFundManagermayeither liquidate an unclaimed safe custody asset itholds for an Investor and pay away the proceeds, orpayawayanunclaimedsafecustodyasset itholds for

anInvestor, ineithercasetoaregisteredcharityof itschoiceprovided ithasheld thatsafecustodyasset forat least 12 years, in the 12 years preceding thedivestment of that safe custody asset it has notreceivedinstructionsrelatingtoanysafecustodyassetsfrom or on behalf of the Investor concerned, it candemonstratethatithastakenreasonablestepstotracethe Investor concerned and return that safe custodyasset, and the Fund Manager unconditionallyundertakes to pay to the Investor concerned a sumequaltothevalueofthesafecustodyassetatthetimeit was liquidated or paid away in the event of theInvestorseekingtoclaimthesafecustodyasset inthefuture.

17. NOTICES

17.1 Any notice, demandor other communication given ormade in connection with this Agreement shall be inwriting and delivered either personally or by prepaidfirstclasspostortransmittedbyfax:

(a) inthecaseoftheFundManagerto:-

ManagingDirector ThompsonTarazManagersLimited 47ParkLane Mayfair London W1K1PR Fax:02079078770

(b) inthecaseofeachoftheInvestorsto:-

the address stated against their name in therelevantApplicationForm.

17.2 Suchnotice,demandorothercommunicationdelivered

inaccordancewithclause17.1shallbedeemedtohavebeendulydeliveredif:

(a) personally delivered, upon delivery at theaddressoftherelevantParty;

(b) sentbyfirstclasspost,twoBusinessDaysafterthedateofposting;or

(c) faxed,ondateoffax(oronthenextfollowingBusinessDayifthedateoffaxisnotaBusinessDay).

18. EXECUTION

This Agreement will be deemed executed by theInvestor in counterpart on submission to the FundManager an Application Form, and deemed executedbytheFundManagerontheCommencementDate.

19. DISPUTERESOLUTION

19.1 The Fund Manager has established procedures inaccordance with the FCA rules for consideration ofcomplaints. Details of these procedures are availableuponrequest.Shouldan InvestorhaveacomplaintheshouldcontacttheFundManager.IftheFundManager

46

cannotresolvethecomplainttothesatisfactionoftheInvestor,theInvestormaybeentitledtoreferittotheFinancialOmbudsmanService.

19.2 TheFundManagerparticipatesintheFinancialServicesCompensationScheme,establishedunderFSMA,whichprovides compensation to eligible Investors in theevent of a firm being unable to meet its customerliabilities. Payments under the protected investmentbusinessschemearelimitedtoamaximumofthefirst£50,000 of the claim. Further information is availablefromtheFundManager.

20. DATAPROTECTIONACT1998

20.1 TheFundManagerwarrantstotheInvestorsthattheyareappropriatelyregisteredundertheDataProtectionAct 1998 (the "DPA") for all purposes related to theperformance of their functions under this Agreement,andfurtherwarrantthattheyshall takeall reasonablestepstomaintainsuchregistrationandcomplywithallapplicable data protection legislation for the durationofthisAgreement.

20.2 The personal data which has been provided by theInvestorstotheFundManager(oranyofthem)willbeheld andusedby the FundManager for thepurposesset out in or contemplated by this Agreement. TheInvestors acknowledge that the Fund Manager mayalso share the personal data with (or obtain otherinformation about the Investors from) otherorganisations(a)forlegalorregulatorypurposes,(b)inorder to check the accuracy of the informationwhichan Investor has provided, (c) to detect or preventcrime,or (d) toprotect the Fund. The FundManagermaycontinuetoholdpersonaldataabouttheInvestorsafter termination of this Agreement for legal,regulatoryandauditpurposes.

21. INTELLECTUALPROPERTYANDNON-SOLICITATION

21.1 Each of the Investors acknowledges the proprietaryknow how of the Fund Manager in respect of thestructure of the Fund and this Agreement, andundertakesnottoexploitsuchknowhoworintellectualproperty.

22. GOVERNINGLAWANDJURISDICTION

ThisAgreementshallbegovernedbyandconstruedinaccordance with English law and the Parties agree tosubmit to the exclusive jurisdiction of the courts ofEnglandandWales.