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Fuel Ventures VCT PLC

Proxy Solicitation & Information Statement Feb 6, 2012

6565_rns_2012-02-06_d4983cd5-192e-40a7-95e2-b889e497fef1.pdf

Proxy Solicitation & Information Statement

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respective numbers of Ordinary Shares or 'C' Shares held by them on any such record date(s); and

  • (in addition to sub-paragraphs 3.2.3.1 and 3.2.3.2 above) to any $3.2.3.3$ person or persons of equity securities up to an aggregate nominal amount equal to the authorised but unissued 'C' Shares immediately following the closing of the 2009 'C' Share Offer; and
  • (in addition to sub-paragraphs 3.2.3.1, 3.2.3.2 and 3.2.3.3 $3.2.3.4$ above) to any person or persons of equity securities up to an aggregate nominal amount of 10% of the issued Ordinary Shares as at the date of the resolution;
  • $3.2.4$ amend the articles of association of Ventus; and
  • $3.2.5$ authorise the Directors in accordance with section 166 of the 1985 Act to make market purchases (within the meaning of section 163 of the 1985 Act) of its issued Ordinary Shares or 'C' Shares provided that:
  • the maximum number of shares authorised to be purchased shall $3.2.5.1$ be an amount equal to 10% of the 'C' Shares in issue following the 2009 'C' Share Offer:
  • $3.2.5.2$ the minimum price which may be paid for a share is 25 pence;
  • $3.2.5.3$ the maximum price, exclusive of any expenses, which may be paid for a share is an amount equal to the higher of (a) 105% of the middle market quotations for a share as derived from the London Stock Exchange Daily Official List, for the five business days immediately preceding the day on which the share is purchased, and (b) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003;
  • any purchase of shares will be made in the market for cash at $3.2.5.4$ prices below the prevailing NAV per share (as determined by the Directors):
  • the authority expires on the conclusion of the next annual $3.2.5.5$ general meeting of Ventus or, if earlier, on the expiry of fifteen months from the passing of the resolution unless the authority is renewed by Ventus in general meeting prior to such time; and

  • $3.2.5.6$ Ventus may make a contract to purchase shares under the authority conferred prior to the expiry of such authority and may make a purchase of shares pursuant to any such contract notwithstanding such expiry.

  • By special resolution passed on 1 July 2009, the following resolution was passed $3.3$
  • $3.3.1$ that Ventus be and is hereby generally and unconditionally authorised for the purpose of section 166 of the Act to make market purchases (as defined in section 163(3) of the Act) of Shares provided that:
    • $3.3.1.1$ the maximum aggregate number of shares hereby authorised to be purchased is 2,248,527 Shares and 944,206 'C' Shares;
    • $3.3.1.2$ the minimum price which may be paid for a share is 25 pence;
    • $3.3.1.3$ the maximum price, exclusive of any expenses, which may be paid for a share is an amount equal to the higher of (a) 105% of the average of the middle market prices shown in the quotations for a share in The London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that share is purchased, and (b) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003;
    • $3.3.1.4$ the authority hereby conferred shall (unless previously renewed or revoked) expire on the earlier of the AGM of the Company held in 2010 and the date which is 18 months after the date on which this resolution is passed; and
    • $3.3.1.5$ Ventus may make a contract to purchase shares under the authority conferred prior to the expiry of such authority which will or may be executed wholly or partly after the expiry of the authority, and may make a purchase of shares pursuant to any such contract notwithstanding such expiry.
  • By special resolution passed on 8 March 2010, Shareholders resolved to adopt new articles $3.4$ of association.
  • By special resolution passed on 13 July 2010, the following resolution was passed $3.5$

  • that Ventus be and is hereby generally and unconditionally authorised to $3.5.1$ make market purchases within the meaning of section 693(4) of the Act of Ordinary Shares and 'C' Shares provided that:

  • $3.5.1.1$ the maximum aggregate number of shares hereby authorised to be purchased is 2,456,080 Ordinary Shares and 1,698,233 'C' Shares;
  • $3.5.1.2$ the minimum price which may be paid for a Share is 25 pence;
  • $3.5.1.3$ the maximum price, exclusive of any expenses, which may be paid for a share is an amount equal to the higher of (a) 105% of the average of the middle market prices shown in the quotations for a share in The London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that share is purchased, and (b) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003;
  • $3.5.1.4$ the authority hereby conferred shall (unless previously renewed or revoked) expire on the earlier of the AGM of the Company held in 2011 and the date which is 18 months after the date on which this resolution is passed; and
  • $3.5.1.5$ Ventus may make a contract to purchase shares under the authority conferred prior to the expiry of such authority which will or may be executed wholly or partly after the expiry of the authority, and may make a purchase of shares pursuant to any such contract notwithstanding such expiry.
  • By special resolution passed on 27 July 2011, the following resolution was passed $3.6$
  • that Ventus be and is hereby generally and unconditionally authorised to $3.6.1$ make market purchases within the meaning of section 693(4) of the Act of Ordinary Shares and 'C' Shares provided that:

    • $3.6.1.1$ the maximum aggregate number of shares hereby authorised to be purchased is 2,456,080 Ordinary Shares and 1,698,233 'C' Shares:
    • $3.6.1.2$ the minimum price which may be paid for a Share is 25 pence;
  • the maximum price, exclusive of any expenses, which may be $3.6.1.3$ paid for a share is an amount equal to the higher of (a) 105% of the average of the middle market prices shown in the quotations for a share in The London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that share is purchased, and (b) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003;

  • the authority hereby conferred shall (unless previously renewed $3.6.1.4$ or revoked) expire on the earlier of the AGM of the Company held in 2011 and the date which is 18 months after the date on which this resolution is passed; and
  • Ventus may make a contract to purchase shares under the $3.6.1.5$ authority conferred prior to the expiry of such authority which will or may be executed wholly or partly after the expiry of the authority, and may make a purchase of shares pursuant to any such contract notwithstanding such expiry.
  • The following resolutions will be proposed at a general meeting of Ventus convened for 8 $3.7$ March 2012:
  • that the authorised share capital of the Company be increased by £2,500,000, $3.7.1$ by the creation of 10,000,000 ordinary shares (an increase of 25 per cent);
  • that, in substitution for existing authorities, the Directors be and are hereby $3.7.2$ generally and unconditionally authorised in accordance with Section 551 of the Companies Act 2006 (the "Act") to exercise all the powers of the Company to allot shares in the Company and to grant rights to subscribe for or to convert any security into shares in the Company up to an aggregate nominal value of £4,000,000 during the period commencing on the passing of this resolution and expiring on the fifth anniversary of this resolution (unless previously revoked, varied or extended by the Company in general meeting), but so that this authority shall allow the Company to make before the expiry of this authority offers or agreements which would or might require shares to be allotted after such expiry;
  • that, in addition to its existing authorities, the Company be authorised in $3.7.3$ accordance with Section 701 of the Act to make market purchases (within the meaning of Section 693(4) of the Act) of ordinary shares of 25p each in the Company in connection with a tender offer (details of which are set out in the

circular to shareholders dated 3 February 2012) to all holders of ordinary shares to purchase up to 12,000,000 ordinary shares (representing approximately 73.2 per cent of the issued ordinary shares capital of the Company as at the date of this notice) at a price equal to the latest published net asset value per ordinary share immediately prior to purchase (adjusted for any dividends paid subsequent to such publication), divided by 1.055, rounded up the nearest tenth of a penny (which price shall, for the purposes of section 701(3)(b) of the Act, constitute both the maximum and minimum price that may be paid for the ordinary share purchased) provided that the authority conferred by this resolution shall expire on the first anniversary of the passing of this resolution save that the Company may, before the expiry of the authority granted by this resolution, enter into a contract to purchase ordinary shares which will or may be executed wholly or partly after the expiry of such authority:

  • $3.7.4$ that, in substitution for existing authorities, the Directors be and are hereby empowered in accordance with section 570(1) of the Act during the period commencing on the passing of this resolution and expiring on the fifth anniversary of this resolution (unless previously revoked, varied or extended by the Company in general meeting), to allot equity securities (as defined in Section 560 of the Act) for cash pursuant to the general authority conferred upon the Directors in resolution 2 above as if section 561 of the Act did not apply to any such allotment provided that this power shall expire on the fifth anniversary of the resolution but so that this authority shall allow the Company to make offers or agreements before the expiry and the Directors may allot equity securities in pursuance of such offers or agreements as if the powers conferred hereby had not so expired; and
  • that, article 135.1 of the Company's Articles of Association be amended to $3.7.5$ delete the words "2014" and substituting the words "2018" therefor.

Ventus 2

  • $3.8$ By ordinary and special resolutions passed on 2 July 2008:
  • the Directors were generally and unconditionally authorised in accordance $3.8.1$ with section 80 of the 1985 Act to exercise all the powers of Ventus 2 to allot relevant securities (as defined in that section) up to an aggregate nominal amount of £931,111; such authority to expire on the conclusion of the next general meeting of Ventus 2 or, if earlier 1 October 2008;

  • the Directors were empowered (pursuant to section 95(1) of the 1985 Act) to $3.8.2$ allot or make offers or agreements to allot equity securities (as defined in section 94(2) of the 1985 Act) for cash pursuant to the authority referred to in sub-paragraph 3.8.1 above as if section 89(1) of the 1985 Act did not apply to any such allotment, such power to expire on the conclusion of the next general meeting of Ventus 2 or, if earlier 1 October 2008; this power was limited to the allotment of equity securities in connection with:

  • an offer of equity securities in connection with a rights issue, $3.8.2.1$ open offer or other offer of securities in favour of the holders of Ordinary Shares; and
  • $3.8.2.2$ otherwise than pursuant to sub-paragraph 3.6.2.1 above, an offer of equity securities up to an aggregate nominal amount of £139,667;
  • Ventus 2 was authorised to make one or more market purchases (within the $3.8.3$ meaning of section 163(3) of the 1985 Act) of Ordinary Shares (this authority expired on 1 October 2008).
  • $3.9$ By ordinary and special resolutions passed on 4 July 2008:
  • $3.91$ the Directors were generally and unconditionally authorised in accordance with section 80 of the 1985 Act to exercise all the powers of Ventus 2 to allot relevant securities (as defined in that section) up to an aggregate nominal amount of £931,111; such authority to expire on the conclusion of the next general meeting of Ventus 2:
  • the Directors were empowered pursuant to section 95 of the 1985 Act to allot $3.9.2$ or make offers or agreements to allot equity securities (as defined in section 94(2) of the 1985 Act) for cash, pursuant to the authority referred to in subparagraph 3.9.1 above as if section 89(1) of the 1985 Act did not apply to any such allotments and sales, provided that such authority shall expire on the conclusion of the next annual general meeting of Ventus 2, or if earlier, on the expiry of fifteen months from the passing of the resolution. This power was limited to the allotments and sales of equity securities:
    • $3.9.2.1$ in connection with a rights issues, open offer or other offer of securities in favour of the holders of Ordinary Shares on the register of members at such record date(s) as the Directors may determine where the equity securities respectively attributable to

the interests of the Ordinary Shareholders are proportionate (as nearly as may be) to the respective numbers of Ordinary Shares held by them on any such record date(s); and

  • (otherwise than pursuant to sub-paragraph 3.9.2.1above) to any 3.9.2.2 person or persons of equity securities up to an aggregate nominal amount of £139.667.
  • Ventus 2 was authorised in accordance with section 166 of the 1985 Act to $3.9.3$ make market purchases (within the meaning of section 163 of the 1985 Act) of its issued Ordinary Shares provided that:
  • $3.9.3.1$ the maximum number of Ordinary Shares authorised to be purchased shall be 1,674,883;
  • 3.9.3.2 the minimum price which may be paid for an Ordinary Share is 25 pence:
  • 3.9.3.3 the maximum price, exclusive of any expenses, which may be paid for an Ordinary Share is an amount equal to the higher of (a) 105% of the middle market quotations for an Ordinary Share as derived from the London Stock Exchange Daily Official List, for the five business days immediately preceding the day on which the Ordinary Share is purchased, and (b) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003;
  • any purchase of Ordinary Shares will be made in the market for 3.9.3.4 cash at prices below the prevailing net asset value per Ordinary Share (as determined by the Directors);
  • $3.9.3.5$ the authority expires on the conclusion of the next annual general meeting of Ventus 2 or, if earlier, on the expiry of fifteen months from the passing of the resolution unless the authority is renewed by Ventus 2 in general meeting prior to such time; and
  • $3.9.3.6$ Ventus 2 may make a contract to purchase Ordinary Shares under the authority conferred prior to the expiry of such authority and may make a purchase of Ordinary Shares pursuant to any such contract notwithstanding such expiry;
  • 3.9.4 Ventus 2 adopted new articles of association.

  • At a general meeting of the Shareholders of Ventus 2 held on 2 March 2009, resolutions $3.10$ were passed to:

  • increase the authorised share capital of Ventus 2 from £7,500,000 to $3.10.1$ £12,500,000 by the creation of 20,000,000 'C' Shares;
  • generally and unconditionally authorise the Directors in accordance with $3.10.2$ section 80 of the 1985 Act to exercise all the powers of Ventus 2 to allot relevant securities (as defined in that section) up to an aggregate nominal amount of £5,931,111.25, such authority to expire on 1 March 2014;
  • empower the Directors pursuant to section 95 of the 1985 Act to allot or make $3.10.3$ offers or agreements to allot equity securities (as defined in section 94(2) of the 1985 Act) for cash, pursuant to the authority referred to in sub-paragraph 3.10.2 above as if section $89(1)$ of the 1985 Act did not apply to any such allotments and sales, provided that such authority shall expire on 1 March 2014. This power is limited to the allotments and sales of equity securities:
    • $3.10.3.1$ in connection with the 2009 'C' Share Offer which shall include any offer for subscription of 'C' Shares pursuant to a supplemental prospectus issued in connection with the 2009 'C' Share Offer:
    • in connection with a rights issues, open offer or other offer of $3.10.3.2$ securities in favour of the holders of Ordinary Shares or 'C' Shares on the register of members at such record date(s) as the Directors may determine where the equity securities respectively attributable to the interests of the Ordinary Shareholders or the 'C' Shareholders are proportionate (as nearly as may be) to the respective numbers of Ordinary Shares or 'C' Shares held by them on any such record date(s); and
    • (in addition to sub-paragraphs 3.7.3.1 and 3.7.3.2 above) to any $3.10.3.3$ person or persons of equity securities up to an aggregate nominal amount equal to the authorised but unissued 'C' Shares immediately following the closing of the 2009 'C' Share Offer; and
    • 3.10.3.4 (in addition to sub-paragraphs 3.7.3.1, 3.7.3.2 and 3.7.3.3 above) to any person or persons of equity securities up to an

aggregate nominal amount of 10% of the issued Ordinary Shares as at the date of the resolution:

  • $3.10.4$ amend the articles of association of Ventus 2; and
  • authorise the Directors in accordance with section 166 of the 1985 Act to 3.10.5 make market purchases (within the meaning of section 163 of the 1985 Act) of its issued Ordinary Shares or 'C' Shares provided that:
  • the maximum number of shares authorised to be purchased shall $3.10.5.1$ be an amount equal to 10%. of the 'C' Shares in issue following the 2009 'C' Share Offer:
  • $3.10.5.2$ the minimum price which may be paid for a share is 25 pence;
  • the maximum price, exclusive of any expenses, which may be 3.10.5.3 paid for a share is an amount equal to the higher of (a) 105% of the middle market quotations for a share as derived from the London Stock Exchange Daily Official List, for the five business days immediately preceding the day on which the share is purchased, and (b) the amount stipulated by Article 5(1) of the Buy-back and Stabilisation Regulation 2003;
  • any purchase of shares will be made in the market for cash at $3.10.5.4$ prices below the prevailing NAV per share (as determined by the Directors);
  • $3.10.5.5$ the authority expires on the conclusion of the next annual general meeting of Ventus 2 or, if earlier, on the expiry of fifteen months from the passing of the resolution unless the authority is renewed by Ventus 2 in general meeting prior to such time; and
  • Ventus 2 may make a contract to purchase shares under the $3.10.56$ authority conferred prior to the expiry of such authority and may make a purchase of shares pursuant to any such contract notwithstanding such expiry.
  • $3.11$ The following special resolution was passed on 1 July 2009:
  • that the Company be and is hereby generally and unconditionally authorised $3.11.1$ for the purpose of 166 of the Act to make market purchases (as defined in

section 163(3) of the Act) of Ordinary Shares of 25p each in the Company provided that:

  • the maximum number of Ordinary Shares hereby authorised to be $(a)$ purchased is 1,674,883 shares and 944,206 'C' Shares;
  • $(b)$ the minimum price which may be paid for an Ordinary Share is 25p; and
  • the maximum price (exclusive of expenses) which may be paid for an $(c)$ Ordinary Share shall be the higher of (a) 105% of the average of the middle market prices shown in the quotations for a share in The London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that share is purchased or (b) the amount stipulated by Article 5(1) of the Buy Back and Stabilisation Regulations 2003.
  • the authority conferred by this resolution shall expire on the earlier of $(d)$ the AGM of the Company in 2010 or 15 months from the date of this resolution save that the Company may, before the expiry of the authority granted by this resolution, enter into a contract to purchase Ordinary Shares which will or may be executed wholly or partly after the expiry of such authority.
  • The following ordinary and special resolutions were passed on 8 March 2010: $3.12$
  • that, the Directors be and are hereby generally and unconditionally authorised $3.12.1$ in accordance with Section 551 of the Act to exercise all the powers of the Company to allot Shares and to grant rights to subscribe for or to convert any security into Shares up to an aggregate nominal value of £3,686,059 in connection with the Scheme (as defined in the circular to Shareholders dated 8 February 2010, provided that the authority conferred by this resolution shall expire on the fifth anniversary of this resolution (unless previously revoked, varied or extended by the Company in general meeting),
  • That the acquisition by the Company of the assets and liabilities of Ventus 3 $3.12.2$ VCT plc on the terms set out in the circular to shareholders dated 8 February 2010 be and hereby is approved
  • That the Directors be and are hereby empowered pursuant to section $570(1)$ $3.12.3$ of the Act to allot equity securities (as defined in Section 560(1) of the Act)

for cash pursuant to the general authority conferred upon the Directors in resolution 1 above as if section $561(1)$ of the Act did not apply to any such allotment provided that this power shall expire on the fifth anniversary of the resolution unless previously renewed, varied or revoked by the Company in general meeting.

  • That the articles of association produced to the meeting, and for the purposes $3.124$ of identification initialled by the Chairman, be adopted as the articles of association of the Company.
  • The following special resolution was passed on 13 July 2010: $3.13$
  • $3.13.1$ that the Company be authorised to make market purchases (as defined in Section 693(4) of the Act) of Ordinary Shares and 'C' Shares provided that;
    • the maximum number of Shares hereby authorised to be purchased is $(a)$ an amount equal to 3,678,180 Ordinary Shares and 1,698,233 'C' Shares, representing 14.99% of the current issued share capital of each class;
    • $(b)$ the minimum price which may be paid per Share is 25p per Share; and
    • the maximum price (exclusive of expenses) which may be paid for an $(c)$ Ordinary Share shall be the higher of (a) 105% of the average of the middle market prices shown in the quotations for a Share in The London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that Share is purchased and (b) the amount stipulated by Article $5(1)$ of the Buy-back and Stabilisation Regulation 2003;
    • $(d)$ the authority conferred by this resolution shall (unless previously renewed or revoked) expire on the earlier of the AGM of the Company to be held in 2011 and the date which is 18 months after the date on which the resolution is passed and
    • $(e)$ the Company may make a contract or contracts to purchase its own shares under this authority before the expiry of this authority which will or may be executed wholly or partly after the expiry of the authority, and may make a purchase of its own shares in pursuance of

any such contract or contracts as if the authority conferred hereby had not expired.

  • $3.14$ The following special resolution was passed on 27 July 2011:
  • that the Company be authorised to make market purchases (as defined in $3.14.1$ Section 693(4) of the Act) of Ordinary Shares and 'C' Shares provided that;
    • the maximum number of Shares hereby authorised to be purchased is $(a)$ an amount equal to 3,678,180 Ordinary Shares and $1,698,233$ 'C' Shares, representing 14.99% of the current issued share capital of each class;
    • the minimum price which may be paid per Share is 25p per Share; $(b)$ and
    • the maximum price (exclusive of expenses) which may be paid for an $(c)$ Ordinary Share shall be the higher of (a) 105% of the average of the middle market prices shown in the quotations for a Share in The London Stock Exchange Daily Official List for the five business days immediately preceding the day on which that Share is purchased and (b) the amount stipulated by Article $5(1)$ of the Buy-back and Stabilisation Regulation 2003;
    • the authority conferred by this resolution shall (unless previously $(d)$ renewed or revoked) expire on the earlier of the AGM of the Company to be held in 2012 and the date which is 18 months after the date on which the resolution is passed and
    • $(e)$ the Company may make a contract or contracts to purchase its own shares under this authority before the expiry of this authority which will or may be executed wholly or partly after the expiry of the authority, and may make a purchase of its own shares in pursuance of any such contract or contracts as if the authority conferred hereby had not expired.
  • By special resolution passed on 22 December 2011, Shareholders resolved that the amounts $3.15$ standing to the credit of the share premium accounts of the Ordinary Shares and the 'C' Shares, at the date the order is made confirming such cancellation by the court, be cancelled.

  • The following resolutions will be proposed at the general meeting of Ventus 2 convened for $3.16$ 8 March 2012:

  • $3.16.1$ that, the authorised share capital of the Company be increased by £5,000,000, by the creation of 20,000,000 ordinary shares (an increase of 66.7 per cent):
  • that, in substitution for existing authorities, the Directors be and are hereby $3.16.2$ generally and unconditionally authorised in accordance with Section 551 of the Companies Act 2006 (the "Act") to exercise all the powers of the Company to allot shares in the Company and to grant rights to subscribe for or to convert any security into shares in the Company up to an aggregate nominal value of £5,000,000 during the period commencing on the passing of this resolution and expiring on the fifth anniversary of this resolution (unless previously revoked, varied or extended by the Company in general meeting), but so that this authority shall allow the Company to make before the expiry of this authority offers or agreements which would or might require shares to be allotted after such expiry;
  • that, in addition to its existing authorities, the Company be authorised in $3.16.3$ accordance with Section 701 of the Act to make market purchases (within the meaning of Section 693(4) of the Act) of ordinary shares of 25p each in the Company in connection with a tender offer (details of which are set out in the circular to shareholders dated 3 February 2012) to all holders of ordinary shares to purchase up to 14,000,000 ordinary shares (representing approximately 57.1 per cent of the issued ordinary shares capital of the Company as at the date of this notice) at a price equal to the latest published net asset value per ordinary share immediately prior to purchase (adjusted for any dividends paid subsequent to such publication), divided by 1.055, rounded up the nearest tenth of a penny (which price shall, for the purposes of section 701(3)(b) of the Act, constitute both the maximum and minimum price that may be paid for the ordinary share purchased) provided that the authority conferred by this resolution shall expire on the first anniversary of the passing of this resolution save that the Company may, before the expiry of the authority granted by this resolution, enter into a contract to purchase ordinary shares which will or may be executed wholly or partly after the expiry of such authority;
  • that, in substitution for existing authorities, the Directors be and are hereby 3.16.4 empowered in accordance with section 570(1) of the Act during the period commencing on the passing of this resolution and expiring on the fifth

anniversary of this resolution (unless previously revoked, varied or extended by the Company in general meeting), to allot equity securities (as defined in Section 560 of the Act) for cash pursuant to the general authority conferred upon the Directors in resolution 2 above as if section 561 of the Act did not apply to any such allotment provided that this power shall expire on the fifth anniversary of the resolution but so that this authority shall allow the Company to make offers or agreements before the expiry and the Directors may allot equity securities in pursuance of such offers or agreements as if the powers conferred hereby had not so expired; and

  • that article 135.1 of the Company's Articles of Association be amended to $3.16.5$ delete the words "2014" and substituting the words "2018" therefor.
  • At the date of this document the authorised and issued fully paid share capital of each of the $3.17$ Companies is:
Class of shares Nominal
value
Authorised Issued (fully paid)
£ no £ no.
Ventus Ordinary Shares £0.25 10,000,000 40,000,000 4,096,198 16,384,793
C Shares £0.25 5,000,000 20,000,000 2,832,277 11,329,107
Ventus 2 Ordinary Shares £0.25 7,500,000 30,000,000 6,134,390 24,537,560
C Shares £0.25 5,000,000 20,000,000 2,832,277 11,329,107

The authorised and issued fully paid share capital of the Companies immediately after the $3.18$ Offers have closed (assuming full take-up under the Tender Offers, the Offers being fully subscribed and an Offer Price of 105.5p per Ventus Ordinary Share and 59.6p per Ventus 2 Ordinary Share (which are the latest published NAVs of the Companies prior to the date of this Prospectus)) will be as follows:

Class of shares Nominal
value
Authorised Issued (fully paid)
£ no £ no
Ventus Ordinary Shares £0.25 12,500,000 50,000,000 4,750,227 19,000,907
'C' Shares £0.25 5,000,000 20,000,000 2,832,277 11,329,107
Ventus 2 Ordinary Shares £0.25 12,500,000 50,000,000 6,945,149 27,780,596
'C' Shares £0.25 5,000,000 20,000,000 2,832,277 11,329,107
  • The authorised but unissued share capital of Ventus immediately after the Offers have closed $3.19$ (assuming full take-up under the Ventus Tender Offer, the Ventus Offer being fully subscribed and an NAV per Ventus Ordinary Share of 105.5p, being the latest NAV of Ventus prior to the date of this Prospectus) will be £9,917,497 divided into 30,999,093 Ordinary Shares and 8,670,893 'C' Shares representing approximately 56.7% of the authorised share capital. On the above assumptions, the Ordinary Shares issued under the Ventus Offer will represent 76.9% of Ventus's enlarged issued ordinary share capital.
  • $3.20$ The authorised but unissued share capital of Ventus 2 immediately after the Offers have closed (assuming full take-up under the Ventus 2 Tender Offer, the Ventus 2 Offer being fully subscribed and an NAV per Ventus 2 Ordinary Share of 59.6p, being the latest NAV of Ventus 2 prior to the date of this Prospectus) will be £7,722,574 divided into 22,219,404 Ordinary Shares and 8,670,893 'C' Shares representing approximately 44.1% of the authorised share capital. On the above assumptions, the Ordinary Shares issued under the Ventus 2 Offer will represent 62.1% of Ventus 2's enlarged issued ordinary share capital.
  • Other than the issue of Ordinary Shares pursuant to the Offers, the Companies have no $3.21$ present intention to issue any of the authorised but unissued share capital of the Companies.
  • $3.22$ The Companies do not have in issue any securities not representing share capital.
  • 3.23 The provisions of section $561(1)$ of the Act (to the extent not disapplied pursuant to section 570(1) of the Act) confer on shareholders certain rights of pre-emption in respect of the allotment of equity securities (as defined in section 570(1) of the Act) which are, or are to be, paid up in cash and will apply to the authorised but unissued share capital of the Companies, except to the extent disapplied by resolutions passed by Shareholders. Subject to certain limited exceptions, unless the approval of Shareholders in a general meeting is obtained, the Companies must normally offer shares to be issued for cash to holders on a pro rata basis.
  • No shares of the Companies are currently in issue with a fixed date on which entitlement to a $3.24$ dividend arises and there are no arrangements in force whereby future dividends are waived or agreed to be waived.
  • $3.25$ Save as disclosed in this paragraph 3, there has been no issue of share or loan capital of the Companies in the three years immediately preceding the date of this document and (other than pursuant to the Offers) no such issues are proposed.

  • No share or loan capital of the Companies is under option or has been agreed, conditionally or $3.26$ unconditionally, to be put under option.

  • Except for commissions paid to authorised introducers in respect of previous offers for $3.27$ subscription, no commissions, discounts, brokerages or other special terms have been granted by the Companies in connection with the issue or sale of any share or loan capital of the Companies in the three years immediately preceding the date of this document.
  • Other than pursuant to the Offers, none of the Ordinary Shares have been sold or are 3.28 available in whole or in part to the public in conjunction with the application for the Ordinary Shares to be admitted to the Official List.
  • 3.29 The Ordinary Shares will be in registered form. No temporary documents of title will be issued and prior to the issue of definitive certificates, transfers will be certified against the register. It is expected that definitive share certificates for the Ordinary Shares not to be held through CREST will be posted to allottees as soon as practicable following allotment of the Ordinary Shares. Ordinary Shares to be held through CREST will be credited to CREST accounts on Admission. CREST is a paperless settlement procedure enabling securities to be evidenced otherwise than by a certificate and otherwise than by a written instrument. The Companies' articles of association, permit the holding of 'Ordinary' Shares in CREST.
  • The ISIN and SEDOL Code of the Ventus Ordinary Shares is GB00B03KMY45 and B03KMY4, 3.30 respectively. The ISIN and SEDOL Code of the Ventus 2 Ordinary Shares is GB00B0WCHT14 and B0WCHT1, respectively. The ISIN and SEDOL Code of the Ventus C' Shares is GB00B3KVC412 and B3KVC41, respectively. The ISIN and SEDOL Code of the Ventus 2C' Shares is GB00B3KVC529 and B3KVC52, respectively.

$\overline{4}$ Memorandum and articles of association

The memorandum of association of each Company provides that the Company's principal object is to carry on the business of a VCT. The objects of each Company are set out in full in clause 4 of its memorandum of association.

The articles of association of each Company, as amended pursuant to the resolution to be proposed at the general meeting of each Company convened for 8 March 2012 ("the Articles"), contain, inter alia, the following provisions. In this paragraph 4, "the Company" means each of Ventus and Ventus 2.

$4.1$ Rights attaching to the 'C' Shares

The following provisions apply in respect of the 'C' Shares and their subsequent conversion into Ordinary Shares:

"Calculation Date" means the earlier of:

  • close of business on the business day on which the 'C' Share assets are, in the opinion of the $(a)$ directors, sufficiently mature and income generating that it is in the interest of all shareholders of the Company to give effect to the conversion;
  • close of business on the day being the financial year end date of the Company immediately $(b)$ following the period of 5 years from date of the final allotment of 'C' Shares pursuant to the 2009 'C' Share Offer; and
  • close of business on the day on which the Directors resolve that Force Majeure Circumstances $(c)$ have arisen or are imminent:

"Conversion" means conversion of the 'C' Shares in accordance with the Articles;

"Conversion Date" means the earlier of:

  • close of business on the business day which falls two months after the Calculation Date; and $(a)$
  • close of business on the day selected by the directors following a resolution of the directors $(b)$ that Force Majeure Circumstances have arisen or are imminent;

"Conversion Ratio" is A where:

$\overline{B}$

$$
A'' = \underline{C \cdot D}
$$
$$
\underline{E}
$$

and

$$
"B" = F-(C-D)
$$

G

and where:

"C" is the aggregate of:

the value of all investments of the Company attributable to the 'C' Shareholders at $(a)$ their respective acquisition costs, subject to such adjustments as the directors may deem appropriate to be made for any variations in the value of such investments between the date of acquisition and the Calculation Date; and

the amount which in the directors' opinion fairly reflects, at the Calculation Date, the value of $(b)$ the current assets of the Company attributable to the 'C' Shareholders (including cash and deposits with or balances at a bank and including any income and other items of a revenue nature);

"D" is the amount (to the extent not otherwise deducted from the assets attributable to the 'C' Shareholders) which in the directors' opinion fairly reflects the amount of the liabilities attributable to the 'C' Shareholders on the Calculation Date;

"E" is the number of 'C' Shares in issue on the Calculation Date;

"F" is the net asset value of the Company as at the Calculation Date which is arrived at after all adjustments reasonably deemed necessary by the directors to reflect the current value of all assets and to allow for all liabilities including any income and other items of a revenue nature;

"G" is the number of Ordinary Shares in issue on the Calculation Date;

provided that an amount equal to that which the directors reasonably estimate will be paid as the final dividend in respect of the year ending on or after the Calculation Date shall be allowed for (at the directors' discretion) in the amount of "F" and that the directors shall make such other adjustments to the value or amount of "A" and "B" as the auditors shall report to be appropriate having regard, inter alia, to the assets attributable to the 'C' Shareholders on the Calculation Date, to the assets of the Company on the Calculation Date and/or to the reasons for the issue of the 'C' Shares referred to in the circular to the shareholders of the Company dated 13 February 2009.

"'C' Share Surplus" means the net assets of the Company attributable to the 'C' Shares (including, for the avoidance of doubt, any income and/or revenue arising from or relating to such assets) less such proportion of the Company's liabilities including the fees and expenses of the liquidation or return of capital (as the case may be) shall reasonably allocate to the assets of the Company attributable to the 'C' Shareholders:

"Existing Ordinary Shares" means the Ordinary Shares in issue on the Conversion Date.

"Force Majeure Circumstances" means any political and/or economic and/or market circumstances and/or actual or anticipated changes in fiscal or other legislation which, in the reasonable opinion of the directors, renders it necessary to bring the Conversion Date and/or the Calculation Date forward;

"Issue Date" means the day on which the Company receives the net proceeds of the first issue of the 'C' Shares:

"New Ordinary Shares" means new shares of 25 pence each (created under the Companies Act 1985) arising on Conversion of the 'C' Shares which, when issued, shall rank pari passu in all respects and form a single class with the Existing Ordinary Shares. The New Ordinary Shares will be in registered form and may be held either by ay of definitive share certificate or in electronic form in a CREST account.

"Share Surplus" means the net assets of the Company (including, for the avoidance of doubt, any income and/or revenue arising from or relating to such assets) less the Company's liabilities (including the fees and expenses of a liquidation or return of capital, as the case may be) less the 'C' Share Surplus; and

"Statutes" means the Companies Act 1985 as amended and supplemented by the Companies Act 1989 and the Companies Act 2006, and every other statute for the time being in force concerning companies affecting the Company.

For the purposes of the Articles, assets attributable to the 'C' Shareholders or the 'C' Shares shall mean the net cash proceeds (after all expenses relating thereto) of the issue of the 'C' Shares as invested in or represented by investments or cash or other assets from time to time less such proportion of the expenses and liabilities of the Company incurred or accrued between the Issue Date and the Calculation Date (both dates inclusive) as the directors fairly consider to be allocatable to the 'C' Shares.

References in the Articles to the auditors certifying any matter shall be construed to mean certification of their opinion as to such matter whether qualified or not and should the Company's auditors be unable or unwilling to act, references to "auditors" shall be construed to mean references to any expert to be nominated by the President or next senior officer then available for the time being of the Institute of Chartered Accountants in England and Wales.

$4.2$ Undertakings

Until Conversion and without prejudice to its obligations under the Statutes, the Company shall (i) procure that the Company's records and bank accounts shall be operated so that the assets attributable to the 'C' Shareholders can, at all times, be separately identified and, in particular but without prejudice to the generality of the foregoing, the Company shall procure that a separate cash pool account, investment settlement account and income account shall be created and maintained in the books of the Company for the assets attributable to the 'C' Shareholders, (ii) allocate to the assets attributable to the 'C' Shareholders such proportion of the expenses and liabilities of the Company incurred or accrued between the Issue Date and the Calculation Date (both dates inclusive) as the directors fairly consider to be allocable to the 'C' Shares and (iii) give appropriate instructions to the Company's investment managers to manage the Company's assets so that such undertakings can be complied with by the Company.

$4.3$ The Conversion Process

$(a)$ The directors shall procure that:

  • within the two months of the Calculation Date, both the Conversion Ratio as at the $(i)$ Calculation Date and the number of New Ordinary Shares to which each 'C' Shareholder shall be entitled on Conversion shall be calculated; and
  • the auditors shall be requested to certify, within two months of the Calculation Date, $(ii)$ that both the calculation on the Conversion Ratio and the total number of New Ordinary Shares arising on Conversion:
  • $(1)$ have been performed in accordance with the Articles; and
  • $(2)$ are arithmetically accurate:

whereupon, subject to the proviso immediately after the definition of "G" above, such calculations shall become final and binding on the Company and all shareholders.

  • The directors shall procure that as soon as practicable following such certification a notice is $(b)$ sent to each 'C' Shareholder advising such 'C' Shareholder of the Conversion Date, the Conversion Ratio and the number of New Ordinary Shares to which such 'C' Shareholder shall be entitled on Conversion.
  • The directors may in their absolute discretion from time to time decide the manner in which $(c)$ the 'C' Ordinary Shares are to be converted, subject to the provisions of the Articles and the Statutes, to the intent that on Conversion all 'C' Shares shall convert into New Ordinary Shares.
  • Without prejudice to paragraph (c) above, the directors may, where the Conversion Ratio is $(d)$ greater than 1, in order to facilitate the Conversion, provide for the profits or reserves attributable to the 'C' Shares to be capitalised and applied in paying up in full such number of New Ordinary Shares as shall be calculated by multiplying the number of New Ordinary Shares arising on Conversion by the Conversion Ratio and then deducting the number of New Ordinary Shares arising on Conversion, and allot such shares, credited as fully paid up, to the holders of 'C' Shares pro rata to their holdings.
  • Without prejudice to paragraph (c) above, the directors may, where the Conversion Ratio is $(e)$ less than 1, in order to facilitate the Conversion, provide for the profits or reserves attributable to the Existing Ordinary Shares to be capitalised and applied in paying up in full such number of New Ordinary Shares as shall be calculated by dividing the number of Existing Ordinary Shares by the Conversion Ratio and then deducting the number of Existing Ordinary Shares, and allot such shares, credited as fully paid up, to the holders of Existing Ordinary Shares pro rata to their holdings.

  • $(f)$ The directors may deal in such manner as they think fit with any fractional entitlements to New Ordinary Shares arising upon Conversion including, without prejudice to the generality of the foregoing, selling any such shares representing such fractional entitlements and retaining the proceeds for then benefit of the Company.

  • Forthwith upon Conversion, the Company shall issue to each former 'C' Shareholder, $(g)$ certificates in respect of the New Ordinary Shares which have arisen upon Conversion. The New Ordinary Shares will be admitted to the Official List of the UKLA and to trading on London Stock Exchange Plc's market for listed securities.
  • $(h)$ Forthwith upon Conversion, the rights attaching to the 'C' Shares under the Articles shall lapse.

4.4 Voting rights

Subject to the rights or restrictions referred to in paragraph 4.5 below and subject to any special rights or restrictions as to voting for the time being attached to any shares, on a show of hands (i) every member who (being an individual) is present in person or (being a corporation) is present by a duly authorised representative shall have one vote; and (ii) on a show of hands every proxy appointed by a member shall have one vote; and on a poll every member who is present in person or by proxy or (being a corporation) is present by a duly authorised representative shall have one vote for each share held by such member. Where a duly authorised representative or proxy is a member in his own right, he may only vote once on a show of hands.

4.5 Restrictions on voting

A member of the Company is not entitled, either in person or by proxy, in respect of any share held by him, to be present at any general meeting of the Company unless all amounts payable by him in respect of that share have been paid.

A member of the Company shall not, if the directors determine, be entitled to attend general meetings and vote or to exercise rights of membership if he or another person appearing to be interested in the relevant shares has failed to comply with a notice given under section 793 of the Act within 14 days. The restrictions will continue for the period specified by the board provided that such period shall end not later than seven days after the earliest of (i) due compliance to the satisfaction of the board with the section 793 notice; or (ii) receipt by the Company of notice that the shareholding has been sold to a third party pursuant to an arm's length transfer.

4.6 Dividends

The Company may, by ordinary resolution, declare a dividend to be paid to the members out of the net assets attributable to the relevant class of share and from income received which is attributable to the relevant class of share. The directors may pay such interim dividends as appear to the board to be justified by the financial position of the Company. No dividends payable in respect of a share shall bear interest. The directors may, if authorised by an ordinary resolution, offer shareholders the right to elect to receive further shares, credited as fully paid instead of cash in respect of all or part of a dividend (a "scrip dividend"). The directors may, pursuant to the provisions of the Articles relating to disclosure of interests, withhold dividends or other sums payable in respect of shares which are the subject of a notice under section 793 of the Act and which represent 0.25% or more in nominal value of the issued shares of their class and in respect of which the required information has not been received by the Company within 14 days of that notice and the member holding those shares may not elect, in the case of a scrip dividend, to receive shares instead of that dividend.

The Company or its directors may fix a date as the record date for a dividend provided that the date may be before, on or after the date on which the dividend, distribution, allotment or issue is declared. A dividend unclaimed for a period of 12 years from the date when it became due for payment shall be forfeited and cease to remain owing by the Company.

4.7 Return of capital

If the Company is wound up, the liquidator may, with the sanction of a special resolution and any other sanction required by law, divide among the members in specie the whole or any part of the assets of the Company attributable to the relevant class of share and may, for that purpose, value any assets and determine how the division shall be carried out as between the members or different classes of members. The liquidator may with the same sanction, vest the whole or any part of the assets in trustees on trusts for the benefit of the members as the liquidator, with the same sanction, thinks fit but no member shall be compelled to accept any assets on which there is any liability.

4.8 Variation of rights

Any rights attaching to a class of shares in the Company may be varied with the written consent of the holders of not less than three-fourths in nominal value of the issued shares of the class (excluding any shares of the class held as treasury shares), or with the sanction of a special resolution passed at a separate general meeting of the holders of the relevant class. The quorum for the separate general meeting shall be two persons holding, or

represented by proxy, not less than one-third in nominal value of the issued shares of the relevant class (excluding any shares of the class held as treasury shares).

4.9 Transfer of shares

Subject to the restriction set out in this paragraph, any member may transfer all or any of his shares in any manner which is permitted by the Statutes (as defined in the Articles) or in any other manner approved by the board. A transfer of a certificated share shall be in writing in the usual common form or in any other form permitted by the Statutes or approved by the board. The transferor is deemed to remain the holder of the shares concerned until the name of the transferee is entered in the register of members in respect of those shares. All transfers of uncertificated shares shall be made by means of the relevant system or in any other manner which is permitted by the Statutes and is from time to time approved by the board.

The directors have a discretion to refuse to register a transfer of a certificated share which is not fully paid (provided that this does not prevent dealings in the shares from taking place on an open and proper basis). The directors may also decline to register a transfer of shares in certificated form unless (i) the instrument of transfer is deposited at the office of the Company or such other place as the board may appoint, accompanied by the certificate for the shares to which it relates if it has been issued and such other evidence as the board may reasonably require to show the right of the transferor to make the transfer; (ii) the instrument of transfer is in respect of only one class of share as in favour of no more than four transferees. The directors may, pursuant to the provisions of the Articles relating to disclosure of interests, decline to register a transfer in respect of shares which are the subject of a notice under section 793 of the Act and which represent at least 0.25% of the issued shares of their class, and in respect of which the required information has not been received by the Company within 14 days after service of the notice.

Save as aforesaid, the Articles contain no restrictions as to the free transferability of fully paid shares.

4.10 Alteration of capital and purchase of own shares

The Company may alter its share capital as follows:

by ordinary resolution, it may increase its share capital, consolidate and $4.10.1$ divide all or any of its share capital into shares of a larger amount, sub-divide all or any of its shares into shares of smaller amount and cancel any shares not taken or agreed to be taken by any person;

  • by special resolution and subject to the provisions of the Statutes, it may 4.10.2 reduce its share capital, any capital redemption reserve, any share premium account or other undistributable reserves in any way; and
  • 4.10.3 subject to the provisions of the Statutes, the Company may purchase all or any of its shares of any class, including redeemable shares and may hold such shares as treasury shares or cancel them.

4.11 General meetings

$4.11.1$ Annual general meetings

The board shall convene and the Company shall hold annual general meetings in accordance with the requirements of the Statutes.

4.11.2 Convening of general meetings

All meetings other than annual general meetings shall be called general meetings. The board may convene a general meeting whenever it thinks fit. A general meeting shall also be convened by the board on the requisition of members pursuant to the provisions of the Statutes or, in default, may be convened by such requisitions, as provided by the Statutes. The board shall comply with the provisions of the Statutes regarding the giving and the circulation, on the requisition of members, of notices of resolutions and of statements with respect to matters relating to any resolution to be proposed or business to be dealt with at any general meeting of the Company.

4.11.3 Orderly conduct of meetings

The board may both prior to and during any general meeting make any arrangements and impose any restrictions which it considers appropriate to ensure the security and/or the orderly conduct of any such general meeting, including, without limitation, arranging for any person attending any such meeting to be searched, for items of personal property which may be taken into any such meeting to be restricted and for any person (whether or not a member of the Company) who refuses to comply with any such arrangements or restrictions to be refused entry to or excluded from any such meeting.

4.11.4 Notice of general meetings

Subject to the provisions of the Statutes, an annual general meeting and all other general meetings of the Company shall be called by at least such minimum period of notice as is prescribed under the Statutes for the type of meeting concerned.

The notice shall specify the place, day and time of the meeting and the general nature of the business to be transacted.

Notice of every general meeting shall be given to all members other than any who, under the provisions of the Articles or the terms of issue of the shares which they hold, are not entitled to receive such notices from the Company, and also to the auditors (or, if more than one, each of them) and to each director.

Every notice of meeting shall state with reasonable prominence that a member entitled to attend, speak and vote at the meeting may appoint one or more proxies to attend, speak and vote at that meeting instead of him and that a proxy need not be a member of the Company.

4.11.5 Quorum

No business, other than the appointment of a chairman, shall be transacted at any general meeting unless the requisite quorum is present when the meeting proceeds to business.

Except as otherwise provided by the Articles two persons entitled to attend and to vote on the business to be transacted, each being a member present in person or by proxy or a duly authorised representative of a corporation which is a member shall be a quorum. If within 15 minutes from the time appointed for the holding of a general meeting a quorum is not present, the meeting, if convened on the requisition of members, shall be dissolved. In any other case, it shall stand adjourned to the same day in the next week (or, if that day is not a business day, to the next business day) and at the same time and place, as the original meeting, or to such other day, and at such other time and place, as the board may decide and in the latter case not less than seven clear days' notice of the adjourned meeting shall be given in any manner in which notice of a meeting may lawfully be given for the time being. If at an adjourned meeting a quorum is not present within 15 minutes from the time fixed for holding the meeting, the meeting shall be dissolved.

4.11.6 Chairman

At each general meeting, the chairman of the board or, if he is absent or unwilling, the deputy chairman (if any) of the board or (if more than one deputy chairman is present and willing) the deputy chairman who has been longest in such office or, if no deputy chairman is present and willing, then one of the other directors who is appointed for the purpose by the board or (failing appointment by the board), by the members present, shall preside as chairman of the meeting, but if no director is present within 15 minutes after the time fixed for holding the meeting or, if none of the directors present is willing to preside, the

members present and entitled to vote shall choose one of their number to preside as chairman of the meeting.

4.11.7 Directors entitled to attend and speak

Whether or not he is a member, a director shall be entitled to attend and speak at any general meeting of the Company and at any separate general meeting of the holders of any class of shares of the Company.

4.11.8 Adjournment

With the consent of any meeting at which a quorum is present the chairman of the meeting may (and if so directed by the meeting shall) adjourn the meeting from time to time or sine die and from place to place.

In addition, the chairman of the meeting may at any time without the consent of the meeting adjourn the meeting (whether or not it has commenced or a quorum is present) to another time and/or place if, in his opinion, it would facilitate the conduct of the business of the meeting to do so, notwithstanding that by reason of such adjournment some members may be unable to be present at the adjourned meeting.

4.11.9 Method of voting and demand for poll

At a general meeting a resolution put to the vote of the meeting shall be decided on a show of hands, unless (before or immediately after the declaration of the result of the show of hands or on the withdrawal of any other demand for a poll) a poll is demanded by:

  • $(a)$ the chairman of the meeting:
  • not less than five members present in person or by proxy having the right to vote on $(b)$ the resolution;
  • a member or members present in person or by proxy representing in aggregate not $(c)$ less than 10 per cent. of the total voting rights of all the members having the right to vote on the resolution (excluding any voting rights attached to any shares in the Company held as treasury shares);
  • a member or members present in person or by proxy holding shares conferring the $(d)$ right to vote on the resolution on which an aggregate sum has been paid up equal to not less than 10 per cent. of the total sum paid up on all the shares conferring that right (excluding any shares in the Company conferring a right to vote at the meeting which are held as treasury shares);

and a demand for a poll by a person as proxy for a member shall be as valid as if the demand were made by the member himself.

4.11.10 Taking a poll

If a poll is demanded (and the demand is not withdrawn), it shall be taken at such time (either at the meeting at which the poll is demanded or within 30 days after the meeting), at such place and in such manner as the chairman of the meeting shall direct and he may appoint scrutineers (who need not be members).

4.11.11 Proxies

A proxy need not be a member of the Company and a member may appoint more than one proxy in relation to a meeting to attend and to speak and to vote on the same occasion provided that each proxy is appointed to exercise the rights attached to a different share or shares held by a member.

4.11.12 Form of proxy

An appointment of a proxy shall be in writing in:

  • hard copy in any usual form or in any other form which the board may approve, $(a)$ executed by the appointor, or his agent duly authorised in writing, or, if the appointor is a corporation, shall either be executed under its common seal or be signed by some agent or officer authorised for that purpose; or
  • $(b)$ electronic form.
  • 4.11.13 Deposit of proxy

The appointment of a proxy shall:

  • in the case of an appointment in hard copy form, be delivered personally or by post to $(a)$ the office or such other place within the United Kingdom as may be specified by or on behalf of the Company for that purpose in the notice convening the meeting or in any form of proxy sent by or on behalf of the Company in relation to the meeting, not less than 48 hours before the time appointed for holding the meeting or adjourned meeting;
  • in the case of an appointment in electronic form, be received at an address specified $(b)$ (or is deemed by a provision in the Act to have been specified) by or on behalf of the Company for the purpose of receiving documents or information in electronic form in, or by way of note to, the notice convening the meeting or in any form of proxy sent

by or on behalf of the Company in relation to the meeting or in any invitation in electronic form to appoint a proxy issued by or on behalf of the Company in relation to the meeting, not less than 48 hours before the time appointed for holding the meeting or adjourned meeting;

  • in the case of a poll which is taken more than 48 hours after it is demanded, be $(c)$ delivered or received as aforesaid not less than 24 hours before the time appointed for the taking of the poll; or
  • in the case of a poll which is not taken at the meeting at which it is demanded but is $(d)$ taken not more than 48 hours after it was demanded, be delivered in hard copy form at the meeting at which the poll was demanded to the chairman or to the secretary or to any director.

In relation to any shares which are held in uncertificated form, the board may from time to time permit appointments of a proxy to be made by electronic means in the form of an uncertificated proxy instruction.

An appointment of a proxy relating to more than one meeting (including any adjournment thereof) having once been so received for the purposes of any meeting shall not require to be received again for the purposes of any subsequent meeting to which it relates.

4.11.14 Notice of revocation of proxy

Notice of the revocation of the appointment of a proxy may be given in any lawful manner which complies with the regulations (if any) made by the directors to govern the revocation of a proxy.

4.12 Directors

$4.12.1$ Number

Unless otherwise determined by ordinary resolution of the Company, the number of directors shall be not less than two but there shall be no maximum number of directors.

4.12.2 Appointment of directors by the Company in general meeting

The Company may by ordinary resolution appoint any person who is willing to act to be a director, either to fill a vacancy or as an additional director.

No person (other than a director retiring by rotation or otherwise) shall be appointed or reappointed a director at any general meeting unless:

  • $(a)$ he is recommended by the board; or
  • not less than seven nor more than 42 clear days before the date appointed for the $(b)$ meeting there has been given to the Company, by a member (other than the person to be proposed) entitled to vote at the meeting, notice of his intention to propose a resolution for the appointment of that person, stating the particulars which would, if he were so appointed, be required to be included in the Company's register of directors and a notice executed by that person of his willingness to be appointed.

The board may appoint any person who is willing to act to be a director either to fill a vacancy or by way of addition to their number.

$4.12.3$ Remuneration

The directors (other than any director who for the time being holds an executive office of employment with the Company or a subsidiary of the Company) shall be paid out of the funds of the Company by way of remuneration for their services as determined by the directors. The aggregate of the fees per Company shall not exceed £100,000 per annum (or such larger sum as the Company may, by ordinary resolution determine). Any fee shall be distinct from any remuneration or other amounts payable to a director under other provisions of the Articles and shall accrue from day to day. The directors may be paid all travelling, hotel and other expenses properly incurred in and about the discharge of their duties as directors including expenses incurred in travelling to and from meetings of the board, committee meetings, general meetings and separate meetings of the holders of any class of securities of the Company.

4.12.4 Retirement of directors

At each annual general meeting any director who has been appointed by the board since the previous annual meeting and any director selected to retire by rotation shall retire from office.

4.12.5 Retirement of Directors by rotation

At each annual general meeting of the Company, one-third of the directors (excluding any director who has been appointed by the directors since the previous annual general meeting) or, if their number is not an integral multiple of three, the number nearest to onethird but not exceeding one-third shall retire from office. In addition, each director shall retire from office at the third annual general meeting after he was appointed or reappointed, if he would not otherwise fall within the directors to retire by rotation.

The directors to retire shall be those directors who, at the date of the notice of the meeting, have been longest in office since their last appointment or re-appointment but, as between persons who became or were last re-appointed directors on the same day, those to retire shall (unless they otherwise agree among themselves) be determined by lot.

The directors to retire on each occasion shall be determined (both as to number or identity) by the composition of the board at the start of business on the date of the notice convening the annual general meeting and no directors shall be required to retire or be relieved from retiring by reason of any change in the number or identity of the directors after that time but the before the close of the meeting.

A retiring director shall be eligible for re-appointment and (unless he is removed from office or his office is vacated in accordance with the Articles) shall retain office until the close of the meeting at which he retires or (if earlier) when a resolution is passed at that meeting not to fill the vacancy or to appoint another person in his place or the resolution to reappoint him is put to the meeting and lost.

If at any meeting at which the appointment of a director ought to take place the office vacated by a retiring director is not filled, the retiring director, if willing to act, shall be deemed to be re-appointed, unless at the meeting a resolution is passed not to fill the vacancy or to appoint another person in his place or unless the resolution to re-appoint him is put to the meeting and lost.

No person shall be disqualified from being appointed a director and no director shall be required to vacate from office, by reason only of his age.

4.12.6 Removal of Directors

The Company may by ordinary resolution, of which special notice has been given in accordance with the Statutes, remove any director before his period of office has expired notwithstanding anything in the Articles or in any agreement between him and the Company.

4.12.7 Vacation of office of Director

Without prejudice to the provisions of the Articles for retirement or removal, the office of a director shall be vacated:

  • if he is prohibited by law from being a director; $(a)$
  • if he becomes bankrupt or he makes any arrangement or composition with his $(b)$ creditors generally:
  • if he is, or may be, suffering from mental disorder and in relation to that disorder $(c)$ either he is admitted to hospital for treatment or an order is made by a court (whether in the United Kingdom or elsewhere) for his detention or for the appointment of some person to exercise powers with respect to his property or affairs;
  • if for more than six months he is absent (whether or not an alternate director attends $(d)$ in his place), without special leave of absence from the board, from meetings of the board held during that period and the board resolves that his office be vacated; or
  • if he serves on the Company notice of his wish to resign, in which event he shall $(e)$ vacate office on the service of that notice on the Company or at such later time as is specified in the notice.

4.12.8 Executive Directors

The board may appoint one or more directors to hold any executive office or employment under the Company and on such terms as the board determine.

A director appointed to any executive office or employment shall automatically cease to hold that office if he ceases to be a director without prejudice to any claim for damages for breach of any contract of employment.

4.12.9 Power to appoint alternate Directors

Each director may appoint another director or any other person who is willing to act as his alternate and may remove him from that office. The appointment as an alternate director of any person who is not himself a director shall be subject to the approval of a majority of the directors or a resolution of the board.

An alternate director shall be entitled to receive notice of all meetings of the board and of all meetings of committees of which the director appointing him is a member, to attend and vote at any such meeting at which the director appointing him is not personally present and at the meeting to exercise and discharge all the functions, powers and duties of his appointor as a director and for the purposes of the proceedings at the meeting the provisions of the Articles shall apply as if he were a director.

Every person acting as an alternate director shall have one vote for each director for whom he acts as alternate, in addition to his own vote if he is also a director, but he shall count as only one for the purpose of determining whether a quorum is present.

$4.12.10$ Directors' interests

A director shall not be entitled to vote on a resolution or (or attend or count in the quorum at those parts of a meeting regarding such resolution) relating to a transaction or arrangement with the Company in which he is interested (including by virtue of interests of persons connected with him) save where the other directors resolve that he should be entitled to do so where they are satisfied that this interest cannot reasonably be regarded as likely to give rise to a conflict of interest or save in any of the following circumstances:

  • the giving of any guarantee, security or indemnity in respect of money lent or $(a)$ obligations incurred by him or by any other person at the request of or for the benefit of the Company (or any of its subsidiary undertakings) or in respect of a debt or obligation of the Company (or any of its subsidiary undertakings) for which he has assumed responsibility, in whole or in part, under a guarantee or an indemnity or by the giving of security:
  • any contract concerning an offer of shares, debentures or other securities of or by the $(b)$ Company (or any of its subsidiary undertakings) for subscription or purchase in which offer he is or may be entitled to participate as a holder of securities or he is or is to be interested as a participant in the underwriting or sub-underwriting thereof:

  • any contract in which he is interested by virtue of his interest in shares, debentures or $(c)$ other securities of the Company or otherwise in or through the Company;

  • any contract concerning any other company in which he is interested, directly or $(d)$ indirectly, in 1% or more either of its equity share capital or of its voting rights;
  • any contract relating to an arrangement for the benefit of the employees of the $(e)$ Company (or any of its subsidiary undertakings) which does not award him any privilege or benefit not generally awarded to the employees to whom the arrangement relates; and
  • any proposal concerning the purchase or maintenance of insurance for the benefit of $(f)$ persons including directors.

Subject to the interest of a director being duly declared, a contract entered into by or on behalf of the Company in which any director is any way interested shall not be avoided nor shall any director be liable to account to the Company for any benefit realised as a result of the contract.

A director shall not vote or be counted in the quorum in relation to a resolution of concerning his own appointment (including fixing or varying its terms), or the termination of his own appointment.

Where proposals are under consideration concerning the appointment (including fixing or varying its terms) or the termination of the appointment of two or more directors, a separate resolution may be put in relation to each director and in that case, each director concerned (if not otherwise debarred from voting) is entitled to vote.

4.13 Authorisation of conflicts of interest

Where a situation occurs or is anticipated to occur which gives rise or may give rise to a conflict of interest (excluding a conflict of interest arising in relation to a transaction or arrangement with the company) on the part of any director (a "Conflicted Director") (other than a situation which cannot reasonably be regarded as likely to give rise to a conflict of interest), the matter shall be referred to the directors other than the Conflicted Director (the "Non-Conflicted Directors").

The Non-Conflicted Directors shall meet to consider the matter as soon as possible after the matter is referred to them and they have received all relevant particulars relating to the situation. The quorum for a meeting of the Non-Conflicted Directors shall be the same as for a meeting of the board.

The Non-Conflicted Directors have authority to authorise any matter which gives rise to the conflict of interest concerned on such terms as they think fit. Any such terms may be varied by the Non-Conflicted Directors and the Non-Conflicted Directors may revoke such authority at any time insofar as it has not already been acted on. The Non-Conflicted Directors shall communicate their decision promptly to each Conflicted Director.

A Conflicted Director shall not be entitled to any information which is relevant to the matter giving rise to the conflict of interest except to the extent authorised by the Non-Conflicted Directors.

Where a matter giving rise to a conflict of interest is authorised by the Non-Conflicted Directors, the Conflicted Director shall be released from any duty to disclose to the Company any confidential information relating to the matter in question which he receives or has received from a third party; and save as otherwise determined by the Non-Conflicted Directors at the time when they authorise the matter, not be accountable to the Company for any benefit which he derives from such matter (excluding a benefit conferred on the director by a third party by reason of his being a director of the Company or by reason of his doing or not doing anything as a director of the Company).

Any confidential information which a Conflicted Director has received from the Company or in his capacity as a director of the Company shall not be disclosed by him to any third party except insofar as permitted by the Non-Conflicted Directors.

The directors may authorise a matter which may give rise to a conflict of interest on the part of a person who is proposed to be appointed as a director to the board and any authorisation of such matter by the directors shall apply in relation to such person on his appointment as a director.

4.14 Benefits

The board may exercise all the powers of the Company to pay, provide or procure the grant of pensions or other retirement or superannuation benefits and death, disability or other benefits allowances or gratuities to any person who is or who has at any time been a director of the Company or in the employment or service of the Company or any Associated Company (as defined in the Articles) or of the predecessors in business of the Company or any Associated Company (or the relatives or dependants of any such person).

4.15 Powers of the board

The business of the Company shall be managed by the board which may exercise all the powers of the Company, subject to the provisions of the Statutes, the memorandum of association of the Company, the Articles and any special resolution of the Company. No special resolution or alteration of the memorandum of association of the Company or the Articles shall invalidate any prior act of the board which would have been valid if the resolution had not been passed or the alteration had not been made.

4.16 Borrowing powers

The board may exercise all the powers of the Company to borrow money and to mortgage or charge all or any part of its undertaking, property, assets (present and future) and uncalled capital and to issue debentures and other securities whether outright or as collateral security for any debt, liability or obligation of the Company or of any third party. The board shall restrict the borrowings of the Company and exercise all voting and other rights or powers of control exercisable by the Company in relation to its subsidiaries so as to secure (in relation to subsidiaries only so far as by such exercise it can secure) that the aggregate principal amount outstanding at any time in respect of all borrowings by the Group (as defined in the Articles) (exclusive of intra-group borrowing) shall not, without the previous sanction of the Company in general meeting, exceed a sum equal to 10 per cent. of the adjusted share capital and reserves, provided that prior to the publication of an audited balance sheet of the Company such aggregate principal amount shall be limited to 10 per cent. of the amount paid up or credited as paid up (whether in respect of nominal value or premium) on the allotted or issued share capital of the Company.

For this purpose, the adjusted capital and reserves means the aggregate of the amount paid up on the issued or allotted share capital of the Company and the amount standing to the credit of the reserves of the Group (as defined in the Articles) (including share premium account, capital redemption reserve fund, property revaluation reserve and unappropriated balance of investment or grants), after adding or deducting any balance standing to the credit or debit of the Group's profits and loss account, all as shown in the relevant balance sheet but adjusted as may be appropriate in respect of any variation in the amount of the paid up share capital, the share premium account or capital redemption reserve since the date of the relevant balance sheet, excluding amounts attributable to the share capital of any undertaking not owned by a Group Company (as defined in the Articles) and any sum set aside for taxation, and after deducting the amount of any distribution declared, recommended or made by any Group Company and after making such other adjustments (if any) as the board may consider appropriate or necessary and as are approved by the auditors.

4.17 Indemnity of officers

Subject to the provisions of and so far as may be permitted by and consistent with the Statutes each current or former director or other officer (other than an auditor) of the Company or any Associated Company may be indemnified out of the assets of the Company against:

  • any liability incurred by or attaching to him in connection with any negligence, $(a)$ default, breach of duty or breach of trust in relation to the Company other than in the case of a current or former director:
  • $(i)$ any liability to the Company or any Associated Company; and
  • $(ii)$ any liability of the kind referred to in section 234(3) of the Act; and
  • any liability incurred by or attaching to him in connection with the activities of the $(b)$ Company or any Associated Company in its capacity as a trustee of an occupational pension scheme (as defined in section 235(6) of the Act) other than a liability of the kind referred to in section 235(3) of the Act; and
  • any other liability incurred by or attaching to him in the actual or purported execution $(c)$ and/or discharge of his duties and/or the exercise or purported exercise of his powers.

For the purpose of this Article, references to "liability" shall include all costs and expenses incurred by the current or former director or other officer (other than an auditor) in relation thereto.

Subject to the provisions of and so far as may be permitted by the Statutes, the board may exercise all the powers of the Company to:

provide any current or former director or other officer (other than an auditor) $(a)$ of the Company with funds to meet expenditure incurred or to be incurred by him in defending any criminal or civil proceedings in connection with any alleged negligence, default, breach of duty or breach of trust by him in relation to the Company or an Associated Company, or in connection with any application for relief under the provisions mentioned in section 205(5) of the Act; and

$(b)$ do anything to enable any such person to avoid incurring expenditure,

but so that the terms set out in section 205(2) of the Act shall apply to any such provision of funds or other things so done. For the purpose of this Article references to "director" in section 205(2) of the Act shall be deemed to include references to a former director or other officer (other than an auditor) of the Company.

The board may purchase and maintain for or for the benefit of any person who holds or has at any time held a relevant office (as defined in the Articles), insurance against any liability or expense incurred by him in relation to the Company or any Associated Company or any third party in respect of any act or omission in the actual or purported discharge of his duties or otherwise in connection with holding his office.

418 Delegation to individual Directors

The board may entrust to and confer upon any director any of its powers, authorities and discretions (with power to sub-delegate) on such terms and conditions as it thinks fit and may revoke or vary all or any of them, but no person dealing in good faith shall be affected by any revocation or variation.

4.19 Committees

The board may delegate any of its powers, authorities and discretions (with power to subdelegate) including without prejudice to the generality of the foregoing all powers, authorities and discretions whose exercise involves or may involve the payment of remuneration to, or the conferring of any other benefit on, all or any of the directors to any committee consisting of such person or persons (whether directors or not) as it thinks fit, provided that the majority of the members of the committee are directors and that no meeting of the committee shall be quorate for the purpose of exercising any of its powers, authorities or discretions unless a majority of those present are directors.

4.20 Board meetings

The board may meet for the despatch of business, adjourn and otherwise regulate its meetings as it thinks fit.

$4.20.1$ Notice of board meetings

Notice of a board meeting shall be deemed to be properly given to a director if it is given to him personally or by word or mouth or sent in hard copy form to him at his last known address or any other address given by him to the Company for this purpose or sent in electronic form to him at an address given by him to the Company for this purpose.

4.20.2 Ouorum

The quorum necessary for the transaction of the business of the board may be fixed by the board and, unless so fixed at any other number, shall be two. Subject to the provisions of the Articles, any director who ceases to be a director at a board meeting may continue to be present and to act as a director and be counted in the quorum until the termination of the board meeting if no other director objects and if otherwise a quorum of directors would not be present.

4.20.3 Votina

Questions arising at any meeting shall be determined by a majority of votes. In the case of an equality of votes the chairman of the meeting shall have a second or casting vote.

4.20.4 Telephone and video conference meetings

A meeting of the board may consist of a conference between directors some or all of whom are in different places provided that each director who participates is able:

  • to hear each of the other participating directors addressing the meeting; and $(a)$
  • if he wishes, to address all of the other participating directors simultaneously, $(b)$ whether by conference telephone or by video conference or by any other form of communications equipment (whether in use when the Articles are adopted or developed subsequently) or by a combination of any such methods.

A meeting held in this way is deemed to take place at the place where the largest group of participating directors is assembled or, if no such group is readily identifiable, at the place from where the chairman of the meeting participates.

4.20.5 Resolutions in writing

A resolution in writing signed by all the directors entitled to notice of a meeting of the board and to attend such meeting, count in the quorum and vote on such resolution shall be as valid and effective as if it had been passed at a meeting of the board duly called and constituted provided that the number of directors signing the resolution is not less than the number of directors required for a quorum necessary for the transaction of the business of the board. The resolution may be contained in one document or in several documents in like form, each signed or approved by one or more of the directors concerned.

$4.21$ Distribution of realised capital profits

At any time when the Company has given notice in the prescribed form (which has not been revoked) to the registrar of companies of its intention to carry on business as an investment company (a "Relevant Period") distribution of the Company's capital profits shall be prohibited. The board shall establish a reserve to be called the capital reserve. During a Relevant Period all surpluses arising from the realisation or revaluation of investments and all other monies realised on or derived from the realisation, payment off of or other dealing

with any capital asset in excess of the book value thereof and all other monies which are considered by the board to be in the nature of accretion to capital shall be credited to the capital reserve. Subject to the Statutes, the board may determine whether any amount received by the Company is to be dealt with as income or capital or partly one way and partly the other. During a Relevant Period, any loss realised on the realisation or payment off of or other dealing with any investments or other capital assets and, subject to the Statutes, any expenses, loss or liability (or provision therefor) which the board considers to relate to a capital item or which the board otherwise considers appropriate to be debited to the capital reserve shall be carried to the debit of the capital reserve. During a Relevant Period, all sums carried and standing to the credit of the capital reserve may be applied for any of the purposes for which sums standing to any revenue reserve are applicable except and provided that notwithstanding any other provision of these Articles during a Relevant Period no part of the capital reserve or any other money in the nature of accretion to capital shall be transferred to the revenue reserves of the Company or be regarded or treated as profits of the Company available for distribution (as defined by section 830(2) of the Act) or be applied in paying dividends on any shares in the Company. In periods other than a Relevant Period any amount standing to the credit of the capital reserve may be transferred to the revenue reserves of the Company or be regarded or treated as profits of the Company available for distribution (as defined by section 830(2) of the Act) or be applied in paying dividends on any shares in the Company.

4.22 Duration of the Company

The Directors shall put an ordinary resolution to the annual general meeting of the Companies in 2018 and, if passed, to every fifth subsequent annual general meeting, proposing that each Company should continue as a VCT for a further five year period. If any such ordinary resolution is not passed, the Directors shall draw up proposals for the reorganisation, reconstruction or voluntary winding up of the Company for submission to the members of the Company at general meeting to be convened by the Directors on a date not more than four months after such annual general meeting. Implementation of the proposals will require the approval of members by special resolution.

5 CREST

CREST is a paperless settlement procedure enabling securities to be evidenced otherwise than by a certificate and transferred otherwise than by a written instrument. The Ordinary Shares and "C" Shares have been made eligible for settlement in CREST by means of a resolution of the Boards of each of the Companies, with the necessary notice having been given to all members of the Company at that time, as contemplated by the Uncertificated Securities Regulations 2001.

6 Directors' interests

  • As at the date of this document and on Admission the interests of the Directors and their $6.1$ immediate families (all of which are beneficial) in the share capital of the Companies which:
  • 6.1.1 are or will be notified to the Companies in accordance with rule 3 of the Disclosure and Transparency Rules ("DTR 3") by each Director; or
  • 6.1.2 are interests of a connected person (within the meaning in DTR 3) of a Director which are or will be required to be disclosed under paragraph 6.1.1 above and the existence of which is known to or could with reasonable diligence be ascertained by that Director;

are or are expected to be as follows:

As at the date of this
Document
After the Offers have
closed
Director Number of
Ordinary
Shares
Number of 'C'
Shares
Number of
Ordinary
Shares
Number of
'C' Shares
Ventus David Pinckney 10,300 2,600 10,105 2,600
David Williams nil nil nil nil
Richard Abbott nil nil nil nil
Ventus 2 Alan Moore 16,061 10,400 15,866 10,400
Colin Wood 10,284 5,200 10,089 5,200
Paul Thomas 10,284 5,200 10,089 5,200

At the date of this document and after the Offers have closed, the Companies are aware of 6.2 the following persons who are or will hold, directly or indirectly, voting rights representing 3% or more of the issued share capital of the Companies to which voting rights are attached (assuming full take up under the Tender Offers and full subscription under the Offers):

As at the date of this Document
--------------------------------- -- --
Name Number of
Ordinary
Shares
Percentage of
voting rights of
Ordinary
Shares
Number of 'C'
Shares
Percentage of
voting rights
of the 'C'
Shares
Ventus Heartwood
Nominees
Limited
1,917,400 11.7% Nil Nil
Ventus 2 N/A N/A N/A N/A N/A
After the Offers have closed
Name Number of
Ordinary
Shares
Percentage of
voting rights of
Ordinary
Shares
Number of 'C'
Shares
Percentage of
voting rights
of the 'C'
Shares
Ventus Heartwood
Nominees
Limited
1,881,051 $9.9\%$ Nil Nil
Ventus 2 N/A N/A N/A N/A N/A
  • Save as disclosed in paragraphs 6.1 and 6.2 above, the Companies are not aware of any 6.3 person who will, immediately following Admission, hold (for the purposes of rule 5 of the Disclosure and Transparency Rules ("DTR 5")) directly or indirectly voting rights representing 3% or more of the issued share capital of either Company to which voting rights are attached or could, directly or indirectly, jointly or severally, exercise control over either Company.
  • The persons, including the Directors, referred to in paragraphs 6.1 and 6.2 above, do not 6.4 have voting rights in respect of the share capital of either of the Companies (issued or to be issued) which differ from any other Shareholder.
  • The Companies and the Directors are not aware of any arrangements, the operation of which 6.5 may at a subsequent date result in a change of control of the Companies.
  • No Director has any interest in any transactions which are or were unusual in their nature or 6.6 conditions or which are or were significant to the business of the Companies and which were effected by the Companies in the current or immediately preceding financial year or which were effected during an earlier financial year and which remain in any respect outstanding or unperformed.
  • Although no conflicts have arisen prior to the date of this document, Alan Moore has, 6.7 pursuant to section 175 of the Act declared a potential conflict of interest arising in respect of his non executive directorship of Partnerships for Renewables Limited, which develops smallto-mid scale renewable projects in partnership with public sector bodies. Save as set out in this paragraph, there are no potential conflicts of interest between any duties owed to the Companies by the Directors and their private and/or other duties.
  • In addition to their directorships of the Companies, the Directors currently hold, and have 6.8 during the five years preceding the date of this document held, the following directorships, partnerships or been a member of the senior management:
Name Position Name of company/
partnership
Position still held
(Y/N)
David
Pinckney
Director DP European Property
Limited
N
Director Albion Development VCT
plc
Y
Director Syndicate Asset
Management Plc
N
Director Ventus 3 N (company dissolved)
Director The Access Fund
General Partner Limited
N (company dissolved)
Director Access Fund (Nominee)
Limited
N (company dissolved)
Director KleenAir Systems
International plc
N
David
Williams
Director Eco2 Limited Υ
Director Tidal Energy Limited Υ
Director Eco2 Marine Energy
Limited
Y
Director Fochriw Renewable
Energy Limited
Υ
Director Greenscares Renewable
Energy Limited
Υ
Director Glyncorrwg Renewable
Energy Limited
Y
Director Eco2 Lincs CHP Limited Y
Director Eco2 Biomass Limited Y
Director Eco2 North Lincs Limited Υ
Director Eco2 Central Limited Y
Director Eco2 Espana Limited Y
Director Eco2 Hatton Limited Y
Director Hatton Windpower
Limited
Y
Director Eco2 Aranda Limited Y
Director Eco2 Medina Limited Y
Position Name of company/
partnership
Position still held
(Y/N)
Director Eco2 Rioja Limited Y
Director Eco2 Romania Limited Y
Director Eco2 Eastern Limited Y
Director Eco 2 Renewables
Limited
Y
Director Eco2 Southern Limited Y
Director Eco2 Northern Limited Y
Director Eco2 Western Limited Y
Director Tidal Energy
Developments North
Wales Limited
Y
Director Tidal Energy
Developments South
Wales Limited
Y
Non Executive
Director
Barrington Energy Group
Ltd
Y
Director Boganlea Renewable
Energy Limited
Y
Director Renewable Energy
Association
Y
Director Eco-5 Limited N
Director Western Bio-Energy
(Fuels) Limited
N
Director British Biogen Limited N (company dissolved)
Director Lyme & Wood Power
Limited
Ν
Director Berwick Farm Power
Limited
Ν
Director Eco2 LFG Power Limited N
Director Frampton Power Limited Ν
Director Vigo Utopia Power
Limited
N
Name Position Name of company/
partnership
Position still held
(Y/N)
Director Eco2 Cambrian Limited N
Director Cambrian Renewable
Energy Limited
N
Director Eco2 Lincs Limited N
Director Lincolnshire Biomass
Limited
N
Director Eco2 Hatton Limited N
Director Redimo LFG Power
Limited
N
Richard
Abbott
Director Access Fund (Nominee)
Limited
N (company dissolved)
Director Carter Lane Limited Υ
Director City of London Financial
Services Limited
Υ
Director Hardy (Underwriting
Agencies) Limited
Υ
Director Hardy Underwriting
Group Plc
N
Director I-Mob Holdings Limited Υ
Director I-Mob Plc Υ
Member Inside Track 3 LLP Y
Member Inside Track 2 LLP Υ
Director KF Corporate Finance
Limited
N
Director Marechale Capital Plc N
Director MEM Capital Limited N
Director MEM Consumer Finance
Limited
N
Designated
Member
Quercus Capital LLP N (partnership
dissolved)
Director Ropley Associates
Limited
Υ
Name Position Name of company/
partnership
Position still held
(Y/N)
Designated
Member
SHF Asset Management
LLP
N
Director Professions Funding
Limited
N
Director SHF London Limited N (company dissolved)
Director SHF Energy Limited N (company dissolved)
Director St Helens Finance Plc Υ
Director The Access Fund
General Partner Limited
N (company dissolved)
Member RCP Carry LLP N
Alan Moore Director Cowrie Limited Y (proposal to strike off
company)
Director Ventus 3 N (company dissolved)
Director Partnerships For
Renewables Limited
Y
Director Renewable UK
Association
N
Colin Wood Director Ventus 3 N (company dissolved)
Director The Century Building
Society
Υ
Director Ventus N
Paul
Thomas
Director Pi Capital (Holdings) Ltd Y
Director Private Investor Capital
Limited
Y
Director Ventus 3 N (company dissolved)
Director Pi Capital Partners 1
Limited
Y
Director Pi Capital Partners 2
Limited
Y
Director Pi Capital Limited Y
Director Seraphim Capital (GP)
Limited
Υ
Director Pi Capital Partners 3
Limited
Y.
Name Position Name of company/
partnership
Position still held
(Y/N)
Director Newco PST Limited Y (proposal to strike off
company)
Member ECI Partners LLP Ν
Designated
member
Seraphim Capital
(General Partner)
Limited Liability
Partnership
Y

The business address of all the Directors is Berger House, 36-38 Berkeley Square, London W1J SAE.

  • 6.9 None of the Directors has at any time within the last five years:
  • 6.9.1 had any convictions (whether spent or unspent) in relation to offences involving fraud or dishonesty;
  • 6.9.2 been the subject of any official public incrimination and/or sanctions by statutory or regulatory authorities (including designated recognised professional bodies) or been disqualified by a court from acting as a director of a company or from acting in the management or conduct of the affairs of any company;
  • 6.9.3 been a director or senior manager of a company which has been put into receivership, compulsory liquidation, administration, company voluntary arrangement or any composition or arrangement with its creditors generally or any class of its creditors; or
  • 6.9.4 been the subject of any bankruptcy or been subject to an individual voluntary arrangement or a bankruptcy restrictions order.
  • There are no arrangements or understandings with major shareholders, customers, suppliers 6.10 or others, pursuant to which any Director was selected as a member of the administrative, management or supervisory bodies or member of senior management.
  • There are no restrictions agreed by any Director on the disposal within a certain period of $6.11$ time of their holdings in the Companies' securities.
  • There are no outstanding loans or guarantees provided by either of the Companies for the 6.12 benefit of any of the Directors nor are there any loans or any guarantees provided by any of the Directors for either of the Companies.

$\overline{7}$ Directors' remuneration and service agreements

  • In the financial year ended 28 February 2011, the aggregate remuneration of the Directors $7.1$ from Ventus was £65,000 and from Ventus 2 £58,448. The aggregate remuneration of the Directors in respect of the current financial year (under the arrangements in force at the date of this document) is expected to be £65,000 for each of Ventus and Ventus 2.
  • The Directors, other than David Pinckney and Alan Moore, are entitled to receive £20,000 per $7.2$ annum from Ventus and £20,000 per annum from Ventus 2. David Pinckney, as Chairman, is entitled to receive £25,000 per annum from Ventus and Alan Moore, as Chairman, £25,000 per annum from Ventus 2.
  • None of the Directors has a service contract with either of the Companies and no such $7.3$ contract is proposed. Each of the Directors has been appointed on terms which can be terminated by either party on three months' notice.
  • The Directors are not entitled to compensation on termination of their directorships and no 7.4 amounts have been set aside or accrued for their pensions, retirement or similar benefits.

$\mathbf{8}$ The Companies and their subsidiaries

Ventus does not have any subsidiaries. Ventus 2 has 2 subsidiaries, Redevan Energy Limited and Spurlens Rig Wind Limited, both of which are incorporated and registered in England and Wales, and holds 60 per cent. of the voting rights in each of these companies.

9 Offer Agreement

Under an offer agreement dated 3 February 2012, between the Companies, the Directors, Temporis and the Sponsor, the Sponsor has agreed to act as sponsor to the Offers (the "Offer The Companies have given customary representations, warranties and Agreement"). indemnities to the Sponsor. The Sponsor may terminate this agreement at any time prior to Admission if it becomes aware of any material breach of warranty prior to Admission.

The City Code 10

$10.1$ Mandatory takeover bids

The City Code on Takeovers and Mergers (the "Code") applies to all takeover and merger transactions in relation to the Companies, and operates principally to ensure that shareholders are treated fairly and are not denied an opportunity to decide on the merits of a takeover, and that shareholders of the same class are afforded equivalent treatment. The Code provides an orderly framework within which takeovers are conducted and the Panel on Takeovers and Mergers has now been placed on a statutory footing. The Takeovers Directive was implemented in the UK in May 2006 and since 6 April 2007 has effect through the

Companies Act 2006. The Directive applies to takeovers of companies registered in an EU member state and admitted to trading on a regulated market in the EU or EEA.

The Code is based upon a number of General Principles which are essentially statements of standards of commercial behaviour. General Principle One states that all holders of securities of an offeree company of the same class must be afforded equivalent treatment and if a person acquires control of a company the other holders of securities must be protected. This is reinforced by Rule 9 of the Code which requires a person, together with persons acting in concert with him, who acquires shares carrying voting rights which amount to 30% or more of the voting rights to make a general offer. "Voting rights" for these purposes means all the voting rights attributable to the share capital of a company which are currently exercisable at a general meeting. A general offer will also be required where a person who, together with persons acting in concert with him, holds not less than 30% but not more than 50% of the voting rights, acquires additional shares which increase his percentage of the voting rights. Unless the Panel consents, the offer must be made to all other shareholders, be in cash (or have a cash alternative) and cannot be conditional on anything other than the securing of acceptances which will result in the offeror and persons acting in concert with him holding shares carrying more than 50% of the voting rights.

There are not in existence any current mandatory takeover bids in relation to the Companies.

$10.2$ Squeeze out

Section 979 of the Act provides that if, within certain time limits, an offer is made for the share capital of either Company, the offeror is entitled to acquire compulsorily any remaining shares if it has, by virtue of acceptances of the offer, acquired or unconditionally contracted to acquire not less than 90% in value of the shares to which the offer relates and in a case where the shares to which the offer relates are voting shares, not less than 90%, of the voting rights carried by those shares. The offeror would effect the compulsory acquisition by sending a notice to outstanding shareholders telling them that it will compulsorily acquire their shares and then, six weeks from the date of the notice, pay the consideration for the shares to the relevant Company to hold on trust for the outstanding shareholders. The consideration offered to shareholders whose shares are compulsorily acquired under the Act must, in general, be the same as the consideration available under the takeover offer.

$10.3$ Sell out

Section 983 of the Act permits a minority shareholder to require an offeror to acquire its shares if the offeror has acquired or contracted to acquire shares in either Company which amount to not less than 90%, in value of all the voting shares in the relevant Company and carry not less than 90%, of the voting rights. Certain time limits apply to this entitlement. If a shareholder exercises its rights under these provisions, the offeror is bound to acquire those shares on the terms of the offer or on such other terms as may be agreed.

11 Notifications of shareholdings

The provisions of DTR 5 will apply to the Companies and their shareholders. DTR 5 sets out the notification requirements for shareholders and the Companies where the voting rights of a shareholder exceed, reach or fall below the threshold of 3% and each 1% thereafter up to 100%. DTR 5 provides that disclosure by a shareholder to the relevant Company must be made within two trading days of the event giving rise to the notification requirement and the relevant Company must release details to a regulatory information service as soon as possible following receipt of a notification and by no later than the end of the trading day following such receipt.

$12$ Material contracts

The following are the only contracts (not being contracts entered into in the ordinary course of business) which have been entered into by the Companies in the two years immediately preceding the date of this document or which are expected to be entered into prior to Admission and which are, or may be, material or which have been entered into at any time by the Companies and which contain any provision under which either Company has any obligation or entitlement which is, or may be, material to the relevant Company as at the date of this document:

  • the Offer Agreement, details of which are set out in paragraph 9 above; $12.1$
  • The Management Agreement dated 26 August 2011 (effective on 12 September 2011) $12.2$ between (i) Ventus and (ii) the Manager pursuant to which the Manager will provide or procure the provision of certain investment management services to Ventus for a fee payable quarterly in advance on 1 December, 1 March, 1 June and 1 September in each year (together with any applicable VAT) of an amount equal to 2.5% per annum of the Net Asset Value of Ventus.
  • The Manager will also provide administrative services to Ventus. Under the Management $12.3$ Agreement, Ventus' operating expenses, including all sums payable under the Management Agreement save for the performance incentive fee described below and exclusive of irrecoverable VAT, will not exceed 3.6% of Ventus' audited Net Asset Value at the relevant year end (save that the Manager's liability will not exceed the amount of its fees).

The Management Agreement also contains the Manager's incentive fee arrangement. No incentive fee will be payable until Ventus has provided a cumulative return to investors in the form of growth in Net Asset Value plus payment of dividends (the "Return") of 60p per Ordinary Share. Thereafter, the incentive fee, which is payable in cash, is calculated as 20% of the amount by which the Return in any accounting period exceeds 7p per share. The incentive fee is exclusive of VAT. In the event that the full payment of the incentive fee plus irrecoverable VAT in any accounting period would cause the annual dividend payments made by Ventus in that accounting period to fall below 6p per Ordinary Share, the incentive fee for that accounting period will be deferred as necessary so that the payment of the incentive fee does not cause the annual dividend payments made by Ventus for that period to fall below 6p per Ordinary share. Any balance unpaid will be carried forward and paid at the end of the following accounting period or periods. Interest will be added to any deferred payments calculated at the prevailing base lending rate of HSBC Bank plc. The incentive fee will be payable annually.

The Management Agreement is terminable by either party on 12 months' written notice given at any time after 12 September 2014 subject to earlier termination by any party in the event of, inter alia, Ventus or the Manager having a receiver, administrator or liquidator appointed or committing a material breach of the Management Agreement, or by Ventus if it ceases to be a VCT for tax purposes or if the Manager shall cease to be able to carry out its obligations under the Agreement lawfully. If terminated by Ventus without due cause or on less than the requisite notice, the Manager shall be entitled to receive an amount representing the fees which would have been payable during the period for which notice shall not have been given, calculated by reference to the previous quarterly payment. The Incentive fee will continue to be payable if the Management Agreement is terminated other than by reason of a default on the part of the Manager. The Management Agreement will terminate automatically, without compensation, upon the passing of a resolution for the voluntary liquidation, reconstruction or reorganisation of Ventus.

The Management Agreement dated 26 August 2011 (effective on 12 September 2011) $12.4$ between (i) Ventus 2 and (ii) the Manager pursuant to which the Manager will provide or procure the provision of certain investment management services to Ventus 2 for a fee payable quarterly in advance on 1 December, 1 March, 1 June and 1 September in each year (together with any applicable VAT) of an amount equal to 2.5% per annum of the Net Asset Value of Ventus 2. In connection with taking over the investment management of Ventus 2, Temporis has agreed to waive investment management fees amounting to £530,000 in relation to the Ventus 2 Ordinary Share fund.

The Manager will also provide administrative services to Ventus 2. Under the Management Agreement, Ventus 2's operating expenses, including all sums payable under the

Management Agreement save for the performance incentive fee described below and exclusive of irrecoverable VAT, will not exceed 3.6% of Ventus 2's audited Net Asset Value at the relevant year end (save that the Manager's liability will not exceed the amount of its fees).

The Management Agreement also contains the Manager's incentive fee arrangement. No incentive fee will be payable until Ventus 2 has provided a cumulative return to investors in the form of growth in Net Asset Value plus payment of dividends (the "Return") of 60p per Ordinary Share. Thereafter, the incentive fee, which is payable in cash, is calculated as 20% of the amount by which the Return in any accounting period exceeds 7p per share. The incentive fee is exclusive of VAT. In the event that the full payment of the incentive fee plus irrecoverable VAT in any accounting period would cause the annual dividend payments made by Ventus 2 in that accounting period to fall below 6p per Ordinary Share, the incentive fee for that accounting period will be deferred as necessary so that the payment of the incentive fee does not cause the annual dividend payments made by Ventus 2 for that period to fall below 6p per Ordinary share. Any balance unpaid will be carried forward and paid at the end of the following accounting period or periods. Interest will be added to any deferred payments calculated at the prevailing base lending rate of HSBC Bank plc. The incentive fee will be payable annually.

The Management Agreement is terminable by either party on 12 months' written notice given at any time after 12 September 2014 subject to earlier termination by any party in the event of, inter alia, Ventus 2 or the Manager having a receiver, administrator or liquidator appointed or committing a material breach of the Management Agreement, or by Ventus 2 if it ceases to be a VCT for tax purposes or if the Manager shall cease to be able to carry out its obligations under the Agreement lawfully. If terminated by Ventus 2 without due cause or on less than the requisite notice, the Manager shall be entitled to receive an amount representing the fees which would have been payable during the period for which notice shall not have been given, calculated by reference to the previous quarterly payment. The Incentive fee will continue to be payable if the Management Agreement is terminated other than by reason of a default on the part of the Manager. The Management Agreement will terminate automatically, without compensation, upon the passing of a resolution for the voluntary liquidation, reconstruction or reorganisation of Ventus 2.

A Termination and Transfer Agreement dated 26 August 2011 ("TTA") in respect of $12.5$ investment management arrangements between Ventus (1), Ventus 2 (2), Climate Change Capital Limited ("CCC") (3), Climate Change Advisory Limited ("CCA") (4) and Climate Change Holdings Limited ("CCH") (together "the CC Companies ") (5) whereby the investment management agreements (as varied and supplemented) entered into by the parties were terminated by mutual agreement with effect from 12 September 2011. Under the TTA

arrangements were made for the orderly transfer of the investment management services to Temporis and indemnities were given to the CC Companies by Ventus and Ventus 2 in respect of the transfer of employment of certain employees to Temporis. The TTA is in full and final settlement of all claims that either party may have against the others arising out of or in connection with the said management arrangements.

  • An agreement dated 3 February 2012 between (1) Ventus 2 (2) Ventus and (3) the Manager 12.6 relating to the allocation of investment opportunities as described under "Investment Allocation Agreement" in Part I of this document.
  • A client agreement dated 15 March 2005 between (1) Ventus, (2) Climate Change Capital $12.7$ Limited and (3) Cazenove Capital Management Limited ("Cazenove"), whereby Cazenove has agreed to advise Ventus in relation to investment in fixed interest securities in return for fees paid quarterly at the end of each of March, June, September and December. The quarterly fee is calculated as the average monthly net asset value of investments in fixed interest securities placed by Cazenove $\times$ 0.175%/4 (plus VAT). There is no minimum fee. The agreement may be terminated by the parties on written notice.
  • A client agreement dated 11 January 2006 between (1) Ventus 2 (2) Climate Change Capital $12.8$ Limited and (3) Cazenove Capital Management Limited ("Cazenove"), whereby Cazenove has agreed to advise Ventus 2 in relation to investment in fixed interest securities in return for fees paid quarterly at the end of each of March, June, September and December. The quarterly fee is calculated as the average monthly net asset value of investments in fixed interest securities placed by Cazenove $\times$ 0.175%/4 (plus VAT). There is no minimum fee. The agreement may be terminated by the parties on written notice.
  • A loan agreement dated 21 October 2011 between (1) Temporis and (2) Ventus 2 whereby $12.9$ Temporis granted to Ventus 2 a loan of £530,000 (the "Loan") to be used exclusively to fund Ventus 2's working capital requirements or as otherwise agreed with Temporis. The Loan is interest free. For so long as the Loan is outstanding, Temporis has agreed to waive the management fee payable under the Management Agreement referred to at paragraph 12.4 above.
  • Save as otherwise disclosed in this paragraph 12, as at the date of this document there are 12.10 no contracts (not being contracts entered into in the ordinary course of business) entered into by the Companies which contain any provision under which the Companies have any obligation or entitlement which is material to the Companies.

13 Related party transactions

Other than the offer agreement referred to at paragraph 9 above, the TTA referred to at paragraph 12.5 above and the loan agreement referred to at paragraph 12.9 above, there have been no related party transactions relating to the Companies since 1 March 2008.

Specific Disclosures in respect of Closed Ended Funds 14

  • The Manager intends to structure the investment of the Ventus and Ventus 2 Ordinary 14.1 Share funds in accordance with the Companies' object of spreading investment risk and in accordance with their respective published investment policies as set out in the sections of Part I entitled "About Ventus and Ventus 2" and "Investment and Borrowing Policy". This investment policy is in line with the VCT rules and neither of the Companies will deviate from them, in any material respect. Further, in accordance with the VCT rules, the Companies will invest in ordinary shares, in some cases a small number of preference shares where applicable, and always in accordance with such rules.
  • The Companies are not regulated by the FSA (or equivalent overseas regulator) although 14.2 VCTs need to meet a number of conditions set out in tax legislation in order for the VCT tax reliefs to apply, and comply with the rules and regulations of the UK Listing Authority.
  • Each of the Companies is regulated by the VCT rules in respect of the investments they 14.3 make as described in Part II of this document. Each of the Companies has appointed PricewaterhouseCoopers LLP as its VCT status monitor. PricewaterhouseCoopers LLP will report twice yearly to the Companies as a part of their annual and interim reporting obligations. In respect of any breach of the VCT rules, the Company, together with PricewaterhouseCoopers LLP, will report directly and immediately to HMRC to rectify the breach and announce the same immediately to each of the Companies' shareholders via a Regulatory News Service provider. In addition, the Companies intend to maintain the investment approach as detailed in the section entitled "The Ventus Approach" in part I of this document.
  • Neither Company will invest more than 15% of its gross assets in any single company, in 14.4 accordance with the VCT legislation, nor will either Company control the companies in which it invests in such a way as to render them subsidiary undertakings until it has obtained approval as a VCT from HMRC.
  • The Companies will not conduct any trading activity which is significant in the context of 14.5 their groups (if any) as a whole. No more than 10%, in aggregate, of the value of the total assets of the Company at the time an investment is made may be invested in other listed closed-ended investment funds, except where those funds themselves have published investment policies which permit them to invest no more than 15% of their total assets in other listed closed-ended investment funds. The Companies will, at all times, invest and manage their assets in a way which is consistent with their objective of spreading investment risk and in accordance with their published investment policy. The Companies

will also invest and manage their assets to ensure compliance with the VCT rules and restrictions.

  • Each Board must be able to demonstrate that they will act independently of the Manager. A 14.6 majority of the Board (including the Chairman) must not be directors, employees, partners, officers, or professional advisors of or to, the Manager or any company in the Manager's group or any other investment entity which they manage.
  • 14.7 Neither Company will invest directly in physical commodities.
  • Neither Company will invest in any property collective investment undertaking. 14.8
  • Neither Company will invest in any derivatives, financial instruments, money market 14.9 instruments or currencies other than for the purposes of efficient portfolio management (i.e. solely for the purpose of reducing, transferring or eliminating investment risk in the underlying investments of the collective investment undertaking, including any technique or instrument used to provide protection against exchange and credit risks).
  • The Manager is responsible for the determination and calculation of the Net Asset Value of 14.10 the Companies on a quarterly basis.
  • The net asset value of the Companies' investments will be determined half-yearly, 14.11 concurrent with the half-yearly and annual announcements (which are expected in October and June respectively) in accordance with the British Venture Capital Association's recommendations as set out in the BVCA notes of guidance. The value of investments will be determined according to their listing status. Quoted securities will be valued at midmarket price unless the investment is subject to restrictions or the holding is significant in relation to the share capital of a small quoted company, in which case a discount may be appropriate as per the BVCA guidelines. Unquoted investments will be valued on a cost basis in the first year and reviewed subsequently on the basis of the progression of the business. The net asset value of the Companies will be communicated to investors in Ventus and Ventus 2 through a Regulatory News Service provider at the same frequency as the determinations.

In the event of any suspension, valuations are held at the suspended price and a view is taken with consideration to best market practice and information from advisers.

The Directors do not anticipate any circumstances arising under which the valuations may 14.12 be suspended. Should the determination of net asset value differ from that set out above then this will be communicated to investors in Ventus and Ventus 2 through a Regulatory News Service provider.

15 Information on Investment Managers and Advisers

$15.1$ Further information on Temporis Capital LLP

Temporis Capital LLP is regulated and authorised by the Financial Services Authority (no. 440925) and registered in England and Wales under number OC315077 and was

incorporated as an LLP on 7 September 2005 in the UK and operates under the Acts and the regulations made under those Acts. Temporis Capital LLP is domiciled in the UK and is a limited company. It is registered at Berger House, 36-36 Berkeley Square, London, W1J 5AE. The telephone number is 020 7491 9033.

Further information on Cazenove Capital Management Limited 15.2

Cazenove Capital Management Limited is regulated by the Financial Services Authority and registered in England and Wales under number 3017060 and was incorporated on 1 February 2005 in the UK and operates under the Acts and the regulations made under those Acts. It is domiciled in the UK and is a Limited company. It is registered at 12 Moorgate, London EC2R 6DA and the general telephone number is 020 7155 5600.

16 Working capital

  • Ventus is of the opinion that the working capital of Ventus is sufficient for its present $16.1$ requirements, that is, for at least the period of 12 months from the date of this document.
  • Ventus 2 is of the opinion that the working capital of the Ventus 2 Group is sufficient for its 16.2 present requirements, that is, for at least the period of 12 months from the date of this document.

17 Capitalisation and Indebtedness

The capitalisation and indebtedness of the Companies as at 31 December 2011 was as $17.1$ follows:

Ventus (£000) Ventus 2 (£000)
Indebtedness Nil 327
Shareholders' equity 27,786 25,211
Share capital 6,928 8,966
Reserves 11,917 482
Share Premium 8,941 15,763
Cash at bank 4,070 4,411

All of the indebtedness of the Companies is unsecured and unguaranteed. The Companies 17.2 have incurred no indirect or contingent indebtedness. Each Company has power to borrow under its articles of association, details of which are set out in the paragraph entitled "Borrowing powers" on page 107.

18 Corporate Governance

Each Board is accountable to shareholders for the governance of each Company's affairs and is committed to maintaining the highest standards of corporate governance. Accordingly, each Board has adopted the AIC Code of Corporate Governance and reports against the principles and recommendations of this Code and the relevant provisions of the UK Corporate Governance Code (the "Codes"). Considering the principles detailed in the Codes the Boards believe that, insofar as they are relevant to the size and structure of each Company's business, each Company as at the date of this document complies or explains non-compliance with the provisions of the Codes throughout the financial year ended 28 February 2011 (as detailed on pages 19 of Ventus' Annual Report and Accounts for the period ended 28 February 2011 and pages 22 of Ventus 2's Annual Report and Accounts for the period ended 28 February 2011, which can both be downloaded at www.ventusvct.com/financialreports.aspx.html. These Accounts are incorporated by reference.

Audit Committees

The Audit Committee of Ventus comprises David Pinckney (Chairman) and David Williams. The Audit Committee of Ventus 2 comprises Colin Wood (Chairman), Alan Moore and Paul Thomas. Each Committee meets twice a year to review the half-yearly report and annual financial statements before submission to each Board. The roles and responsibilities of the Audit Committees include reviewing each Company's internal controls and risk management systems, and monitoring auditor independence. The Audit Committees have primary responsibility for making recommendations on the appointment, reappointment and removal of the external Auditor of each Company.

The Audit Committees review the nature and extent of non-audit services provided by each Company's Auditor and ensure that the Auditor's independence and objectivity is safeguarded. The Auditor provides risk management advice and corporation tax services to the Companies. The Board is satisfied that the fees charged and work undertaken do not affect the Auditor's objectivity.

Nomination and Remuneration Committees

To date no Nomination or Remuneration Committees have been established. The establishment of a Nomination Committee is not anticipated as there are no current proposals to appoint any new Directors and recommendations for the re-election of Directors are considered by each Board. Matters relating to remuneration of Directors are considered by each Board and any Director is excluded from meetings whose purpose is the setting of his own remuneration.

19. Litigation

There are no governmental, legal or arbitration proceedings (including any such proceedings which are pending or threatened of which the Companies are aware) during the 12 months preceding the date of this document, which may have, or have had in the recent past, significant effects on either of the Company's or Ventus 2 Group's financial position or profitability.

20. General

  • The estimated costs and expenses relating to the Offers, assuming full take up under the $20.1$ Tender Offers and full subscription under the Offers, payable by each Company are estimated to amount to approximately £280,000 (inclusive of VAT) for Ventus and £230,000 (inclusive of VAT) for Ventus 2. The total net proceeds of the Offers, after all fees, are expected to be £2,720,000 (inclusive of VAT) for Ventus and £1,860,000 (inclusive of VAT) for Ventus 2 (assuming full take up under the Tender Offers and full subscription under the Offers).
  • Baker Tilly UK Audit LLP, chartered accountants of 2 Bloomsbury Street, London WC1B 3ST $20.2$ were auditors of the Companies in respect of the audited financial information set out in Part IV for the year ended 28 February 2009 and PKF (UK) LLP, chartered accountants of Farringdon Place, 20 Farringdon Road, London EC1M 3AP, were the auditors of the Companies in respect of the audited financial information set out in Part IV for the years ended 28 February 2010 and 28 February 2011. The auditors of the Companies have given unqualified audit reports on the statutory accounts of the Companies for those financial years referred to in Part IV within the meaning of section 495 of the Companies Act 2006. None of those reports contained any statements under section 237(2) or (3) of the Act. Statutory accounts of the Companies for those financial years have been delivered to the Registrar of Companies in England and Wales pursuant to section 242 of the Act.
  • The Companies shall take all reasonable steps to ensure that its auditors are independent of $20.3$ them and will obtain written confirmation from their auditors that they comply with guidelines on independence issued by their national accountancy and auditing bodies.
  • Howard Kennedy Corporate Services LLP's office address is at 19 Cavendish Square, London 20.4 W1A 2AW. Howard Kennedy Corporate Services LLP is regulated by the Financial Services Authority and is acting in the capacity as Sponsor to the Companies.
  • Howard Kennedy Corporate Services LLP has given and has not withdrawn its written consent 20.5 to the issue of this document with the inclusion of its name and references to it in the form and context in which they appear.
  • The statements attributed to the Manager in this document have been included in the form 20.6 and context in which they appear with the consent and authorisation of the Manager. The Manager accepts responsibility for those statements, and to the best of the knowledge and belief of the Manager (which has taken all reasonable care to ensure that such is the case)

those statements are in accordance with the facts and do not omit anything likely to affect the import of such information.

  • 20.7 The Companies do not assume responsibility for the withholding of tax at source.
  • The Directors believe that the Offers will result in a significant gross change in each $20.8$ Company, including an increase in its earnings and in the net assets of an amount that is equal to the net proceeds it receives under the Offers. Subject to the level of subscription of the Offers, an increase in net assets would have certain consequences, potentially including a reduction in the annual expenses ratio of each Company, increasing the size and range of investments which each Company could undertake and increasing the number of investments each Company would be required to make in order to meet the VCT eligibility rules.

21 Documents available for inspection

Copies of the following documents will be available for inspection during normal business hours on any weekday (Saturdays and public holidays excepted) at the registered office of each Company and at the offices of Howard Kennedy LLP, 19 Cavendish Square, London W1A 2AW whilst the Offer remains open:

  • $21.1$ the memorandum of association of each of the Companies and the Articles;
  • 21.2 the material contracts referred to in paragraph 12 above;
  • the interim results of each Company for the periods ending 31 August 2010 and 31 August $21.3$ 2011, and the annual accounts for the periods ending 28 February 2009, 28 February 2010 and 28 February 2011;
  • $21.4$ the consent letter referred to in paragraph 20.5 above; and
  • 21.5 this Prospectus.

Dated 3 February 2012

PART VI

TERMS AND CONDITIONS

  • $(a)$ The contract created by the acceptance of applications under the Offers will be conditional upon:
  • $(i)$ the Offer Agreement referred to in paragraph 9 of Part V becoming unconditional and not being terminated in accordance with its terms.
  • the passing of all the Resolutions set out in the relevant Notice. $(ii)$
  • The right is reserved by the Companies to present all cheques and bankers' drafts for $(b)$ payment on receipt and to retain surplus application monies pending clearance of successful applicants' cheques. The Companies also reserve the right to reject, in whole or in part, any application. If any application is not accepted in full or if any contract created by acceptance does not become unconditional, the application monies or, as the case may be, the balance thereof will be returned by crossed cheque in favour of the applicant through the post at the risk of the person entitled thereto. The Directors reserve the right to withdraw the Offer at any time prior to satisfaction of the conditions set out in paragraph (a) above.
  • By completing and delivering an Application Form you: $(c)$
  • offer to subscribe for the number of Ordinary Shares specified in your Application $(i)$ Form (or such lesser number for which your application is accepted) at the Offer Price on the terms of and subject to this document, including these terms and conditions, and the Memorandum and Articles of Association of the Companies;
  • $(ii)$ agree that, in consideration of the Companies agreeing that they will not issue or allot any Ordinary Shares which are subject to the Offers to any person other than by means of the procedures referred to in this document, your application shall not be revoked until after the close of the Offers and this paragraph shall constitute a collateral contract between you and the Companies which will become binding upon despatch by post to, or (in the case of delivery by hand) on receipt by, the Receiving Agents of your Application Form;
  • warrant that your remittance will be honoured on first presentation and agree that if $(iii)$ it is not so honoured you will not be entitled to receive a share certificate or have your CREST account credited, in respect of the Ordinary Shares applied for unless and until you make payment in cleared funds for such Ordinary Shares and such payment

is accepted by the Companies in their absolute discretion (which acceptance may be on the basis that you indemnify it against all costs, damages, losses, expenses and liabilities arising out of or in connection with the failure of your remittance to be honoured on first presentation) and you agree that, at any time prior to the unconditional acceptance by the Companies, it may (without prejudice to other rights) avoid the agreement to allot such Ordinary Shares and may allot such Ordinary Shares to some other person, in which case you will not be entitled to any payment in respect of such Ordinary Shares:

  • agree that if, following the issue of all or any Ordinary Shares applied for pursuant to $(iv)$ the Offer (the "Issued Ordinary Shares"), your remittance is not honoured on first presentation, the Issued Ordinary Shares may, forthwith upon payment by Temporis of the Offer Price of the Issued Ordinary Shares to the Companies, be transferred to Temporis at the Offer Price per Issued Ordinary Share and any director of Temporis or any director of the Sponsor is hereby irrevocably appointed and instructed to complete and execute all or any form(s) of transfer and/or any other documents in relation to the transfer of Issued Ordinary Shares to Temporis or such other person as Temporis may direct and to do all such other acts and things as may be necessary or expedient, for the purpose of or in connection with, transferring title to the Issued Ordinary Shares to Temporis, or such other person, in which case you will not be entitled to any payment in respect of such Ordinary Shares;
  • agree that, in respect of those Ordinary Shares for which your application has been $(v)$ received and is not rejected, acceptance of your application shall be constituted, at the election of the Companies either (i) by notification to the London Stock Exchange of the basis of allocation (in which case acceptance shall be on that basis) or (ii) by notification of acceptance thereof to the Receiving Agents;
  • (vi) agree that any monies returnable to you may be retained by the Receiving Agents pending clearance of your remittance and the completion of any verification of identity required by the Money Laundering Regulations 2007 and that such monies will not bear interest:
  • (vii) subject as provided in paragraphs (iii) and (iv) above, authorise the Receiving Agents to send a share certificate or credit your CREST account in respect of the number of Ordinary Shares for which your application is accepted and/or to send a crossed cheque for any monies returnable, by post, at the risk of the person entitled thereto, to the address of the person named as the applicant in the Application Form;

  • (viii) warrant that if you sign the Application Form on behalf of somebody else you have due authority to do so on behalf of that other person and such person will also be bound accordingly and will be deemed also to have given the confirmations, warranties and undertakings contained herein and undertake to enclose your power of attorney or a copy thereof duly certified by a solicitor with the Application Form;

  • agree that all applications, acceptances of applications and contracts resulting $(ix)$ therefrom under the Offers shall be governed by and construed in accordance with English law, and that you submit to the jurisdiction of the English Courts and agree that nothing shall limit the right of the Companies to bring any action, suit or proceedings arising out of or in connection with any such applications, acceptances of applications and contracts in any other manner permitted by law or in any court of competent jurisdiction;
  • confirm that in making such application you are not relying on any information or $(x)$ representation in relation to the Companies other than the information contained in this document and accordingly you agree that no person responsible solely or jointly for this document or any part thereof or involved in the preparation thereof shall have any liability for any such other information or representation;
  • (xi) authorise the Receiving Agents and/or Temporis, or any persons authorised by either of them, as your agent, to do all things necessary to effect registration of any Ordinary Shares subscribed by you into your name or into the name of any person in whose favour the entitlement to any such Ordinary Shares has been transferred and authorise any representative of the Receiving Agents or of Temporis to execute any document required therefor:
  • (xii) agree that, having had the opportunity to read this document, you shall be deemed to have had notice of all information and representations concerning the Companies contained herein:
  • (xiii) confirm and warrant that you have read and complied with paragraph (d) below;
  • (xiv) confirm that you have read the restrictions contained in paragraph (e) below and warrant as provided therein;
  • $(xv)$ warrant that you are not under the age of 18; and
  • (xvi) agree that all documents and cheques sent by post by or on behalf of the Companies or the Receiving Agents, will be sent at the risk of the person(s) entitled thereto.

  • No person receiving a copy of this document or an Application Form in any territory other $(d)$ than the United Kingdom may treat the same as constituting an invitation or offer to him, nor should he in any event use such Application Form unless, in the relevant territory, such an invitation or offer could lawfully be made to him or such Application Form could lawfully be used without contravention of any registration or other legal requirements. It is the responsibility of any person outside the United Kingdom wishing to make an application hereunder to satisfy himself as to full observance of the laws of any relevant territory in connection therewith, including obtaining any requisite governmental or other consents, observing any other formalities requiring to be observed in such territory and paying any issue, transfer or other taxes required to be paid in such territory.

  • The Ordinary Shares have not been and will not be registered under the United States $(e)$ Securities Act 1933 (as amended) and, subject to certain exceptions, the Ordinary Shares may not be offered, sold, renounced, transferred or delivered, directly or indirectly, in the United States or to any person in the United States. Persons subscribing for Ordinary Shares shall be deemed, and (unless the Companies are satisfied that their respective Ordinary Shares can be allotted without breach of United States securities laws) shall be required, to represent and warrant to the Companies that they are not a person in the United States and that they are not subscribing for such Ordinary Shares for the account of any such person and will not offer, sell, renounce, transfer or deliver, directly or indirectly, such Ordinary Shares in the United States or to any such person. As used herein, "United States" means the United States of America (including each of the States and the District of Columbia), its territories or possessions or other areas subject to its jurisdiction. In addition, the Companies have not been and will not be registered under the United States Investment Company Act of 1940, as amended. The Manager is not registered under the United States Investment Advisers Act of 1940, as amended.
  • Applicants are encouraged to submit their Application Forms early in order to be confident $(f)$ that their applications will be successful. In the event that applications are received for an amount in excess of the maximum subscription, the Directors reserve the right to exercise their discretion in the allocation of successful applications although the allocation will usually be on a first come first served basis. The right is also reserved to reject in whole or in part any application or any part thereof and to treat as valid any application not in all respects completed in accordance with the instructions relating to the Application Form.
  • Save where the context otherwise requires, words and expressions defined in this document $(g)$ have the same meaning when used in the Application Form and any explanatory notes in relation thereto.

Availability of this Prospectus

$\mathbb{R}^2$

Copies of this document and the Application Form are available until the Offers close from:

The City Partnership (UK) Limited, Thistle House, 21 Thistle Street, Edinburgh EH2 1DF; and

RAM Capital Partners LLP, 74 Chancery Lane, London, WC2A 1AD; and

The Companies' web site at www.ventusvct.com.

A copy of this Prospectus has been submitted to the National Storage Mechanism and is available to the public for viewing online at the following web site address: http://www.hemscott.com/nsm.do.

GUIDE TO THE APPLICATION FORMS

To be used for subscriptions for Ordinary Shares under the Offers other than from proceeds of the Tender Offers - Not to be used for subscriptions for Ordinary Shares from proceeds of the Tender Offers

You must complete separate Application Forms for subscriptions to Ventus VCT plc and Ventus 2 VCT plc.

The following instructions should be read in conjunction with the Application Forms.

Insert your full name, address and date of birth and national insurance number in Block $1.$ Capitals in Section 1. No joint applications are permitted.

Applications may only be made by persons aged 18 or over.

$2.$ Insert in Section 2 the sums you are subscribing.

Your cheque or bankers' draft must be payable to "Ventus VCT plc - Offer Account" for subscriptions for Ordinary Shares in Ventus VCT plc, or to "Ventus 2 VCT plc - Offer Account" for subscriptions for Ordinary Shares in Ventus 2 VCT plc and should be crossed "A/C Payee". Receipt of your application will be acknowledged within a day of its having been received. Your cheque or bankers' draft must be drawn in sterling on an account at a bank, and must bear the appropriate sort code number in the top right hand corner. The right is reserved to reject any application. Applications may be accompanied by a cheque or bankers' draft drawn by someone other than the applicant(s), but any monies to be returned will be sent by crossed cheque in favour of the person(s) named in Section 1.

You may also subscribe for shares by way of an electronic transfer to the account details provided in the Application Forms. Please quote your surname as a reference when making electronic payment.

Money Laundering Regulations

It is a term of the Offers that, to ensure compliance with the Money Laundering Regulations 2007, the Receiving Agent may at its absolute discretion require verification of identity from any person lodging an Application Form (the "Applicant") in an amount greater than £11,000 and without prejudice to the generality of the foregoing, in particular any person who either (i) tenders payment by way of cheque or bankers' draft drawn on an account in the name of a person or persons other than the Applicant or (ii) appears to be acting on behalf of some other person. In the former case, verification of the identities of both the Applicant and the third party may be required. In the latter case, verification of the identity of any person on whose behalf the Applicant appears to be acting may be required.

If within a reasonable period of time following a request for verification of identity and in any case by no later than 3.00 p.m. on the relevant date of allotment the Receiving Agents have not received evidence satisfactory to them as aforesaid, the Companies with the agreement of the Receiving Agents may, at their absolute discretion, reject any such application in which event the remittance submitted in respect of that application will be returned to the Applicant (without prejudice to the rights of the Companies to undertake proceedings to recover any loss suffered by it as a result of the failure to produce satisfactory evidence of identity).

Where possible Applicants should make payment by their own cheque. If a third party cheque, bankers' draft or building society cheque is used, the Applicant should:

  • write his/her name and address on the back of the draft or cheque and, in the case of $(a)$ an individual, record his/her date of birth against his/her name; and
  • ask the bank or building society (if relevant) to endorse on the reverse of the draft or $(b)$ cheque the full name and account number of the person whose account is being debited and stamp such endorsement.

The above information is provided by way of guidance to reduce the likelihood of difficulties, delays and potential rejection of an Application Form (but without limiting the Receiving Agents' right to require verification of identity as indicated above).

  • $\overline{3}$ . Sign and date the Application Form in Section 3. The Application Form may be signed by someone else on your behalf, if duly authorised by power of attorney to do so, but any power of attorney pursuant to which it is done (or a duly certified copy thereof) must be endorsed for inspection.
  • Agents who are entitled to receive commission should stamp and complete Section 4, giving 4. their full name and address, telephone number and details of their authorisation under the Financial Services and Markets Act 2000. The right is reserved to withhold payment of any commission if the Receiving Agents are not, in their sole discretion, satisfied that the agent is so authorised.

Commission will be paid at 3% of the amount paid for the Ordinary Shares issued in respect of such valid Application Form.

Authorised financial intermediaries may agree to waive part or all of their commission in respect of an application. If this is the case, then such application will be treated as an

application to subscribe the amount stated in Section 2 together with the amount of commission waived. Commission will be paid only in respect of the amount stated in Section 2. Financial intermediaries should keep a record of such Application Form submitted bearing their stamp to substantiate any claim for introductory commission. Claims for introductory commission must be made and substantiated on submission of an Application Form.

  • If you wish to have your share and income tax relief certificates sent to someone other than 5. yourself, please complete Section 5 accordingly. Copy certificates will not be sent to you.
  • Dividend payments directly to Bank or Building Society Accounts; if you would like all future 6. dividends to be paid directly into your bank or building society account, please complete the mandate instruction form in Section 6.
  • If you have any queries on the procedure for application and payment, you should contact $7.$ The City Partnership (UK) Limited (telephone 0131 243 7210) or your normal financial adviser
    1. Delivery of Application Form

Send the completed Application Form together with your cheque or bankers' draft by post, or deliver it by hand (during normal business hours only), to The City Partnership (UK) Limited, Thistle House, 21 Thistle Street, Edinburgh EH2 1DF so as to be received no later than 1 pm. on 3 April 2012 (unless the Offer is otherwise closed or extended earlier).

If you post your Application Form you are recommended to use first class post and to allow at least two working days for delivery.

Receipt of Application Forms will not be acknowledged by the Receiving Agent.

ORDINARY SHARE APPLICATION FORM

VENTUS VCT PLC

To be used for subscriptions for Ordinary Shares in Ventus VCT plc under the Offers other than from proceeds of the Tender Offers - Not to be used for subscriptions for Ordinary Shares from proceeds of the Tender Offers

Before completing this Application Form you should read the Terms and Conditions of Application and the Guide to the Application Form. The Offers open on 3 February 2012 and the closing date will be 1.00 pm on 3 April 2012, (unless closed or extended prior to that date). Please send this Application Form together with your cheque or bankers' draft, if appropriate, and proof of identity if required to The City Partnership, Thistle House, 21 Thistle Street, Edinburgh EH2 1 DF

Please complete in BLOCK capitals

Surname:
National Insurance Number: [100]

You should be able to find your NI number on a payslip, form P45 or P60, a letter from the HMRC, a letter from the DSS, or pension order book)

Permanent residential address:
Postcode:
Email:
Telephone (work): Telephone (home):

These contact details will be used for all communications, distributions and dividends.

If you wish to nominate another address to receive your share and income tax relief certificates, please complete Section 5.

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I apply to subscribe £................................. for Ordinary Shares in Ventus VCT plc on the Terms and Conditions of Application set out in the Prospectus dated 3 February 2012 and the Memorandum and Articles of Association of the Company.

Applications must be for a minimum of £3,000 in total and may be made for any higher amount in multiples of £1,000.

Please mark with an X as appropriate

I enclose a cheque or bankers' draft(s) drawn on a UK clearing bank, made payable to "Ventus VCT plc - Offer Account"

I have instructed my bank to make an electronic payment to:

Bank HSBC Bank Plc

Account Name Ventus VCT plc - Offer Account

Account Number 34207564

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Please quote your surname as a reference when making this electronic payment

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By signing this form I hereby declare that I have read the terms and conditions of subscription contained in the Prospectus and agree to be bound by them.

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Signature Date
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For completion by authorised financial intermediaries ONLY

Name of Firm: Stamp:
Address:
Postcode:
Telephone:
Fax:
Name of Contact:
Email Address:
Signature of authorised signatory of authorised financial
intermediary:
Date

Insert the amount of the subscription (if any) in respect of which you wish the commission to be waived and invested in additional Ordinary Shares $\mathbf{E}$

Commission payment details

(to be used if commission to be paid to a Network or other third party)

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Please complete Section 5 if you wish to nominate an alternative address, such as an account or financial advisor for your share and income tax relief certificates.

Title (Mr/Mrs/Miss/Ms/Other) Surname
Forename(s) in full:
Company Name:
Reference: (if required)
Address:
Postcode:

All dividends on Shares held in Ventus VCT plc may be paid directly into bank and building society accounts. In order to facilitate this, please complete the mandate instruction form below. Dividends paid directly to your account will be paid in cleared funds on the dividend payment dates. Your bank or building society statement will identify details of the dividend as well as the dates and amounts paid.

Please forward until further notice, all dividends that may from time to time become due on any Shares now standing, or which may hereafter stand, in my name in the register of members of Ventus VCT plc:

Bank or Building Society reference number and details

a. Name of Bank/Building Society:
Title of Branch:
Address of Branch:
b. Account Number:
$C_{\bullet}$ Sort Code Number:
d. Account Name: (BLOCK capitals please)
e. Signature:
f. Date:
g. Applicant's name and Postcode
(in BLOCK capitals please, as given in Section 1)
Postcode:

The Companies and The City Partnership (UK) Limited cannot accept responsibility if any details provided by you are in incorrect.

ORDINARY SHARE APPLICATION FORM

VENTUS 2 VCT PLC

To be used for subscriptions for Ordinary Shares in Ventus 2 VCT plc under the Offers other than from proceeds of the Tender Offers - Not to be used for subscriptions for Ordinary Shares from proceeds of the Tender Offers

Before completing this Application Form you should read the Terms and Conditions of Application and the Guide to the Application Form. The Offers open on 3 February 2012 and the closing date will be 1.00 pm on 3 April 2012, (unless closed or extended prior to that date). Please send this Application Form together with your cheque or bankers' draft, if appropriate, and proof of identity if required to The City Partnership, Thistle House, 21 Thistle Street, Edinburgh EH2 1 DF

Please complete in BLOCK capitals

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Title (Mr/Mrs/Miss/Ms/Other) Surname:
Forename(s) in full:
Date of Birth: $\Box$ National Insurance Number: ALLAN DESCRIPTION

You should be able to find your NI number on a payslip, form P45 or P60, a letter from the HMRC, a letter from the DSS, or pension order book)

Postcode:
Telephone (home):

These contact details will be used for all communications, distributions and dividends.

If you wish to nominate another address to receive your share and income tax relief certificates, please complete Section 5.

I apply to subscribe £.................................... Conditions of Application set out in the Prospectus dated 3 February 2012 and the Memorandum and Articles of Association of the Company.

Applications must be for a minimum of £3,000 in total and may be made for any higher amount in multiples of £1,000.

Please mark with an X as appropriate

I enclose a cheque or bankers' draft(s) drawn on a UK clearing bank, made payable to "Ventus 2 VCT plc - Offer Account"

I have instructed my bank to make an electronic payment to:

Bank HSBC Bank Plc

Account Name Ventus 2 VCT plc - Offer Account

Account Number 34207572

Sort Code 40 05 30

Please quote your surname as a reference when making this electronic payment

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By signing this form I hereby declare that I have read the terms and conditions of subscription contained in the Prospectus and agree to be bound by them.

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For completion by authorised financial intermediaries ONLY

Name of Firm: Stamp:
Address:
Postcode:
Telephone:
Fax:
Name of Contact:
Email Address:
Signature of authorised signatory of authorised financial
intermediary:
Date

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Insert the amount of the subscription (if any) in respect of which you wish the commission to be waived and invested in additional Ordinary Shares $\pounds$

Commission payment details

(to be used if commission to be paid to a Network or other third party)

Name:
Representative Advances
Contact:
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Please complete Section 5 if you wish to nominate an alternative address, such as an account or financial advisor for your share and income tax relief certificates.

Title (Mr/Mrs/Miss/Ms/Other) Surname
Forename(s) in full:
Company Name:
Reference: (if required)
Address:
Postcode:

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All dividends on Shares held in Ventus 2 VCT plc may be paid directly into bank and building society accounts. In order to facilitate this, please complete the mandate instruction form below. Dividends paid directly to your account will be paid in cleared funds on the dividend payment dates. Your bank or building society statement will identify details of the dividend as well as the dates and amounts paid.

Please forward until further notice, all dividends that may from time to time become due on any Shares now standing, or which may hereafter stand, in my name in the register of members of Ventus 2 VCT plc:

Bank or Building Society reference number and details

a. Name of Bank/Building Society:
Title of Branch:
Address of Branch:
b. Account Number:
c. Sort Code Number:
d. Account Name: (BLOCK capitals please)
e. Signature:
f. Date:
g. Applicant's name and Postcode
(in BLOCK capitals please, as given in Section 1)
Postcode:

The Companies and The City Partnership (UK) Limited cannot accept responsibility if any details provided by you are in incorrect.

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