NORTHERN 3 VCT PLC — Capital/Financing Update 2012

Mar 23, 2012

Northern 3 VCT PLC

Offer Document (including application form) March 2012 offer for subscription in 2011/12 tax year

Contents	Page
Risk factors	1
Letter from the Chairman
PART I – The Company
Introduction	3
Income	3
Taxation benefits to Investors	3
VCTs to assist in retirement planning	4
The Manager: NVM Private Equity	4
Investment policy	5
Share buyback policy	6
Directors	6
Costs	6
Other information	6
PART II – Track record of the Company	8
PART III – Taxation	9
PART IV – Definitions	10
PART V – Terms and Conditions of Application	11
Notes on Application Form
Application Form

Key-Offer-Information-

£1,600,000
£5,000
£200,000
23 March 2012
5.00pm on 5 April 2012

Financial Calendar
Financial year end	31 March
Annual results announcement and annual report published	May
Annual general meeting	July
Dividends paid (first dividend in respect of the Offer Shares expected July 2012)	July and January
Halfyearly results announcement and halfyearly report published	November

Thisdocument,whichconstitutesafinancialpromotionforthepurposesof-Section-21ofthe-Financial-Servicesand-Markets-Act-2000,hasbeenapproved,forthepurposesofthatsectiononly,by-Downing-LLP-("Downing"),whichisauthorisedand regulatedby the-Financial-Services-Authority.-Downingdoesnotofferinvestmentortaxadviceormakerecommendationsregardinginvestments.-Downingisacting for the-Companyandnooneelseandwillnotberesponsibletoanyoneotherthanthe-Company forprovidingtheprotectionsaffordedtocustomersof-Downing.-Downinghasgiven,andnotwithdrawn,itsconsenttotheinclusionofitsnameintheformandcontextinwhichitisincluded.-

NORTHERN-3-VCT-PLC-

(Incorporatedin-Englandand-Walesunderthe-Companies-Act-1985withregisterednumber-4280530)

TopUp-Offerfor-Subscriptiontoraiseupto-£1,600,000-

The-Offerwillopenon-23-March-2012andmaycloseatanytimethereafterbut,inanyevent,notlaterthan-5.00pm on- 5- April- 2012.- The terms and conditions of application are set out on pages- 11 and- 12 of thisdocumentandarefollowedbyan-Application-Formforuseinconnectionwiththe-Offer.-Thereisnominimumsubscriptionforthe-Offertoproceedanditisnotunderwritten.-

Important-Notice-

Thereisnoguaranteethattheinvestmentobjectivesofthe-Companywillbeattained.-Ifyouareinanydoubtastowhatactiontotake,youshouldcontactanindependentfinancialadviserauthorisedunderthe-Financial-Servicesand-Markets-Act-2000,whospecialisesinadvisingontheacquisitionofsharesorothersecurities.-Thelevelsandbasesofreliefs from taxationdescribedin thisdocumentare thosecurrentlyavailable.-Thesemaychangeandtheirvaluedependsonan-Investor'sindividualcircumstances.-

Your attention is drawn to the risk factors set out on page- 1 of this document.- An investment in the-Company is only suitable for- Investors who are capable of evaluating the risks and merits of such aninvestmentandwhohavesufficientresourcestobearanylosswhichmightarise.-Ifyouareinanydoubtasto the action you should take, you should consult an appropriate financial adviser authorised under the-Financial-Servicesand-Markets-Act-2000.-

Furthercopiesofthisdocumentmaybeobtainedfrom:-

	Downing LLP 10 Lower Grosvenor Place London	NVM Private Equity Limited Northumberland House Princess Square
	SW1W 0EN	Newcastle upon Tyne NE1 8ER
telephone: email:	020 7416 7780 vct@downing.co.uk	0191 244 6000 n3vct@nvm.co.uk

Risk factors

Yourcapitalisatriskifyouinvestinthe-Companyandyoumaylosesomeorallofyourinvestment.-

The- Company's business, financial condition or results could be materially and adversely affected by any of the risksdescribedbelow.-Insuchcases, themarketpriceof the-Offer-Sharesmaydeclinedue toanyof theserisksand-Investorsmayloseallorpartoftheirinvestment.-Additionalrisksanduncertaintiesnotpresentlyknowntothe-Directors,orthatthe-Directors currently deem immaterial, may also have an adverse effect on the- Company.- The- Directors consider thefollowingtobeallthematerialknownrisksforpotential-Investorsinthe-Company,buttheriskslisteddonotnecessarilycompriseallthoseassociatedwithaninvestmentinthe-Company:-

• • Thevalueof-Offer-Sharesandtheincomederived fromthemmaygodownaswellasupand-Shareholdersmaynotreceivebackthefullamountinvested.-
• • Shareholders should be aware that the sale of- Offer- Shares within five years of their subscription will require therepayment of some or all of the- 30% income tax relief obtained upon investment.- Accordingly, investment in the-Companyisnotsuitableasashortormediumterminvestment.-
• • There is no guarantee that the- Company's objectives will be met or that suitable investment opportunities will beidentified.-
• • The majority of the- Company's investments will be in small companies whose securities are not publicly traded orfreely marketable and may, therefore, be difficult to realise.- Such businesses may well be in high risk sectors andwouldthereforebeexposedtogreaterrisksthanestablishedbusinesses.-Inaddition,suchcompaniesgenerallyhaveahigherriskprofilethanlargercompaniesandmayalsohavelimitedtradingrecords.-
• • Althoughthe-Offer-Shareswillbe-Listed,itisunlikelythataliquidmarketinthe-Offer-Shareswilldevelopastheinitialincome tax reliefis onlyavailable to those subscribing for new sharesand theremay only be onemarketmaker.-Itmay, therefore,provedifficult for-Shareholders tosell their-Offer-Shares.-Inaddition, thereisnoguarantee that themarket price of the-Offer-Shareswill fully reflect their underlying-NAV or theability to buyand sellat that price.-Itshouldbenotedthatsharesheldina-VCTusuallytradeatadiscounttothe-VCT's-NAV.-
• • Thepastperformanceofinvestmentsmadebythe-Companyorotherfundsmanagedby-NVMshouldnotberegardedasanindicationofthefutureperformanceofinvestmentsmadebythe-Company.-
• • Althoughitisintendedthatthe-Companywillbemanagedsoastocontinuequalifyingasa-VCT,thereisnoguaranteethatsuchstatuswillbemaintained.-Failuretodosocouldresultinadversetaxconsequencesfor-Investors,includingbeingrequiredtorepayuptothefull-30%incometaxrelief.-
• • The-Company'sabilitytoobtainmaximumvaluefromitsinvestments-(forexample,throughtheirsale)maybelimitedbytherequirementsoftherelevant-VCTlegislationinordertomaintainthe-VCTstatusofthe-Company-(suchastheobligationtohaveatleast-70%byvalueofitsinvestmentsin-Qualifying-Investments).-
• • Thelevelsandbasesofreliefsfromtaxationmaychangeandcouldapplyretrospectively.-Thetaxreliefsreferredtointhisdocumentarethosecurrentlyavailableandtheirvaluedependsontheindividualcircumstancesof-Investors.-The-Company'sobjectiveshavebeensetonthebasisthatall-Investorsobtain-30%incometaxreliefontheirsubscriptions.-Therefore,thisinvestmentmaynotbesuitablefor-Investorswhodonotqualifyforthefull-30%incometaxrelief.-
• • Changesinlegislationinrespectof-VCTsingeneral,and-Qualifying-Investmentsandqualifyingtradesinparticular,mayrestrictoradverselyaffecttheabilityofthe-Companytomeetitsobjectivesand/orreducethelevelofreturnswhichwouldotherwisehavebeenachievable.-
• • The-Company'sability tomakemarketpurchasesofitsown-Shareseachyearmaybelimitedby theliquidityof the-Company,therulesofthe-UK-Listing-Authority,the-Actandthe-VCT-Regulations.-
• • The- Offer- Shares are being issued at a price, calculated by a formula, based on the latest published- NAV of the-Company.-Themostrecentpublishedunaudited-NAVofthe-Companywasat-31-December-2011;-Investorsshouldbeawarethatifarevised-NAVispublishedduringthecourseofthe-Offer,-Investorsmayreceiveadifferentallocationof-Offer-Sharesfromthatanticipated.-

Potential-Investorsshouldconsulttheirprofessionaladvisersbeforemakinganyinvestmentdecision.-

Letter from the Chairman

Northern-3-VCT-PLC-Registeredin-Englandand-Walesno:-4280530

Northumberland-House,-Princess-Square-Newcastleupon-Tyne-NE1-8ER-Telephone:-0191-244-6000-Email:n3vct@nvm.co.uk-

23-March-2012-

Dear-Investor-

Northern-3-VCT,whichwaslaunchedin-2001,hasarecordofpayingconsistentdividendswhilstseekingtomaintainitsnetassetvalue.-Someofthekeypointsofthe-Offeraresetoutbelow.-

Income-–-7.2%targettaxfreeyield:-The-Boardhasastatedobjectiveofpayingannualdividendsofatleast-5.0pper-Share,subjecttotheavailabilityofsufficientdistributableprofits.-Anannualdividendof-5.0pper-Sharerepresentsataxfreeyieldof-7.2%perannum-(grossequivalentof-9.6%toa-40%taxpayer)onthe-Initial-Offer-Pricenetof-30%taxrelief.-Itshouldbenotedthatthislevelofdividendisnotguaranteed.-Thefirstdividendpayableonthe-Offer-Shareswillbethefinaldividendinrespectoftheyearending-31-March-2012,whichisexpectedtobepaidin-July-2012.-

Investmentprospects:-The-Companyholds-45investmentsinarangeofindustrysectors,manyofwhicharetradingsuccessfully and generating capital growth and income for the- Company.- Many of the companies have low bankborrowings and strong cash flow; we see future prospects for growth despite the difficult conditions in the- UKeconomyand financialmarkets.-Subscribers under the-Offerwillacquirean immediateexposure to these holdings,whichshoulddiversifyriskandprovidethepotentialforearliergrowthinthevalueoftheirinvestmentcomparedtosomenewlylaunched-VCTs.-

Tax relief:-30%incometaxreliefwillbeavailableon-Offer-Sharesprovidedtheyareheld foratleast fiveyears,anddividends and gains from- VCTs are taxfree.- It should be noted that the tax reliefs are subject to change andwithdrawal- (in the event of a breach of the- VCT rules) and the value to- Investors will depend on their personalcircumstances.

Experiencedmanager:-The-NVM-Private-Equityinvestmentteamhasbeeninvestinginunlisted-UKcompanies-(privateequity) for over- 27 years and has over- £200 million of funds under management.- The team has wide industryexperienceandagoodrecordoffindingbusinessesthathavegrowthpotential,seekingeitherdevelopmentcapitalormanagementbuyoutfunding.-

Nextsteps:-Inordertoinvest,pleasereadthis-Offer-Documentandthencompletethe-Application-Form,whichissetoutattheendofthisdocument.-If-Investorshaveanyquestionsregardingthisinvestmenttheyshouldcontacttheirownindependentfinancialadviser.-Investors'attentionisdrawntotheriskfactorssetoutonpage-1ofthisdocument.-Forquestions relating toanapplication,please telephone-NVMon-0191-244-6000.-Investors shouldnote that theircapitalisatriskiftheyinvestinthe-Companyandtheymaylosesomeoralloftheirinvestment.-Noinvestmentadvicecanbegivenby-NVM.-

Yourssincerely-

James-Ferguson-Chairman,-Northern-3-VCT-PLC-

Part I – The Company

Introduction

Investors who subscribe for- Offer- Shares benefit from having immediate exposure to the- Company's existing matureventure capital portfolio, which as at- 31- December- 2011 consisted of- 45 different investments, with an unauditedaggregatecarryingvalueof-£28.5million.-

Income

The- Board has a stated objective of paying annual dividends of at least- 5.0p per- Share, subject to the availability ofsufficientdistributableprofits.-Setoutbelowisatableillustratingthereturnsto-Shareholderson-Offer-Sharesassumingan annualdividendof-5.0pper-Offer-Shareispaid.-Investorsshouldnotethatthetargetminimumannualdividendof-5.0pper-Offer-Shareisanobjectiveandisnotguaranteed.-

Illustrative yield per Offer Share (after 30% income tax relief)
Net of tax offer price1	Target annual dividends	Taxfree yield	Gross equivalent yield 2 2 40% taxpayer 50% taxpayer
69.3p	5.0p	7.2% p.a.	9.6% p.a.	11.3% p.a.

1- Thereturnslistedarebasedonthe-Initial-Offer-Priceof-99.0pmultipliedby-70%,toreflectinitialincometaxreliefof-30%.-Investorsshouldnotethattheywillberequiredtopaythefull-Offer-Priceandclaimtheincometaxreliefseparately.-

2- ThegrossequivalentyieldistheyieldonanonVCT-UKdividendthatwouldresultinanetyieldof-7.2%-(beinga-5.0pdividenddividedby-99.0p,the-Initial-Offer-Price,less-30%toreflectinitialincometaxrelief),assuminga-40%taxpayerand-50%taxpayerrespectively.

Subscribers under the-Offer will be eligible for the finaldividend in respect of the year ended- 31-March- 2012, which isexpectedtobepaidin-July-2012.-The-Companypaysdividendsbiannually,usuallyin-Januaryand-Julyeachyear.-

Taxation benefits to Investors (see Part III for further details)

Theprincipal-UK taxreliefs,whichareavailableonamaximuminvestmentof-£200,000perindividualin the-2011/12 taxyear,areasfollows:-

• • Incometaxreliefat-30%oftheamountsubscribedprovidedthatthe-VCTsharesareheldforatleastfiveyears.-Reliefisrestrictedtotheamountwhichreducesthe-Investor'sincometaxliabilitytonil.
• • Taxfreedividends,whichmayincludecapitaldistributions,froma-VCT.-
• • Capitalgainstaxexemptiononanygainsarisingonthedisposalof-VCTshares.-

Thetablebelowshowstheeffectoftheinitial-30%incometaxrelief-(basedonthe-Initial-Offer-Priceof-99.0p):-

Effect of the initial income tax relief
	per Share
Cost of investment
Gross investment	99.0p
30% income tax relief	(29.7p)
Net of tax cost of investment	69.3p
Initial value of investment
Gross subscription by Investor	99.0p
Effect of issue costs and the rounding up of the Initial Offer Price	(5.5p)
Initial Net Asset Value	93.5p
Initial "uplift" (pence)	+24.2p
Initial "uplift" (%)	+34.9%

The above table shows that, based on the-Initial-Offer- Price of- 99.0p per-Offer- Share and income tax relief at- 30%, the-Investor's net of tax cost ofinvestmentis-69.3pper-Offer-Shareandtheinitial-NAVis-93.5p-(at-31-December-2011,adjustingfortheinterimdividend)per-Offer-Share,an-"uplift"of-24.2pper-Offer-Shareor-34.9%.-Investorsarerequiredtohold-Offer-Sharesforatleastfiveyearsinordertoretaintheincometaxreliefand,assuch,thisinitialupliftcannotbeimmediatelyrealised.-Itshouldbenotedthatthepriceachievableonthesaleofthe-Offer-Sharesislikelytobelowerthantheapplicable-NAVbecausethe-Company's-Sharestradeatadiscounttoits-NAV.- (Source:-Downing)

Onlyaverybriefsummaryofthe-UKtaxpositionofinvestorsin-VCTs,basedonthe-Company'sunderstandingofcurrentlaw and practice, is provided on the page opposite.- Further details are set out in- Part-III of this document.- Potential-Investorsarerecommendedtoconsulttheirownappropriateprofessionaladvisersastothetaxationconsequencesoftheirinvestingina-VCT.-Inaddition,theavailabilityoftaxreliefsdependsontheinvesteecompaniesmaintainingtheir-VCTqualifyingstatus.-

VCTs to assist in retirement planning

The-Boardbelievesthataninvestmentinthe-Companycouldbeusedinconjunctionwithpensionsforretirementplanningforcertain-Investorsforthefollowingreasons:-

• i) Incomereceivedfromthe-Companywillbetaxfree.-
• ii) From-April-2011,theannualpensioncontributionallowancewasreducedto-£50,000forallindividuals.-Fulltaxreliefatanindividual'smarginalrateisallowableonthecontributionpaiduptothisannualallowance.-

Thetablebelowprovidesacomparisonofthetaxreliefsof-VCTsandpensionsforillustrativepurposesonly.-

Comparison of VCTs and Pensions
	VCT	Pension
Effective tax relief	30%	20%50%
Income	Taxfree	25% of fund can be taken as a taxfree cash sum when benefits are taken (no requirement to retire). Balance of fund used to provide pension income, which is subject to tax as earned income
Capital gains	Taxfree	Taxfree within pension fund
Minimum holding period	Shares can be sold at any time, however, a 5 year holding period is required to retain tax reliefs obtained on subscription	Individual cannot receive benefits (e.g. taxfree cash or taxed income) until at least age 55, as set out on the basis above
Access to capital	Yes	Not until benefits are taken
Maximum annual investment	£200,000	Up to £50,000 per tax year with the ability to carry forward any unused relief from the previous three years.
Maximum total investment	No limit	£1,800,000 (reduces to £1,500,000 in April 2012)
The above figures assume that the	Shareholder and the VCT qualify for all applicable	tax reliefs.

Itshouldbenotedthat-VCTsarehigherriskinvestmentsandshouldnotbeconsideredasareplacement forpensions.-Investorsshouldtakeindependentfinancialadvicebeforemakinganyinvestmentdecision.-

The Manager: NVM Private Equity

Introduction

The- Company's venture capital investment portfolio is managed by- NVM, which specialises in investing in smaller- UKcompaniesofthetypequalifyingunderthe-VCTlegislation.-NVMwasestablishedin-1988bytheexecutiveteampreviouslyemployeddirectlyby-Northern-Investors-Companyandcurrentlymanagesfundsinexcessof-£200millionthroughitsofficesin-Newcastleupon-Tyne,-Readingand-Manchester.-

NVM's-11investmentexecutiveshavetogetheratotalofover-185years'experienceintheventurecapitalindustry.-NVMisauthorisedandregulatedbythe-Financial-Services-Authorityundernumber-141943andisamemberofthe-BVCA.-NVM'steamofinvestmentprofessionalsaimstoensurethatthe-Companygainsaccesstosomeofthebestopportunitiesavailabletotheindustryand,bycarryingoutextensiveduediligenceprocedures,seekstoidentifythosecompanieswhichpotentiallyofferthebestpossiblerisk/returnscenarios.-NVMgeneratesover-200investmentopportunitiesayearbutlessthan-2%oftheseopportunitiesareinvestedinbythe-Companyandtheotherfundsmanagedby-NVM-(source:-NVM).-

Track Record of the Manager

NVMmanages three generalist- VCTs and-Northern-Investors-Company, a generalist privateequity investment trust.-Therespectiveunauditedreturnsofthesecompaniestoinvestorswhosubscribedatlaunchareasfollows:-

Track Record of NVM's Generalist VCT Funds
	Tax year of launch	Net cost1	Latest NAV date	Total return date2 to	Increase over net cost (%)
Northern Venture Trust PLC	1995/96	80p	31 December 2011	185.3p	+131.6%
Northern 2 VCT PLC	1998/99	80p	31 December 2011	136.3p	+70.4%
Northern 3 VCT PLC	2001/02	80p	31 December 2011	126.9p	+58.6%

1- Netcostistheinitialofferpriceof-100ppersharelesstheincometaxreliefavailabletoinvestorsineachofthe-VCTs.-

2- Totalreturniscumulativedividendspaid- (includingthetaxcreditswherereclaimable)plusthemostrecentlyannouncedunauditednetassetvalueforeach-VCTinpencepershare.-

(Source:announcementsmadebytherelevant-VCTthroughan-RIS)-

Track Record of NVM's Generalist Investment Trust
	Year of flotation	Net asset value flotation1 at	Cumulative date2 return to	Increase over net asset value at flotation (%)
Northern Investors Company PLC	1990	61.6p	395.2p	+541.6%
1 Adjusted to reflect 4for1 division of 2 Cumulative dividends paid since flotation,	ordinary shares in 2005. adjusted for 4for1	division of ordinary shares	in 2005, plus unaudited	net asset value as at

31-December-2011.-(Source:announcementsmadeby-Northern-Investors-Companythroughan-RIS)-

Pleasenote that thepastperformanceof the-Managerandof the fundsitmanagesmaynotbe repeatedandisnotaguidetothefutureperformanceofthe-Companyandnoprojectionisimpliedorshouldbeinferred.

Deal Flow

The-Boardconsidersstrongdealflowtobeofvitalimportancetothefutureperformanceofthe-Company.-The-Manager'scredentialsareasfollows:-

• • Since- 1- January- 2005, funds managed by- NVM have invested approximately- £140 million in- VCTqualifyingcompanies.-
• • NVMhasaregionalnetworkof-11executivesbasedinmajorbusinesscentresacrossthe-UK.-

Investment policy

The net proceeds of the- Offer will be invested by the- Company in accordance with its stated investment policy.- The-Company's objectiveis to provide highlongterm taxfree returns toits-Shareholders througha combination of dividendyieldandcapitalgrowth.-

The- Company is a- Venture- Capital- Trust approved by- HM- Revenue- &- Customs and the- Directors intend to conduct theaffairsofthe-Companysothattheconditionsforapprovalasa-VCTwillcontinuetobesatisfied.-The-Directorsintendthatthe longterm disposition of the- Company's assets will be approximately- 80% in a portfolio of mainly- VCTqualifyingunquoted and- AIM investments and- 20% in other investments- (including but not restricted to listed fixedinterestsecurities), to providea reserve ofliquiditywhichwillmaximisethe- Company's flexibilityas to the timing ofinvestmentacquisitionsanddisposals,dividendpaymentsandsharebuybacks.-

Thetargetsizerangeforindividual-VCTqualifyinginvestmentsisfromapproximately-£250,000to-£1millionwithinanytaxyear,withanoverallmaximumof-£3million.-

The-Directorsconsiderthattheabilitytoinvestjointlywithotherfundsmanagedbythe-Managerisdesirablebecauseitwillenablethe-Companytoparticipateinlargerinvestmentsthanthosewhichitcouldundertakeusingonlyitsownresources.-Ithasbeenagreed thatwhereajointinvestmentopportunityarisesbetween the-Companyandother fundsmanagedby-NVM, an investment allocation will be offered to each party pro rata to their respective net assets at the time ofinvestment.-Anycostsassociatedwithany suchinvestmentwillbeborneby the relevantpartypro rata toits respectiveinvestment.-

Thefullinvestmentpolicyforthe-Companycanbefoundinitsannualreportfortheyearended-31-March-2011,whichisavailableonthe-NVMwebsite-(www.nvm.co.uk)oronrequestfrom-NVMbytelephoning-0191-244-6000.-

Share buyback policy

The-Companywishestoensurethatthereisliquidityinits-Sharesand,accordingly,the-Companypursuesanactivediscountmanagement policy.- The- Company will endeavour to buy back those- Shares which its- Shareholders wish to sell, at adiscountof-15%tothelatestpublished-NAV,subjecttoapplicablelegislationgoverningthe-Company,marketconditionsatthetimeandthe-Companyhavingbothfundsanddistributablereservesavailableforthepurpose.-Shareswhichareboughtbackmaybecancelledorheldintreasuryandlatersoldinthemarket.-Thebuybackpolicyofthe-Companyaimstosupportthesharepricebylimitingthediscountto-NAVatwhichits-Sharestrade.-Themakingandtimingofanysharebuybackswillremainattheabsolutediscretionofthe-Board.-

Directors

Profilesofthe-Directorscanbefoundinthe-Company'sannualreportfortheyearended-31-March-2011,whichisavailableonthe-NVMwebsite-(www.nvm.co.uk)oronrequestfrom-NVMbytelephoning-0191-244-6000.-

Costs

Offer Costs

The-Companyhasagreedtopay-Downinganinitialfeeof-5.5%ofthemoniesraised,togetherwithanannualcommissionof-0.25%ofthemoniesraisedforaperiodoffiveyears.-Outofthesefees,-Downingwillberesponsibleforpayingallthecostsofthe-Offer.-

Management and Administration Costs

NVM is the- Manager of the- Company's venture capital investments and receives an annual management fee, payablequarterly in advance, at the rate of- 2.06% of net assets, calculated at halfyearly intervals.- An additional performance related feemaybecomepayableifpredeterminedperformance targetsareachieved.-NVMalsoprovidessecretarialandadministration services to the- Company for an annual fee currently of- £48,000 per annum- (rising annually with themovementinthe-UK-Indexof-Retail-Prices).-

The-Annual-Running-Costsofthe-Companyarecappedat-3.5%ofits-Net-Assets,anyexcessbeingbornebythe-Managerbywayofareductionofitsfees.-

The-Companyhasestablishedamanagementperformanceincentiveschemeunderwhich-NVM'sexecutivesarerequiredtoinvestpersonally-(andonthesametermsasthe-Companyandotherfundsmanagedby-NVM)intheordinarysharecapitalofinvesteecompaniesinwhichthe-Companyinvests.-The-Directorsreviewtheoperationoftheschemeannually.-

Other information

The Offer and Minimum and Maximum Subscription

Applicantsareencouragedtosubmittheir-Application-Formsearlyinordertobeconfidentthattheirapplicationswillbesuccessful.-Intheallocationof-Offer-Shares,prioritywillbegiventounsuccessfulapplicationstothe-Company's-Offerdated 21-February-2012,subjecttotheabsolutediscretionofthe-Board.-

Sharecertificates-(whereapplicable)andcertificatestoenableaclaimforincometaxrelieftobemadeinrespectof-Offer-Shares will be posted to- Shareholders within- 30 days of each allotment.- No notification will be made to successfulapplicants prior to despatch of definitive share certificates.- Prior to despatch of definitive share certificates- (whereapplicable),transfers-(ifany)willbecertifiedagainsttheregister.-

Pricing of the Offer

The-Offer-Shareswillbeissuedatapricecalculatedonthebasisofaformulabasedonthelatestpublished-NAVdividedby-0.945toallow forissuecostsof-5.5%oftheamountraisedunderthe-Offer,roundeduptothenearestwholepennyper-Offer-Share.-Accordingly,thenetproceedsofthe-Offerwillbeapproximately-94.5%oftheamountsubscribed.-

Onthebasisofthelatestpublished-NAVofthe-Companyasat-31-December-2011of-95.5pper-Share,andafterdeductingtheinterimdividendof-2.0ppersharedeclaredinrespectoftheyearending-31-March-2012whichwaspaidon-13-January-2012, the-Initial-Offer-Pricewillbe-99.0pper-Share.-Basedon the-Initial-Offer-Price,up to-2,020,202-Offer-Shareswillbeissued.-

Theactualissuepricemaybehigherorlowerthanthisandwillbedeterminedbythelatestpublished-NAVonthebusinessdaypriortoallotmentofthe-Offer-Shares.-Settingtheissuepriceinaccordancewiththe-Pricing-Formulahasbeendesignedtoavoidanydilutionofthe-NAVattributabletoeach-Existing-Sharewhenthe-Offer-Sharesareissued.-

Theapplicationofthis-Pricing-Formulaavoidsthenecessitytoannouncetheissuepriceofthe-Offer-Shareswhentheyarebeingallottedduringtheperiodofthe-Offershouldanew-NAVbeannouncedorotherwisepublished.-

Commission

Downing will be responsible for commissions payable to authorised financial advisers on successful applications bearingtheir stamp.- Authorised financial advisers will be paid by- Downing out of its capital raising fees an initial commissionusually of- 2.25% of the amount invested by their clients.- Additionally, provided that the authorised financial advisercontinues toact for theclientand theclientcontinues tobe thebeneficialownerof the-Shares, theauthorised financialadvisers will usually be paid an annual trail commission of- 0.25% of their clients' gross subscription for five years.- Trailcommissionwillbepaidannuallyin-July-(commencing-July-2013).-Authorisedfinancialadvisersmayagreetowaivepartoralloftheirinitialcommission.-Insuchcircumstances,an-Investor'sapplicationwillattractanadditionalallotmentof-Offer Sharesatnogreatercosttothe-Companyorthe-Investorandthecommissionwaivedwillbeusedtosatisfythepurchasepriceofsuch-Offer-Shares.-

PART II – Track record of the Company

Northern-3-VCT-PLCwasincorporatedin-2001.-

Thefinancialperformanceofthe-Existing-Sharesoverthelastfivefinancialperiodsissummarisedbelow.-

The Company – Dividends and Total Return
Period ended	31 December 20111	31 March 2011	31 March 2010	31 March 2009	31 March 20082
Dividends per share
period3 Dividends declared in respect of the	2.0p	4.5p	4.0p	4.0p	6.0p
Cumulative dividends declared since inception	33.4p	31.4p	26.9p	22.9p	18.9p
Total Return per share
Net asset value plus cumulative dividends paid	126.9p	121.1p	115.1p	104.9p	115.2p
1. 2. period.3. Unaudited figures for nine month period. Eighteen month Dividends have been listed against the period to which they relate.

Recent substantial investments by the Company

In-March-2011-NVMfundsinvested-£7.5millionin-Kitwave-One,ofwhich-Northern-3-VCTinvested- £1.0million.- Kitwaveisalocalwholesaler of fastmoving consumablegoods to the convenience store sector.- NVM's investment is funding a growthstrategytoacquirebusinesseswithsimilarproductrangesandcustomerbases.-

Kitwave-

One

In- March- 2011- NVM funds invested- £6 million in- Control- Risks- Group- Holdings, ofwhich-Northern-3-VCTinvested-£746,000.-Control-Risksisanindependentspecialistrisk consultancy offering a range of services to enable its clients to succeed incomplex or hostile business environments.- NVM's investment will provide thesupporttodrivethestronggrowthofthebusinessininternationalmarkets.-

In- December- 2010- NVM funds invested- £4 million in- Cawood- Scientific, of which-Northern- 3- VCT invested- £825,000.- Cawood is a provider of analytical laboratorytesting services to landbased industries.- NVM's investment is funding themanagement buyout and providing capital for the independent growth of thecompany'sservicesacrossthe-UKand-Europe.-

Asat-31-December-2011,the-Company'sventurecapitalportfoliocomprised-45investmentswithanunauditedaggregatevalueof-£28.5million.-

Part III – Taxation

VCTs:-Summaryoftheapplicablelegislationinrespectofinvestors-

1.- Taxationofa-VCT-

VCTsareexemptfromcorporationtaxonchargeablegains.-Thereisnorestrictiononthedistributionofrealisedcapitalgainsbya-VCT,subjecttotherequirementsofcompanylaw.-The-Companywillbesubjecttocorporationtaxonitsincome- (excludingdividendsreceived from-UKcompanies)afterdeductionofattributableexpenses.-

2.- Taxreliefsforindividualinvestors-

Individualswhosubscribefor-Offer-Sharesmustbeaged-18orovertoqualifyforthetaxreliefsoutlinedbelow.-

Relieffromincometax-

Aninvestorsubscribingupto-£200,000inthe-2011/12taxyearforeligiblesharesina-VCTwillbeentitledtoclaimincometaxrelief,attherateof-30%,althoughthisreliefwillbewithdrawnifeitherthesharesaresoldwithinfiveyearsortheinvestortakesoutaloanwhichwouldnothavebeenmade,orwouldnothavebeenmadeonthesameterms,savefortheacquisitionofsuchshares.-Reliefisrestrictedtotheamountwhichreducestheinvestor'sincometaxliabilitytonil.-However,taxcreditsondividendsarenotionalandcannotberepaidand,therefore,investorsshouldtakethisintoaccountwhencalculatingthevalueoftheincometaxrelief.-

Claimingincometaxrelief-

Investorswillreceiveacertificatefromthe-Companywithin-30daysoftheir-Sharesbeingissued,whichwillenablethemtoclaimthetaxrelief.-Incometaxreliefcanbeclaimedbyan-Investorwritingtotheir-HM-Revenue-&-Customsoffice,requestingthattheirtaxcodebeamended,sothatthetaxreliefisreceivedeachmonththroughthe-PAYEsystem.-Investorswhopaytheirtaxininstalmentsmaybeabletoapplyforareductionintheirpaymentsonaccount.-Alternatively,an-Investorcanclaimthereliefthroughtheirtaxreturninrespectofthetaxyearinwhichthe-Shareshavebeensubscribed.-

Dividendrelief-

Aninvestorwho subscribes for oracquireseligible sharesina-VCT- (up toamaximum of- £200,000in the- 2011/12 taxyear)willnot beliable for-UKincometaxondividendspaidbythe-VCT.-Theincomereceivedbythe-VCTwillusuallyconstituteeitherinterest-(onwhichthe-VCTmaybesubjecttotax)or dividends from- UK companies- (on which the- VCT would not be subject to tax).- The- VCT's income, reduced by the payment of tax-(if applicable)togetherwithitsrealisedcapitalgains,canthenbedistributedtaxfreetoinvestorswhobenefitfromthisdividendrelief.-Thereisnowithholdingtaxondividendspaidbya-UKcompanyandconsequentlythe-Companydoesnotassumeresponsibilityforthewithholdingoftaxatsource.-Dividendscarryataxcreditattherateofoneninthofthenetdividendwhichisnotrepayableandwhichcannotbeutilisedinanyotherway.-

Capitalgainstaxrelief-

Adisposalbyanindividualinvestorofhissharesina-VCTwillgiverisetoneitherachargeablegainnoranallowablelossforthepurposesof-UKcapitalgainstax.-Thisreliefisalsolimitedtodisposalsofsharesacquiredwithinthe-£200,000limitdescribedabove.-

Lossoftaxreliefs-

• (i)- Ifacompanywhichhasbeengrantedapprovalorprovisionalapprovalasa-VCTsubsequentlyfailstocomplywiththeconditionsforapproval,-VCTstatusmaybewithdrawnortreatedasneverhavingbeengiven.-Theexemptionsfromcorporationtaxoncapitalgainswillnotapplytoanygainrealisedafter-VCTstatusislost-(nortoanygainrealisedbythe-VCTifapprovalisdeemednevertohavebeengiven).-
• (ii)- Forinvestors,thewithdrawalof-VCTstatusmay-(dependinguponthetimingofsuchwithdrawal)resultin:-
• repaymentofthe-30%incometaxreliefonsubscriptionfornew-VCTshares;-
• incometaxbecomingpayableonsubsequentpaymentsofdividendsbythecompany;and-
• a liability to tax on capitalgains being suffered in the normalway on the disposal of shares in the company,except that anypart of thegainattributabletotheperiodforwhichthe-VCTwasapprovedwouldbeexempt.-
• (iii)- Theconsequencesforinvestorsinacompanywhichneverobtainsfullunconditionalapprovalasa-VCTareasfollows:-
• repaymentofthe-30%incometaxreliefonsubscriptionsfornew-VCTsharesandinterestonoverduetaxmayarise;-
• incometaxbecomingpayableonallpaymentsofdividendsbythecompany;and-
• anygainarisingonadisposaloftheshareswouldbeliabletocapitalgainstaxandlossesontheshareswouldbeallowablelossesforcapitalgainstaxpurposes.-

The-Offer-Sharesareeligible-VCTsharesforthepurposesofthissection.-

Consequencesofaninvestordyingoratransferof-Sharesbetweenspouses-

(i)- Initialincometax-

• Ifaninvestordiesatanytimeaftermakinganinvestmentina-VCT,thetransferofsharesondeathisnottreatedasadisposaland,therefore,theinitialincometaxreliefisnotwithdrawn.-However,theshareswillbecomepartofthedeceased'sestateforinheritancetaxpurposes.-
• (ii)- Taximplicationsforthebeneficiary Providedanumberofconditionsaremet,thebeneficiaryofany-VCTshareswillbeentitledtotaxfreedividendsandwillnotpaycapitalgainstaxonanydisposal,butwillnotbeentitledtoanyinitialincometaxrelief.-
• (iii)- Transferofsharesbetweenspouses-

Transfersofsharesina-VCTbetweenspousesisnotdeemedtobeadisposalandthereforealltaxreliefswillberetained.-

4.- General-

3.-

(i)- Investorswhoarenotresidentinthe-UK-

Nonresidentinvestors,orinvestorswhomaybecomenonresident,shouldseektheirownprofessionaladviceastotheconsequencesofmakinganinvestmentinthe-Company,becausetheymaybesubjecttotaxinotherjurisdictions.-

(ii)- Stampdutyandstampdutyreservetax

Nostampdutyor-(unlesssharesina-VCTareissuedtoanomineeforaclearingsystemoraproviderofdepositoryreceipts)stampdutyreservetaxwill be payable on the issue of such shares.-The transfer on thesale of shareswould normally be subject toad valorem stamp duty or- (ifanunconditional agreement to transfer such shares is not completed by a duly stamped transfer within two months) stamp duty reserve taxgenerally,ineachcaseattherateof-50pforevery-£100orpartof-£100oftheconsiderationpaidwherethetotalconsiderationexceeds-£1,000orifitformspartofaseriesoftransactionswherethetotalconsiderationexceeds-£1,000.-Suchdutieswouldbepayablebyapersonwhopurchasessuchsharesfromtheoriginalsubscriber.-

(iii)- Purchasesinthemarketafterlisting-

Any subsequent purchaser of existing- VCT shares, as opposed to a subscriber for new- VCT shares, will not qualify for income tax relief oninvestmentbutmaybenefitfromdividendreliefandfromcapitalgainstaxreliefonthedisposalofhis-VCTshares.-

(iv)- The-VCT-Regulations-2004-

The-VCT-Regulationscameintoforceon-17-October-2004.-Underthe-VCT-Regulations,moniesraisedbyanyfurtherissueofsharesbyanexisting-VCTmustbeappliedbythat-VCTforqualifyingpurposes.-Ifanyofthemoneyraised-(exceptforamountswhich-HM-Revenue-&-Customsagreesareinsignificantinthecontextofthewholeissuedordinarysharecapitalofthe-VCT)isusedbythe-VCTtopurchaseitsownsharesthenthefundsmaybedeemedtonothavebeenusedforaqualifyingpurpose.-

Theaboveisonlyasummaryof the taxpositionofindividualinvestorsin-VCTsandisbasedon the-Company'sunderstandingofcurrentlawandpractice.-Investorsare recommended to consult a professionaladviseras to the taxation consequences of their investing in a- VCT.- All tax reliefsreferredtointhisdocumentare-UKtaxreliefsandaredependentoninvesteecompaniesmaintainingtheir-VCTqualifyingstatus.-

Part IV – Definitions

Where used in this document the following words and expressions will, unless the context otherwise requires, have thefollowingmeanings:-

"Act"	Companies Act 2006
"Admission"	admission of the Offer Shares to the Official List of the UK Listing Authority and to trading on the premium segment of the London Stock Exchange's main market for listed securities
"AIM"	AIM, a market operated by the London Stock Exchange
"Annual Running Costs"	annual costs and expenses incurred by the Company in the ordinary course of its business (including irrecoverable VAT)
"Applicant"	Investor who subscribes for Offer Shares pursuant to the Offer Document
"Application Form"	form of application for Offer Shares under the Offer attached to this document
"Articles"	articles of association of the Company, as amended from time to time
"Company" or "Northern 3"	Northern 3 VCT PLC
"CREST"	relevant system (as defined in the Uncertificated Securities Regulations 2001 (SI 2001 No. 3755)) for the paperless settlement of transfers and the holding of shares in uncertificated form which is administered by Euroclear UK & Ireland Limited
"Directors" or "Board"	directors of the Company from time to time
"Downing"	Downing LLP, which is authorised and regulated by the Financial Services Authority
"Existing Shares"	ordinary shares of 5p each in the capital of Northern 3 issued at the date of this document (ISIN: GB0031152027)
"FSA"	Financial Services Authority
"Initial Offer Price"	99.0p per Share, being the price at the date of the Offer Document
"Investor"	subscriber of Shares
"ITA"	Income Tax Act 2007
"London Stock Exchange"	London Stock Exchange plc
"ML Regulations"	Money Laundering Regulations 2007
"NAV" or "Net Asset Value"	net asset value in pence per Share
"NVM" or "Manager" or "NVM Private Equity"	NVM Private Equity Limited which is authorised and regulated by the Financial Services Authority
"Offer"	offer for subscription to raise up to £1,600,000 (before issue costs)
"Offer Document"	this document
"Offer Shares"	new ordinary shares of 5p each in the capital of Northern 3 (ISIN: GB0031152027) to be issued pursuant to this or subsequent offers in the 2011/12 tax year
"Official List"	official list of the UK Listing Authority
"Pricing Formula"	mechanism by which the pricing of the Offer may be adjusted according to the latest published NAV, as described on page 7 of this document
"Qualifying Investment"	investment in an unquoted trading company, which comprises a qualifying holding for a VCT as defined in Chapter 4 Part 6 ITA
"Registrar"	Equiniti Limited, Aspect House, Spencer Road, Lancing BN99 6DA
"RIS"	regulatory information service
"Shareholders"	holders of Shares
"Shares"	Existing Shares or Offer Shares, as the context may require
"Total Return"	sum of NAV and the cumulative dividends paid to Shareholders per Share
"UK Listing Authority"	FSA acting in its capacity as the competent authority for the purposes of Part VI of the Financial Services and Markets Act 2000
"VCT"	venture capital trust as defined in Section 259 ITA
"VCT Regulations"	The Venture Capital Trust (Winding Up and Mergers) (Tax) Regulations 2004

Part V – Terms and Conditions of Application

• 1.- In these- Terms and- Conditions of- Application, the expression-"Offer- Document" means this document, dated- 23- March- 2012.-Theexpression-"Application-Form"meanstheapplicationformforuseinaccordancewiththese-Termsand-Conditionsof-Application.-Savewherethecontentrequiresotherwise,thetermsusedinthe-Application- Form bear the same meaning as in the- Offer-Document.-
• 2.- The right is reserved to reject any application or to accept anyapplicationinpartonly.-Multipleapplicationsarepermitted.-Ifanyapplication is not accepted, or if any contract created byacceptancedoesnotbecomeunconditional,orifanyapplicationisscaled back or if in any other circumstances there is an excesspayment in relation to an application,the application monies orthebalanceoftheamountpaidortheexcesspaidonapplicationwill be returned without interest by post at the risk of the-Applicant.-Inthemeantimeapplicationmonieswillberetainedinthe-Company'saccountwith-Barclays-Bank-PLC.-
• 3.- You may pay for your application for- Offer- Shares by cheque orbanker'sdraftsubmittedwiththe-Application-Form.-
• 4.- Thecontractcreatedbytheacceptanceofapplicationsunderthe-Offerwillbeunconditional.-
• 5.- Bycompletinganddeliveringan-Application-Form,you:-
• (a) offertosubscribetheamountspecifiedonyour-Application-Formplus any commission waived for extra shares or any smalleramount for which such application is accepted at a price asdeterminedbythe-Pricing-Formulasubjecttothe-Offer-Document,these-Termsand-Conditionsof-Application,andthe-Articlesofthe-Company;-
• (b) authoriseyourfinancialadviser,orwhoeverheorshemaydirect,the-Registraror the-Company to senda documentof title for,orcredit your- CREST account in respect of, the number of- Offer-Shares for which your application is accepted, and/or a crossedcheque for any monies returnable, by post at your risk to youraddressassetoutonyour-Application-Form;-
• (c) inconsiderationofthe-Companyagreeingthatitwillnot,priortothe- Offer closing, offer any- Offer- Shares for subscription to anypersons other thanas set out in the-Offer-Document,agree thatyour application may not be revoked and that this paragraphconstitutes a collateral contract between you and the- Companywhich will become binding upon despatch by post or delivery ofyourdulycompleted-Application-Formtothe-Companyortoyourfinancialadviser;-
• (d) warrant that your remittance will be honoured on firstpresentation and agree that, if such remittance is not sohonoured,youwillnotbeentitledtoreceiveasharecertificateorto enjoy or receive any rights or distributions in respect of such-Offer-Sharesunlessanduntilyoumakepaymentincleared fundsfor such- Offer- Shares and such payment is accepted by the-Company-(whichacceptanceshallbeinitsabsolutediscretionandmay be on the basis that you indemnify it against all costs,damages, losses, expenses and liabilities arising out of or inconnectionwiththefailureofyourremittancetobehonouredonfirst presentation) and that at any time prior to unconditionalacceptance by the- Company of such late payment in respect ofsuch- Offer- Shares, the- Company may- (without prejudice to itsotherrights)treattheagreementtoallotsuch-Offer-Sharesasvoidandmay allot such- Offer- Shares to some other person, in whichcaseyouwillnotbeentitledtoanyrefundorpaymentinrespectof such- Offer- Shares- (other thanreturn of such late payment atyourriskandwithoutinterest);-
• (e) agree thatall chequesand banker's draftsmay be presented forpaymentontheduedatesandanydefinitivedocumentoftitleandanymoniesreturnabletoyoumayberetainedpendingclearanceof your remittance and the completion of any verification ofidentityrequiredbythe-ML-Regulationsandthatsuchmonieswillnotbearinterest;-
• (f) undertaketoprovidesatisfactoryevidenceofidentitywithinsuchreasonable time- (in each case to be determined in the absolutediscretion of the- Company) to ensure compliance with the- ML-Regulations;-
• (g) agree that, in respect of those- Offer- Shares for which yourapplication has been received and processed and not rejected,acceptance of your application shall be constituted by the-Company instructing the- Registrar or the company secretary toenteryournameontheshareregister;-

• (h) agree that all documents in connection with the- Offer and anyreturnedmonieswillbesentatyourriskandmaybesenttoyouatyouraddressassetoutinthe-Application-Form;-

• (i) agree that, having had the opportunity to read the- Offer-Document, you shall be deemed to have had notice of allinformation and representations including the risk factors and-investmentconsiderationscontainedtherein;-

• (j) confirmthat-(saveforadvicereceivedfromyourfinancialadviser)inmakingsuchapplicationyouarenotrelyingonanyinformationand representation other than those contained in the- Offer-Document and you accordingly agree that- (save in the event offraud by that person) no person responsible solely or jointly forthe- Offer- Document or any part thereof or involved in thepreparation thereof will have any liability for any such otherinformationorrepresentation;-
• (k) agree that all applications, acceptances of applications andcontractsresultingtherefromunderthe-Offershallbegovernedbyandconstruedinaccordancewith-Englishlawandthatyousubmitto the jurisdiction of the- English courts and agree that nothingshall limit the right of the- Company to bring any action, suit orproceedings arising out of or in connection with any suchapplications, acceptances of applications and contracts in anyother manner permitted by law or in any court of competentjurisdiction;-
• (l) irrevocablyauthorise the- Company, the- Registrar or-NVM oranyother personauthorised byany of them,asyouragent, to doallthingsnecessarytoeffectregistrationofany-Sharessubscribedbyorissuedtoyouintoyournameandauthoriseanyrepresentativesofthe-Company,the-Registraror-NVMtoexecuteanydocumentsrequired thereof and to enter your name on the register ofmembersofthe-Company;-
• (m) agreetoprovidethe-Companywithanyinformationwhichitmayrequestinconnectionwithyourapplicationortocomplywiththe-VCTregulationsorotherrelevantlegislation-(asthesamemaybeamended from time to time) including without limitationsatisfactoryevidenceofidentitytoensurecompliancewiththe-ML-Regulations;-
• (n) warrant that, in connection with your application, you haveobserved the laws of all requisite territories, obtained anyrequisite governmental or other consents, complied with allrequisite formalities and paid any issue, transfer or other taxesduein connectionwithyourapplicationinany territoryand thatyou have not taken any action which will or may result in the-Company,-NVMor-Downingactingin breachof the regulatoryorlegalrequirementsofanyterritoryinconnectionwiththe-Offeroryourapplication;-
• (o) confirmthatyouhavereadandcompliedwithparagraph-6below;-(p) confirm that you have reviewed the restrictions containedin-
• paragraph-7below;-(q) warrantthatyouarenotundertheageof-18years;-
• (r) if the laws of any territory or jurisdiction outside the- United-Kingdomareapplicabletoyourapplication,warrantthatyouhavecomplied with all such laws and none of the- Company,- NVM or-Downingoranyoftheirrespectiveagentswillinfringeanylawsofanysuchterritoryorjurisdictiondirectlyorindirectlyasaresultorinconsequenceofanyacceptanceofyourapplication;-
• (s) agree that- NVM and- Downing are acting for the- Company inconnectionwith the-Offerand for no oneelseand that theywillnottreatyouastheircustomerbyvirtueofsuchapplicationbeingacceptedoroweyouanydutiesorresponsibilitiesconcerningthepriceof-Offer-Sharesorconcerning thesuitabilityof-Offer-Sharesfor you or be responsible to you for the protections afforded totheircustomers;
• (t) warrant that if you sign the- Application- Form on behalf ofsomebody else or yourself and another or others jointly or acorporation you have the requisite power to make suchinvestmentsaswellastheauthoritytodosoandsuchpersonwillalsobeboundaccordinglyandwillbedeemedalsotohavegiventheconfirmations,warrantiesandundertakingscontainedintheseterms and conditions of application and undertake- (save in thecase of signature by an authorisedfinancial adviser on behalf ofthe-Investor)toencloseapowerofattorneyoracopythereofdulycertifiedbyasolicitorwiththe-Application-Form;-
• (u) warrant thatyouarenotsubscribing for the-Offer-Sharesusingaloanwhichwouldnothavebeengiventoyouoranyassociate,ornot given to you on such favourable terms, if you had not beenproposingtosubscribeforthe-Offer-Shares;-

• (v) warrantthatthe-Offer-Sharesarebeingacquiredbyyouforbonafide investment purposes and not as part of a scheme orarrangement the main purpose of which, or one of the mainpurposes of which, is the avoidance of tax.- Obtaining tax reliefsgiven under the applicable- VCT legislation is not of itself taxavoidance;-

• (w) warrant thatyouare nota- "USperson"as definedin the-United-States- Securities- Act of- 1933- (as amended) nor a resident of-Canadaandthatyouarenotapplyingforany-Sharesonbehalfoforwithaviewtotheiroffer,saleordelivery,directlyorindirectly,to or for the benefit of any- US person or resident of- Canada,-Australia, the-Republicof-South-Africa, the-Republicof-Irelandor-Japan;-

• (x) warrantthattheinformationcontainedinthe-Application-Formisaccurate;and-
• (y) agreethatifyourequestthat-Offer-Sharesareissuedtoyouonadateotherthan-5-April-2012andsuch-Offer-Sharesarenotissuedonsuchdatethatnoneofthe-Company,theirrespectiveagentsor-Directors will have any liability to you arising from the issue ofsuch-Offer-Sharesonadifferentdate.-
• 6.- No person receiving a copy of the- Offer- Document or an-Application-Forminany territory other than the-United- Kingdommaytreatthesameasconstitutinganinvitationoroffertohimorher,norshouldheorsheinanyeventusesuch-Application-Formunless, in the relevant territory, suchan invitation or offer couldlawfully be made to him or her or such- Application- Form couldlawfullybeusedwithoutcontraventionofanyregistrationorotherlegal requirements.-It is the responsibility ofany person outsidethe-United-Kingdomwishingtomakeanapplicationhereundertosatisfy himself or herselfas tothe full observance of the laws ofanyrelevantterritoryinconnectiontherewith,includingobtainingany requisite governmental or other consents, observing any ofthe formalities requiring to be observed in such territory andpaying any issue, transfer or other taxes required to be paid insuchterritory.-
• 7.- The-Offer-Shareshavenotbeenandwillnotbe registeredunderthe-United- States- Securities- Act-1933,asamended, or under thesecurities laws of any state or other political subdivision of the-United-States,andmaynotbeofferedorsoldinthe-United-Statesof-America,itsterritoriesorpossessionsorotherareassubjecttoitsjurisdiction-(the-"USA").-Inaddition,the-Companyhasnotbeenand will not be registered under the- United- States- Investment-Company- Act of- 1940, as amended.- The- Manager will not beregisteredunderthe-United-States-Investment-Adviser-Actof-1940-(as amended).- No application will be accepted if it bears anaddressinthe-USA.-
• 8.- The application is addressed to the- Company.- The rights andremedies of the- Company under these- Terms and- Conditions of-Applicationareinadditiontoanyrightsandremedieswhichwouldotherwisebeavailabletoit,andtheexerciseorpartialexerciseofonewillnotpreventtheexerciseofothers.-
• 9.- Thedatesandtimesreferredtointhese-Termsand-Conditionsof-Applicationmaybealteredbythe-Company.-
• 10.- Authorisedfinancialadviserswho,actingonbehalfoftheirclients,return valid- Application- Forms bearing their stamp and- Financial-Services- Authority number will be entitled to commission on theamountpayablein respectof the-Offer-Sharesallocated foreachsuch- Application- Form at the rates specified in the paragraphheaded- "Commission" in- Part- I of this document.- Authorisedfinancial advisers may agree to waive part or all of their initialcommissionin respect ofanapplication.-If thisis the case, thensuchapplicationwillbetreatedasanapplicationtosubscribe forthesumstatedinboxnumber-2ofthe-Application-Formtogetherwithanumberofadditional-Offer-Sharesequivalenttotheamountof commission waived.- NVM and the- Registrar are accordinglyauthorisedtoamendsuchboxnumber-2.-Financialadvisersshouldkeeparecordof-Application-Formssubmittedbearingtheirstamptosubstantiateanyclaimfortheircommission.-

• 11.- Thesectionheaded-Noteson-Application-Formformspartofthese-Termsand-Conditionsof-Application.-

• 12.- It is a condition of the- Offer to ensure compliance with the- ML-Regulations.- NVM is therefore entitled to require, at its absolutediscretion,verification ofidentity fromany-Applicantincluding,withoutlimitation,anypersonwhoeither-(i)tenderspaymentbywayofachequeor banker's draft drawn on an account in the name of a person orpersonsotherthanthe-Applicantor-(ii)appearsto-NVMtobeactingonbehalf of some other person.- Pending the provision of evidencesatisfactoryto-NVMastotheidentityofthe-Applicantand/oranypersonon whose behalf the- Applicant appears to be acting,- NVM may, in itsabsolute discretion, retain an- Application- Form lodged by an- Applicantand/or the cheque or other remittance relating thereto and/or the-Registrar may not enter the- Applicant on the register of members orissueany sharecertificatesin respectof suchapplication.-Ifverificationof identity is required, this may result in delay in dealing with anapplicationandinrejectionoftheapplication.-The-Companyreservestheright,initsabsolutediscretion,foritor-NVMtorejectanyapplicationinrespect of which- NVM considers that, having requested verification ofidentity,ithasnotreceivedevidenceofsuchidentitysatisfactorytoitbysuchtimeaswasspecifiedintherequestforverificationofidentityorinany event within a reasonable period.- In the event of an applicationbeingrejectedinanysuchcircumstances,the-Companyreservestherightinitsabsolutediscretion,butshallhavenoobligation,toterminateanycontractofallotmentrelatingtoorconstitutedbysuch-Application-Form-(inwhicheventthemoneypayableorpaidinrespectoftheapplicationwill be returned- (without interest) to the account of the drawee bankfromwhich such sumswere originally debited)and/or toendeavour toprocure other subscribers for the- Shares in question- (but in each casewithout prejudice to any rights the- Company may have to takeproceedingstorecoverinrespectoflossordamagesufferedorincurredby it as a result of the failure to produce satisfactory evidence asaforesaid).- The submission of an- Application- Form will constitute anundertaking by the- Applicant to provide promptly to- NVM suchinformationasmaybespecifiedbyitasbeingrequiredforthepurposeofthe-ML-Regulations.-

• 13.- Therightisalsoreservedtotreatasvalidandbindinganyapplicationnotcomplyingfullywiththese-Termsand-Conditionsof-Applicationornotinallrespectscomplyingwiththe-Noteson-Application-Form.-The-Companymay accept applications made otherwise than by completion of an-Application-Formwherethe-Applicanthasagreedinsomeothermanneracceptabletothe-Companytoapplyinaccordancewiththese-Termsand-Conditions of- Application.- In particular, the- Company will acceptunsuccessfulapplications fromitsofferdated-21-February-2012asvalidapplicationsforthis-Offeruponreceivingconfirmationfromtheapplicantthat they have received this-Offer-Documentandaccept the termsandconditions contained herein and request that their application betransferred.-

Notes on Application Form

Beforemakinganapplication toacquire-Offer-Sharesyouare strongly recommended to consultanappropriate financialadviserauthorised under the-Financial-Servicesand-Markets-Act-2000.-Itisessentialthatyoucompleteallpartsofthe-Application-Forminaccordancewiththeinstructionsinthesenotes. Please send the completed- Application- Form, together with your cheque or banker's draft by post, or deliver it by hand, to- Northern- 3- VCT- PLC,-Northumberland-House,-Princess-Square,-Newcastleupon-Tyne-NE1-8ER.-Ifyouhaveanyquestionsonhowtocompletethe-Application-Formpleasecontact-NVMon-0191-244-6000oryourfinancialadviser.-

Thefollowingnotesshouldbereadinconjunctionwiththe-Application-Formandthe-Termsand-Conditionsof-Application.-

Insertin-Box-1in-BLOCK-CAPITALSyourfullname,permanentaddress,daytimetelephonenumber,dateofbirth,-National-Insurancenumberand,ifyouhaveone,youremailaddress.-Jointapplicationsarenotpermitted.-

Insert- (in figures)in-Box-2 the totalamountyouwish toinvestunder the-Offer.-Sharesubscriptionswillbeadjusted to reflectanycommissionwaived-(byagents)asextra-Offer-Shares.-

Please note that theminimum investment is- £5,000.-Themaximuminvestment, onwhich tax reliefs on investments in- VCTsareavailable, is-£200,000inthe-2011/12taxyear.-

Attachyourchequeorbanker'sdrafttothe-Application-Formfortheexactamountshownin-Box-2.-Yourchequeorbanker'sdraftmustbemadepayableto-"Northern-3-VCT-PLC"andcrossed-"A/C-Payeeonly".-Yourpaymentmustrelatesolelytothisapplication.-

Nomoneylaunderingverificationisrequiredtobeenclosediftheapplicationisforlessthan-£12,000orifpaymentisbymeansofachequedrawn onanaccountin the name of the-Applicant- (provided that- (a) thechequeincludesdetailsof the-Applicant'sbankaccountorbuildingsociety account- (as applicable) and- (b) the cheque is drawn on a- UK or- European- Union authorised bank or credit institution).- Please note,however,that-NVMmay,initsabsolutediscretion,require-Money-Launderingverificationandthat-Money-Launderingverificationwillberequiredbyintroducingfinancialadvisers.-

Money-Laundering-

Iftheapplicationisformorethan-£12,000andpaymentisnotbymeansofachequedrawnonanaccountinthenameofthe-Applicant,pleasesupply:-

(a) an-Identity-Verification-Certificatefromyourauthorisedfinancialadviser.-

or-

• (b)- (i) acopyofyourpassportordrivinglicencecertificatedbyabankorsolicitorstatingthatitisa-"truecopyoftheoriginalandatruelikenessoftheclient"followedbyyourname;and-
• (ii) arecent-(nomorethanthreemonthsold)originalbankorbuildingsocietystatement,orutilitybill,orrecenttaxbill,inyourname.-

Read the declaration and sign and date the- Application- Form in- Box- 3.- If someone other than the- Applicant named in- Box- 1 signs on such-Applicant'sbehalf,suchsignatorymustensurethatthedeclarationgivenonbehalfofsuch-Applicantiscorrect.-Authorisedintermediarieswhoareentitledtoreceivecommissionshouldstampandcompletetheagent'sbox,givingtheirfullnameandaddress,telephonenumberanddetailsoftheirauthorisationunderthe-Financial-Servicesand-Markets-Act-2000.-Therightisreservedtowithholdpaymentofcommissionifthe-Companyisnot,atitssolediscretion,satisfiedthattheagentissoauthorised.-

Ifyouwishtohavedividendspaidintoyournominatedbankorbuildingsocietyaccount,pleasecompletethemandateinstructionform.-

Leaveblankifyouwishtoreceiveasharecertificateinrespectofyourinvestment.-Ifyourequireyour-Sharestobeissuedelectronicallytoa-CRESTaccount,pleasecompletetheboxes.-

To be completed by authorised intermediaries only.- If you would like commission to be paid by- BACS, please complete the relevantboxes.

Northern 3 VCT PLC

Application-Form-

Makeyourchequeorbanker'sdraftpayableto-"Northern-3-VCT-PLC" andcrossed-"A/C-Payeeonly"andreturnthisformassoonaspossibleto-Northern-3-VCT-PLC,-Northumberland-House,-Princess-Square,-Newcastleupon-Tyne-NE1-8ER.-Theclosingdateforthe-Offerwillbe-5.00pmon-Thursday-5-April-2012-(unlessfullysubscribedearlier).-

1	Title and name	in full
	Permanent	address
	Postcode					Daytime tel
	Email address
	Date of birth					National Insurance No
2	I am applying	for Offer	Shares	as	follows:	2011/12 tax year		£		min.	£5,000

or suchlesser sum forwhich thisapplicationmaybeacceptedon the-Termsand-Conditionsof-Application setoutin- Part-Vof thisdocument.-Pleasesendmeacertificateconfirmingmyentitlementto-VCTtaxreliefs.

BY-SIGNING-THIS-FORM-I-HEREBY-DECLARE-THAT:-(i)-Ihavereadtheenclosedtermsandconditionsofapplicationofthe-Offer-Documentdated-23-March-2012andagreetobeboundbythem;-(ii)-Iwillbethebeneficialownerofthe-Offer-Sharesin-Northern-3-VCT-PLCissuedtomepursuanttothis application;- (iii) to the best of my knowledge and belief, the particulars- I have given to- Northern- 3- VCT- PLC are correct; and- (iv) mysubscriptioncomprisestheamountsetoutinbox-2aboveplusanycommissionwaivedonmybehalfforextrashares.-

Ifthisformiscompletedandsignedbyanauthorisedfinancialadviseroranyotherpersonapartfromtheinvestor:

Bysigningthisformonbehalfoftheindividualwhosedetailsareshownabove,-Imakeadeclaration-(onbehalfofsuchindividual)onthetermsofsubparagraphs-(i)to-(iv)above.-

HM-Revenue-&-Customsmayinspectthisapplicationform.-Itisaseriousoffencetomakeafalsedeclaration.-

	Signature			Date	/	/
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Authorised intermediaries should stamp and complete this box
Contact name:	Address:
Firm name:
FSA No.:	Postcode:
address: Email	Tel.:
Due completion of the agent's box indicates that the	agent is duly authorised to transact investments of this type under the Financial Services and Markets Act 2000.
For Official Use Only
Antimoney laundering	CHAPS

DIVIDEND-MANDATE-

Dividends may be paid directly into- Shareholders' bank and building society accounts.- In order to facilitate this, please complete themandateinstructionformbelow.-Pleasenotethatifyouarean-Existing-Shareholderthisinstructionappliestoallofyourshareholdingsinthe-Companyandcompletingtheformbelowwilldirectthe-Companytosendalldividendpaymentsdueonallyourshareholdingstothisbankaccount.-

Dividends paid directly to your account will be paid in cleared funds on the dividend payment dates.- Your bank or building societystatementwillidentifydetailsofthedividendaswellasthedatesandamountspaid.-

Bycompletingthedetailsbelow-Iaminstructingthe-Companytoforward,untilfurthernotice,alldividendsthatmayfromtimetotimebecomedueonany-Sharesnowstanding,orwhichmayhereafterstand,inmynameintheregisterofmembersof-Northern-3-VCT-PLCtothebankorbuildingsocietyaccountlistedbelow.-

Name of Bank or Building Society:
Branch:
Branch Address:
Account Name:
Sort Code:	Account Number: (please quote all digits and zeros)
Signed:

The-Companyand-NVMdonotacceptresponsibilityifanydetailsprovidedbyyouareincorrect.-

CREST Participant ID:
CREST Member Account ID:
Participant Name:
Participant Address:
Participant Postcode:
Contact name for CREST queries:
Contact Telephone:

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TO BE COMPLETED BY AUTHORISED INTERMEDIARIES ONLY
Special instructions
Please provide details of your bank account	so that commission can be paid to you via BACS.
Name of Bank or Building Society:
Branch:
Account Name:
Sort Code:	Account Number: (please quote all digits and zeros)
Email address for commission statements:
The Company and NVM do not accept	responsibility if any details provided by you are incorrect.

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Northern 3 VCT PLC

Northumberland House Princess Square Newcastle upon Tyne NE1 8ER

T 0191 244 6000 F 0191 244 6001 E n3vct@nvm.co.uk

www.nvm.co.uk