The City Pub EIS Fund

Information Memorandum Tranche 3

7 September 2017

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IMPORTANT NOTICE

IF YOU ARE IN ANY DOUBT ABOUT THE CONTENT OF THIS INFORMATION MEMORANDUM (THE"MEMORANDUM") AND/OR ANY ACTION THAT YOU SHOULD TAKE, YOU ARE STRONGLYRECOMMENDED TO SEEK ADVICE IMMEDIATELY FROM YOUR STOCKBROKER, SOLICITOR,ACCOUNTANTOROTHERPERSONAUTHORISEDUNDERTHEFINANCIALSERVICESANDMARKETSACT2000("FSMA")WHOSPECIALISESINADVISINGONOPPORTUNITIESOFTHISTYPE.ANINVESTMENTINTHECITYPUBEISFUND2017/18(THE"FUND")WILLNOTBESUITABLEFORALLRECIPIENTSOFTHISMEMORANDUM.

ThisMemorandumconstitutesafinancialpromotionpursuanttoSection21ofFSMAanditscontenthas been approved by Howard Kennedy Corporate Services LLP (“Howard Kennedy”), which isauthorisedandregulatedbytheFinancialConductAuthority("FCA")withreferencenumber523524,onthebasisthatitisonlyforcommunicationbyIntermediariesauthorisedandregulatedbytheFCAto clients (including, but not limited to, retail clients) of those Intermediaries who have beenclassified inaccordancewiththeFCARulesandforwhomanassessmenthasbeenmadeas totheappropriatenessandsuitabilityofthisinvestmentforthem.

IfyouarenotapersonentitledtoreceivethisMemoranduminaccordancewithsuchanassessmentreferredtoabovethisMemorandumisnotintendedforyouandyoushouldplacenorelianceuponitfor any purposes. Distribution of this Memorandum other than in accordance with the relevantexemptionsmentionedaboveisnotauthorisedbyHowardKennedyandmaycontraveneFSMA.

TheCityPubEISFund2017/18

7September2017

InformationMemorandumwithApplicationForm

Any references to tax lawsor levels in thisMemorandumare subject to change and an Investor’sownpersonal circumstances. Thevalueof Shares cangodownaswell asupandyoumaynotgetbackthefullamountinvested.YoushouldconsideraninvestmentthroughthisFundasamediumtolongterminvestment.InvestmentsmadebytheFundwillbeilliquid.

ThisMemorandumconstitutesanoffertoengageininvestmentactivity,butdoesnotconstituteanoffertosellorasolicitationofanoffertopurchasesecuritiesandinparticulardoesnotconstituteanoffering in any state, country or other jurisdictionwhere, or to any personor entity towhom, anofferorsalewouldbeprohibited.

ThisMemorandum contains information relating to an investment through the Fund. An investmentmay only bemade on the basis of thisMemorandum and the Investor Agreement in Part 13 of theMemorandum.AllreasonablecarehasbeentakentoensurethatthefactsstatedinthisMemorandumaretrueandaccurateinallmaterialrespectsandthattherearenoothermaterialfactswhoseomissionwouldmakeanystatementoffactoropinioninthisMemorandummisleading.AllstatementsofopinionorbeliefcontainedinthisMemorandumandallviewsexpressedandstatementsmaderegardingfutureevents represent an assessment and interpretation of information available as at the date of thisMemorandum.NorepresentationismadeorassurancegiventhatsuchstatementsorviewsarecorrectorthattheobjectivesoftheFundwillbeachieved.ProspectiveInvestorsmustdetermineforthemselveswhatreliance(ifany)theyshouldplaceonsuchstatements,viewsorforecasts,andnoresponsibilityisacceptedbyHowardKennedyortheFundManagerinrespectthereof.

NothinginthisMemorandumconstitutesinvestment,tax,legalorotheradvicebyHowardKennedyortheFundManagerandyourattentionisdrawntothesectionheaded"RiskFactors"onpages4to7ofthisMemorandum.

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RAM Capital Partners LLP, which is authorised and regulated by the FCA (with reference number470347),isactingasPromoterinconnectionwiththeFundandisnotactingforanyoneelseandwillnotbe responsible to anyone other than Howard Kennedy and the Fund Manager for providing theprotectionsofferedtocustomersofRAMCapitalPartnersLLPorforprovidingadviceinrespectofthecontents of this document or the Fund. No liability is accepted by RAM Capital Partners LLP for theaccuracyofany informationoropinions contained inor for theomissionofanymaterial informationfromthisdocument.

7 September2017

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CONTENTS

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

Part2–TARGETTIMETABLEANDDETAILSOFTHEFUND......................................................................8

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

Part4–LETTERFROMTHEINVESTMENTCONSULTANT......................................................................11

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

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

Part7–KEYINDIVIDUALS.....................................................................................................................19

Part8–CONFLICTSPOLICY...................................................................................................................22

Part9–THESTRUCTUREANDOPERATIONOFTHEFUND...................................................................23

Part10–CHARGESANDFEES...............................................................................................................28

Part11–TAXATION..............................................................................................................................30

Part12–DEFINITIONS..........................................................................................................................33

Part13–INVESTORAGREEMENT.........................................................................................................35

Appendix1–APPLICATIONFORM

Appendix2–AIFMDDISCLOSURES

Appendix3–EXECUTIONPOLICY

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PART1-RISKFACTORS

PriortomakingadecisiontoinvestthroughtheFund,prospectiveInvestorsshouldcarefullyconsideralloftheinformationsetoutinthisMemorandumandshouldconsiderwhetheraninvestmentintheFund(whichintendstoinvestinoneormorePubEISCompanies)constitutesasuitableinvestmentinlightoftheirpersonalcircumstances,theirtaxpositionandthefinancialresourcesavailabletothem.Investors’capitalisatrisk.

An investment in theFund involvesahighdegreeof riskandmaynotbesuitable forall Investors.Potential Investors should, therefore, seek advice from a person authorised by FSMA to provideinvestment advice on unquoted investments before making any decision to invest. ProspectiveInvestors are also recommended to consult a professional adviser regarding their personal taxpositionandtheconsequencesofanEISinvestment.

ThissectioncontainsthematerialriskfactorsassociatedwithaninvestmentintheFund.Ifanyofthefollowingeventsorcircumstancesarise,thebusiness,financialconditionand/orresultsofoperationsofthePubEISCompaniesinwhichtheFundhasinvestedcouldbemateriallyadverselyaffected,ascould theavailabilityof tax reliefs toApplicants. Insuchacase,an Investormay loseallorpartoftheir investment and/or an Investor may lose all or part of their tax relief. Additional risks anduncertaintiesnotpresentlyknown,orpresentlydeemedimmaterial,mayalsohaveanadverseeffectonthebusinessesofthePubEISCompaniesandtherisksbelowdonotnecessarilycomprisealltherisksassociatedwithaninvestmentintheFund.

RiskrelatingtotheinvestmentinthePubEISCompanies

ThevalueofinvestmentsinthePubEISCompaniesandanyincomederivedfromthemmaygodownaswellasup.Investorsmay,therefore,realiselessthantheiroriginalinvestment.PastperformanceoftheInvestmentConsultant,oranyindividualengagedbytheInvestmentConsultant,inrelationtotheactivitiesofthePubEISCompanies(inparticular,inrelationtotheactivitiesandperformanceofany of The Capital Pub Company PLC, The City Pub Company (East) PLC, The City Pub Company(West)PLC, TheGalaxy (City)PubCompany Limited, ThePioneer (City)PubCompany Limited, TheSovereign (City)PubCompanyLimited,TheLiberty (City)PubCompanyLimited,ThePhoenix (City)Pub Company Limited and The Summit (City) Pub Company Limited) is no guide to futureperformance and may not be repeated. There is no guarantee that the Fund’s objectives will beachieved.

Risksrelatingtodebt

TomaximisereturnsforInvestors,itisintendedthatthePubEISCompanieswillutilisebankdebttopart-finance their operations. This will be done on a conservative basis and it is anticipated thataveragegearingperPubEISCompanywillbe25%to30%ofpaid-upsharecapitalandsharepremium(withthegearingofeachPubEISCompanylimitedtoamaximumof50%ofitspaid-upsharecapitalandsharepremium).

Thelevelofdebtwillsignificantlyincreaserisk.ThepotentialdebtofeachPubEISCompanyislikelytobesecuredagainstanypropertyheldbythatPubEISCompany,thevalueofwhichmayfluctuate.Itisalsopossiblethatthedebtwillbesubjecttofluctuatinginterestrates.

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RisksrelatingtothebusinessesofthePubEISCompanies

Dependenceonkeyexecutivesandpersonnel

The future success of each Pub EIS Company will be substantially dependent on the continuingservicesandperformanceof the InvestmentConsultant, thePubEISCompanies’Directorsand thepubmanagementteamsandtheabilityofthePubEISCompaniestoattractandretainhighlyskilledandqualifiedpubmanagers.ItcannotbeguaranteedthatBar&KitchenwillremaintheInvestmentConsultanttotheFundorthatBar&KitchenastheInvestmentConsultantwillretaintheservicesofCliveWatson. It cannotbeguaranteed that thePubEISCompanies’Directorsnormembersof thepub management teams will remain with the Pub EIS Companies, although the InvestmentConsultant believes the Pub EIS Companies’ culture and remuneration packageswill be attractive.The loss of the services of the Investment Consultant, any of the Pub EIS Companies’ Directors,managersandotherkeyemployeescoulddamagethebusinessesofthePubEISCompanies.

HMRCAdvanceAssurancePrior toany investment into thePubEISCompanies throughtheFund, thePubEISCompanieswilleach have separately obtained advance assurance from HMRC that they are EIS qualifyinginvestments. As is the casewith any investment under the EIS, there is no guarantee that EIS taxreliefsmaybeclaimed,obtainedorretainedinanyevent.

WheretheEuropeanCommissionbelievesthatRiskFinanceStateAidhasbeenprovidedwhichisnotinaccordancewiththeEURiskFinanceGuidelines,theymayrequiretheUKGovernmenttorecoverthatRiskFinanceStateAid.There iscurrentlynomechanisminplaceforthis,butrecoverymaybefromthePubEISCompaniesortheInvestors.

Growthstrategyandrisksrelatingtopotentialfutureacquisitionsanddisposal

The growth of the Pub EIS Companies will be largely dependent on their ability to identify andexecute acquisitions of assets qualifying under the EIS rules, namely unlicensed premises or pubswhich have previously been closed, and successfully convert these sites into free-of-tie,managedpubsincitiesandmajorprovincialtownsprimarilyinsouthernEngland.IfthePubEISCompaniesareunabletofindsuitableacquisitiontargetsatacceptableprices,thiswillhaveamaterialandadverseeffectonthePubEISCompanies’futuresuccessandthereturnstheInvestorsreceivefromtheFund.Thepriceofsuchsitesmaybeaffectedbyinterestrates,inwardinvestmentintotheUK,thedemandforpubsandotherfactorsoutsideofthePubEISCompanies’control.

Market

Economic factorsmay decrease the disposable income that customers have available to spendondrinking and eating out and other leisure activities ormay adversely affect customers’ confidenceandwillingness to spend. This could affect the performance of any sites acquired by the Pub EISCompanies.

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

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Alcohol

TheGovernment is likelytocontinuetoconsider initiativestodealwithso-called ‘‘bingedrinking’’.WhilsttheInvestmentConsultantdoesnotconsiderthattheseinitiativeswillbedirectlyrelevanttothePubEISCompanies’pubportfoliosgiventheirplannedlocationsandcustomerprofile,anyfocusonthepotentiallyharmfuleffectsofalcoholmayreducesalesofalcoholicbeverages.

Licences,permitsandapprovals

Thepub industry in theUK ishighly regulatedatbothnational and local levels andpuboperatorsrequirelicences,permitsandapprovals.DelaysandfailurestoobtaintherequiredlicencesorpermitscouldadverselyaffecttheoperationsofthePubEISCompanies.Theselawsandregulationsimposeasignificantadministrativeburdenoneachpubandadditionalormorestringentrequirementscouldbeimposedinthefuture.TheprospectivesitesofthePubEISCompanieswillberequiredtoobtainalicencetopermit,amongstotherthings,thesaleofliquor.ShouldanyofthePubEISCompanies’sitelicences be refused, withdrawn or amended, the profitability of any such site or pub could beadversely impacted. The Pub EIS Companies will have processes in place to ensure all necessarylicences are obtained on a timely basis, and to monitor compliance with all relevant laws andregulations.

Acquisitionofunlicensedpremises

When considering the purchase of unlicensed premises or other sites it may not be possible toascertain whether licensing permission will be granted at the time of purchase and there may,therefore,beariskthatalicencemayberefusedandthepurchaseaborted.Furthermore,therewillbe no established trade at the premises to build from, nor will there necessarily be any provenhistoricaltradeatsuchpremisesandeachsuchpremiseswillrequireafullrefurbishment.However,it is expected that the Pub EIS Companies’Directorswill eachhave an established track recordofobtaininglicencesinsuchcircumstances.InhiscapacityasChairmanofTheCityPubCompaniesEastandWest,CliveWatsonhashadseveralrecentexperiencesofidentifyingunlicensedpremiseswhichhaving been acquired by The City Pub Companies East andWest and have generated turnover inexcessof£1millionperyear(thesepremisesarenotrelatedtotheFund).

Brexit

Itremainsunclearwhattheimmediateor longer-termeffectontheUKingeneralwillbefollowingthepointatwhichtheUKceasestobeamemberoftheEuropeanUnion(currentlyunderstoodtobe29 March 2019). It remains possible that wines, beers and spirits imported from other MemberStates of the EUwill be subject to increased tariffs that thePub EIS Companieswill be obliged tofactorintotheiroperationand,inprinciple,passontotheircustomers.

RisksrelatingtoTaxation

ThisMemorandumhas been prepared in accordancewith an interpretation of current legislation,rules and practice. It is always possible that legislation, rules and practicemay change. Any suchchangesand,inparticularanychangestothebasesoftaxation,taxrelief,ratesoftaxoranInvestor’staxposition,mayaffecttheavailabilityoftaxreliefsanddeferralsandmayalsoaffectthenetreturnsreceivedbyInvestorsfromthePubEISCompanies.

There can be no certainty that HMRCwill agree that an Investor’s or the Pub EIS Companies’ taxpositionisasdescribedinthisMemorandum,althoughthereisnoreasontoexpectthattheywillnotdoso.ChangesinthefinancialandtaxpositionofeitheranInvestororanyofthePubEISCompaniesmayalsoaffecthisorheroritsrespectivereturns.

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Thetaxationbenefitsdescribedaredependentuponan Investor’sparticularcircumstances,andsomaynotbeavailabletoallInvestors.Allreasonablestepshavebeentaken,basedontheinformationavailable, to ensure that the taxation benefits described will be available to all Investors (whereapplicable).However,eligibilityforsuchreliefscannotbeguaranteed,andit istheresponsibilityofprospective Investors to obtain their own independent taxation advice to confirm that they areeligible,andwillcontinuetobeeligible,tobenefitfromtherelevantreliefs.

TherearecertaincircumstancesinwhichanInvestormaynotqualifyforthetaxationbenefitsundertheEIS.ThesewillincludesituationsinwhichsuchanInvestorisconnectedwithanyorallofthePubEISCompaniesatanytime inhisorherThreeYearPeriod(asdefinedonpage34)byvirtueofthefactthatheorsheandhisorherAssociatesacquirebetweenthemmorethan30%oftheOrdinarySharesinanEISCompany.

It isenvisaged that Investors shouldnotbeconnectedwithanyof thePubEISCompaniesbut thiscannot be guaranteed.No Investor (togetherwith his or herAssociates)will be permitted to ownmorethan30%ofthesharecapitalofanEISCompany(unlesstheyindicatethattheydonotwishtoclaim the income tax relief and the CGT exemption); however, no responsibility can be taken forInvestorsbecomingconnectedtoeachotherbyvirtueofconnectionsthathavenotbeendisclosedinanApplication.IfanInvestorisindoubtaboutwhatitmeanstobeconnected,heorsheshouldseekindependentadvicefromtheirstockbroker,solicitor,accountantoranyotherpersonauthorisedbyFSMAbeforemakinganydecisiontoinvest.

If anyEISCompanydoesnot satisfy the criteria formaintaininganEISTradeor for theuseof thefundsraisedfromEISinvestors,thenthiscouldprejudicetheEIS-qualifyingstatusoftherelevantEISCompanyand,therefore,thetaxbenefitsavailabletoInvestorsundertheEIS.

Dependingon individual circumstances, incometax relief isavailable for the taxyearduringwhichOrdinarySharesareissuedtoasubscribingInvestorandthroughEIS‘carryback’totheprevioustaxyear(seetheEIS‘carryback’provisionsdescribedinPart11).

TheFundisan"unapprovedEISscheme",meaningthatinvestorsdonotstarttobenefitfromEIStaxreliefsandadvantagesinrelationtothesharesinanyPubEISCompanyuntilthedateonwhichthatinvestmentismadebytheFund.

RisksrelatingtorealisationofanInvestment

OpportunitiesforInvestorstodisposeoftheirinvestmentsinthePubEISCompaniesarelikelytobeverylimitedinpractice,astherewillbenoexternalmarketforsuchinvestments.Itmaybedifficultto obtain accurate information about the value of any shareholding in a Pub EIS Company.Furthermore, if an Investor disposes of his or her shareholding in a Pub EIS Company within theThree Year Period applicable to that shareholding, such Investor may be subject to claw-back byHMRCofanyincometaxrelieforiginallyclaimedandcrystallisationofanydeferredcapitalgains.

Shares in the Pub EIS Companies lose any EIS tax advantages on sale, making them potentiallyunattractiveinvestmentstoindividualpurchasers.

The target life of the Fund is up to mid-2021. However, the Fund may continue for longer andInvestorsshouldnot,therefore,considerinvestingiftheycouldrequireaccesstotheirfundswithinapproximatelyfiveyearsfromthecloseoftheFundraising.AlthoughthisrepresentstheInvestmentConsultant'scurrentviewofthelifeoftheFund,theFundManagerandtheInvestmentConsultantmaybeobligedintheoverallinterestsofInvestorstoprolongthelifeoftheFundbeyondthispoint(forexample,becauseitprovesdifficultorimpossibleforthePubEISCompaniestofindpurchasersforoneormoreofthepubstheycontrolatpricesthatreflecttheInvestmentConsultant'sviewastotheir true values). Investments made through the Fund will be in unquoted companies that areconsideredtobehigherriskthansecuritieslistedontheLondonStockExchange.

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PART2–TARGETTIMETABLEANDDETAILSOFTHEFUND

Targetinitialclosingdate,unlessfullysubscribedearlierorextendedatthediscretionoftheFundManager

1November2017

FinalclosingdateforApplicationsandreceiptofcleared funds, unless fully subscribed earlier orextendedatthediscretionoftheFundManager

5.00pmon16March2018

Minimum individual Subscription Amount(subjecttothediscretionoftheFundManager)

£25,000

MinimumaggregateSubscriptionAmountfortheFund, unless increased at the discretion of theFundManager

£3,000,000

Maximum aggregate Subscription Amount forthe Fund, unless increased or decreased at thediscretion of the FundManager (amaximumof£5millionper PubEISCompany canbe allottedpercalendaryear)

£15,000,000

Targetinitialinvestmentdate November2017

ExpectedtimescaleforissueofEIS3certificates Sixweeksaftertheendofthe2017/18taxyearend

Targetexitproceeds Frommid-2021

Thedatesabovearetargetsonlyandmaybesubjecttochange

Applicationsareexpected tobe subscribedat£1.00per share.Allotments intoexisting companiesmaybeissuedatamarginalpremiumtoreflect initialseededcapitalandexistinginvestments,andwillberestrictedbytheEIS rule that limits investmentspercompanyto£5meachrollingcalendaryear.ThefirstallotmentistargetedforNovember2017,priortotheAutumnStatement.AllotmentsofSharesmayberestrictedbyexistingrulesrelatingto limitationssurroundingthe£5mpermittedeach12monthsandthis,therefore,meansthatthePubEISCompaniesmaybefurtherrestrictedintheir ability to allot Shares (and it cannot be guaranteed that Shareswill be allotted) prior to theAutumnStatement.

TaxReliefsundertheEnterpriseInvestmentScheme

InformationabouttaxreliefsundertheEISissetoutinPart11ofthisMemorandum.

ClaimingIncomeTaxRelief

OncesuccessfulApplicantshavereceivedtheirEIS3forms,theyshouldentertheamountinvestedontheirtaxreturnfortheyeartheyareentitledtoclaimtheincometaxrelief.IfInvestorshavealreadysubmittedtheirtaxreturn,thentheclaimsectionoftheEIS3formshouldbecompletedandsenttotheirtaxoffice.

PleasenotethatsuccessfulApplicantswillreceiveoneEIS3formperPubEISCompany(i.e.InvestorsdonotreceiveoneformfortheirentireinvestmentthroughtheFund),andthesearelikelytoarriveseparately.

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Claimingcapitalgainstaxdeferralrelief

TheclaimsectionoftheEIS3FormshouldbecompletedandsenttotheInvestor’staxofficeortheInvestor'staxadviserforsubmissiontoHMRC.

FundManager’sContactDetails

47ParkLaneMayfairLondonW1K1PR

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

Please note: Applications will only be accepted if the details of the Investor's FCA authorisedintermediaryarecompletedontheApplicationForminAppendix1tothisMemorandum.

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PART3–PARTIESANDPROFESSIONALADVISERS

FundManagerThompsonTarazManagersLimited47ParkLaneLondonW1K1PRInvestmentConsultantBar&KitchenLimitedWestHallFarmChurchLanePirbrightSurreyGU240JJCustodianThompsonTarazManagersLimited47ParkLaneLondonW1K1PRDepositaryThompsonTarazDepositaryLimited47ParkLaneLondonW1K1PR

PromoterRAMCapitalPartnersLLP4StapleInnLondonWC1V7QHSolicitorstotheInvestmentConsultantHowardKennedyLLPNo.1LondonBridgeLondonSE19BGTaxAdviserstotheFundManagerPhilipHare&AssociatesLLP4-6StapleInnLondonWC1V7QH

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PART4–LETTERFROMTHEINVESTMENTCONSULTANT

InvestmentConsultanttotheFundManager

7September2017

DearPotentialInvestor

IampleasedtointroduceTheCityPubEISFund2017/18.

TheFundhasbeenformedforinvestmentinPubEISCompaniesandisnowseekingtoraise£15mtoinvest in suitable companies which have obtained advance assurance from HMRC under theEnterprise Investment Scheme (the "EIS"). The Pub EIS Companies will seek to acquire, convert,licenseandoperatenewpubs,intendedtogiveInvestorsexposuretoinvestmentsinpredominantlyfreeholdsiteslocatedinaffluentcitiesorlargertownsacrosssouthernEngland.

The strategy for the Fund takes into account the significant changes to the EIS-qualifyingrequirementswhichwereintroducedin2015. It isnolongerpossibleforthePubEISCompaniestoutilisefundsraisedfromEISinvestorstopurchaseexistingbusinessesorcertainassetsthatareinusein a trade. The Fund Manager and the Investment Consultant believe, however, that there aresufficientopportunitiestoacquireclosedpubpropertiesorsitesthathavenotpreviouslytraded.

Inpractical terms, thePubEISCompanieswillnotbeable tousemonies raisedtoacquireexistingtradingpubs.However,thePubEISCompanieswillbepermittedtobuyformerpubpropertiesthathavebeen closed for aperiodprior topurchaseand/orunlicensed sitesused for adifferent tradepriortopurchase,forconversionintonewpubs.

The geographical areas in which the Pub EIS Companies are expected to operate include GreaterLondon, the Midlands, the Home Counties and South East and South West England. The typicaloffering is expected tobe thatofpremiumdrinks and foodaimedat the localmarket and,wherepossible, using local suppliers. However, where appropriate, the sites may introduce elements tocaterforcustomers’broadeningtastes,suchas‘popup’bars,specialistpremiumcoffeesandawiderrangeofdishesincorporatingmorevegetarianandstreetfood.

It is expected that the Pub EIS Companies’ common Directors will have strong experience ofconverting former pubs and unlicensed premises into cash-generative pubs. As InvestmentConsultant,of theassetspurchasedbyTheCityPubCompaniesEastandWestandtheExistingEISCompaniesonouradvice,webelievethataroundhalfwouldbeeligibleunderthenewEIScriteria.Three of such pubs acquired by The City Pub Companies East andWest have each subsequentlygenerated turnover in excess of £1million per year. As such,we are confident that the Fund caninvest in Pub EIS Companies that can grow attractive and diversified pub portfolios in accordancewiththerevisedEISrequirements.

The Fund is seeking to raise up to £15 million for investment during the 2017/18 tax year. ThestrategyoftheFundwillbetoinvestupto£5millioneachintothreePubEISCompanies,whichwillseektoacquire,convert,licenseandoperatesitesintendedtoachievesignificantreturnsoncapital.Each Pub EIS Company is expected to grow a portfolio of high quality pubs, which can providesustainable profitability over the medium to long term and create an exit strategy for Investors,which will be considered frommid-2021. In our experience, this timescale will allow the Pub EISCompaniestogrowaportfolioofquality,managedpubs,andpreparethemselvesforatradesaleor,ifmarketconditionsaresuitable,aflotation.

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WearecontinuingtoprovidetheexpertiseoftheInvestmentConsultanttotheFund.Itisintendedthat the board of each Pub EIS Companywill be led byDavid Bruce as Chairman.David and I co-founded The Capital Pub Company PLC in December 2000, which achieved for its original EISshareholdersatotalreturnof£2.43per£1invested(excludingtaxrelief).Thisrepresentedforthoseoriginal EIS investors a threefold return on their net of tax investment, equivalent to a net IRR ofapproximately 12%. Additionally, it is intended that each Pub EIS Company will employ PeterMcDonald as Chief OperatingOfficer and JamesWatson (the brother of CliveWatson) as FinanceDirector, each ofwhomhave over sixteen years’ experience in the licensed trade, themajority ofwhichhasbeenintheEISpubsector.

TheminimuminvestmentintheFundis£25,000inrespectofapplicationsforallotmentsinthetaxyear2017/18receivedonorbefore5.00pmon16March2018.Aninvestmentmadeinthetaxyear2017/18 may be used against the previous year’s income tax liability or in the current tax year,subjecttotheInvestor’sindividualcircumstances.

Withbestwishes,

Yourssincerely,

CliveWatsonDirectorofBar&KitchenLimitedInvestmentConsultanttotheFundManager

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PART5–KEYTAXRELIEFS

TheEIStaxreliefsprovidedbytheUKgovernmentinclude:

Incometaxrelief

30%incometaxreliefontheamountsubscribedtoEISCompaniesisavailableonanaggregatemaximuminvestmentof£1,000,000inthetaxyearending5April2018,providedtheinvestmentsareheldfortheThreeYearPeriod.Inaddition,subscriptionsmaybecarriedbacktothetaxyearended5April2017forinvestmentsmadeinthetaxyearended5April2018,subjecttoamaximumclaimof£1,000,000pertaxyear.IncometaxreliefislimitedtotheInvestor’sincometaxliabilityintherelevanttaxyear.

Tax-freecapitalgains

Tax-freecapitalgainsonEISinvestmentsheldthroughtheFund.

Inheritancetaxrelief

ThevalueofinvestmentsheldthroughtheFundfortwoyearsormoreatthedateofdeathshouldqualifyforIHTreliefprovidedtherelevantEISCompaniescontinuetoundertakeanEISTrade.Undercurrentlegislation,proceedsreceivedonexitfromacompanyundertakinganEISTradecanbere-investedintoPubEISCompaniestomaintaintheIHT-freestatus.

CGTdeferralrelief

Theopportunitytodeferunlimitedcapitalgainsrealiseduptothreeyearsbefore,oruptooneyearafter,thedateoftheinvestmentintoEISCompanies.

Lossrelief

A loss (after taking account of any income tax relief initially obtained) on the sale of any EISInvestmentintheportfolio,irrespectiveoftheoverallperformanceoftheportfolio,canbeoffsetbyindividualsagainstincome(attheindividual’smarginaltaxrate)orcapitalgains.

CGTdeferralreliefandinheritancetaxreliefarenotlimitedinsize,otherthanbypersonalcircumstances.

ThiskeytaxreliefssectionprovidesonlyaverybriefsummaryoftheEIStaxreliefs.Furtherdetailsaresetout inPart11of thisMemorandum.Thevalueof thetax reliefswilldependonpersonalcircumstances which may change. Tax legislation is also subject to change. In addition, theavailabilityoftaxreliefsdependsoneachofthePubEISCompanieseitherobtainingormaintainingtheir qualifying status. Please refer to theHMRCwebsite for further guidanceon the tax reliefsavailableonEISinvestmentsorconsultyourfinancialadviser.

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PART6–THESTRATEGY

Background

In December 2011, David Bruce and Clive Watson co-founded The City Pub Companies East andWest, successfully raising some£27.8million of EIS funds between the two companies during thefollowingthreeyears.Thesebusinessescomprise32pubsatthedateofthisdocumentandturnoverwas, in aggregate, £27.7 million for the year ended 25 December 2016. Having completed theirfundraising under the EIS, The City Pub Companies East and West have now built up two goodportfoliosofpubswhichtheirdirectorsbelievewillprovideanattractivereturnforInvestors.

TheCityPubEISFundwasestablishedinNovember2014,andsincethenhasraisedtwotranchesofjustunder£14.3millionand£15millionwiththebeliefthatgoodopportunitiescontinuetoexistinthemarketforqualitypubs.IntheInvestmentConsultant'sopinion,bybuildingaportfolioofqualitysitesacrossanumberofEISCompaniestheFundcantakegoodadvantageoftheseopportunities.Sofar, thesixExistingEISCompanieshaveacquired, inaggregate, fourteensites, twelveofwhicharenowtradingundertheMosaicbrand,and,giventheirpredominantlyfreeholdnature,providestrongunderlying asset-backing to the companies. It is expected that the Fund will invest into Pub EISCompanieswhich intend to create newunits froma combinationof closedpubs, conversions andnewbuilds,benefitingfromthedirectors’industryknowledgetoenhancetheirpurchasingpower.

The key individuals behind the Fund have a successful history of founding and growing EIS pubcompanies.InDecember2000,DavidBruceandCliveWatsonco-foundedTheCapitalPubCompanyPLC.Havingraisedover£15millionundertheEIS,DavidandClivedevelopedthecompanythroughaflotationonAIM intoa successful companywhichownedaportfolioof35primarily freeholdpubsacrossGreaterLondon.InJuly2011,TheCapitalPubCompanyPLCwassoldtoGreeneKingPLCforanenterprisevalueof£93millionprovidingtheoriginalEISinvestorswithareturnof£2.43(inclusiveof dividends paid) per £1 invested before any tax reliefs. This represented for those original EISinvestorsathreefoldreturnontheirnetoftaxinvestment,equivalenttoanetIRRofapproximately12%.

TheFund

Clive Watson will share his expertise with the Fund through the appointment of the InvestmentConsultanttotheFundManager.ThestrategyinrespectoftheFundistoinvestinuptothreePubEISCompanies,which,dependingonthe levelofsubscriptionsreceivedthroughtheFundwilleachreceive investment of up to £5 million in the tax year 2017/18, under the EIS, to acquire sitesidentifiedby the InvestmentConsultantandapprovedby theFundManager,with the intentionofgrowingaportfolioofhighqualitypubswhichcanprovidesustainableprofitabilityoverthemediumtolongterm.ItistheFundManager’sintentiontoconsideranexitstrategyforInvestorsfrommid-2021.

TheInvestmentConsultantbelievesthatthisfourtofive-yeartimescalewillenableeachofthePubEISCompaniestogrowaportfolioofqualitymanagedpubsthatwillbeattractive,inparticular,toatrade buyer. Alternatively, if market conditions are suitable, then the Investment Consultantmayconsideradvising theFundManager toprogressoneormoreof thePubEISCompanies towardsaflotation.

It is expected that the business plans of the Pub EIS Companies will focus on operatingpredominantly unthemed pubs which appeal to their local markets. For each of the Pub EISCompanies,thepubsareexpectedtobetypicallynon-brandedandcaterspecificallyfortheneedsoftheirlocalcommunities.

Itwillbe theobjectiveof theboardofeachPubEISCompany togrowandoperateahigh-quality,managedpubestatewhich is free-of-tie to anybrewer. The InvestmentConsultant believes it hasidentifiedagoodopportunity toacquire sitesanddevelop furthernon-brandedpubs that cater totheirownlocalmarket.

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BoardsofthePubEISCompanies

The Pub EIS Companieswill have the following commonDirectors: David Bruce (Chairman), PeterMcDonald(ChiefOperatingOfficer)andJamesWatson(FinanceDirector).EachPubEISCompanywillalsohaveatleastoneindependentdirector(notappointedtoanyoftheotherPubEISCompanies)withsuitableexperienceandqualifications.DetailsoftheexperienceofDavid,PeterandJamesaresetoutonpages20to21.

TheInvestmentConsultanthasadvisedtheFundManagerthatthePubEISCompaniesareexpectedto expand faster if each Pub EIS Company maintains its own operational management team,reportingtoPeterMcDonald.Bygivingthemtheirownfocusedmanagementandhavingdedicatedmanagementteams,thiswill,itisbelieved,significantlystrengthensuchcompanies.

TheConcept

Onaverage,atleast80%ofthePubEISCompanies’aggregatedevelopmentprogrammeisexpectedto be in freehold or virtual freehold premises,with the balance being in long leasehold premises,free-of-tie.AllpubsopenedbythePubEISCompaniesareexpectedtobeappropriatelyfittedout.

Thenewpubswilltargetawide-rangingconsumergroup.Oncedeveloped,thesesitesareexpectedtoofferbeerfestivals,supportedbymicro-breweriesinsomecaseswithanemphasisonprovidingagood range of ales which are not available in most other pubs in their local market. Staff areexpectedtoberecruitedwhohaveexperienceinoperatinghigh-volumepubsthatidentifywiththeirlocalcommunities.ThemajorityofeachPubEISCompany’ssales(bygrosscashreceipts)willbefromliquorwithareasonableproportionfromfoodsales.

The offering would vary slightly to suit each local market, but the core would include severalrelativelyinnovativeideas,namely:uponpurchaseandbeforerefurbishment,whereappropriate,aninitial ‘pop up’-style offering to engage local interest, where different types of drinks, alternativefood offerings and ambient surroundings would be implemented with a strong nod to the localmarket. An emphasis is expected to beplacedon serving the currently under-provided vegetarianand veganmarket. Another key featurewould be to introduce street food and flavours,many ofwhichwouldnotpreviouslyhavebeenprominent in thearea. The InvestmentConsultantbelievesthereisstillasignificantlackofvarietyinmosttownandcountrypubs,wheredrinkersanddinersdonotgetadistinctiveenoughchoice, and that the same is true for coffeedrinkersand teetotallers.Sites are, therefore, expected to offer a varied selection of home-made cordials and soft drinks,complimentedbybothpremiumandeclecticcoffeeandhotbeveragechoices,etc.EachPubEISCompany is expected tooffer an interesting and varied choiceof traditional draughtbeerstogetherwithanimaginativeselectionofwinesandsoftdrinks,soastoappealtoawiderangeof customers. Draught beers are anticipated to be sourced from local brewers and local winemerchantsareexpectedtoalsobeusedtohelpdevelopthelocalappealofthedevelopedsiteandtohelpsupportlocalbusinesses. Thecreationofawarmandfriendlyambienceisofparamountimportance.Whetherrefurbishingaformer pub or converting other buildings, such as former fire and railway stations, any existingfeaturesandnaturaldécorwhichcanbeusedtoenhancetheappearanceandretaincharacterwillbe preserved as far as possible. Refurbishments will be intended to blend in with the existingcharacterofthebuildingandarenotexpectedtobeoverlydesigner-led.Anadditionaladvantageofrefurbishing in thismanner is that, in the opinion of the Investment Consultant, the developmentcoststendtobelowerandthemoretraditionalstyleofdécorisusuallylongerlasting.

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OperationalManagement

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

PeterMcDonald has been involved in the pub sector for sixteen years. In 2001, Peter joined TheCapital Pub Company PLC as a site manager and went on to operate and develop several verysuccessful sites. In 2006, he became an operationsmanager and oversaw a number of successfulredevelopments.AfteritssaletoGreeneKingin2011,PeterstayedwiththerebrandedMetropolitandivisionofTheCapitalPubCompanyPLCforthreemoreyears,becomingsenioroperationsmanagerresponsible foranumberof sitesand refurbishments.Peter is currentlyChiefOperatingOfficerofTheCityPubFund'ssixExistingEISCompanies.

Operational support teams foreachof thePubEISCompaniesof theFundwillhaveexperience inoperatingpubsof the type the relevantPubEISCompanywishes toestablish.Also, it is importantthat the teams have geographical knowledge of their respective target areas, with a goodunderstandingoflocalcharacteristicsofthatarea.

Membersoftheteamsareexpectedtohaveoperationalexperienceintheirtargetareasandhaveatrackrecordintheirfield.Theywillhaveday-to-dayautonomyonwhatpromotionstheyruninthepubssuchaswine-tasting,whisky-tasting,bespokequiznightsetc.Pubmanagersareexpectedtobeincentivisedbyreceivingashareofthepub’snetprofit,subjecttosatisfactorywagelevelsandstockresults.InPeter’sexperience,notonlydoesthishelptomotivategoodstaffbutalsohelpstoretainthemaswell. Inorder tohelpnurtureacorporateculture,apolicyofpromotingstaff fromwithineachPubEISCompanywillbefollowedwhereverpossible.

EachPubEISCompanywillbesupportedbyaheadofficeandwillmaintainitsownoperationsteam.

AcquisitionandExpansion

ThePubEISCompaniesareexpectedpredominatelytoacquireone-offpremiseslocatedinaffluentcities or large towns across southern England. The Investment Consultant will advise the FundManager as towhich locations it believes lack good quality, independent free houses and shouldprovidegoodopportunitiesforthePubEISCompaniestoestablish,growanddeveloptheirportfoliosoverthenextfewyears.

It is intended that, on average, at least 80% of each Pub EIS Company’s acquisitions will be infreeholdorvirtualfreeholdsites,withthebalancebeingin longleaseholdsites.This isexpectedtoensurethattheretailingactivityiscomplementedbytherelativesecurityofpropertyassetsandwill,in the opinion of the Investment Consultant,make the Pub EIS Companies attractive to potentialpurchasersintheeventofatradesale.Theacquisitionprogrammewillfocusonbuildingupaqualityportfolioof free-of-tiepublichouses intended togeneratea significant returnoncapitalwhile thebusinessesgrowanddevelop.

IntheopinionoftheInvestmentConsultant,therecontinuestobegoodopportunitiestopursuethestrategy and grow and expand an estate of pubs for the Pub EIS Companies. There are alwaystransactions occurring in the property and pub sectors. The Investment Consultant believes thatthese transactions will provide opportunities for the EIS Companies to acquire new sites. TheInvestmentConsultant,throughitsdirectorCliveWatson,hasvastexperienceinacquiringsitesandenjoysgoodcontacts inthe licensedtradethat itanticipateswillhelp in identifyingsitescompliantwith the relevant EIS criteria for the Pub EIS Companies to acquire, utilising amixture ofmoneysraised into the Fund and secured finance from selected institutions with whom the InvestmentConsultantalsomaintainscontact.TheInvestmentConsultantisconfidentthatdealflowwillremainbuoyantforqualifyingopportunitiesunderthe2015EISrestrictions,with£12.5millionofinvestment

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havingbeenmadebytheExistingEISCompaniesinthelasttwoyearswhichhasbeeninvestedsoastoqualifyunderthecurrentEISrules.

RetailStrategy

TheInvestmentConsultanthasadvisedtheFundManagerofitsviewthattherearetoomanypubsthatdonot identifywith their localmarket,and thatmanyconsumerswouldprefer togo towell-refurbished,qualitypubsthatareoperatedonanindividualbasis.Itis,therefore,intendedthatthePubEISCompanieswillgrowaportfolioofindividualpubsthatenjoylocalcharacteristicsandappealto the localmarket.Where necessary andwith all new sites complyingwith the new EIS criteria,premiseswillberefurbishedtorealisetheiroperationalpotential,butthiswillbedoneinamannersympathetic to the particular features of the building. Local promotions and marketing will beundertakentostimulatetrade.

Awideandvariedselectionofbeers,winesandspiritsisexpectedtobeavailabletotheconsumertoensureeachpubgeneratesanairof individuality. It is intended thatcertainpubswillhave,wherepossible, an open plan kitchen running a daily fresh foodmenuwhich, the Investment Consultantbelieves,willhelptocreatearelaxeddrinkinganddiningatmospheresuitableforfamilies.Inordertohelpachievegoodoperatingmarginsatpublevel,itisalsointendedthatsomeofthepubswill,incontrast, offer traditionalpub food, requiring fewer catering staff, to support a typically liquor-ledoffer.

It is theviewof the InvestmentConsultant that staff training is anessentialpartof improving theretailperformanceofapublichouseandthiswillbeachievedthroughtheprovisionofappropriatetrainingcoursesbythePubEISCompanies.Managersofthepubsareexpectedtobeincentivisedbyreceiving a share of the pub’s net profit subject to satisfactorywage levels and stock results. ThepromotionofstafffromwithinthePubEISCompanieswillbeencouragedastheportfoliosgrowanddevelop.

FinancialStrategy,BankBorrowingsandControls

TomaximisereturnsforInvestors,itisintendedthatthePubEISCompanieswillutilisebankdebttopart-finance their operations. This will be done on a conservative basis and it is anticipated thataveragegearingperPubEISCompanywillbe25% to30%of theirpaid-up sharecapital and sharepremiumwith the gearing of each Pub EIS Company limited to amaximum of 50% of its paid-upsharecapitalandsharepremium.TheboardofeachPubEISCompanywillhaveextensiveknowledgeofwhattheyregardasthenecessaryfinancialcontrolsrequiredtoensurethatsignificantoperatingprofitsareachieved.

TheFundManager,theInvestmentConsultantandtheboardofeachPubEISCompanywillreceiveperiodicmanagementaccounts.EachPubEISCompanywillberequiredtoputinplacethenecessaryfinancial controls required to achieve significant operating profits. The Fund Manager will berequiredtoauthoriseallacquisitionsbyeachPubEISCompany,andanycapitalexpenditureonanyone item,oraseriesof related items,madebyanyPubEISCompany inexcessof£25,000,havingobtainedadvicefromtheInvestmentConsultant.

ManagementIncentivesandAlignmentofInterests

The Investment Consultant believes that the management teams will be able to combine theirretailingskillsandentrepreneurialability tobuildasignificantlyprofitableportfolioofqualitypubswhich eventually may be capable of being sold to larger operators. The management teams’remuneration packages are expected to be designed to ensure that there is a strong incentive todeveloptheconceptandhelpmakethePubEISCompaniesasuccess.

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TheInvestmentConsultantbelievesthatitisimportanttoavoidhighfixedcostsattheearlystageofthePubEISCompanies’growth.Therefore, thedirectorsofeachPubEISCompany’s remunerationwillbeweightedtowardsaprofit-relatedbonusentitlingeachofthemtoashareofanannualbonuspool which will not exceed, in aggregate, 15% of the relevant Pub EIS Company’s EBITDA. This isexpected to ensure that the directors of each of the Pub EIS Companieswill be rewarded if theirrespectivePubEISCompanygeneratessignificantprofits.

EachPubEISCompanywill havean incentive shareoption scheme for thebenefit of its executivedirectorsandkeyemployees.Nomorethan5%ofeachPubEISCompany’sissuedsharecapitalwillbeputunderoptionpursuanttoanysuchscheme.

ExitStrategy

It is the Investment Consultant's intention to advise the FundManager, when circumstances areappropriate,toconsideranexitstrategyforInvestorsfrommid-2021.However,theactualexittimingmaydiffer. In the InvestmentConsultant’sexperience, this four to five-yearplanned timescalewillallow each of the Pub EIS Companies to grow portfolios of quality managed pubs and preparethemselvesforatradesaleor,ifmarketconditionsaresuitable,aflotation.CliveWatsonandDavidBrucehaveexperienceoffloatingandoperatingacompanyonAIManddisposingofsuchacompanytoatradebuyer.

OperationoftheFund

TheFundiscurrentlyseekingtoraiseupto£15millionofinvestment,undertheEIS,tobeallottedduringthe2017/18taxyearequallyacrossthreePubEISCompanies.

FurtherdetailsoftheoperationoftheFundarecontainedinPart9ofthisdocument.

FurtherinformationabouttheFundManager,theInvestmentConsultantandthePubEISCompanyDirectorsaresetoutinPart7ofthisdocument.

TheRoleofRAMCapital

RAMCapitalisthepromoterandmarketingadvisertotheFund.TheteamatRAMhasbeeninvolvedwithraisingover£1.6bnforVCTs,EISsandrelatedtax-efficientproducts,withover£1bnofthisbeingsinceRAMwasestablishedin2007.RAMCapitalisamemberoftheEISAssociationandisauthorisedandregulatedbytheFinancialConductAuthority.

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

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PART7–KEYINDIVIDUALS

TheFundManager

TheFundManager isThompsonTarazManagersLimited("ThompsonTaraz"),anindependentfirmprovidingfundmanagementandadministrationservicesbasedinLondon.

Establishedasacharteredaccountancypracticein1993,ThompsonTarazhasgrowntobecomeoneof the UK’s largest independent providers of fund management and associated administrationservices to the private investment fund sector. Thompson Taraz administers investments totallingover£2billion.Currentlyworkingwithover70limitedpartnershipsorsimilarundertakingsand300independentfinancialadvisers,ThompsonTarazlooksafterover7,000individualinvestors.

The Fund Manager provides investment management services to the Fund, having first beenprovidedwithwrittenstrategicadvicefromitsInvestmentConsultant.

SimonWebber

SimonisresponsibleforthestrategicdirectionandmanagementofThompsonTaraz.Specialisinginfundmanagement operations, he has also developed and implemented strategic and operationalchangeforfirmsregulatedunderAIFMD.

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

AmirZaidi

Amirisresponsibleforfundmanagementandhasawealthofexperienceinfundstructuringandset-up,financialmodelling,andinvestmentanalysis.HeisaCharteredFinancialAnalystandaCharteredAccountant.

HavinginitiallytrainedinDeloitte’sM&ACorporateFinanceTeamwhereheworkedonseveralhighprofile private equity transactions, Amir has held a number of board positions overseeing theadministrationofover£2billionacross60fundsincludingholdingageneralpartnerdirectorshipandinvestmentcommitteepositionona€450millionAXAfund.

TheInvestmentConsultanttotheFundManager

CliveWatson

ClivequalifiedasaCharteredAccountantwithPriceWaterhouseinLondonin1986,thenjoinedtheinvestmentbankManufacturersHanoverLimitedwherehespentthreeyears.

In December 2000, Clive co-founded with David Bruce The Capital Pub Company PLC. He wasfinancialdirectoruntilJune2007,managingdirectoruntilJune2008,andthereafterchiefexecutive.InJune2007,TheCapitalPubCompanyPLCwaslistedonAIM.ClivehelpedtodevelopTheCapitalPubCompanyPLC froma start-up to35pubsall trading in theGreater Londonarea. In2010,TheCapitalPubCompanyPLCwasawarded"BestManagedPubCompanyoftheYear"(20to99pubs)atThe Publican Awards. In July 2011, Clive negotiated the sale of The Capital Pub Company PLC toGreene King PLC for an enterprise value of £93million, providing the original EIS investorswith areturnof£2.43(inclusiveofdividendspaid)per£1investedbeforeanytaxbreaks.ThisrepresentedforthoseoriginalEISinvestorsathreefoldreturnontheirnetoftaxinvestment,equivalenttoanetIRRofapproximately12%.

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

CliveisadirectoroftheInvestmentConsultant,whichhefoundedin1999.

BoardofeachEISCompany

The commonDirectorsof eachPubEISCompanywill beDavidBruce (Chairman), PeterMcDonald(ChiefOperatingOfficer)andJamesWatson(FinanceDirector).

The Investment Consultant has advised the Fund Manager that EIS Companies are expected toexpandfasterifeachPubEISCompanymaintainsitsownoperationalmanagementteam,reportingto PeterMcDonald. By having their own focusedmanagement, it is believed that these dedicatedmanagementteamswillsignificantlystrengthenthePubEISCompanies.

DavidBruce,Chairman

It is intended that David Bruce will be Chairman of the Pub EIS Companies. David’s 51-yearentrepreneurial career in the international brewing and licensed trade started in 1966 when hejoinedCourage,Barclay&Simonds inReading,asabrewerymanagementtrainee.Having learnttobrew, he became the Brewer and SalesManager at Theakston’s Brewery in Yorkshire before co-founding not only Bruce’s Brewery and the Firkin Pubs in 1979 but also the Small IndependentBrewersAssociation(SIBA)in1980.

FollowingthesaleofBruce’sBreweryandTheFirkinPubsfor£6.6millionbytheageofforty,Davidbecameaco-founderandinvestorinstart-upbreweriesinParis,Brooklyn,DenverandSeattlebeforereturningtotheUKtodevelophispubinterests.

In1993,Davidbecamethe largestprivateshareholder inGrosvenor InnsPLCand,asDevelopmentandMarketingDirector,was responsible for rollingout The Slug& Lettuce chainof brandedbars.Davidwas a co-founder and Chief Executive in December 2000 of The Capital Pub Company PLC,whichraisedover£15millionunderEIS,wasfloatedonAIMin2007andsoldinJuly2011toGreeneKingPLCforanenterprisevalueof£93million,providingtheoriginalEISinvestorsathreefoldreturnontheirnetoftaxinvestment.

InNovember2006,DavidbecameafoundinginvestorintheEIS-fundedCountryFood&Dininggroupofcompanies,ofwhichheisChairman.Todate,thisgroupofcompanieshasraisedover£8millionwhichhasbeen invested in seven farm shopsprovidingnotonlyprimarily locally-sourcedproducebutalsocafésandanaward-winningvineyard.

InDecember2011,Davidco-foundedandbecameChairmanofTheCityPubCompany(East)PLCandThe City Pub Company (West) PLC which raised between them £27.8 million under the EIS andcurrentlyown32freehouses,includingsixmicrobreweries,betweenExeterandNorwichviaLondonandBrighton.

In 1994, David received the highest award from The Publican for "Outstanding Services to theIndustry". In 1996, Grosvenor Inns PLC was voted "The UK’s Best Independent Operator" by ThePublican. In 2010, The Capital Pub Company PLC was voted "BestManaged Pub Company of theYear"atThePublicanAwards.

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Inadditiontohisappointmentsasthenon-executiveChairmanoftheExistingEISCompanies,Davidiscurrentlythesenior independentdirectorofbothTheCityPubCompany(East)PLCandTheCityPub Company (West) PLC, having stepped down from the role of Chairman of both companies inSeptember 2014. David has also been Chairman of TheWest Berkshire Brewery PLC sinceMarch2013.

PeterMcDonald

It is intended that PeterMcDonaldwill be the Chief OperatingOfficer of the Pub EIS Companies.Peterhasbeeninvolvedinthepubsectorfor16years.In2001,hejoinedTheCapitalPubCompanyPLC as a sitemanager andwent on to develop andoperate several very successful sites. In 2006,Peterbecameanoperationsmanagerandoversawanumberofsuccessfulredevelopments.Afteritssale toGreeneKing in2011,Peter stayedwith the rebrandedMetropolitandivisionofTheCapitalPubCompanyPLC,wherehebecamesenioroperationsmanager responsible foranumberof sitesandrefurbishments.PeterisalsotheChiefOperatingOfficeroftheExistingEISCompanies.

JamesWatson

It is intended that James Watson, Clive’s brother, will be the Finance Director of the Pub EISCompanies. Jameshasbeen involved inthepubsector for19years. In2003,he joinedTheCapitalPubCompanyPLC, becomingheadof financeandwasheavily involved inbuilding theheadofficeteam, itsAIMflotation in2007and its sale toGreeneKing in2011,afterwhichhestayedon forafurthersixmonthstoconcludethesubsequenthandoverandintegration.JamesjoinedtheboardsofTheCityPubCompany(East)PLCandTheCityPubCompany(West)PLCin2012aspart-timeFinanceDirectorresponsiblefortaxation.JamesisalsotheFinanceDirectoroftheExistingEISCompanies.

JamesDudgeon

JamesDudgeonwasappointedasthecompanysecretaryoftheExistingEISCompaniesinMay2015andit is intendedthathewillbethecompanysecretaryofthePubEISCompanies.Jamesisanon-executivedirectorofGalaxy,waspreviouslycompanysecretaryofTheCapitalPubCompanyPLCandisalsocurrentlycompanysecretaryofTheCityPubCompany(West)PLCandTheCityPubCompany(East) PLC. He has an accounting background and is currently finance director of several privatecompanies.

IndependentDirector

Eachcompanywillhaveanindependentdirectorwhoisnotadirectorofanyoftheothercompanies.WithintheExistingPubCompaniesthisroleisfulfilledasfollows:Galaxy:JamesDudgeon,aqualifiedaccountant; Pioneer: Richard Prickett, a qualified accountant; Sovereign: Jos Coad, a qualifiedaccountant; Liberty: Tony Nares, a qualified accountant; Phoenix: Nicholas Murray, a qualifiedsurveyor;andSummit:SimonRobertson-Macleod,apubcompanyexecutiveofmanyyearsstanding.

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PART8–CONFLICTSPOLICY

ConflictsPolicy

TheFundManagerand InvestmentConsultanthave recognisedpotential conflictsarising from theoperationandmanagementoftheFund.Asdisclosedindetail inPart7ofthisMemorandum,CliveWatson,DavidBruceandJamesWatsonaredirectorsofTheCityPubCompaniesEastandWest.Itispossible,therefore,thattheinterestsofCliveWatson,DavidBruceandJamesWatsonandthedutiesthat they owe to The City Pub Companies East and West will potentially conflict. The followingpoliciesaremaintainedtoresolvetheseconflicts:

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

• ThePubEISCompanieswillnotdisposeofinterestsinpubstoTheCityPubCompaniesEastandWest.

• TheCityPubCompaniesEastandWestandtheExistingEISCompanieswillnotusetheFundasameansfordisposalofanyassetswhichtheycurrentlyown.

TheInvestmentConsultanthasadvisedtheFundManagerthattherearesufficientopportunitiestoensurethatthePubEISCompanieswillbeofferedattractiveopportunities.Furthermore,eachofTheCityPubCompaniesEastandWest,haveconfirmedthat,asatthedateofthisdocument,theequitytheyhavepreviouslyraisedthroughtheEnterpriseInvestmentSchemehasbeendeployedinfullandthat both companies would not qualify for further fundraising under the Enterprise InvestmentScheme.

TheInvestmentConsultantconsidersthattheriskofanyconflict isfurtherlimitedbythe2015rulechanges to the EIS which mean that certain opportunities will only be available to The City PubCompaniesEastandWestandnottothePubEISCompanies.TheCityPubCompaniesEastandWestwillbeabletocontinuetobuyexistingtradingassetsusingtheirexistingmoney(thoughnottoraisenewmoney for the samepurpose),whereasPubEISCompanies invested in through thisFundwillnotbeabletousemoniesraisedtobuytradingassets.

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PART9–STRUCTUREANDOPERATIONOFTHEFUND

StructureoftheFund

The Fund is a discretionarymanaged portfolio of shares issued by EIS Companies and, therefore,investmentthroughtheFundwillbeat thediscretionof theFundManager,withshares issuedforthe benefit of Investors being held by a nominee company. The Fund is not classified as anunregulatedcollectiveinvestmentscheme(inviewofaspecificexemptionforarrangementsofthisnatureintheFinancialServicesandMarketsAct2000(CollectiveInvestmentSchemes)Order2001).NoristheFundtreatedasa"non-mainstreampooledinvestment"forthepurposesoftheFCARules.

In the event that the FundManager, as an FCA-authorised entity, fails to meet its liabilities, theInvestorsmayhave recourse to theFinancial ServicesCompensationScheme.Pleasenote that thefailureofaninvestmentoftheFundtoperformdoesnotinanycircumstancescountasafailurebytheFundManagertomeetitsliabilities.

EachInvestor'sparticipationintheFundisgovernedbytheInvestorAgreementthatheentersintoon subscription for an interest in the Fund. The Fund Manager, further to the advice of theInvestmentConsultant,intendstoinvestInvestors’SubscriptionAmountsintwoor,atitsdiscretion,threePubEISCompanies.ItwillbetheFundManager’sdiscretionastowhichPubEISCompaniestoinvest into, though it is intendedthateach Investor’sSubscriptionAmountswillbebroadlydividedequallyacrossthePubEISCompanies.

Shares subscribed by Investors through the Fund will be held by a nominee company. Althoughinvestment decisions, such as the acquisition and disposal of shares, and the exercise of rights(subject to limitations) in respectof shareswill beentirely at thediscretionof theFundManager,eachInvestorwillatalltimesremainthebeneficialownerofthosesharescomprisedintheFundthathavebeenacquiredwithhisSubscription.

AnInvestormaynotmakeitarequirementoftheFundManagertodisposeofhisorhersharesuntiltheFundhasdisposedof itsoverallposition inconnectionwith therelevantPubEISCompanies inwhich an Investor holds shares. Although the Fund Manager may take into consideration anInvestor’srequesttomakeadisposal,thiswillbesubjecttotheFundManager’sdiscretionandtheInvestormay loseanyEIS tax reliefsand incur tax liabilitiesasa resultof thecrystallisationofanydeferred gain on any disposal permitted by the Fund Manager. Early withdrawals are discussedwithintheOperationoftheFundsectionbelow.

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

Investmentfundstatus

TheFundhasnotbeenapprovedbyHMRCunderSection251ofITA2007and,therefore,InvestorsmayonlyclaimEISincometaxreliefinthetaxyearinwhicheachunderlyinginvestmentismade,ortheprevioustaxyearifcarriedback,ratherthaninthetaxyearinwhichanapprovedfundcloses.

EIS3 formswill be distributed to Investors by the FundManager, each setting out that Investor’sentitlementtoanyEIStaxrelief.

AlternativeInvestmentFundManagersDirective

ThereissubstantialunclarityinrelationtowhetheranEISportfoliofundmanagementserviceofthissortis required tobe classifiedas an "alternative investment fund" for thepurposesof theEUAlternativeInvestmentFundManagersDirective("AIFMD").TheFundManagertakestheviewthattheFundshouldbe classified as an AIF for the purposes of the AIFMD. The Fund Manager is, therefore, the Fund'salternativeinvestmentfundmanager("AIFM")forthesepurposes.

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InviewofthevalueofassetswhichtheFundManagerasAIFMrepresentsacrossallofitsappointments,theFundManagerhasbeenreclassifiedwiththeFCAasafull-scopeUKAIFM.AsaFullScopeAIFM,theFundManagerisrequiredtoappointadepositary(whichwillbeThompsonTarazDepositaryLimited,anaffiliateoftheFundManager),thecostforwhichwillbemetoutoftheAnnualManagementFee.Fundsinvestinginunquotedequities,suchastheFund,enjoyalighter-touchregimeinrelationtodepositariesand,assuch,thedepositary’ssafeguardingrolewillbelimitedtoestablishingtheownershipoftheAIF’sassetsandcashmonitoringandoversightoftheFundManager.

InvestorsshouldnotethatforFCAregulatorypurposes,theFundManagerstillrecognizesthateachandeveryInvestoristheFundManager'sdirectclient,notwithstandingthetreatmentoftheFundasanAIF.InvestmentamountsTheminimum Subscription Amount for an individual Investor in the Fund is £25,000. There is nomaximuminvestmentthatmaybemadebyanindividualInvestor;however,themaximumamountonwhichanInvestorcanobtainEIStaxreliefsislimitedto£1,000,000foranytaxyear,includinganycarrybackclaim.Eachspouse,partnerorotherfamilymemberhashisorherownlimitandtheyarenotaggregated.ThislimitappliesforallEISinvestmentsmadewithinagiventaxyear.ThislimitdoesnotapplytocapitalgainstaxdeferralorIHTrelief.Theminimum aggregate Subscription Amount required from Investors for the Fund to proceed is£3,000,000, unless increased at the discretion of the Fund Manager. The maximum aggregateSubscription Amount for the Fund is £15,000,000. Both the minimum Subscription Amount andmaximum aggregate Subscription Amountmay be altered at the discretion of the FundManager,subjecttotheavailabilityofattractiveinvestmentopportunities.

Exitconsiderations

InordertoretaintheEIStaxreliefs,InvestorsmustholdSharesforatleasttheThreeYearPeriodanditisintendedthattheFundManagerwillsubscribeforSharesinthePubEISCompaniesuptoApril2018intheFund.Althoughtheactualtimingmaydiffer,thetargetexitoftheFundisfrommid-2021and,therefore,noInvestorshouldinvestiftheymightneedaccesstotheircapitalbeforemid-2022.ItisfurtherclarifiedthatalthoughthisrepresentstheInvestmentConsultant'scurrentviewofthelifeoftheFund,theFundManagerandtheInvestmentConsultantmaybeobligedintheoverallinterestsofInvestorstoprolongthelifeoftheFundbeyondthispoint(forexample,becauseitprovesdifficultorimpossibleforthePubEISCompaniestofindpurchasersforoneormoreofthepubstheycontrolat prices that reflect the Investment Consultant's view as to their true values). As such, InvestorsshouldbeawarethattheFundmayholditsinvestmentsbeyondtheendoftheThreeYearPeriod.

TheFundManagerwillco-operatewithanInvestorwishingtoselltheirSharesbutInvestorsshouldbe aware that there is nomarket for such shares and they are not readily realisable. Even in theeventthatabuyercanbefoundbyorfortheInvestor,theInvestormayhavetoacceptasignificantdiscountontheirSharesinordertorealisetheirinvestmentearly.NotethatSharesmustbeheldforaminimumofthreeyearsbytheInvestortoretaintheinitialincometaxrelief,andthatshareswhichare soldor transferred,whetherduringor after theThreeYearPeriod, cease tobeentitled toEISbenefitsforallpurposes.

ItistheFundManager’sintentiontoconsideropportunitiesforInvestorstoexittheFundfrommid-2021.ItisanticipatedthiscouldbethroughasaleorflotationofeachofthePubEISCompanies,oralternatively through share buybacks funded by selling pubs and/or raising new equity or debt.Investorsshouldnotethatnoneoftheseoptionsmaybeavailable.

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OperationoftheFund

Withdrawals

Partialwithdrawals from theFundarenotpermitted.However,bygiving theFundManager threemonths’ notice, an Investor may terminate his or her Investor Agreement and make an earlywithdrawal from the Fund by transferring their shareholdings in the Pub EIS Companies into theirownname.SuchatransferdoesnotdisentitletheInvestorfromEIStaxadvantages.

IntheeventSharesaresoldtoathirdpartybeforetheendoftheThreeYearPeriod,Investorswillhave to repay the initial income tax relief (if it has been claimed). Any deferred gains will becrystallisedonadisposalofShares,resultinginafurthertaxliability.

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

Clientaccount

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

All documents of title will be held by the Nominee and will be registered in the name of theNominee.

Allocations

TheFundManagerwillmaintainaccounts,whichwillbeopentoinspectionbyeachInvestor,showingtheamountcontributedbythatInvestorandtheamountsinvestedandyettobeinvestedonthatInvestor’sbehalf.

ThenumberofSharesineachPubEISCompanyallocatedtoaparticularInvestorshall,wherepossible,becalculatedbyreferencetotheproportionwhichtheInvestor’sSubscriptionAmountbearstothetotalSubscriptionAmountsofallInvestorsintheFundatthetimetherelevantInvestmentismade.However,thismaynotalwaysbepossiblewhereinvestmentsaremadefromfundsreceivedfromearlyInvestors.ItisintendedthatmoniesreceivedfromeachInvestorwillbeinvestedonapro-ratabasistohisorherSubscriptionthroughtheFund,asinvestmentopportunitiesarise.VariationstothisstandardprocedurewilloccurtoavoidissuingfractionsofShares,orifanInvestorissubjecttoprofessionalrulespreventinghimorherfrommakinganinvestmentinaparticularPubEISCompany.

Timingofinvestment

The FundManager intends to invest Subscription Amounts received pursuant to the Fund in the2017/18taxyear.Thereis,however,noguaranteethatthiswillbeachieved.

Shouldan InvestordiebeforehisorherSubscriptionAmount is fully invested,alluninvestedsumssubscribed by him or her will be repaid by the Fund Manager upon registration with the FundManager of a grant of representation in relation to the deceased Investor's estate and receipt ofnoticefromtheInvestor’spersonalrepresentativesspecificallydirectingtherepayment.

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Investmentinselectedcompanies

The Fund Manager will select suitable Pub EIS Companies recommended by the InvestmentConsultant,withappropriatetermsandconditionsnegotiatedanditwillsubscribefornewordinarysharesinthesePubEISCompaniesonbehalfofInvestors.

Share certificates will be issued in the name of the Nominee for each Investor. Any dividendsreceived by the Fund Manager or the Nominee from the Pub EIS Companies will be forwardeddirectlytoInvestorsentitledtothem,subjecttoaretentiontocoveranyaccruedbutunpaidfeesorexpenses.TheFundManagerdoesnot,however,anticipateanydividendsbeingpaidbythePubEISCompanies.

Investmentmonitoringagreement

As a precondition of investment, each Pub EIS Company will have entered into an investmentmonitoringagreementwiththeFundManager.Thiswillregulate,totheextentpossible,theconductofitsbusiness.Itisintendedthatthisagreementwillremaininplaceuntiltheinvestmentisrealised.TheagreementgivestheFundManagertherighttoappointtotheboardofeachPubEISCompanywhicheverpersonnel itdeemssuitable,andtheright toreceiveregularmanagementaccountsandotherinformationtotheFundManagertoenableittomonitorthePubEISCompany.

Itisexpected,butitcannotbeguaranteed,thatthePubEISCompanieswillcomplywiththeEISrulesandareappraisedoftheconsequencesshouldthereliefbewithdrawn.TaxreliefmaybewithdrawnincertaincircumstancesandtheFundManagerdoesnotacceptanyliabilityforanylossordamagesufferedbyanyInvestororotherpersoninconsequenceofsuchreliefbeingwithdrawnorreduced.Inthisregard,Investorsarestronglyadvisedtoreadtheriskfactorssetoutinthisdocument.

Documentationandcommunication

EachInvestorwillreceivefromtheFundManagerareportdetailingeachnewinvestmentmadeontheirbehalfasandwheninvestmentsaremade.

TheFundManagerwillalsosendeach Investorhalf-yearlyreportscontainingdetailsofall investmentsmadebytheFund,togetherwithacommentaryontheprogressofeachofthoseinvestments.

For each Pub EIS Company, Investorswill be providedwith an EIS3 form, in the form required byHMRC,whichmaybeusedtoclaimtaxreliefs,subjecttoeachInvestor’spersonalcircumstances.

TheCustodianandNominee

BycompletingtheApplicationFormappendedtothisMemorandumprospectiveInvestorswill,interalia,be deemed to have irrevocably agreed to Thompson Taraz Managers Limited being appointed asCustodiantoexercisethepowers,andtocarryoutduties,onbehalfoftheInvestorsinaccordancewiththeprovisionsoftheInvestorAgreement(andwhich,forallpurposesconnectedtoAIFMD,willbethedepositary of the Fund). As Custodian, Thompson TarazManagers Limited will appoint TT NomineesLimitedasNomineeinrelationtotheFund.

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EISCompanies

InordertoqualifyunderEIS,atthetimeofissueofthesharesbyanEISCompany,thatcompanymustcomplywiththefollowingcriteriainordertoqualifyundertheEIS:

- itssharesmustnotbelistedonarecognisedstockexchange;

- noarrangementsmustbeinplaceforthesharestobeadmittedtosuchlisting;

- itmustnotbeasubsidiaryof,orcontrolledby,anothercompany;

- noarrangementsmustbeinplacefortheEISCompanytobecomeasubsidiaryorcontrolledbyanothercompany;

- itmaynotuseEISmoneytoacquireshares,atradeorcertainintangibleassetsinuseinatrade;

- itstrademustbelessthansevenyearsoldatthetimeofthefirstEIS(orotherRiskFinanceStateAid)investment;and

- itmusthaveapermanentestablishmentintheUKandeitherexisttocarryonanEISTradeorelsebetheparentcompanyofatradinggroup.

EISCompaniesarelimitedastosize:thenumberoffull-timeemployeesinanEISCompanyatthetimeoffundraisingisrestrictedtoamaximumof249andthereisalimitof£15,000,000onanEISCompany’sgrossassetsimmediatelybeforetheinvestment,and£16,000,000immediatelyafterwards.

Thequalifyingbusinessactivityforwhichthemoneyisraisedbythesharesubscriptionmustbeatradecarried on by an EIS Company or certain of its subsidiaries and the trade must be conducted on acommercialbasisandwithaviewtotherealisationofprofit.

ThemaximumfundraisingperEISCompanyisrestrictedto£5,000,000inanycontinuousperiodof12monthsand£12,000,000intotal,andthemoniesraisedbytheshareissuemustbeutilisedforthequalifyingtradewithintwoyearsoftheshareissue.

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PART10–CHARGESANDFEES

TheFundManagerandInvestmentConsultant

All feespayable to theFundManagerand the InvestmentConsultantaredisclosedbelowand theamountofeachchargeisspecifiedwherepossible.Otherthanassetoutbelow,theFundManagerandtheInvestmentConsultantwillnotchargeanyadditionaladministrative,service,dealingorexitfees to the Fundor to thePub EIS Companies inwhich itwill invest. Fees payable by thePub EISCompanies,andnotbyInvestorsdirectly,will,ineffect,reducethereturnsgeneratedbythePubEISCompanies for Investors. Any unpaid fees due to the Fund Manager will be recouped from anyproceedsofthesaleofinvestments.

InitialCharge

TheInitialChargepayabletotheFundManagerwillbe2.75%(exclusiveofVAT,ifapplicable)oftheamountsinvestedineachPubEISCompanythroughtheFund.

Fromthe InitialCharge, theFundManagerwillwithholdanamountequal to£75per InvestorandpaytheremaindertotheInvestmentConsultantwhohasincurredthecostsofestablishingtheFund,including promoter’s fees, legal and tax advisory fees related to the preparation and issue of thememoranduminrelationtotheFund.

TheInitialChargewillbepaidbythePubEISCompaniesandshouldnotaffecttheleveloftaxreliefs.

AnnualManagementFee

TheAnnualManagementFeepayabletotheFundManagerwillinitiallybe1.5%(exclusiveofVAT,ifapplicable)perannumoftheamountsinvestedineachPubEISCompanythroughtheFund.

FromtheAnnualManagementFee,theFundManagerwillwithhold:

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

(b) £149perEIS1formand£15perEIS3formcompletedinrelationtotheFund;and

(c) amountsnecessaryinordertomeetanybonafidethird-partycostsorexpensesincurredbytheFundManagerinrelationtothepropermanagementoftheFund,

andpaytheremaindertotheInvestmentConsultant.ToaligntheinterestsoftheFundManagerandthe Investment Consultant with Investors, from 31 May 2021 the Annual Management Fee willbecome0.75%ratherthan1.5%perannum.

TheAnnualManagementFeewillbepaidbythePubEISCompaniesandshouldnotaffecttheleveloftaxreliefs.

PerformanceIncentiveFee

ThePerformanceIncentiveFeepayabletotheInvestmentConsultantwillbeequalto0.5%(exclusiveofVAT,ifapplicable)perannum(foramaximumoffiveyears)oftheamountssubscribedineachPubEISCompanybyInvestorsthroughtheFund.

ToaligntheinterestoftheInvestmentConsultantwithInvestors,thePerformanceIncentiveFeewillbe applied to Investors that receive, net of the Performance Incentive Fee, returns equal to orgreaterthan£1.30per£1.00subscribedthroughtheFund.

ThePerformanceIncentiveFeewillbedeductedbytheFundManagerfromsuchInvestors’returnsandshouldnotaffecttheleveloftaxreliefs.

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PART7–KEYINDIVIDUALS

Intermediaries

Commission is not permitted to be paid to Intermediaries who provide a personalrecommendation toUKretail clients in respectof theFund. Insteadof commissionbeingpaid,afee will usually be agreed between the Intermediary and the Investor for advice and relatedservices(the"IntermediaryCharge").

TheIntermediaryChargeistobeagreeddirectlybetweentheInvestorandtheIntermediaryandcaneitherbepaiddirectlybytheInvestortotheIntermediaryorfacilitatedbytheFundManageroutoftheInvestor’sApplicationMonies.

IfthepaymentoftheIntermediaryChargeistobefacilitatedbytheFundManager:

• theIntermediaryChargemayconsistofaninitialamountand/oron-goingamountspayableonthefirstthreeanniversariesofthedateoftherelevantInvestment;

• the Investor isrequiredtospecifythetotalamount(inclusiveofVAT, ifapplicable)andthesplitbetween the initial amountandanyon-goingamountsof the IntermediaryChargeontheApplicationFormappendedtothisMemorandum;and

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

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PART11–TAXATION

Note:thetaxreliefsavailabledependontheindividualcircumstancesofeachInvestorandmaybesubjecttochangeinthefuture.ThefollowinginformationisbasedoncurrentUKlawandpracticeand is subject to changes therein. The information and examples in this section are generic incharacter anddonot represent advice toany Investoronhisorherpersonal tax circumstances.Investorsshouldseektheirowntaxadvicebeforeinvesting.

The Enterprise Investment Scheme ("EIS") is a government scheme that provides a range of taxreliefs for UK resident individual taxpayers who subscribe for ordinary shares in QualifyingCompanies. There are five current tax reliefs potentially available to Investors in QualifyingCompanies,whicharesummarisedbelow:

1. EISIncomeTaxRelief

IndividualscanobtainincometaxreliefontheamountsubscribedforsharesinQualifyingCompaniesprovidedtheyarenotconnectedwiththeissuingcompany,andmustnothaveanyexistingsharesintheQualifyingCompanyforwhichtheydidnotclaimEISincometaxrelief. This is subject to the limit of £1,000,000 across all EIS investments in a tax year.Husbandsandwives,andcivilpartners,caneachsubscribeupto£1,000,000,butwillnotqualify for EIS income tax relief if together theyholdmore than30%of the issued sharecapital of either Company. The rate of relief is 30%. The relief is given against theindividual’s income tax liability for the tax year inwhich the sharesare issuedunless theindividualmakesacarrybackclaimtotheprevioustaxyear,inwhichcasetheclaimmustbewithin the applicable annual investment limit for that previous tax year (which was£1,000,000forthe2016/17taxyear),andthereliefisgivenattherateapplicableforthatearlieryear.ThereliefcannotexceedanamountwhichreducestheInvestor’s incometaxliabilitytonil.ToretaintheEISincometaxrelief,aQualifyingInvestmentmustbeheldfortheThreeYearPeriod (i.e.no less than threeyears fromthedateof issue,oruntil threeyearsfromcommencementoftrade,iflater).

Example:

Initialinvestment £100,000

Lessincometaxrelief@30% (£30,000)

Netcostofinvestment £70,000

2. CGTfreedomforSharesforwhichIncomeTaxReliefobtained

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

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Initialinvestment £100,000

Lessincometaxrelief@30% (£30,000)

Netcashoutlayforinvestment £70,000

Realisedvalueofinvestmentafter3years £160,000

Totalgain £90,000

Taxfreeprofitbeinggainof£60,000andincometaxreliefof£30,000

3. InheritanceTaxRelief–IHTRelief

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

Initialinvestment £100,000

Lessincometaxrelief@30% (£30,000)

Netcashoutlayforinvestment £70,000

Hypotheticalvalueofinvestment £160,000

Gainoninvestment £90,000

IHTreliefat40% £64,000

4. CGTDeferralReliefundertheEIS

• To the extent towhichUK resident Investors (including certain trustees) subscribeforqualifyingshares,theycanclaimtodeferpayingtaxonallorpartofachargeablegain. The gain may have arisen on the disposal of another asset or a previouslydeferredgainmayhavebeenbroughtintocharge.

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

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

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Example-£100,000capitalgaininvested,assumingincometaxreliefisalsoclaimed

Initialinvestment £100,0005April2018

Lessincometaxrelief@30% (£30,000)

Illustrativecapitalgainsdeferral(upto20%)of2016/17gain

(£20,000)

Netcashoutlayforinvestment £50,000

SharessoldMay2021

Hypotheticalvalueofinvestment £160,000

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

Deferredgainfrom2016/2017becomeschargeable2021/2022

£100,000

Taxpayableat20%(assumingratecurrentlyeffectiveapplies)

(£20,000)

5. LossRelief

• If EIS shares on which EIS income tax relief has been claimed and retained aredisposedofatany timeata loss (after taking intoaccount income tax relief), suchloss may be set against the Investor’s capital gains, or his income in the year ofdisposalorthepreviousyear.

• Forlossesoffsetagainstincome,theneteffectistolimittheinvestmentexposureto42p in the £1 for a 40% taxpayer or to 38.5p in the £1 for a 45% taxpayer, if thesharesweretobecometotallyworthless.

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

• Alternatively, the losses canbeoffset against capital gainsat theprevailing rateofCGT,which is currently20%or28% forhigher rate taxpayers (the ratedependsonthenatureoftheassetsold).

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PART12–DEFINITIONS

"AIFMD" theAlternativeInvestmentFundManagersDirective,asamended"AIM" theLondonStockExchangeAlternativeInvestmentMarket

"Application" avalidapplicationtosubscribetotheFundwithacompletedApplicationForm

"ApplicationForm" theapplicationformappendedtothisMemorandum

"ApplicationMonies" theSubscriptionAmountand(ifapplicable)theIntermediaryCharge

"Associates" parents, children, more remote ancestors, more remote descendants,businesspartnersandcertaintrustees

"CGT" capitalgainstax

"ClosingDate" finaldateuponwhichApplicationswillbeacceptedbytheFundManagerbeingtheearlierof(i)thedateonwhichaggregateSubscriptionAmountsreach £15,000,000; or (ii) 5.00 pm on 16 March 2018; or as otherwiseextendedatthediscretionoftheFundManager

"Custodian" the FundManageror suchperson as the FundManagermay appoint toprovide,andwithwhomithasagreedtermsfor,safecustodyorcustodialornomineeservicesinrespectoftheFund

"Depositary" ThompsonTarazDepositaryLimitedorsuchpersonastheFundManagermay appoint to provide, and with whom it has agreed terms for, safecustodyorcustodialornomineeservices inrespectoftheFund(whichisforallpurposesconnectedtoAIFMDthedepositaryoftheFund)

“EBITDA” the consolidated earnings before interest and taxation depreciationamortisation (of goodwill and other intangible assets) and exceptionalitemsofeachEISCompany)

"EIS" EnterpriseInvestmentScheme,asdescribedinPart5ITA2007"EISCompany" acompanymeetingtheconditionsinChapter4ofPart5ITA2007

"EISInvestment" aninvestmentmadeinanEISCompany

"EISTrade" businesstradewhichqualifiesforEIStaxreliefs"ExistingEISCompany" any of Galaxy, Pioneer, Sovereign Liberty, Phoenix and/or Summit (as

applicable)and

"ExistingEISCompanies" meansallofthem"EURiskFinanceGuidelines" the European Commission’s guidelines on State Aid to promote risk

financeinvestments2014/C19/04

"FCA" FinancialConductAuthority"FCARules" therulesandguidanceissuedbytheFCAfromtimetotime

"FSMA" FinancialServicesandMarketsAct2000,asamended

"Fund" TheCityPubEISFund2017/18"FundManager" ThompsonTarazManagersLimited

"Galaxy" The Galaxy (City) Pub Company Limited, a private limited companyincorporatedinEnglandandWalesundercompanynumber09359693

"HMRC" HMRevenue&Customs

"HowardKennedy" HowardKennedyCorporateServicesLLP"IHT" inheritancetax

"IHTA1984" InheritanceTaxAct1984,asamended

"InitialCharge" thefeepayabletotheFundManagerbyeachPubEISCompanyequivalentto2.75%(exclusiveofVAT, ifapplicable)oftheamounts invested inthatPubEISCompanybytheFund

"Intermediary" an FCA authorised intermediary that may be advising or acting for anApplicant and whose details are accordingly to be set out in theApplicationForm

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"IntermediaryCharge" theamountofthechargetobedeductedfromtheApplicationMoniesandthepaymentofwhichistobefacilitatedbytheFundManageronbehalfoftheInvestortohisorherIntermediary,asindicatedbytheInvestorintheApplicationForm

"Investment" anallotmentof Shares subscribedby theFundManageronbehalfof anInvestorpaidupwiththeInvestor'sSubscriptionAmount

“InvestmentConsultant” Bar&KitchenLimited"Investor" a person who completes an Application Form which is accepted by the

FundManagerandsoentersintotheInvestorAgreement

"InvestorAgreement" agreement to be entered into between each Investor and the FundManager,inthetermssetoutinPart13ofthisMemorandum

"ITA2007" IncomeTaxAct2007,asamended

"Liberty" The Liberty (City) Pub Company Limited, a private limited companyincorporatedinEnglandandWalesundercompanynumber09359989

"Memorandum" thisdocumentrelatingtotheFund

"MLRegulations" TheTerroristFinancingandTransferofFunds (InformationonthePayer)MoneyLaunderingRegulations2017,asamended

"Nominee" TTNomineesLimitedorsuchnomineeastheFundManagermayappointtoactastheInvestor’snomineefromtimetotime

"PerformanceIncentiveFee" the fee payable to the Investment Consultant as described in Part 10 ofthisMemorandum

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

"Pioneer" The Pioneer (City) Pub Company Limited, a private limited companyincorporatedinEnglandandWalesundercompanynumber09359735

"PubEISCompany" anycompanyintowhichanInvestmentismade,and

"PubEISCompanies" meansallofthem

"PubEISCompanyDirectors" thedirectorsforthetimebeingofthePubEISCompanies,furtherdetailsofwhomaregiveninPart7ofthisdocument

"QualifyingCompanies" companiesthatqualifyfortaxreliefunderEIS

"RAMCapital" RAM Capital Partners LLP, a limited liability partnership registered inEngland and Wales under number OC329154 of 4 Staple Inn, LondonWC1V 7QH (which is authorised and regulated by the Financial ConductAuthority),whichisactingaspromotertotheFund

"RiskFinanceStateAid" StateAidreceivedbyacompanyasdefinedinSection173AofITA2007"Shares" ordinarysharesinaPubEISCompanysubscribedbytheFundManageron

behalfofInvestors

"Sovereign" The Sovereign (City) Pub Company Limited, a private limited companyincorporatedinEnglandandWalesundercompanynumber09359669

"Subscription" anInvestmentpursuanttotheApplicationForm

"SubscriptionAmount" theamountoftheApplicationMoniestobeusedforInvestmentthroughtheFund,assetoutintheApplicationForm

"Summit" The Summit (City) Pub Company Limited, a private limited companyincorporatedinEnglandandWalesundercompanynumber09360077

"TheCityPubCompaniesEastandWest"

bothTheCityPubCompany(East)PLCandTheCityPubCompany(West)PLC

"ThreeYearPeriod" period beginning on the date the Shares in the Pub EIS Company areissued and ending three years after that date, or three years after thecommencementoftheEISCompany’strade,whicheverislater

"VCT" VentureCapitalTrust,asdefinedbySection259ITA2007Wordsused inthisMemorandumdenotinganygendershouldbereadas includingallgendersandincludesindividuals,trustsandlimitedcompanies.

35

PART13–INVESTORAGREEMENT

This InvestorAgreement (the"Agreement") setsout the termsandconditions forTheCityPubEISFund 2017/18 (the "Fund") under which Thompson Taraz Managers Limited, as Fund Manager,provides itsdiscretionary investmentmanagement services toyou,asan investor in theFund (the"Investor").

1. DEFINITIONSANDINTERPRETATION

1.1 The following words and expressions where used in this Agreement have the meanings given to them below. Words andexpressionsusedintheInformationMemorandumandintheFCARuleswhicharenototherwisedefinedforthepurposesofthisAgreement,shall,unlessthecontextrequiresotherwise,havethesamemeaninginthisAgreement.

ApplicationForm means the application form (or substantially the same form) as attached to the InformationMemorandum;

Administrator ThompsonTarazManagersLimitedorsuchotherpartyasassumestheroleandresponsibilitiesoftheAdministrator;

Associate meansanypersonorentity that controls is controlledbyor isunder thecommoncontrolwith theFundManager. "Control" refers to theability toexercise significant influenceover theoperatingorfinancialpoliciesofanypersonorentity;

BusinessDay meansaday,other thanSaturday,Sundayorpublicholiday in theUK,onwhichclearingbanksaregenerallyopenfornon-automatedbusinessintheCityofLondon;

ClosingDate meanstheearlierof(i)thedateonwhichSubscriptionsintotheFundreach£15,000,000;or(ii)5.00pmon16March2018;orasotherwiseextendedatthediscretionoftheFundManager;

CommencementDate asdefinedinClause2.1;

ConfidentialInformation meansallinformationandmaterialsofanyparty(whetheroralorrecordedinanymedium),whicharemarkedconfidentialorwhicharebytheirnatureclearlyconfidential,obtainedunderorinconnectionwiththisAgreementorwhichotherwisecometotheattentionoftheotherparty;

Custodian ThompsonTarazManagersLimited(orsuchotherpartyasassumestheroleandresponsibilitiesoftheCustodian);

Depositary ThompsonTarazDepositaryLimited (orsuchotherpartyasassumestheroleandresponsibilitiesoftheCustodian,andwhichisalsoforallpurposesconnectedtoAIFMDthedepositaryoftheFund);

Disposal adisposalofallorsubstantiallyalloftheFund’sholdinginaPortfolioCompanyinonetransactionoraseriesoftransactions;

ExecutionPolicy meanstheorderexecutionpolicythattheFundManagerisrequiredtoestablishundertheFCARules,acopyofwhichmayberequestedbytheInvestor;

Exit meansaSale,DisposalorListingofaPortfolioCompany;

FCA the Financial Conduct Authority and any statutory successor of it (or any other body to which itsstatutoryfunctionshavebeendelegated);

FCARules meanstherulesandguidanceissuedandmodifiedbytheFCAfromtimetotime;

Fees thefeespayableassetoutinPart10oftheInformationMemorandum;

Fund meanstheCityPubEISFund2017/18,adiscretionary investmentmanagementservicemanagedbytheFundManager,asdescribedintheInformationMemorandum;

Information meanstheinformationmemorandumdated7September2017andissuedinrespectoftheFund;

Memorandum

IntermediaryCharge means the amountof the charge tobededucted from the applicationmonies and thepaymentofwhichistobefacilitatedbytheFundManageronbehalfoftheInvestortohisorherIntermediary,asindicatedbytheInvestorintheApplicationForm;

InvestmentPeriod meanstheperiodcommencingontheClosingDateandending5April2018;

Investments means ordinary shares in any Portfolio Company acquired by the FundManager on behalf of theInvestorusingtheSubscriptionMonies,and"Investment"shallbeconstruedaccordingly;

InvestmentConsultant Bar&KitchenLimited;

Listing means the admission of any or all of the issued share capital of a Portfolio Company trading on arecognisedinvestmentexchange(assuchtermisdefinedinSection285ofTheFinancialServicesandMarketsAct2000)orsuchothersharetrading facility,exchangeormarketonwhichthesharesarepubliclytradedasmaybeapprovedbytheFundManager;

Loss meansanydamages, loss,costs,claimsorexpenses(excludingany lossofbusinessorprofitsoranyindirect or consequential loss or damage, in each casewhether arising from negligence, breach ofcontractorotherwise);

Nominee means TT Nominees Limited, (or such other party as assumes the role and responsibilities of theNominee);

Portfolio meansanInvestor'sportfolioofInvestments;

PortfolioCompany meansanylimitedcompanyinwhichInvestmentsaremade,andtheterm"PortfolioCompanies"shallbeconstruedaccordingly;

36

Sale means the transfer (whether througha single transactionora seriesof transactions)of shares inaPortfolioCompanyasaresultofwhichanyperson(orpersonsconnectedwitheachotherorpersonsactinginconcertwitheachother)wouldholdoracquirebeneficialownershipoforoverthatnumberof shares in suchPortfolio Companywhich in aggregate confers 50per cent ormoreof the votingrights normally exercisable at general meetings of such Portfolio Company or would otherwiseexercisecontroloverthatPortfolioCompany;

Services meansthemanagementservicesrequiredtooperatetheFundandotherservicestobeprovidedbytheFundManageranditsassociatesunderthisAgreement;

Subscription meansinvestmentpursuanttotheApplicationForm;

SubscriptionMonies meansthetotalofallsubscriptionmoniesfortheFundprovidedbytheInvestorswhoseApplicationFormsareacceptedbytheFundManager,butnotincludingtheamountofanyIntermediaryCharge;and

USPerson meansanypersonwhotheFundManagerreasonablybelievestobesoclassifiedforthepurposesofanyoftherelevantinterpretativeprovisionsofRegulationSundertheUnitedStatesSecuritiesActof1933.

1.2 InthisAgreement,anyreferencetoa"person"shallbeconstruedasareferencetoanynaturalperson,partnership, jointventure,corporation, limited liabilitycompanyorpartnership, trust, firm,associationorgovernmentalagencyordepartmentorany twoormoreoftheforegoing.

1.3 TheclauseheadingsinthisAgreementareforeaseofreferenceonlyandshallnotaffectitsinterpretation.

1.4 AnyreferencesinthisAgreementtotheparties,numberedclausesortheSchedulesaretotheparties,clausesofortheSchedulestothisAgreement.

1.5 AnyreferenceinthisAgreementtoanystatuteorstatutoryprovisionshall,unlessthecontextotherwiserequires,beconstruedasareferencetosuchstatuteorstatutoryprovision(includingallinstruments,ordersorregulationsmadethereunderorderivingvaliditytherefrom)asinforceattheCommencementDateandassubsequentlyre-enactedorconsolidated.

1.6 Wordsdenotinganygenderincludeallgenders.Thesingularshallincludetheplural(andviceversa).

1.7 Section993oftheIncomeTaxAct2007shallapplytodeterminewhetheronepersonis"connectedwith"anotherforthepurposesofthisAgreement.

1.8 TheCityCodeonTakeoversandMergersinforcefromtimetotimeshallapplytodeterminewhetherpersonsare"actinginconcert"forthepurposesofthisAgreement.

2. SUBSCRIPTIONBYTHEINVESTOR

2.1 Bysigning thedeclarationcontained in theApplicationForm, the Investoragrees tobeboundby the termsandconditionsof thisAgreement.TheCommencementDateshallaccordinglybethelasttooccurofthefollowing:

(a) ThedateonwhichtheApplicationFormisacceptedbytheFundManager;

(b) ThedateonwhichtheFundManagercompletestoitssatisfactionallrelevantduediligenceandidentificationprocessesinrelationtotheInvestor;

(c) ThedateonwhichtheFundManagerconcludesitsassessmentthattheFundisanappropriateandsuitableinvestmentfortheInvestor;or

(d) ThedateonwhichanyapplicablecancellationperiodtowhichtheInvestorisentitledexpires;or

(e) ThedateonwhichtheconditionastotheraisingoftheminimumaggregatesubscriptionamountfortheFund(asreferredtointheInformationMemorandum)hasbeenmet.

2.2 TheInvestorherebyappointstheFundManagertomanagethemoniesinvestedintheFundandtheInvestmentsmadethroughtheFundfortheInvestoronthetermssetoutinthisAgreement.TheFundManageragreestoacceptitsappointmentandobligationsonthetermssetoutinthisAgreement.

2.3 TheFundManager isauthorisedandregulatedby theFinancialConductAuthority in respectof its investmentbusiness (withaFirmReferenceNumberof226978).Theaddressof theFinancialConductAuthority is25TheNorthColonnade,CanaryWharf,LondonE145HS.

2.4 TheInvestor isclassifiedbytheFundManagerasaretailclientforthepurposesoftheFCARules.TheInvestorhastherighttorequestadifferentclientcategorisation.However,iftheInvestordoessoandiftheFundManageragreestosuchcategorisationtheInvestorwilllosecertainprotectionsaffordedtoretailclientsbycertainFCArules.

2.5 The minimum amount that may be subscribed to the Fund is £25,000 but is subject to the Fund Manager’s discretion.Subscriptionsabovetheminimumshallnormallybein£1,000increments.Untilinvested,theSubscriptionMonieswillbeheldinaclientbankaccountinthenameoftheFundManager,heldwithaUKbankauthorisedandregulatedbythePrudentialRegulationAuthority,andinaccordancewithFCAClientMoneyRules.TheFundManagerwillnotbeliabletoanInvestorintheeventofanylossinvalueoffundsinvestedoranyinsolvencyofanybankwithwhichfundsaredepositedinaccordancewiththisAgreement,norintheeventofanyrestrictionontheFundManager’sabilitytowithdrawfundsfromsuchbankforreasonsreasonablybeyondthecontroloftheFundManager.

2.6 TheFundManager reserves the rightnot toproceedwith theFund, inwhichcase theFundManager shall treat the Investors’aggregatesubscriptionasbeingsubjecttoawithdrawalrequestvalidlyreceivedinaccordancewithClause12,andthisAgreementwillbeterminated.AnyinterestpayableoncreditbalancesinthesaidaccountwillberetainedbytheFundManager.

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2.7 TheInvestorshallsubscribeinfulltotheFundonorpriortotheCommencementDatefortheSubscriptionMoniessetoutintheirrespectiveApplicationFormswhereupontherelevantInvestorshall:

(a) delivertotheFundManagertherelevantcompletedApplication;

(b) makepaymentofthesubscriptionmoniestotheFundManagerbybanktransferorcheque;and

(c) where applicable, provide to the FundManager such information and documentation to allow the FundManager tosatisfyitsanti-moneylaunderingrequirementsinrespecttotheInvestor.

2.8 TheFundManagerisentitledatitsdiscretiontoreject(inpartorinfull)anyApplication.

2.9 If(butonlyif)theInvestorhassubmittedanApplicationFormwithoutfirsthavinghadthebenefitoffacetofacecontactwiththeFundManagerorfacetofaceadvicefromanindependentfinancialadviserauthorisedandregulatedbytheFCA,theInvestorhastherighttocancelthisAgreement.Cancellationrightsapplyforaperiodof14days,commencingonthedateonwhichtheFundManagerreceiveshisorherApplication.IftheInvestorinsuchcircumstanceswishestocancelthisAgreement,heorsheshouldnotify the Administrator in writing, so as to reach the Administrator prior to the end of the 14-day cancellation period.CancellationautomaticallybringsthisAgreementtoanend.AnInvestorwhocancelsisentitledtoreceivehisSubscriptionback,minusareasonablehandlingchargeleviedbytheadministrator.

2.10 OntheFundManagernotifyinganInvestorthathisApplicationFormisacceptedthen,subjecttoclauses2.18(a)and2.18(b),thepaymentoftheSubscriptionMonieshereundershallbeirrevocableaftertheendofanyapplicablecancellationperiod[NBThisisincorrect.TheCISExemptionsOrderspecificallyclarifiesthattheinvestorhasrightstowithdrawuninvestedcash].IntheeventthatanApplicationFormisnotacceptedthenanySubscriptionMoniespaidbysuchInvestortotheFundManagershallbereturnedtotherelevantInvestor(afterdeductionofanycostsinrespectofreturningsuchmoniesincurredinrespectofsuchInvestor).

2.11 TheInvestor’sparticipationintheFundshallbeonthebasisofthedeclarationmadebytheInvestorinhisorherApplicationFormwhichincludesstatementsbytheInvestorinrelationtothefollowingmatters,namely:

(a) whetherornottheInvestorwishestoseekEISRelieffortheInvestments;

(b) thattheInvestoragreestonotifytheFundManagerifanInvestmentismadebytheFundinanycompanywithwhichtheInvestorisconnectedwithinthemeaningofsection163andsections166to170oftheIncomeTaxAct2007;

(c) thattheInvestoragreestonotifytheFundManagerif,withinthreeyearsofthedateofissueofsharestohisPortfoliobyanEISQualifyingCompanyorwithinthreeyearsofcommencementofthatEISQualifyingCompany’sQualifyingtradeiflater,theInvestorbecomesconnectedwiththecompanyorreceivesvaluefromsuchcompany;and

(d) theInvestor’staxdistrict,taxreferencenumberandNationalInsuranceNumber.

TheInvestorconfirmsthattheinformationstatedintheApplicationForminthese(andallother)respectsistrueandaccurateasatthedateofthisAgreement.

2.12 The Investor agrees immediately to inform the Administrator inwriting of any change of tax status, othermaterial change incircumstanceandanychangeintheinformationprovidedintheApplicationForm.

2.13 Inaddition,theInvestoragreestoprovidetheFundManagerwithanyinformationwhichitreasonablyrequestsforthepurposesofmanagingtheFundpursuanttothetermsofthisAgreement.

2.14 The beneficial interest in the Investments shall be held by the Investors on a pro rata basis according to the amount ofSubscriptionMonies paid by the Investors respectively and treated as credited to the Fund as at the Closing Date (and suchnumberofshareswhicharebeneficiallyownedshallbeadjustedeitherupordownatthediscretionoftheFundManagertoavoidInvestorsholdingfractionsofshares).

2.15 The Nominee shall have legal title to the Investments and the Custodian shall hold any title documents (or other title to theInvestments).TheInvestorhereby:

(a) consentstohisInvestmentsbeingregisteredinthenameoftheNominee(oranyothernomineecompanyselectedbytheCustodianandasnotifiedtotheInvestor)forthepurposeofsimplifyingtheshareadministrationoftheFund;

(b) subjecttoclause3.10,andonlyforpurposesofadministrativeconvenience,empowersandauthorisestheFundManagertoexerciseanyconversion,subscription,votingorotherrightsrelatingtoInvestments,subjectalways:

(i) totheFundManager’sconflictsofinterestpolicy(asdescribedinclause10);and

(ii) theInvestor’srighttoexercisehisvotingrightshimselfbygivingwrittennoticetotheFundManagerstatingsuchapreference;

(c) subjecttoclause3.10acknowledgesandagreesthattheFundManagerisnotobligedtoseekanyinstructionordirectiondirectlyfromthemtoexerciseanyrightsinrespectofanyInvestment.

2.16 SubjecttotheconsentoftheFundManager,theInvestormayalsobeabletoinvestinanyPortfolioCompanyinhisownnamebutsuchinvestment(the"PrivateInvestment")shallnotconstitutepartoftheFundandsuchInvestorshall:

(a) beregisteredinhisownnameastheholderofthePrivateInvestmentinthePortfolioCompany;

(b) receivesharecertificatesdirectfromthePortfolioCompanyinrespectofthePrivateInvestment;

(c) notbeabletoincludethePrivateInvestmentincalculatingsuchInvestor’sshareofthedistributionofproceedspursuanttoClause7;and

(d) not rely on the results of the Fund Manager’s due diligence investigations in deciding whether to make the PrivateInvestmentandnoclaimshallbemadebysuchInvestoragainsttheFundManager.

2.17 The Investor acknowledges that he or she has read and understands the risk warnings which are set out in the InformationMemorandum.

2.18 TheFundManagerreservestherighttoreturnanypartoftheSubscriptionMoniestotherelevantInvestor(s)onaproratabasiswhere (a) the whole of the Subscription Monies cannot be invested during the Investment Period, or (b) professional rulesapplyingtoanInvestor(s)preventsuchInvestor(s)frommakinganInvestment.

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3. THEFUND

3.1 WitheffectfromtheCommencementDate,theFundManagerwillmanagetheFundandprovidetheServicesonthetermsandconditions of this Agreement. In the event of a conflict between this Agreement, the Information Memorandum and theApplicationForm,thetermsofthisAgreementshallprevail.

3.2 TheFundManagerwillseekconsultancyservicesfromtheInvestmentConsultantinrelationtoperformingthetasksofscreeningof investments, undertaking due diligence and post investment monitoring, as more fully described in the InformationMemorandum.

3.3 NocontractualrightsexistbetweentheInvestorandtheInvestmentConsultant(underthisAgreementorotherwise).

3.4 SubjecttothisAgreement,theFundManagerwillexercisealldiscretionarypowersinrelationtotheselectionof,ortheexercisingofrightsrelatingto,Investments(includingtheexecutionofcontractsonbehalfofInvestors).TheFundManagerwillnottakeanydecisionsonaproposedInvestmentunless:

(a) due diligence has been carried out by the Investment Consultant (or under its aegis) to the satisfaction of the FundManager;and

(b) aduediligencereporthasbeensubmittedbytheInvestmentConsultant(orunderitsaegis)totheFundManagerwithrecommendationforInvestment.

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

3.6 Where,uponreceiptoftherelevantevidenceofrecommendationpursuanttoClause3.4,theFundManagerhasmadeadecisiontoproceedwithanInvestment,theFundManagershall(inthefollowingorder):

(a) enter intoandexecute the investmentdocuments togetherwithancillarydocuments togiveeffect to the Investment;and

(b) release investmentmonies to a solicitor nominated by the Portfolio Company or directly to the bank account of thePortfolioCompanyoncompletionoftheInvestment;

3.7 InrespectofaDisposal,theFundManagershallenterintoandexecutesuchdocumentsonbehalfoftheInvestorstogiveeffecttothedisposaloftheInvestment.

3.8 TheFundManagershall:

(a) subjecttoclause3.10ineffectingInvestmentsactinaccordancewiththeobligationsregardingbestexecutionundertheFCARulesandtheExecutionPolicy.

(b) act in good faith and perform the Services with reasonable care and skill in accordance with generally recognisedcommercialpracticesandstandardsintheindustryforsimilarservices,includingtheprocurementofanyinformationonmattersenvisagedbytheInvestmentConsultancyAgreement;

(c) observeandcomplywithallapplicablelawsandregulations,includingbutnotlimitedtotheFCARules(asmodifiedfromtimetotime);

(d) where an Investment has been approved by the FundManager, invest in each Portfolio Company in exchange for ashareholdinginthatPortfolioCompany;

(e) usereasonableendeavourstoinvest

(i) inaminimumofthreePortfolioCompanies;and

(ii) atleast90%ofthetotalSubscriptionMonies;

duringtheInvestmentPeriod.

(f) wherereasonable,employagents, includingassociates, toperformanyadministrative,custodialorancillaryservicestoassist theFundManager inperforming itsservices, inwhichcase itwillact ingoodfaithandwithduediligence in theselection,use,andmonitoringofagents.AnysuchuseofagentsshallnotaffecttheliabilityoftheFundManagerunderthetermsofthisAgreement.

3.9 The Fund Manager and Custodian shall devote such time and attention and have all necessary competent personnel andequipment asmay be required to enable them to provide theirmanagement and fund administration and custodian servicesproperly,efficientlyandincompliancewithFCARules.

3.10 TheFundistreatedbytheFundManagerassubjecttotheprovisionsofAIFMDpertainingtofull-scopeAIFs.Accordingly:

(a) TheFundManageracceptsresponsibilityfordisclosureofallmattersconcerningtheFund, itsoperation,management,valuationandrelatedcriteriaasspecifiedforfull-scopeAIFsinAIFMD(andinparticular,thoughwithoutlimitation,article23thereof);and

(b) Morespecifically,theFundManagerhasappointedtheDepositorytodischargethefunctionunderAIFMDofdepositarytotheFund.

3.11 TotheextentallowableundertheFCARulestheFundManagerwillberesponsibleforthesafe-keepingofFundInvestmentsandcash comprised in the Fund, including the settlement of transactions, the collection of income and the effecting of otheradministrativeactionsinrelationtotheInvestments.

3.12 TheFundManagermaynot lendanyInvestmentsortitledocumentationtoathirdpartyorborrowagainstthesecurityofsuchInvestmentsordocuments.

3.13 AnInvestmentmayberealisedinordertodischargeanobligationoftheInvestorunderthisAgreement,forexampleinrelationtopaymentoffees,costsandexpenses.

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3.14 TheInvestorwillbesentareporteverysixmonths,incompliancewiththeFCARules,andsuchfurtherorotherdisclosuresasarerequiredforcompliancewithAIFMD.ReportingwillcommenceinrespectoftheperiodendingonadatenolaterthansixmonthsfollowingtheClosingDateandthe first reportwillbe issuedwithin twomonthsof thisdate.Reportswill includeameasureofperformanceinthelaterstagesoftheFundifvaluationsareavailableforFundInvestments.

(a) ContractnoteswillbeprovidedforeachInvestmentwhichisofatypethatconventionallygeneratesacontractnote.Inothercases,theFundManagerwillconfirmtotheInvestorwhenatransactionhasbeenenteredintoandthenumberofSharesunderthattransactionwhichhavetherebybeenallocatedto,orsoldonbehalfof,theInvestor’sPortfolio.

(b) InvestorswhoareRetailClientsoftheFundManagermayrequestthatreportsareprovidedeverythreemonths.SuchrequestsshouldbemadeinwritingtotheFundManager.Investorsshouldnote,however,thatastheFundManagerwillreceivereportsontheperformanceofPortfolioCompaniesnomorefrequentlythansix-monthly,anyquarterlyreportsrequestedareunlikelytoincludeanynewand/ormaterialinformation.

(c) Anystatements,reportsorinformationprovidedunderthisClausetotheInvestorwillstatethebasisofanyvaluationsofInvestmentsprovided.

4. FEESANDCHARGES

FeeswillbedebitedfromtheSubscriptionMoniesthatentertheFund,chargedtoPortfolioCompaniesand/ortheproceedsofExitsasthecasemaybeassetoutinPart10oftheInformationMemorandum.

5. DISTRIBUTIONOFPROCEEDSANDINCOME

5.1 TheproceedsfromeachExitinrespectofaPortfolioCompanyshallbepaidinthefirstinstancetotheclientbankaccountinthenameoftheFundManager.

5.2 SubjecttoClause6.4,onanExittheFundManagershallforthwithdistributeallproceedstotheInvestors(afterpaymentoftheexpensesandliabilitiesoftheFund).

5.3 Anyamounttobedistributedtothe InvestorspursuanttoClause6.2shallbedistributedproratatothe InvestorsaccordingtotheirbeneficialshareholdingsintherelevantPortfolioCompany.

5.4 AnytaxationwhichmaybecomepayablebytheInvestorasaresultof(a)thereceiptofanydistributionunderthisAgreement;or(b)anExit;shallbetheresponsibilityandliabilityoftheInvestor.Fortheavoidanceofdoubt,whereanInvestmentceasestobeanEISqualifyinginvestmentthentheInvestorshallbeliabletoaccounttoHMRCfortheirrespectivetaxliabilityandneithertheFundManager,northeInvestmentConsultantshallbeliabletotheInvestororHMRCforanysumsdueinrespectthereof.

5.5 ThisClause6shallnotapplytotheproceedsrelatingtoanyPrivateInvestment.

6. TRANSMISSIONANDTRANSFEROFINTERESTS

6.1 OnthedeathorbankruptcyofanInvestor,beinganaturalperson,suchInvestor’spersonalrepresentativesortrustee(asthecasemay be) shall (upon presentation to the FundManager of a grant of representation or court appointment) be treated as an"Investor"inhisorherplaceandentitledtoreceiveanydistributionofmonieshereunderasan"Investor"(providedthatthisdoesnot represent thatanysuch representative isentitled toanyof theEIS taxadvantages,as towhich further legaladviceshouldalwaysbesought).

6.2 OnterminationofthisAgreement,theInvestmentstowhichtheInvestorisbeneficiallyentitledshall(unlessotherwiseagreedbytheParties)betransferredintothenameoftheInvestorandthenumberofSharesinthePortfolioCompaniestobeheldbytheInvestorshallbecalculatedpursuanttoClause2.13.

6.3 SubjecttoClauses7.1and7.2andexceptonanExit,nosale,assignmentortransferbytheInvestoroftheunderlyingbeneficialownershipofanInvestmentoranyotherrightshereundershallbevalidoreffectiveandtheFundManagershallnotrecognisethesameforthepurposesofmakingdistributionsofmonieshereunderorthemaintenanceofrecords.

6.4 Except on termination of this Agreement, no transfer of the registered interest in any shares in a Portfolio Company by theNominee shall bemade to the Investor without the prior written consent of the FundManager and on such transfer (a) theInvestorshallcontinueasan"Investor"andpartytothisAgreement,(b)suchtransferredinterestshallremainpartof"theFund"for the purposes of this Agreement, and (c) the transferee shall enter into a Deed of Adherence to this Agreement, unlessotherwiseagreedinwritingoremailbytheFundManager.

7. POWEROFATTORNEY

7.1 SubjecttoClause2.14(b),theInvestorherebyappointstheFundManagerasitstrueandlawfulattorneyto:

(a) consider,negotiate,vary,agreeandexecuteanydocumentsrequiredinconnectionwithanInvestmentoranExit;

(b) transferfundsheldbytheFundManageronbehalfoftheInvestorinconnectionwiththesettlementofanyInvestmentorExit;and

(c) enforceanyrights,conductclaimsorsettlelitigationpursuanttoanyinvestmentagreementorancillarydocument,

andtheInvestorshallratifywhattheFundManagershalllawfullydopursuanttosuchpowerofattorneyandtheFundManagershallincurnoresponsibilityundersub-clauses(a),(b)and(c)aboveinrespectofitsacts,omissionsorerrors(exceptbyvirtueoftheFundManager’snegligence,wilfuldefaultorfraud).

7.2 ThispowerofattorneyshallremaininfullforceandeffectfromtheCommencementDateuntil(a)terminationofthisAgreement,or(b)removalorresignationoftheFundManager.

8. EXCLUSIVITY

Subjecttoclause2.19,theInvestorshallnotduringthetermofthisAgreementappointanypersonotherthantheFundManagertoperformtheServices(oranypartofthem)pursuanttothisAgreement.

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9. CONFLICTSOFINTEREST

9.1 TheFundManagermayprovide investmentmanagementorotherservicestoanypersonandshallnot inanycircumstancesberequired to account to the Investor for any profits earned in connection therewith. The FundManagerwill use all reasonableendeavourstoensurefair treatmentasbetweenthe Investor,other Investors intheFundand itsothercustomersgenerally. Inhandlingconflicts,theFundManagerwarrantsthatitwillactincompliancewithFCARules.

9.2 TheFundManagerisrequiredbyFCARulestoestablish,implementandmaintainaconflictsofinterestpolicy.Acopyofthispolicywillbeprovidedonrequest.TheFundManager’sconflictsof interestpolicysetsoutthetypesofactualorpotentialconflictsofinterestwhichaffecttheFundManager.

9.3 The Fund Manager, the Investment Consultant or any persons connected with either of them may hold investments in anyPortfolioCompany.

9.4 TheFundManagerand theCustodianareunder commonownership.However, theyareorganisationally separateandeachofthemoperatesaconflictsofinterestpolicydesignedtoensurethattheyacthonestly,fairly,professionally,independentlyandintheinterestsoftheFundandInvestors.

10. LIABILITY

10.1 Intheeventofanyfailure,interruptionordelayintheperformanceoftheFundManager’sobligationsresultingfromacts,eventsor circumstances not reasonablywithin its control (including but not limited towar, riot, civil commotion, terrorism or threatthereof,actsorregulationsofanygovernmentalorsupranationalbodiesorauthoritiesandbreakdown,failureormalfunctionofanytelecommunicationsorcomputerserviceorsystems),theFundManagershallnotbeliableorhaveanyresponsibilityofanykindforanylossordamagetherebyincurredorsufferedbytheInvestor.

10.2 TheFundManagershallnotbeliableforanydefaultsofanycounterparty,agent,banker,nomineeorotherpersonorentitywhichholdsmoney,investmentsordocumentsoftitlefortheFund,otherthansuchpartywhichisitsAssociate.

10.3 SubjecttoClause11.4,theFundManagershallhavenoliabilitytotheInvestor,whetherincontract,tort(includingnegligence),breachofstatutorydutyorotherwise,foranylossofprofit,orforanyindirectorconsequentiallossarisingunderorinconnectionwiththisAgreement.

10.4 NothinginthisAgreementwilloperatetoexcludeorrestricttheFundManager'sliabilityfordeathorpersonalinjurycausedbyitsnegligence,orthenegligenceof itsemployeesorsubcontractors,or its fraud,wilfuldefaultorfraudulentmisrepresentation,oranyliabilitywhichcannotbelimitedorexcludedundertheFCARulesoranyliabilityoftheDepositaryinitscapacityofdepositarywhichcannotbelimitedorexcludedunderAIFMD.

10.5 The Fund Manager gives no representation or warranty as to the performance of the Portfolio Companies. The Investoracknowledges that the Portfolio Companies are high risk investments, being non-readily realisable investments. There is arestrictedmarketforsuchinvestmentsanditmaythereforebedifficulttoselltheInvestmentsortoobtainreliableinformationabout their value. The Investor undertakes that he has himself considered the suitability of the investment in the PortfolioCompaniescarefullyandhasnotedtheriskwarningssetoutintheInformationMemorandumabouttheFund.TheFundManagershallnotberesponsibleorliabletotheInvestorsfortheeconomicperformanceoftheInvestments.

10.6 TheFundManagerhascarriedoutanassessmentofthesuitabilityoftheFundasaninvestmentfortheInvestor,bymeansof:

(a) obtaining appropriate answers to relevant questions in a form of questionnaire accompanying the InformationMemorandum;and/or

(b) relianceuponthe introductionof the InvestorbyanFCAregulatedfirmwhichhasbeenpreparedtomakeasuitabilityassessmentoftheInvestorforitselfandwhichhassharedtheconclusionthereofwiththeFundManager.

11. TERMANDTERMINATION

11.1 Unlessterminatedearlierinaccordancewiththisclause12,thisAgreementwillterminateontheearlierof:

(a) thedateonwhichthelastInvestmentisrealised;or

(b) theseventhanniversaryofthedateonwhichthefinalInvestmentwasmade;or

(c) the date on which the Investor terminates this Agreement by giving the FundManager not less than threemonths’writtennoticeofitsintentiontoterminateitsappointmentasFundManagerunderthisAgreement.

11.2 ThisAgreementterminatesautomaticallyinanyofthefollowingevents:

(a) insolvencyoftheFundManager;or

(b) cessationofFCAauthorisationoftheFundManagertoactasAIFMtotheFund;or

(c) terminationoftheInvestmentConsultancyAgreement(unlesstheFundManagerisabletoprocureareplacementfortheInvestmentConsultantwithsufficientskilltocontinuetoprovideadvicetotheFundManagerontheInvestmentsoftheFund.

11.3 The InvestormaygivenoticetotheFundManagertoremedyamaterialbreachof thisAgreement,which if theFundManagershallnothaveremediedthesamewithin30daysofthedateofthatnoticeentitlestheInvestortoterminatethisAgreementwithimmediateeffect.

11.4 TheFundManagermayresignfromitsroleunderthisAgreement,subjecttothreemonths’noticeinwritingtotheInvestorandtoallpersonswhohaveenteredintoagreementswiththeFundManagerinidenticalformtothisAgreement.Ifknownatthedateonwhichthenoticeisserved,theFundManagershallidentifytheperson(authorisedandregulatedasanAIFM)tobeappointedtoact as fundmanager in its place. If by the end of such notice period it has not been possible to appoint a suitably qualifiedreplacementperson,itisagreedthattheFundManagershallforthwithtakethenecessarystepstowinduptheFund.

11.5 OnterminationoftheFund,anyInvestmentsintheInvestor'sPortfoliowhichhavenotbeenrealisedwillbetransferredintothenamesoftheInvestorsorashemayotherwisedirect.

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11.6 USPersonsarenotpermittedtoinvestthroughtheFund.IftheInvestorisfoundtobe,havebeenorhavebecomeaUSPersonduring the term of this Agreement, the FundManager reserves the right to terminate this Agreement forthwith. InvestmentscomprisedintheInvestor'sportfoliomayinsuchcircumstancesberetainedbytheFundManagertooffsetanycosttotheFundManager,theCustodianortheDepositaryarisingfromtheInvestor'sstatusasaUSPerson,butshallotherwisebetransferredtotheInvestornotlaterthan12monthsfollowingthedateonwhichthisAgreementisdeemedtohaveterminatedinaccordancewiththisclause12.6.

12. CONSEQUENCESOFTERMINATION

12.1 Otherthanwhereclause13.2applies,ontermination,theFundManager:

(a) will transfer to the Investor such Investments as are held within the Fund for his beneficial interest as well as anyuninvestedcash;but

(b) otherthanwheretheAgreementisterminatedunderclause12.2(b)or12.3,mayfirstdeductfromsuchInvestmentsorcashanyunpaidorunclaimedfeesoranyotheramountsthattheInvestorowesunderthisAgreement.

12.2 IftheFundManagerisretiringinfavourofareplacementfundmanager,theninprincipletheServicescontinuetobeperformedandthebeneficial interestoftheInvestorintheFundcontinuestoberecognised,providedthatthereplacementfundmanagerwill require the Investor to execute such further documentation as extends to him the power of attorney given to the FundManagerinthisAgreement.

12.3 NotwithstandingthisClause,theprovisionsofClauses10,11,13,14,19and20shallsurvivetheterminationofthisAgreement.

13. CONFIDENTIALITY

13.1 Except as provided by clauses 14.2 and 14.3, each Party shall at all times during the term of this Agreement and after theterminationorexpiryofthisAgreement:-

(a) treatinconfidencetheother'sConfidentialInformationandnotdisclosetheother'sConfidentialInformationtoanyotherperson;and

(b) notuseanyConfidentialInformationforanypurposeotherthanfortheperformanceofitsobligationsunderthisAgreement.

13.2 Any Confidential Information may be disclosed by the Party to whom it is disclosed or to whose attention it comes (the"Recipient")to:-

(a) any court, governmental or other authority or regulatory body (including,without limitation, the FCA and the LondonStockExchange);or

(b) inthecaseofConfidentialInformationprovidedtotheFundManager,toanyofitsemployees,agents,consultantsorsub-contractors

tosuchextentonlyasisnecessaryforthepurposescontemplatedbythisAgreement,orasisrequiredbylaw,andsubjectineachcasetotheRecipientusingitsreasonableendeavourstoensurethatthepersontowhomitdisclosesConfidentialInformationkeepsthesameconfidential.

14. GENERAL

14.1 TheFundManagermayassignthisAgreementinwholeorinpartandatitssolediscretiontoanyAssociatewhichisappropriatelyregulatedtoperformtheServiceshereunder.Insuchcircumstances,theFundManagerwillnotifytheInvestoroftheassignment.

14.2 No omission or delay by any Party in exercising any right, power or privilege under this Agreement shall operate as awaiverthereof,norshallanypartialexerciseofanysuchright,powerorprivilegeprecludeanyotherorfurtherexercisethereoforofanyotherright,powerorprivilege.Therightsandremedieshereinprovidedarecumulativewithandarenotexclusiveofanyotherrightsorremediesprovidedbylaw.

14.3 NothinginthisAgreementshallbeconstruedtocreateapartnership,agencyorjointventurebetweentheParties.

14.4 Otherthanprovidedforinclause11.4,inrelationtotheDepositary,apersonwhoisnotaPartytothisAgreementhasnorightundertheContracts(RightofThirdParties)Act1999,toenforceanyprovisionofthisAgreement.

14.5 ThisAgreementconstitutestheentireagreementbetweenthePartiesrelatingtotheprovisionoftheServicesandsupersedesallearliermeetings, any correspondences, or discussions or other agreements and understandings between the Parties thatmayhavetakenplacepriortothesigningoftheApplicationForm.

14.6 Ifanyterm,conditionorprovisionof thisAgreementshallbeheldtobe invalid,unlawfulorunenforceabletoanyextent,suchterm,conditionorprovisionshallnotaffectthevalidity,legalityorenforceabilityoftheremainderofthisAgreement.

14.7 TheFundManagermayamendthisAgreementbygivingtheInvestornotlessthanthirtyBusinessDays’writtennotice.TheFundManagermay also amend this Agreement by giving the Investor written notice with immediate effect if such is necessary tocomplywithHMRCrequirementsortheFCARules.

14.8 TheFundManagerwillholdcashsubscribedbytheInvestorinaccordancewiththeClientMoneyRulescontainedinCASS7oftheFCARules.Suchcashbalancewillbedepositedwithanauthorisedcreditinstitutioninabankaccount(oraccounts)openedandmaintainedinthenameoftheFundManager.TheFundManagermaydebitorcreditthesaidaccountforallsumspayablebyortotheInvestor(includingdividendsreceivableincashandfeesandotheramountspayablebytheInvestor).

14.9 AnyinterestthataccruesoncreditbalancesinthesaidaccountwillberetainedbytheFundManager.

14.10 AnybankchargesincurredinthesaidaccountwillbemetbytheFund.

14.11 TheFundManagermaypayawaytoaregisteredcharityofitschoiceanInvestor’sclientmoneybalanceprovidedithashelditforatleastsixyearsfollowingthelastmovementontheInvestor’saccount(disregardinganypaymentorreceiptofinterest,chargesorsimilaritems),iftheFundManagercandemonstratethatithastakenreasonablestepstotracetheInvestorconcernedandtoreturnthebalance,andtheFundManagerundertakestopaytheInvestorasumequaltothebalancepaidawayintheeventoftheInvestorseekingtoclaimthebalanceinfuture.

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14.12 Such notice, demand or other communication delivered in accordance with clause 16.1 shall be deemed to have been dulydeliveredif:

14.13 TheCustodian,atthedirectionoftheFundManager,mayeitherliquidateanunclaimedsafecustodyassetitholdsforanInvestorandpayawaytheproceeds,orpayawayanunclaimedsafecustodyasset itholdsforanInvestor, ineithercasetoaregisteredcharityofitschoiceprovidedithasheldthatsafecustodyassetforatleast12years,inthe12yearsprecedingthedivestmentofthat safe custody asset it has not received instructions relating to any safe custody assets from or on behalf of the Investorconcerned, it candemonstrate that ithas takenreasonablesteps to trace the Investorconcernedandreturn that safecustodyasset,andtheFundManagerunconditionallyundertakestopaytotheInvestorconcernedasumequaltothevalueofthesafecustodyassetatthetimeitwasliquidatedorpaidawayintheeventoftheInvestorseekingtoclaimthesafecustodyassetinthefuture.

15. NOTICES

15.1 Anynotice,demandorothercommunicationgivenormadeinconnectionwiththisAgreementshallbeinwritinganddeliveredeitherpersonallyorbyprepaidfirstclasspostortransmittedbyfax:

(a) inthecaseoftheFundManagerto:-

ManagingDirector ThompsonTarazManagersLimited 47ParkLane Mayfair London W1K1PR Fax:02079078770

(b) inthecaseoftheInvestorto:- theaddressstatedagainsthisnameinhisApplicationForm.

(c) personallydelivered,upondeliveryattheaddressoftherelevantParty;

(d) sentbyfirstclasspost,twoBusinessDaysafterthedateofposting;or

(e) faxed,ondateoffax(oronthenextfollowingBusinessDayifthedateoffaxisnotaBusinessDay).

16. EXECUTION

ThisAgreementwillbedeemedexecutedbytheInvestorincounterpartonsubmissiontotheFundManageranApplicationForm,anddeemedexecutedbytheFundManagerontheCommencementDate.

17. DISPUTERESOLUTION

17.1 TheFundManagerhasestablishedproceduresinaccordancewiththeFCArulesforconsiderationofcomplaints.Detailsoftheseproceduresareavailableuponrequest.Shouldthe Investorhaveacomplaintheshouldcontact theFundManager. If theFundManagercannotresolvethecomplainttothesatisfactionoftheInvestor,theInvestormaybeentitledtoreferittotheFinancialOmbudsmanService.

17.2 The Fund Manager participates in the Financial Services Compensation Scheme, established under FSMA, which providescompensation to eligible Investors in the event of a firm being unable to meet its customer liabilities. Payments under theprotectedinvestmentbusinessschemearelimitedtoamaximumofthefirst£50,000oftheclaim.FurtherinformationisavailablefromtheFundManager.

18. DATAPROTECTIONACT1998

18.1 TheFundManagerwarrantstotheInvestorthatitisappropriatelyregisteredundertheDataProtectionAct1998(the"DPA")forallpurposesrelatedtotheperformanceofitsfunctionsunderthisAgreement,andfurtherwarrantthatitshalltakeallreasonablestepstomaintainsuchregistrationandcomplywithallapplicabledataprotectionlegislationforthedurationofthisAgreement.

18.2 ThepersonaldatawhichhasbeenprovidedbytheInvestortotheFundManagerwillbeheldandusedbytheFundManagerforthepurposessetoutinorcontemplatedbythisAgreement.TheInvestoracknowledgesthattheFundManagermayalsosharethepersonaldatawith(orobtainotherinformationabouttheInvestorfrom)otherorganisations(a)forlegalorregulatorypurposes,(b) inorder tocheck theaccuracyof the informationwhich the Investorhasprovided, (c) todetectorpreventcrime,or (d) toprotecttheFund.TheFundManagermaycontinuetoholdpersonaldataabouttheInvestorafterterminationofthisAgreementforlegal,regulatoryandauditpurposes.

19. GOVERNINGLAWANDJURISDICTION

This Agreement shall be governed by and construed in accordance with English law and the Parties agree to submit to theexclusivejurisdictionofthecourtsofEnglandandWales.