Amplify Music SEIS 4 Service - v1

Transcription

AMPLIFY MUSIC SEIS 4 SERVICE
o
Amplify
INFORMATION MEMORANDUM
AMPLIFY MUSIC SEIS 4 | INFORMATION MEMORANDUM
IMPORTANT NOTICE
This%document%is%an%investment%memorandum%(the%Memorandum)%and% cons4tutes%a%financial% promo4on% pursuant% to%sec4on%21%of%
the%Financial% Services%and%Markets%Act% 2000%(FSMA).%The%content% of%the%Memorandum%has%been%approved%by%an%authorised%person%
for%the%purposes%of%sec4on%21%of%FSMA.%However, %if%in%any%doubt%about%the%content%of%this%Memorandum%and/or %any%ac4on%to%take,%
prospec4ve% investors% are% strongly% recommended% to% seek% advice% immediately%from% an% independent% financial% adviser% authorised%
under% FSMA% who% specialises% in% advising% on% investment% opportuni4es% of% this% type.% Nothing% in% this% Memorandum% cons4tutes%
investment,%tax,%legal% or %other%advice%and% prospec4ve%investors’ %aKen4on% is%drawn% to% the%key%risks%that% are%explained%in%The%Risks%
sec4on%contained%in%Part%6%of%this%Memorandum.%An%investment%in%Amplify%Music%SEIS%4%will%not%be%suitable%for%all%recipients%of%the%
Memorandum.%
Amplify(Music( SEIS(4(is(a(non4discre8onary(investment(service(and(this(Memorandum(describes(the(arrangements(by(which( Investors(
who(wish(to(make(venture(capital(investments(into(ten(pre4iden8fied(start4up(music(companies((the(Investee(Companies)(may(appoint(
The(Share(Centre(Limited((The(Share(Centre(or(the(Administrator)(to(act(as(their(administrator(and(receiving(agent(in(order( to(execute(
such(investments(into(the(Investee(Companies(on(their(behalf.(These(services(together(cons8tute(Amplify(Music(SEIS(4( (the(Service).(
The(Share(Centre(is(authorised(to(act( as(administrator( and(receiving(agent(by(the(FCA. (The(Investee(Companies(and(the(Directors(are(
not(“authorised(persons”(under(FSMA(and(they(have(not,(nor(will(they(be,(authorised(or(otherwise(approved(by(the(FCA.(
The(Memorandum(is(issued(and(approved(by(Sapphire(Capital(Partners(LLP((Sapphire(Capital(or(the(Issuer),(which(is(authorised(by(the(
UK(Financial(Conduct(Authority((FCA).(In(issuing(the(Memorandum,(Sapphire(Capital(is(ac8ng(for( the(Investee(Companies(and(no4one(
else( and( will( not( be( responsible( for( advising( any( other( person.( Sapphire(Capital( is( not( providing(investment( or( taxa8on( advice( or(
advising(on(the(suitability(and(appropriateness(of(the(Service.(The(Directors(of(the(Investee(Companies,(including(Amp(Channel(Music,(
will(advise(the(Issuer( with(regard(to(certain(aspects(of(the(Service,(however(they(will(not(undertake(any(regulated(ac8vi8es.((The(Issuer(
will(undertake(all(regulated(ac8vi8es(in(rela8on(to(the(issue(and(approval(of(the(Service(and(has(accepted(responsibility(for(carrying(on(
such(services.
The(communica8on(of(this(Memorandum(and(the(contents(thereof(is(made(to(and(directed(at(persons(reasonably(believed(to(be(such(
persons(as(are(referred(to(below(and(must(not(be(passed(on,(directly(or(indirectly,(to(any(other(person(in(the(United(Kingdom:
1.
2.
3.
4.
professional(clients(or( eligible(counterpar8es(as(defined(in(the(Conduct(of(Business(Sourcebook ((“COBS”)(of(the(FCA’s(Handbook(of(
Rules(and(Guidance;
retail(clients(who(confirm(that(they (will(receive(advice(on(the(investments(referred(to(in(this(Memorandum(from(a(financial(adviser(
authorised(and(regulated(by(the(FCA;
to( the(extent( that( the(recipient( is( a( retail( client( who( does( not( fall( within( paragraph( 2,(only(clients( falling( within(the( following(
categories(and(subject(to(the(condi8on(referred(to(below((the(“Condi8on”):
3.1.
cer8fied(high(net(worth(investor(in(terms(of(COBS(4.12.6R;
3.2.
cer8fied(sophis8cated(investors(in(terms(of(COBS(4.12.7R;
3.3.
self4cer8fied(sophis8cated(investors(in(terms(of(COBS(4.12.8R;(
3.4.
cer8fied(restricted(investors(in(terms(of(COBS(4.7.10R;(and
any(person(to(whom(the(communica8on(may(otherwise(lawfully(be(made.(
The(transmission(of(this( Memorandum( or( the(contents(thereof(to( any (other( person( is(prohibited( and(persons(not(falling(within( the(
descrip8on(set(out(above(should(not(act(or(otherwise(rely(upon(it.
Retail investors who will receive advice
Retail( investors(who(do(not(fall(within(any(of(the(categories(in(paragraph(3(above(should(confirm,(to(a(financial(adviser( authorised(and(
regulated(by(the(FCA,(that(they(intend(to(receive(advice(on(the(investments(referred(to(in(this(Memorandum. (The(financial(adviser(will(
receive(that(confirma8on(on( behalf(of(the(person(who(has(approved(the(Memorandum(for( the(purpose(of(s21(of(FSMA.(The(financial(
adviser(will(be(required(to(countersign(the(applica8on(form.
Certified high net worth investors
The(requirements(that( must( be( met( for( a(person( to( qualify(as( a(cer8fied( high(net(worth( individual(are(that( such( person( has(signed,(
within( the( period( of( 12(months(ending(on(the(day (on(which(the(communica8on(is(made, (a(statement(in(the(prescribed(terms(under(
COBS(4.12.6R.(An(applica8on(from(such(a(person(will(only(be(accepted(if(the(Condi8on(is(sa8sfied.(
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Certified sophisticated investors
The(requirements(that(must(be(met(for(a(person(to(qualify(as(a(cer8fied(sophis8cated(investor(are(that(such(a(person((a)(has(a(current(
cer8ficate(in(terms(of(COBS(4.12.7R(being(one(signed(and(dated(not( more(than(three(years(before(the(date(on(which(the(promo8on(is(
made,(in( wri8ng(or( other( legible( form,( signed( by( an( authorised( person( in( terms( of( FSMA( to( the( effect( that( the( recipient( of( that(
promo8on(is(sufficiently(knowledgeable(to(understand(the(risks(associated(with( investments(of(the(kind( set(out( in( this(Memorandum,(
and( (b)( has( signed,( within( a( period( of( 12( months( ending(with( the( day(on( which( the( communica8on( is( made, (a(statement( in( the(
prescribed(terms(under(COBS(4.12.7R.(An(applica8on(from(such(a(person(will(only(be(accepted(if(the(Condi8on(is(sa8sfied.(
Self-certified sophisticated investors
The(requirements(that( must(be(met( for( a(person( to(qualify (as( a(self4cer8fied( sophis8cated( investor( are(that(such(person( has(signed,(
within( the( period( of( 12(months(ending(on(the(day (on(which(the(communica8on(is(made, (a(statement(in(the(prescribed(terms(under(
COBS(4.12.8R.(An(applica8on(from(such(a(person(will(only(be(accepted(if(the(Condi8on(is(sa8sfied.
Self4cer8fied(sophis8cated(investors(are(advised(in(par8cular( to(consult(an(authorised(person(in(terms(of(FSMA(specializing(in(advising(
on(investments(of(the(kind(set(out(in(this(Memorandum(in(order(to(assist(in(understanding(and(evalua8ng(the(risks(involved.
Certified restricted investors
The(requirements(that(must(be(met(for( a(person(to(qualify(as(a(cer8fied(restricted(investor(are(that(such(person(has(signed,(within(the(
period(of(12(months(ending(on(the(day (on(which(the(communica8on(is(made,(a(statement(in(the(prescribed(terms(under(COBS(4.7.10R.(
An(applica8on(from(such(a(person(will(only(be(accepted(if(the(Condi8on(is(sa8sfied.(
The Condition
The(Condi8on(referred(to(above(is(that:(
1.
2.
Either:(
1.1.
the(person(who(will(arrange(or(deal(in(rela8on(to(the(investments(which(are(the(subject(of(this(Memorandum(will(comply(
with(the(FCA's(rules(on(appropriateness(set(out(in(COBS (10,(or(equivalent(requirements,(for(any(applica8on(or(order(made(
in(response(to(this(Memorandum;(or
1.2.
the(recipient(has(confirmed(that( they(are( a(retail( client(of(a(firm(authorised(in(terms(of( FSMA(that( will( comply(with(the(
FCA’s(rules(on(suitability(set(out(in(COBS(9(in(rela8on(to(the(investments(set(out(in(this(Memorandum;(and
the(person(or(firm(responsible(for(assessing(the(suitability(and/or( appropriateness(of(this(investment(for( you(has(duly (signed(and(
completed(and(signed(sec8on(6(of(the(Investor(Agreement(hereunder.
Reliance(on(this(promo8on(for(the(purpose(of(engaging(in(investment(ac8vity(may(expose(an(individual(to(a(significant(risk(of(losing(all(
of(the(property(invested.
The(Issuer,(the(Administrator( and(the(Investee(Companies(have(taken(all( reasonable(care(to(ensure(that( the(Memorandum(is(fair,(clear(
and(not(misleading,(but( the(statements(of( opinion( or( belief(contained( in(this( Memorandum(regarding(future(events(cons8tute(their(
own(assessment(and(interpreta8on(of(informa8on(available(to(them(at(the(date(of(issue(of(this(Memorandum(and(no(representa8on(is(
made(that(such(statements(are(correct(or(that(the(objec8ves(of(any(of(the(Investee(Companies(will(be(achieved.(
The(Memorandum(does(not(cons8tute,(and(may(not(be(used(for(the(purposes(of,(an(offer(to(or(invita8on(to(treat(by (any(person(in(any(
jurisdic8on(outside(the(United(Kingdom. (The(Memorandum(and(the(informa8on(contained(in(it(are(not(for(publica8on(or(distribu8on(to(
persons(outside(the(United(Kingdom.
Addi8onally,(some( informa8on(contained( in(the(Memorandum(has(been( obtained(from(published(sources( prepared(by (other( par8es(
and(no( responsibility(is( assumed(for( the( accuracy (or( completeness(of(such(informa8on. (Accordingly (each(prospec8ve( Investor( must(
determine(for(themselves(what(reliance((if(any)(they(should(place(on(such(statements(and(informa8on(and(no(responsibility(is(accepted(
by(the(Issuer,(the( Administrator( or( the(Investee(Companies(in( respect(thereof.(The(informa8on(and( illustra8ons(in( this(Memorandum(
are(stated(as(at(28th(January(2015.(
Prospec4ve%investors%must%be%aware%that%the%Amplify %Music%SEIS%4%is%only%suitable%for%those%retail%clients%who%will% receive%advice%on%
the% suitability% of% investments% described% in% this% Memorandum,% or% for % who% the% appropriateness% of% such% investments% has% been%
assessed.
Page 3
CONTENTS
IMPORTANT(NOTICE(....................................................................................................................(2
SUMMARY(...................................................................................................................................(5
DIRECTORY(..................................................................................................................................(6
WELCOME(LETTER(.......................................................................................................................(7
PART 1 - THE OPPORTUNITY
OVERVIEW(...................................................................................................................................(8
MUSIC(INDUSTRY(......................................................................................................................(14
TAX(ADVANTAGES(......................................................................................................................(16
PART 2 - THE SERVICE
STRUCTURE(...............................................................................................................................(20
OPERATION(................................................................................................................................(22
FEES(&(EXPENSES(......................................................................................................................(23
PART 3 - THE STRATEGY
INVESTMENT(PROCESS(.............................................................................................................(25
ARTIST(SELECTION(PROCESS(.....................................................................................................(27
POTENTIAL(REVENUE(SOURCES(................................................................................................(29
EXPENDITURE(&(REVENUE(........................................................................................................(30
ROADMAP(&(EXIT(STRATEGY(.....................................................................................................(31
PART 4 - THE TEAM
THE(ADMINISTRATOR(................................................................................................................(32
THE(DIRECTORS(.........................................................................................................................(33
PART 5 - THE COMPANIES
INVESTEE(COMPANIES(...............................................................................................................(34
COMMON(CHARACTERISTICS(...................................................................................................(35
PART 6 - THE RISKS................................................................................................................
(
(37
PART 7 - GLOSSARY OF TERMS(..........................................................................................(41
APPENDICES
INVESTOR(AGREEMENT(.............................................................................................................(44
APPLICATION(PACK(....................................................................................................................(64
Page 4
SUMMARY
An opportunity to invest in a portfolio of ten pre-identified start-up
music companies, each of which will be managed by a world-class
artist manager, has already been granted provisional SEIS advance
assurance from HMRC and has a clear strategy and route to exit
Service Name
Amplify(Music(SEIS(4
Target Service Size
£1,500,000
Service Administrator
The(Share(Centre(
Minimum Service Size
£500,000
Service Structure
Direct(investments(into(ten(companies
Target Return
Targe8ng(a(blended(return(of(145p(for(every(
100p(invested,(excluding(tax(reliefs(
Industry Focus
Unquoted( start4up( companies( in( the( music(
industry,(focusing(on(ar8st(development
Management
World4class(ar8st(managers(provided( by(the(
Music(Managers(Forum
SEIS Qualifying Status
All( ten( companies( have( been( granted(
provisional(SEIS(advance(assurance
Multiple Revenue Sources
From( publishing,( live( performances,(
merchandising,(sponsorship(and(recordings
Minimum Revenue Guarantees
Objec8ve( to( underpin( returns( with( revenue(
guarantees,(in(line(with(industry(prac8ce
Exit Strategy
Evalua8ng(all( available( op8ons,(but( likely(to(
be(a(sale(of(assets(and(liquida8on
Target Clients
Retail( clients( for( whom( the( suitability( or(
appropriateness( of( the( Service( has( been(
assessed
Investment Horizon
Intending(to(exit(investments(within(three(to(
four(years(from(the(Closing(Date(
Minimum Subscription
£10,000
Closing Date
Amplify( Music( SEIS( 4( will( close( first( on( or(
before(Friday(27th(March(2015
Maximum Subscription
No( maximum,(but( SEIS(Income( Tax( Relief( is(
capped(at(£100,000
This%summary%of%the%opportunity%to%subscribe% to%the%Service%should% be%read% in%conjunc4on%
with% the% full% text%of% the%Memorandum%and% prospec4ve%investors’%aKen4on%is%drawn% to%the%
key%risks%that%are%set%out%in%Part%6.
Page 5
DIRECTORY
ISSUER
Sapphire Capital Partners LLP
28(Deramore(Park,(Belfast,(BT9(5JU
ADMINISTRATOR
The Share Centre Limited
Oxford(House,(Oxford(Road,(Aylesbury,(Buckinghamshire,(HP21(8SZ
NOMINEE
Share Nominees Limited
a(wholly(owned(subsidiary(of(The(Share(Centre(Limited
SOLICITOR
Maclay Murray & Spens LLP
One(London(Wall,(London,(EC2Y(5AB
SEIS ADVISOR
Harbottle & Lewis LLP
Hanover(House,(14(Hanover(Square,(London,(W1S(1HP
GENERAL ENQUIRIES
In( the( first( instance,( prospec8ve( investors( should( contact( their( financial( adviser.( For( any(
further(informa8on,(please(do(not(hesitate(to(contact(us(by(telephone(or(by(email.(
Making(the(right(investment(decision( is(more(important( than(ever( in(the(current(climate,(and(
we( want( prospec8ve( investors( to( feel( comfortable( that( they(are( able( to( make( an( informed(
decision(about(whether(or(not(to(invest(in(Amplify(Music(SEIS(4.
Amplify Music
Telephone:(020(8720(9221(
Email:([email protected]
Page 6
WELCOME LETTER FROM
BRIAN MESSAGE
Brian Message is co-manager of Radiohead, Nick Cave and PJ Harvey, co-founder of ATC
Management and current investment director of the UK Music Managers Forum (MMF).
The MMF is the largest representative body of artist managers in the world. It has over 400
members in the UK and represents over 1,000 of the world’s most successful acts. One of its
key objectives is facilitating investment into emerging talent.
Dear prospective investor,
Following the successful close of 3 iterations of Amplify Music SEIS to date, I am delighted to announce the launch of our latest
investment offer, Amplify Music SEIS 4.
This offer is a broadly identical investment opportunity to our previous offer, Amplify Music SEIS 3, and provides UK taxpaying
investors access to a diversified portfolio of ten Seed Enterprise Investment Scheme (SEIS) qualifying start-up music companies
that will develop emerging UK music talent. For me, Amplify Music SEIS 4 represents the continued growth of an exciting new
channel of investment for the UK music industry and one that is important for its future.
Historically, it was record labels that invested in artists, but with a decade of declining revenues in their business of recorded
music, all artists and managers are aware that labels invest less and invest later. This has created an investment gap in the early
stages of an artist's career and a market opportunity to invest across all revenue streams, and thereby benefit from the new and
growing areas of expansion in the modern music industry.
Our investment model, which delivers exactly this, has been warmly welcomed by all stakeholders in the industry – from artists
and managers, through publishers, promoters, and record labels themselves. We are incredibly grateful to those who have invested
so far, and excited about the changes we are making.
In my experience, investing in new artists has always had significant upside potential but it has been difficult for private investors
to gain access to this market. Investing in new artists has often been perceived as too high risk but now, with the introduction of
SEIS offering substantial tax advantages, these risks are mitigated such that investing in new artists has become an interesting
opportunity for private investors.
MMF is fully committed to Amplify Music SEIS 4 and its strategy to assist these companies to source a diversified range of high
quality artists. By leveraging the reputation of MMF in the music community – and also its extensive industry experience – the
companies in which Amplify Music SEIS 4 will invest are well placed not only to source and evaluate promising talent, but to
supported the selected artists thereafter. The MMF will be assisting Amplify Music SEIS 4 in all aspects of artist development,
from artist selection to deal negotiation and ongoing management throughout the life of investment. No other music investment
available in the market today is able to capitalise on the MMF's talent and resources in the same way.
I am happy to endorse this opportunity for you to invest in Amplify Music SEIS 4 and look forward to helping ensure the success it
undoubtedly deserves.
Yours sincerely,
Brian Message
Investment Director, Music Managers Forum
Page 7
PART 1
THE OPPORTUNITY
OVERVIEW
Amplify( Music( SEIS( 4( provides( investors( with( the( opportunity( to( invest( in( a( diversified( porrolio( of( ten( pre4iden8fied( SEIS(
qualifying(music(companies.(These(companies((each(an(Investee(Company(and(together(the(Investee(Companies):
will(be(managed(by(members(of(the(MMF’s(board(of(directors
have(been(granted(provisional(SEIS(advance(assurance(by(HMRC(
benefit(from(a(clear(strategy(and(straighrorward(route(to(exit
Amplify(Music(SEIS(4(has(been(launched(in(associa8on(with(the(MMF,(which(is(the(largest(representa8ve(body(of(ar8st(managers(
in( the( world.(It( has( over( 400( members(in( the(UK( and( represents(over( 1,000( of(the(world’s( most(successful( acts.(The(Investee(
Companies(have(been(established(specifically(to( help(the(directors(of(the(MMF(to(source(private(investment(from(UK(tax( paying(
individuals(in(order(to(develop(emerging(UK(music(talent.
The(ten(Investee(Companies(offered(through(Amplify(Music(SEIS(4(benefit(from(having(already(received(provisional(SEIS(advance(
assurance(from(HM(Revenue(&(Customs.(Tax(advantages(available(under(the(SEIS(are(designed(to(provide(downside(protec8ons(
while(affording(the(opportunity(to(generate(significant(tax4free(capital(gains(for(Investors.
By(inves8ng(in(Amplify(Music(SEIS(4,(Investors(will(appoint( The(Share(Centre((the(Administrator)(to(subscribe(for( SEIS(Qualifying(
Shares(in(the(Investee(Companies(on(their( behalf((the(Service). The(Administrator(will(arrange(for( each(Investor’s(Subscrip8on(to(
be(invested(pro(rata(in(each(of(the(Investee(Companies.(
SERVICE DIAGRAM
Investor
£100,000 invested in Amplify Music SEIS 4
The Share Centre
£10,000 invested into each Investee Company
Co
1
Co
2
Co
3
Co
4
Co
5
Co
6
Co
7
Co
8
Co
9
Co
10
Page 8
CAPITAL DEPLOYMENT
Upon(financial(close(of(Amplify(Music(SEIS(4,(the(Administrator(will(invest(Subscrip8ons(into(the(Investee(Companies.(The(Closing(
Date( will( be( on( or( before( 27th( March( 2015( (the( Issuer( may( determine( another( Closing( Date( and( mul8ple( closings( may(take(
place).(Because(the(Investee(Companies(are(pre4iden8fied,(the(Administrator( should(be(able(to(deploy(Subscrip8ons(within(one(
week(of(financial(close(or(less.(This(means(that( Investors(who(invest(on(or( before(27th(March(2015(should(be(able(to(claim(SEIS(
Tax(Reliefs(in(the(2014/15(tax(year,(or(be(able(to(carry(back(their(relief(to(the(2013/14(tax(year.
PRIORITY RETURNS
While( it( is( not( possible( under( SEIS( rules( for( shares( to( have( preferen8al( rights( to( capital( or( assets( of( a( company,(the( share(
structure(of(the( Investee(Companies(in( which(Amplify(Music(SEIS(4(will(invest( should( mean(that( Investors( will( in( effect( have(a(
priority(posi8on(over(the(capital(and(assets(of(each(of(the(Investee(Companies.(This(is(achieved(by(Investors(subscribing,(through(
the( Service,(for( 100%( of( the( share( capital( (except( for( one( Subscriber( Share)( in( each( Investee( Company.( This( share( structure(
should( result( in( Investors( recovering(their( Investment( faster( because,(un8l( the(Investors( have(earned(105p( per( 100p( invested,(
they(will(receive( 100%(of(capital.(Only(auer( 105p(per( 100p(invested(is(earned(by(the(Investors(will(the(Directors(par8cipate( by(
way(of(the(Performance(Fee(of(35%(set(out(in( the(Fees(&(Expenses(sec8on(contained(Part(2.(Thus,(for(example,(if(Investors(only(
received(50%(of(the(issued(share(capital,(it(would(be(necessary(for(the(Investee(Company(to(generate(200p(per(100p(invested(for(
the(Investors(to(recover(the(cost(of(their(Shares.
INVESTEE COMPANY ACTIVITIES
The( ac8vity(of( each( Investee(Company(will( be( the( development( of( one( or( more( ar8st(s)((each( a(Signed( Ar8st).(Each( Investee(
Company(will(undertake(one(of(two(separate(trades:
crea8ng(and(exploi8ng(recorded(music(and(related(products((Recording(Companies)
crea8ng(and(exploi8ng(songs,(live(performances,(merchandising(and(related(products((Publishing(Companies)
Of(the(ten( separate(Investee(Companies,(five(are(Recording(Companies(and(five(are(Publishing(Companies.(Across(the(Investee(
Companies,(it( is(intended(that( revenues(will(be(generated( from(publishing,(live(performances,(merchandising,(sponsorship( and(
recordings.
THE DIRECTORS
The( Investee(Companies( will( be( managed( by(interna8onally(renowned( ar8st( managers,( who( are(MMF(board( members( (MMF(
Directors)(and( a(music( investment( specialist,(Amp( Channel( Music( (each( a(Director( and( together( the(Directors).(Interna8onally(
renowned(ar8sts(represented(by(MMF(board(members,(amongst(others,(are:
Arcade(Fire
Arc8c(Monkeys
Bjork(
Keane
Laura(Marling
Mr(Scruff(
Mumford(and(Sons
Nick(Cave
Paul(McCartney
Radiohead
Robbie(Williams
Ka8e(Melua
Travis
Yasmin(Levy
Zero(7
The(MMF(Director(of(each(Investee(Company(will(be(responsible(for(selec8ng(which(ar8st((s)(to(develop(from(a(short4list(that(has(
been(pre4approved(by(both(Directors.(MMF(benefits(from:(
extensive(collec8ve(experience(in(all(aspects(of(ar8st(development
global(connec8ons(in(the(music(and(broader(entertainment(industries
access(to(cost–effec8ve(music(produc8on(and(distribu8on(channels
exis8ng(pool(of(suitable(ar8st(deal4flow(with(significant(revenue(poten8al
For(more(informa8on,(please(refer(to(The(Directors(sec8on(contained(in(Part(4.
Page 9
COMPANY OBJECTIVES
Although( the( barriers( to( entry( into( ar8st( development( have( been( reduced( by( improvements( in( recording( and( distribu8on(
technology,(the(risks(remain(high.(In(this(context,(the(Investee(Companies(have(been(created(to(achieve(the(following(objec8ves:(
to(capitalise(on(the(MMF’s(extensive(exper8se(and(rela8onships
to(commit(only(to(ar8sts(with(significant(poten8al(to(generate(substan8al(revenues
to(create(a(diversified(porrolio(of(ar8sts(across(mul8ple(music(genres
to(select(ar8sts(that(generate(income(from(mul8ple(revenue(streams
to(obtain(Minimum(Revenue(Guarantees(from(exploita8on(partners
The( combina8on( of( the( Investee( Companies’(experienced( management,(porrolio( diversifica8on( and( the( SEIS(tax( advantages(
poten8ally(available(should( help( to( limit( downside( risk( and( maximise(prospects(of( achieving( axrac8ve( returns( from( Investors(
Subscrip8ons(to(the(Service.
TARGET RETURNS
Amplify( Music( SEIS( 4( seeks( to( deliver( axrac8ve,( targeted,( tax( free( returns( whilst( providing( UK( tax( paying( individuals( with(
downside(protec8on(of(at(least(100%(of(Investors(net(cost(of(investment((auer(SEIS(Income(Tax(Relief)(on(a(blended(basis.(
The( blended( target( return( for( the( Service( is( 145p( per( 100p( invested,( excluding( SEIS( Tax( Reliefs.( To( see( how( Tax( Reliefs( may(
enhance(returns,(refer(to(Financial(Illustra8ons(below.
FINANCIAL ILLUSTRATIONS
It( is(an8cipated( that( Investors’(returns(from( the( Service(will( be( derived( predominantly(through( a(realisa8on( of(Shares( of( the(
Investee( Companies( following( the( expiry( of( the( SEIS(Minimum( Holding( Period.( Investors( should( be( aware( that( the( Investee(
Companies( are(small,(unquoted( companies(and( consequently,(the(Shares(are( likely(to( be(highly(illiquid,(since( there( will( be( no(
ac8ve( market( in( such( securi8es.(Furthermore,( the( Directors( may( determine( that( the(op8mum( 8me(for( realising(value(in( the(
Shares(is(later(than(the(end(of(the(SEIS(Minimum(Holding(Period.(For(illustra8ve(purposes,(it(has(been(assumed(that(a(disposal(of(
the(Shares(occurs(three(years(and(six(months(auer(the(Closing(Date.
Illustration for an Investor benefiting from SEIS Income Tax Relief only
Base Case (£)
Target Case (£)
Cost(of(Investment
£100,000
£100,000
Less(Income(Tax(Relief(at(50%
4£50,000
4£50,000
Net%Investment
£50,000
£50,000
Investment(Proceeds(
£50,000
£145,700
£6,750
£2,700
£106,750
£198,400
14%
197%
Average(Annual(Return
4%
56%
Average(Gross(Equivalent(Annual(Return
7%
102%
(auer(deduc8on(of(Performance(Fee)
Share(Loss(Relief((assumes(45%(taxpayer)
Total%Return%inc.%Reliefs
Total%Return%on%Net%Investment
Page 10
Illustration for an Investor benefiting from SEIS Income Tax Relief and CGT Reinvestment Relief
Base Case (£)
Target Case (£)
Cost(of(Investment
£100,000
£100,000
Less(Income(Tax(Relief(at(50%
4£50,000
4£50,000
Less(50%(Capital(Gains(Relief(at(28%
Y£14,000
Y£14,000
Net%Investment
£36,000
£36,000
Investment(Proceeds(
£50,000
£145,700
£6,750
£2,700
£120,750
£212,400
Total%Return%on%Net%Investment
58%
312%
Average(Annual(Return
16%
89%
Average(Gross(Equivalent(Annual(Return
30%
162%
(auer(deduc8on(of(Performance(Fee)
Share(Loss(Relief((assumes(45%(taxpayer)
Total%Return%inc.%Reliefs
Assumptions
The(Financial( Illustra8ons(assume(that( the(Service(is(fully(subscribed(and(has(invested(proceeds(equally(across(the(ten(Investee(
Companies.(The(blended( target( return( has(been( calculated( using( the(industry(knowledge(and( experience(of( the( Directors( who(
have(previously(worked(across(a(range(of( music(investments.(It( is(important( to(note(however,(that( objec8ve(data(in(rela8on( to(
SEIS(Qualifying(Shares(is(difficult(to(obtain.
The( base( case( assumes( that( none( of( the( Investee( Companies( are( successful( and( that( the( Investee( Companies( must( rely( on(
Minimum(Revenue(Guarantees((that( are(intended(to( be(nego8ated(with(suitable(counterpar8es,(in(line(with(standard( industry(
prac8ce)( in( order( to( deliver( returns( to( the( Investee(Companies.( It( is( assumed( that( Minimum( Revenue(Guarantees( across( the(
Porrolio( are(on( average(equal( to( 50%( of( amount( invested( in( each(Investee( Company,(with( Minimum( Revenue( Guarantees( to(
Recording( Companies( being( lower( and( Publishing( Companies( being( higher.( It( is( assumed( that( auer( the( expiry( of( the( SEIS(
Minimum(Holding(Period(any(intellectual(property((music(rights(etc.)(held(in(the(Investee(Companies(is(sold(for( negligible(value(
and(the(Investee(Companies(are(then(liquidated(and(capital(is(returned(to(Investors(three(years(and(six(months(auer(the(Closing(
Date.
The( target( case(assumes(that( blended( target( return(for( the(Service( of(145p( per( 100p( invested(is( achieved.(This( assump8on( is(
based(on(four( of(the(Investee(Companies(being(unsuccessful,(two(breaking(even( and(four(being(successful(to(varying(degrees.(It(
is(assumed(that(auer( the(expiry(of(the(SEIS(Minimum(Holding(Period(any(intellectual(property((music(rights(etc.)(held(in(the(four(
unsuccessful( Investee( Companies( is( sold( for( negligible( value( and( the( Investee( Companies( are( then( liquidated( and( capital( is(
returned( to( Investors.(It( is( assumed( that( any( intellectual( property((music( rights( etc.)( held( in( the( six( Investee( Companies( that(
either(break(even(or(are(a(success(is(sold(for(a(fair( value(and(the(Investee(Companies(are(then(liquidated(and(capital( is(returned(
to(Investors(three(years(and(six(months(auer(the(Closing(Date.
The% above% returns% are% set% out% for% illustra4ve% purposes% only% and% are% not% a% reliable% indicator% of% future% performance.% The%
Investee% Companies% are% small,% high% risk%ventures% and% therefore% an% Investor% may% not% receive%any% investment% proceeds,% and%
may%lose% the% en4rety%of% their%Investment.%The% calcula4ons%shown% above% are% net% of% all% related% fees,%charges,%expenses% and%
taxes.%No%warranty%as%to%future%outcome%is%implied%or%should%be%inferred.%Investors’%aKen4on% is%drawn%to%the%informa4on%set%
out%at%the%front%of%this%Memorandum%and%The%Risks%contained%in%Part%6.
Page 11
INDUSTRY BACKDROP
The(Directors(believe(that(the(8ming(for(an(investment(in(Amplify(Music(SEIS(4(is(favourable(given(the(current(backdrop(of:
the(music(industry’s(posi8ve(economic(outlook
new(and(emerging(distribu8on(technologies(
government(tax(incen8ves(and(industry(support
For(more(informa8on,(please(refer(to(the(Music(Industry(sec8on(contained(in(Part(1.
SEIS ADVANCE ASSURANCE
All( ten(of(the(Investee(Companies(have(been( granted(provisional(advance(assurance( by(HMRC( that(they(should( qualify(for( SEIS(
Reliefs.(Such( provisional( SEIS(advance(assurance( was( obtained(by(the( Investee(Companies(and( the( Issuer( has(obtained(further(
specialist( advice( that( the(the( lexers( from( HMRC( confirming( eligibility(for( SEIS( can( be( relied( upon.( Copies( of( provisional( SEIS(
advance(assurance(lexers(from(HMRC(and(the(specialist(legal(advice(rela8ng(to(them(are(available(upon(request.
ADVANTAGES OF SEIS
Like( its( bexer( known( sibling,( the( Enterprise( Investment( Scheme( (EIS),( the( Seed( Enterprise( Investment( Scheme( comprises( a(
variety(of( tax( advantages(available( to(UK(tax( paying(individuals,(subject( to(investments(complying(with( the( relevant( condi8ons(
and( requirements.(SEIS( is( focused( on( smaller,( earlier( stage( companies( than( EIS( and( hence( the( tax( reliefs( available( are( more(
axrac8ve.
Reliefs(poten8ally(available(include:
50%(SEIS(Income(Tax(Relief(on(qualifying(investments(of(up(to(£100,000(per(annum
50%(Capital(Gains(Re4Investment(Relief(against(gains(relief(realised(in(the(2014/15(tax(year
Ability(to(elect(to(carry(back(investment(to(the(2013/14(tax(year,(up(to(annual(limit
100%(Capital(Gains(Disposal(Relief(on(gains(realised(on(the(disposal(of(the(investment
Loss(Relief(to(offset(any(capital(losses(realised((on(a(per(company(basis)(against(income(or(gains
100%(Inheritance(Tax(Relief,(provided(investments(are(held(for(a(period(of(not(less(than(two(years
For(more(informa8on,(please(refer(to(the(Tax(Advantages(sec8on(contained(in(Part(1.
OFFER DETAILS
Target(Service(Size:(£1,500,000
Minimum(Service(Size:(£500,000
Minimum(Subscrip8on:(£10,000
Closing(Date:(27th(March(2015
Page 12
FEES & EXPENSES
To( ensure( that( Investors( receive( Tax( Reliefs( on( the( full( amount( of( their( investment( in( the( Service,(charges( are( made( to( the(
Investee(Companies(auer(the(Administrator(has(executed(the(Investments(rather(than(before.(
The(following(is(a(summary(and(should(be(read(in(conjunc8on(with(the(Fees(&(Expenses(sec8on(contained(in(Part(2.
Ini8al(Fee:(7%(of(the(amount(invested
Intermediary(Fee:(3%((payable(from(the(Ini8al(Fee)
Administra8on(Fee:(0.5%(per(annum(on(amounts(invested
Directors(Fees:(£600(per(Investee(Company(per(month(in(aggregate
Performance(Fee:(35%(of(all(returns(to(an(Investor(above(105p(per(100p(invested
KEY HIGHLIGHTS
Amplify(Music(SEIS(4(seeks(to(provide(Investors(with:
a(diversified(porrolio(of(Investments(in(ten(start4up(companies(opera8ng(the(music(industry
companies(that(benefit(from(management(teams(that(include(world4class(ar8st(managers
straight(forward(ar8st(development(strategy(that(benefits(from(a(clear(route(to(exit
poten8al(revenues(from(publishing,(live(performances,(merchandising,(sponsorship(and(recordings
poten8al(for(companies(to(secure(Minimum(Revenue(Guarantees(to(underpin(returns
investment(oversight(from(a(music(investment(specialist(firm(with(EIS(and(SEIS(experience
provisional(SEIS(advance(assurance(from(HMRC(that(Investee(Companies(should(qualify(for(tax(relief
priority(over(capital(and(assets(of(Investee(Companies(upon(sale(or(winding4up(thereof
certainty(of(capital(deployment(in(the(Investee(Companies(in(the(2014/15(tax(year
axrac8ve,(targeted,(tax(free(returns(of(145p(for(every(100p(invested,(excluding(all(Tax(Reliefs
Page 13
MUSIC INDUSTRY
Music helps us. In good times we celebrate with it, in bad times, we console ourselves with it. In
a survey by IPC Insight, seven out of ten people stated that: “music is part of my identity”.
(Source:(Music(Week)
GLOBAL MUSIC INDUSTRY
Despite( the( considerable( challenges( presented( by(current( economic( condi8ons,( the( music( industry(con8nues( to( demonstrate(
growth(in( the(digital( space.(According(to( the( Interna8onal(Federa8on(of( the( Phonographic( Industry((IFPI).the(record( industry’s(
digital(revenues(grew(by(4.3(per(cent(in(2013(to(US$5.9(billion.(This(growth(is(being(fueled(by(steep(growth(in(both(revenues(and(
user( numbers(for( subscrip8on(services(as(well(as(con8nued(revenue(growth(from(ad4supported(subscrip8on( services.(Revenues(
from(music(subscrip8on( services((including(free4to4consumer( and(paid4for( 8ers)(grew(by(51.3( per(cent( in(2013,(exceeding(US$1(
billion(for(the(first(8me(and(growing(consistently(across(all(major(markets.
Recorded(music(is(also(helping(to(drive(growth(across(the(broader(digital(economy.(Some(examples(of(the(importance(of(music(in(
global(online(communi8es(published(by(the(IFPI(are(that:
9(in(10(of(the(most(watched(videos(of(all(8me(on(YouTube(are(music(videos
9(in(10(of(the(most(liked(people(on(Facebook(are(music(ar8sts
7(in(10(of(the(most(followed(people(on(Twixer(are(music(ar8sts
According(to( the( IFPI,(music( adds( value( to( a( broad( range( of( businesses,( including( digital( and( social( media( plarorms,(device(
manufacturers(search(engines,(retailers(and(entertainment(venues,(broadcasters,(merchandisers(and(concert(promoters.
UK MUSIC INDUSTRY
The( UK( music( industry,( represented( by(its( talented( ar8sts,(is( par8cularly( strong( within( the( global( marketplace.(This(has( been(
demonstrated( by( a( UK( ar8st( being( responsible( for( the( best4selling( album( in( the( world( five( 8mes( in( the( past( seven( years,(
according(to(the(Bri8sh(Phonographic(Ins8tute((BPI).
The(Prime(Minister,(David(Cameron,(hailed(the(phenomenal(global(success(of(Bri8sh(music(by(saying:
“We should be extremely proud of how our world-leading music industry continues to go from strength to strength,
with a record share of the global market and with British acts having the world’s top selling album for five of the last
six years. British music is enjoyed across the world and we will keep backing our creative industries that support jobs,
create opportunities and contribute to the economy.”
Geoff(Taylor,(BPI(Chief(Execu8ve,(said,
(
“Music is fundamental to Britain’s identity as a nation and the world is singing with us. “As music goes digital, Britain
has the potential to be even more successful, connecting instantly with fans who love our music wherever they may
live”.
The( UK’s(strength(within(the(global( music( market( is( likely(to(grow( since( a(new( scheme(to( help( independent(music(companies(
grow( their( overseas(export( markets(has(been(launched,(following(a(mee8ng(at(Downing(Street( with( the(music(industry(chaired(
by(the(Prime(Minister(himself.
The(Music(Export(Growth(Scheme(will(allocate(millions(of(pounds(of(grants(to(independent(music(companies(and(will(be(run( by(
UK( Trade( &( Investment((UKTI),(the(government(organisa8on( that( supports( UK(business(overseas,(and( BPI,(the(trade(body(that(
Page 14
represents(Bri8sh(recorded(music(businesses.(
Business(Secretary(Vince(Cable(said:(
“The British music industry is a real success story. We are world leaders in creative talent and our music has been
exported all over the world. “It’s not just about enjoying the music. This worldwide success means jobs and economic
growth back in the UK, so the government must do all we can to back our winning sectors and ensure their future
success. Today’s money will do just that by helping hundreds of small and medium sized businesses to export more.”
Many(smaller( to( medium4sized(music(labels,(distributors( and( management(companies,(which(are( ouen( independently(owned,(
achieve(remarkable(success( when(launching(their(ar8sts(in( the(UK.(The(Music(Export( Growth(Scheme(has(been(created(to(help(
small(and( medium4sized( music(companies,(such(as(the( Investee(Companies( and( their( distribu8on(and(marke8ng(partners,(with(
grants(that(will(support(their(marke8ng(overseas(and(the(promo8on(of(specific(ar8st(releases.(
BPI(Chief(Execu8ve(Geoff(Taylor(commented:(
“Independent labels are an important part of what makes British music so special. With global interest in UK artists at
such high levels, we want to ensure that indie artists and labels have the best possible chance to achieve success
overseas. “We are delighted that government has listened to calls from BPI and AIM for export support that will help
British music do even better around the world.”
Decisions( on(individual( awards(will(be( made(by(a(panel(of( music( industry(experts(with( marke8ng(exper8se(from(organisa8ons(
including(the(MMF,(representa8ves(of(independent(record(labels(and(BPI.
Chief(Execu8ve(for(UKTI(Nick(Baird(said:(
“British artists dominate music charts around the world, contributing over £100m to the UK annually through sales of
their music overseas as well as promoting our arts and culture. The Music Export Growth Scheme will help smaller to
medium-sized music labels establish more UK artists internationally and help us meet our target of getting another
100,000 British businesses exporting – an increase which could add £36 billion to the economy.”
ARTIST DEVELOPMENT
New( technologies(and( social( media(plarorms(are(also(affec8ng(the(way(ar8sts(make(music( and(interact( with( their( fans.(Ar8sts(
are(now(able(to:
use(improved(recording(technology(to(produce(music(at(a(lower(cost(than(ever(before
distribute(recordings(cost4effec8vely(online(using(a(range(of(download(and(streaming(services
build(fan(bases(without(the(need(for(expensive(marke8ng(and(promo8on(campaigns
analyse(online(sta8s8cs(to(find(out(more(effec8vely(where(their(fans(are(based
make(more(informed(decisions(about(when(and(where(to(perform(live
use(demographic(informa8on(about(their(fans(to(enhance(online/direct4to4fan(sales
Against( the( backdrop( of( the( music( industry’s( posi8ve( economic( outlook,( the( development( and( implementa8on( of( new(
technologies(as(well(as(government(support,(investors(in(ar8st(development(have(the(opportunity(to:
create(high(quality(content(cost4effec8vely
generate(broader(revenue(opportuni8es
access(interna8onal(markets(more(efficiently
reduce(risk(with(government(incen8ves
Page 15
TAX ADVANTAGES
According to the Financial Times, investors are offered an “astonishing” level of tax relief
through SEIS and it is: “potentially one of the most extraordinary incentives ever created”.
(Source:(Financial(Times)
The( summary( below( provides( an( indica8ve( guide( to( the(tax( implica8ons( stemming( from( an( investment( in( the( Service( and( is(
based( on( current( understanding(of( UK( tax( law( and( prac8ce.( It( does( not( set( out( all( of( the( rules( or( regula8ons(that( must( be(
adhered(to(and(should(not(be(interpreted(as(the(provision(of(tax,(legal(or(financial(advice.(Investors(are(strongly(recommended(to(
seek(independent( professional( advice( on( the( tax( consequences(of( acquiring,(holding(and( disposing( of( SEIS(Qualifying(Shares(
before(proceeding(with(an(investment(into(the(Service.
The( Service( has( been( structured( to( enable( Investors( to( claim( SEIS(Income( Tax( Relief,( Capital( Gains( Re4Investment( Relief( and(
Inheritance( Tax( Relief( on( the( amount( of( their( Subscrip8on,(as( described( below.( The( amount( and( 8ming(of( these( reliefs( will(
depend(on(the(individual(circumstances(of(each(Investor(and(may(be(subject(to(change(in(the(future.(The(illustra8ons(included(in(
this(sec8on(are(for(indica8ve(purposes(only(and( should(not(be(construed(as(forecasts(or( projec8ons(of(the(likely(performance(of(
the(Service.
In( order( to( access(the( tax( reliefs( described( it( is( necessary( to( be( a( UK( taxpayer( and( subscribe( for( SEIS(Qualifying(Shares.(The(
summary(below(gives(only(a(brief(outline(of(the(available(tax(reliefs(and(assumes(that(an(Investor(is(an(addi8onal(rate(taxpayer.
SEIS RELIEFS
Income Tax Relief
Qualifying(Investors(can( claim(SEIS(Income(Tax(Relief(of(up(to(50%(on( the(amount(subscribed(for(SEIS(Qualifying(Shares,(subject(
to(the(aggregate(maximum(annual(limit(of(£100,000.
Income( tax( relief( is( given( by( way( of( a( reduc8on( in( an( investor’s( tax( liability( for( the( tax( year( in( which( the( Service( makes(
investments(in(the(Investee(Companies,(which(is(expected(to(be(2014/15.(However,(an(investor(may(elect(to(have(part(or(all(of(an(
issue( of(shares(treated(as(though(acquired( in(the(tax(year( preceding(that( in( which( the( shares(were(actually(acquired,(and(may(
make(a(claim(for(tax(relief(in(that(preceding(period,(subject(to(the(maximum(annual(investment(limit(for(that(earlier(tax(year.
The(total(SEIS(Income(Tax(Relief(claimed(cannot(exceed(an(amount(which(reduces(the(Investor’s(liability(to(nil.
Income Tax Relief
(£)
Gross(Investment(in(Qualifying(Shares
£100,000
Less(Income(Tax(Relief(@(50%(
4£50,000
Net%cost%of%Investment
£50,000
Capital Gains Re-Investment Relief
If(an(investor(disposes(of(an(asset( which(would(give(rise(to(a(chargeable(gain(in( 2014/15,(and(reinvests(all( or(part(of(the(amount(
of(the(gain(in(shares(in(respect(of(which(he(or(she(claims(SEIS(Income(Tax( Relief(in(full,(the(amount( reinvested(will(axract(capital(
gains( tax( relief( at( a(rate( of( 50%( of( the( full( rate( of( capital( gains( tax( otherwise( payable.( The(£100,000( investment( limit( which(
applies(for(SEIS(Income(Tax(Relief(also(applies(for(Capital(Gains(Re4Investment(Relief.
The( Service(intends(to( make(investments(in( SEIS(Qualifying(Companies( during(the( 2014/15(tax( year.(However,(an( Investor( can(
elect(under(the(carry4back(rules(to(treat(part(or(all(of(their(investment(as(if(made(during(the(2013/14(tax(year(and(therefore,(may(
benefit(from(Capital(Gains(Re4Investment(Relief(to(the(extent(that(they(have(realised(a(chargeable(gain(in(the(2013/14(tax(year.
Page 16
(£)
Gross(Investment(in(Qualifying(Shares
£100,000
Less(Income(Tax(Relief(@(50%(
4£50,000
Less(Capital(Gains(Re4Investment(Relief
4£14,000
Net%cost%of%Investment
£36,000
Capital Gains Disposal Relief
Where(an(Investor( has(received( SEIS(Income(Tax( Relief((which(has(not(subsequently(been(withdrawn)(on(the(cost( of(the(Shares,(
and(the(Shares(are(disposed(of(through(the(Service(auer(the(SEIS(Minimum(Holding(Period(any(capital(gains(are(free(from(CGT.(If(
no(claim(to(SEIS(Income(Tax(Relief(is(made,(then(any(subsequent(disposal(of(the(shares(will(not(qualify(for(exemp8on(from(CGT.
Disposal(Auer(Three(Years
Less(Original(Cost
TaxYFree%Gain
(£)
£110,000
4£100,000
£10,000
(
Loss Relief
Any(capital(losses(realised(on(the(disposal(of(Shares((net(of(SEIS(Income(Tax(Relief(axributable(to(the(investment)(qualify(for(Loss(
Relief.(The( amount( of( the(net( loss(may( be(set( off(against( capital(gains( in(the(tax( year( of( disposal( or( carried( forward(for( relief(
against(future(capital(gains.(Alterna8vely,(an(Investor(may(elect(to(set(off(the(net(loss(against(income(arising(in(the(tax(year(of(the(
disposal(or(the(previous(tax( year.(In(the(case(where(no(proceeds(are(received( on(disposal(of(the(Shares,(the(net(loss(auer( tax(on(
an(investment(of(£100,000(may(be(as(follows:
Share Loss Relief
(£)
Disposal(Value(of(Qualifying(Shares
Nil
Original(Cost(of(Qualifying(Shares
Income(Tax(Relief(@(50%
Loss(net(of(Income(Tax(Relief(@(50%
4£100,000
£50,000
4£50,000
Tax(Relief(@(45%
£22,500
Net%Loss%aêr%Tax
Y£27,500
By(making(a(claim(for(both(SEIS(Income(Tax(Relief(and(Capital( Gains(Re4Investment( Relief,(an(Investor(can(reduce(the(ini8al( cost(
of(their(investment(to(36p(for(£1(subscribed.(When(Loss(Relief(is(factored(in,(the(poten8al(cost(of(an(investment(in(the(Service(is(
reduced(to(13p(per(£1(subscribed.
An(Investor(should( be(en8tled(to( make(a(claim( for( Loss(Relief(on( a(per( Company(basis,(rather( than( on( realisa8on( of(a(loss( on(
Service4wide(basis.
Page 17
INHERITANCE TAX RELIEF
On( the( basis(Investments(made( through( the( Service( in( the( Investee( Companies( will( be( for( Shares,(this(should( mean( that( the(
Shares( will( cons8tute( “Relevant( Business( Property”(for( IHT( purposes( (as( defined( in( IHTA).(Provided( the( Shares(are( held( for( a(
period( of( not( less( than( two( years,( are(s8ll( held( at( the( 8me( of( death( and( are( unlisted,(they(should( qualify( for( 100%(business(
property(relief,(which(would(reduce(any(IHT(liability(arising(on(transfer(of(the(Shares(to(nil.
Even( if(the(Investor( dies(within( the( two(year( period( and( his(or( her( spouse(inherits(the(Shares,(the(holding(period( of(both( the(
Investor( and(the( spouse(are(combined(in( order( to(determine(whether( the(two(year( holding(period(condi8on(has(been( sa8sfied(
on(death(of(the(spouse.
On(disposal(of(Shares,(en8tlement(to(Business(Property(Relief(in(respect(of(that(investment(ceases.
SEIS RULES
There( are( a(number( of( condi8ons( to( be(met.( These( fall( into( two( categories( –(those( which( must( be( met( throughout( the( SEIS(
Minimum(Holding(Period(commencing(with( the(issue( of(the(shares,(and( those(which( must( be( met( at( the( 8me( the( shares(are(
issued.
SEIS Minimum Holding Period Conditions
The(company(must,(throughout(the(SEIS(Minimum(Holding(Period:
not(be(under(the(control(of( another( company(or(control(another(company(other(than(a(qualifying(subsidiary((nor( can(there(
be( arrangements( for( the( company(to( be( under( the( control( of( another( company(or( control( another( company(other( than( a(
qualifying(subsidiary)
either(be(a(company(which(exists(wholly(for(the(purpose(of(carrying(on(a(new(qualifying(trade((being(a(qualifying(trade(which(
commenced(less(than(two(years(before(the(issue(of(the(shares)(or(a(parent(company(of(a(group(which(does(not(consist(wholly(
or(as(to(a(substan8al(part(in(the(carrying(on(of(non4qualifying(ac8vi8es
carry(on(the(new(qualifying(trade,(prepare(to(carry(on(that(trade(or(carry(out(research(and(development(ac8vi8es(from(which(
a( new( qualifying( trade( will( be( derived( or( from( which( a( new( qualifying( trade( will( benefit( either( itself( or( through( a( 90%(
subsidiary
have(a(permanent(establishment(in(the(UK
Issuing Conditions
Unquoted
The(company(must(be(unquoted(and(there(must(be(no(arrangements(in(place(for(it(to(cease(to(be(unquoted.(
Gross Assets
The(company(may(not(have(gross(assets(of(more(than(£200,000(immediately(before(it(receives(a(subscrip8on(for(eligible(shares.(
If( the( company( is( a( parent( company,(the( value( of( the( group’s( gross( assets( must( not( exceed( £200,000( immediately(before( it(
receives(the(subscrip8on(for(eligible(shares.(
Amount raised
The( maximum( amount( that( a(company(may(receive( from( SEIS( investors(is( £150,000(in( any(three(year( period( ending(with( the(
investment(then(being(made.(Neither(the(Company(nor(any(subsidiary(may(have(previously(received(any(EIS(or(VCT(investments.
Number of employees
Companies(or(groups(must(have(fewer(than(25(full48me(employees(at(the(date(of(issue(of(shares(to(SEIS(investors.
Financial health
The(company(must(not(be(in(financial(difficulty.
Page 18
CLAIMING SEIS RELIEF
An( Investor( cannot( claim(SEIS(Income( Tax( Relief(un8l( the( company(has(submixed( an(SEIS1(form(and( HMRC( has(subsequently(
issued( an( SEIS2( compliance( cer8ficate( to( confirm( that( it( is( SEIS( Qualifying( and( can( issue( Investors( with( an( SEIS3( form.( An(
applica8on(will(be(made(to( HMRC( once( a(company(has(been(trading(for( four( months,(or( if(earlier,(when(more(than(70%(of( the(
SEIS(monies(have(been(spent(on(the(qualifying(ac8vity.(It( is(an8cipated(that( the(Administrator( will( invest(all( amounts(which(are(
subscribed(on(or(before(27th(March(2015(into(SEIS(Qualifying(Shares(before(5th(April(2015.(The(Directors(an8cipate(being(able(to(
distribute(forms(SEIS3(to(Investors(within(six(months(auer(the(Closing(Date.
Relief(must(be(claimed(within(five(years(auer(31(January(following(the(year(of(assessment(in(which(each(investment(was(made(by(
the(Service.(Investors(are( strongly(recommended( to( seek( professional( tax( advice( on( making( claims( for( SEIS(Relief( as(personal(
circumstances(may(differ.
Page 19
PART 2
THE SERVICE
STRUCTURE
Amplify%Music% SEIS%4%is%a% service% that% enables%UK%tax%paying%individuals%(and% certain% trustees)% to% invest%in%a%poraolio% of%ten%
SEIS%Qualifying%Companies.%Amplify%Music%SEIS%4%is%cons4tuted%as%a%series%of%subscrip4on%agreements%by%which% investors%may%
appoint%The% Share%Centre%to%act% as%their%administrator%and%receiving%agent% in%order%to% execute%investments%into% the%Investee%
Companies%on%their%behalf.%
The%Service%is%not%a%separate%legal% en4ty%in% its%own%right% and%does%not% cons4tute%a%collec4ve%investment%scheme%(CIS)%within%
the%meaning%of%sec4on%235%of%the%Financial%Services%and%Markets%Act%2000%or%an%alterna4ve%investment%fund%(AIF)%within%the%
meaning%of%the%Alterna4ve%Investment%Fund%Managers%Regula4ons%2013.
ISSUER
As(part( of( the( Applica8on( Pack,(each(Investor( will( separately(enter( into( an(Investor( Agreement( with( the( Issuer.(The(Issuer( has(
approved( the(contents(of(the(Memorandum,(of(which(the(Investor(Agreement( and( the(Applica8on(Pack(form(parts(thereof,(for(
the(purposes(of(sec8on(21(of(FSMA.(The(Issuer(may(determine(one(or(more(Closing(Dates(on(which(the(Service(shall(close.
INVESTOR
The( Investor( Agreement( provides( that( the( Investor( is( responsible( for( selec8ng( the( Investee( Companies( described( in( this(
Memorandum(and( instruc8ng(the(Administrator( to( invest(their( Subscrip8ons( in(those(Investee( Companies.(Neither( the( Issuer,(
the(Administrator,(the(Investee(Companies(or(the(Directors(have(any(investment(discre8on(with(regard( to(Investors( deciding(to(
invest(in(the(Investee(Companies.(Investors’(Investments(will(not(be(pooled(with(Investments(made(by(other(Investors(but(will(be(
made(pro4rata(to(the(total(Subscrip8ons(made(by(all(Investors(through(the(Service(at(the(8me(Investments(are(made.
ADMINISTRATOR
As(part( of( the(Investor(Agreement,(the(Investor( will(enter( into( the(Administrator( Standard(Terms,(which( are( included( in( full( in(
Schedule( 3( of( the( Investor( Agreement,(pursuant( to( which( the( Administrator( will( provide( the( Investor( with( safeguarding( and(
administra8on( services( in( respect( of( their( investment( through( the( Service( in( accordance( with( this( Memorandum.( The(
Administrator(is(authorised(to(carry(on(such(regulated(ac8vity(by(the(FCA.
NOMINEE
When(Investments(are(made(into(the(Investee(Companies(the(Administrator( will(instruct( the(Nominee((Share(Nominees(Limited,(
a( wholly( owned( subsidiary( of( The( Share( Centre( Limited)( to( purchase( and( hold( a( specific( number( of( each( of( the( Investee(
Companies’(shares.( The(Nominee( will( then( be( the( registered( owner( of( the( Investee( Companies’(shares,(but( for( legal( and( tax(
purposes(individual(Investors(will(be(the(beneficial(owners(of(separate(parcels(of(the(Investee(Companies’(shares.
Page 20
STRUCTURE DIAGRAM
Offer to invest
Issuer
Investor Agreement
Investor
Administrator
Instructions
Beneficial ownership of shares
Purchase and hold shares
Companies
Nominee
CLIENT ACCOUNT
The( Share( Centre(is( responsible( for( opening(and( maintaining(a(client( account,(repor8ng(to( Investors,(sexling(transac8ons(and(
collec8ng(and(distribu8ng(income((for( example,(dividends).(Investors’(Subscrip8ons(and(all(dividends(and(the(proceeds(of(sale(of(
Investments( pending( their( distribu8on( will( be( deposited( by( the( Administrator( with( an( authorised( and( reputable( banking(
ins8tu8on( in( a(client( account( in( the(name(of( “The(Share(Centre( 4( Amplify”(with(client( trust( status(together( with( cash( balances(
belonging(to( other( Investors.(The(mandate(for( opera8on(of(the(account(shall( be(held(by(the( The( Share(Centre( and( any(interest(
arising(therefrom(will(be(retained(to(cover(administra8on(costs(and(not(paid(to(Investors.(The(Share(Centre(will(treat(Investors(as(
retail(clients(in(accordance(with(COBS(3.4.1(in(respect(of(its(provision(of(safeguarding(and(administra8on(services.
Page 21
OPERATION
FUND RAISING PROCESS
The(Closing(Date(of( the(Amplify(Music(SEIS(4(will(be(Friday(27th( March( 2015((or( such(other(date( as(the(Issuer( may(determine)(
unless(the(Target(Service(Size(is(reached(earlier,(in(which(case(the(Service(will(be(closed(earlier.(Subscrip8ons(may(be(made(up(to(
and(including(5pm(on(the(final(Closing(Date.(There(may(be(more(than(one(Closing(Date.(Subscrip8ons(will(not(be(accepted(auer(
this( 8me.( Any( late( Subscrip8ons( or( excess( Subscrip8ons( shall,( pursuant( to( the( terms( of( the( Investor( Agreement( and( the(
Applica8on(Form,(be(returned(to(Investors,(or(with(an(Investor’s(express(permission,(allocated(to( a(subsequent(offer( with(a(later(
closing(date.(The(Minimum(Subscrip8on(to(the(Service(is(£10,000.(There(is(no(Maximum(Subscrip8on(to(the(Service(but(Investors(
should(be(aware(that(SEIS(Income(Tax(Relief(is(capped(at(£100,000.(Applica8ons(from(spouses(should(be(made(separately.(
INVESTMENT PROCESS
Subject( to(successfully(raising(the( Minimum( Service(Size,(Investments(in( Investee(Companies(will( be(ini8ated( on( the(earlier( of(
27th( March( 2015(or( upon( raising(the(Target( Service(Size.(It( is(intended( that( the( Administrator( will( execute(Investments( in( the(
Investee( Companies( as( soon( as( reasonably(possible( and,(in( any( event,( before( the( end( of( the( 2014/15( tax( year( in( respect( of(
subscrip8ons(received(no(later(than(27th(March(2015.
CLAIMING SEIS TAX RELIEF
Once( the( Investments( have( been( made( in( the( Investee( Companies,( each( Investee( Company( will( prepare( and( send( off( SEIS(
compliance(cer8ficates(to( HMRC,(demonstra8ng(that( the(Investee( Company(has(fulfilled( its( requirements( as( a(SEIS(Qualifying(
Company.(As(soon(as(prac8cable(auer( an(Investee(Company(has(been(trading(for(four(months(or,(alterna8vely,(once(70%( of(the(
moneys(raised( have(been( spent,(the(Investee(Company(will( send(to( the( Investor( an( SEIS(cer8ficate.(Investors( must( send( these(
forms(to(HMRC(with(their(tax(returns(in(order(to(claim(any(income(and(capital(gains(tax(reliefs.
REPORTING & VALUATION
Investors(will(receive(a(six( monthly(client(statement( electronically(from(The(Share(Centre(together( with( a(report( regarding(each(
of( the( Investee( Companies( wrixen( by( the( Directors.( In( addi8on,( Investors( will( be( kept( informed( of( any( significant( events(
concerning( Investee( Companies,(such( as( a(proposed( sale.(Appropriate( statements(under( sec8on( 234A(4)( and( (5)( Income( and(
Corpora8on(Taxes(Act(1988(will(be(made(in(respect(of(any(dividends(received.(All(investments(in(the(Investee(Companies(will(be(
valued( according( to( best( prac8ce( as( set( out( under( the( Interna8onal( Private( Equity( and( Venture( Capital( (IPEVC)( Valua8on(
Guidelines.(The(overriding(principle(of(these(valua8on( guidelines(is(to( show(a(fair( valua8on( of(the( Investment(to( the( Investors(
based( on( what( would( be( a( fair( transac8on( between( informed( par8es( at( arm’s( length.( Prudence( is( a( central( concept( of( the(
valua8on(guidelines.(All(Investee(Company(investments(will(be(valued(on(a(half4yearly(basis.
CORPORATE ACTIONS
The( Administrator( will( no8fy( you( of( all( corporate( ac8ons( rela8ng( to( your( Investments( in( the( Investee( Companies.( Where(
instruc8ons(are(sought( from(you,(the(Administrator( and(the(Nominee(will( only(act( if(instruc8ons(are(received( from(you((or( are(
reasonably(believed( to(have(been(received(from(you(or( from(your(authorised(agent).(Where(the(Administrator(has(not( received(
your(instruc8ons(by(the(date(specified(by(the(Administrator( within(the(summary(of(the(corporate( ac8on,(the(Administrator(will(
accept(the(default(op8on(of(the(corporate(ac8on(on(your(behalf.
RETURN ON EXIT OF INVESTMENTS
On(sale(of(one(or(more(Investments,(the(net(proceeds(will(be(paid(into(the(Amplify(Music(SEIS(4(client(account,(which(is(operated(
by(the(Administrator,(and(the(Administrator(will(then(distribute(such(proceeds(to(each(Investor.(Investors(may,(if(they(so(choose,(
re4invest(proceeds((at(their(discre8on)(in(a(new(Amplify(Music(SEIS(investment(opportunity((subject(to(availability).
Page 22
FEES & EXPENSES
To% ensure% that% Investors% receive%Tax%Reliefs% on% the%full% amount% of% their%investment% in% the%Service,%charges% are% made%to% the%
Investee%Companies%aêr%the%Administrator%has%executed%the%Investments%rather%than%before.
INITIAL FEE
A(one(off(fee(of(7%(of(the(amount(invested(in(each(Investee(Company(by(the(Administrator(pursuant(to(the(terms(of(the(Investor(
Agreement.(This( Ini8al( Fee(will( be(applied( to(the(offer( costs,(including(Intermediary(Fees,(Distributor( Fees( and( the(Issuer( Fee,(
which(are(described(below.
Issuer Fee
The(Issuer(will(be(paid( 2%(of(the(amount(invested(in(the(Investee(Companies,(out( of(which(0.75%( will( be(paid(through( to(Amp(
Channel(Music.(The(Issuer(Fee(is(payable(from(the(Ini8al(Fee,(as(detailed(above.
Distributor Fees
Distributors(will(be( paid( 2%(of( the( amount( invested( in( the( Investee(Companies.(The(Distributor( Fees(will(be( payable( from( the(
Ini8al(Fee,(as(detailed(above.
Intermediary Fees
Intermediaries( will( be(paid( 3%(of(the(amount( invested(in( the(Investee(Companies.(The(Intermediary(Fees( will( be(payable( from(
the(Ini8al(Fee,(as(detailed(above.
Intermediary(Fees(will(be(payable(on(the(following(basis:
Authorised non-MiFID financial advisers
The(Intermediary(Fee(will(be(payable(as(a(“commission”( to(authorised(non4MiFID(financial(advisers(who(classify(their(client(as(a(
retail(client(in( accordance(with(COBS(3.4.1(R(for( whom( the(Service,(which( is(not( a(retail(investment( product( for( the( purpose(of(
COBS(6.1.(A,(is(suitable((in(the(case(of(“advised”(clients)(or(appropriate((in(the(case(of(other(retail(clients).
Authorised MiFID financial advisers
The(Intermediary(Fee(will(be(payable(as(a(“facilita8on(payment”(to(authorised(MiFID(financial(advisers(who(facilitate(and(do(not(
unduly(influence( or( restrict( appropriate( adviser( charges(agreed(and( validated(by(the( client(to( the( extent( that(those(facilita8on(
payments(can(be(linked(with(services(provided(by(the(adviser(to(their(client.
ADMINISTRATOR FEE
The( Service( will( have( certain( direct( opera8ng( costs,( such( as( monitoring( and( administra8on.( The( Administrator( will( provide(
Investors(with( regular( informa8on( on(the( performance( of(their( Investments(including(six4monthly(valua8ons,( newslexers( and(
statements.(To(pay(for(these(services(the(Administrator( will(charge(each( Investee( Company(an(annual( administra8on( charge(at(
the(rate(of(0.5%(per(annum(on(amounts(invested.
DEALING FEE
The(Administrator( will( charge(each( Investee(Company(a(transac8on(charge(at(the(rate(of(0.35%(of(the(value(of(each( Investment(
made(on(behalf(of(the(Investor.
Page 23
DIRECTORS FEES
The(Directors(will( charge(each(Investee(Company(a(nominal( monthly(directors(fee(for(the( work(that(the(Directors(undertake(on(
behalf(of( the( Investee( Company,(and( the( sum(of( those(fees( is(expected( to( be(no( more(than( £600( per( Investee( Company( per(
month(in(aggregate.
PERFORMANCE FEE
Linked(to( the(performance(of(your( Investments(the(Directors(of(the(Investee(Companies(will( be(en8tled(to(a(performance(fee(if(
and(when(a(realisa8on(of(an(Investment(in(an(Investee(Company(is(achieved.(If,(on(an(Investment(by(Investment(basis,(the(return(
including(dividends( and(other( distribu8ons(to( an( Investor( from( an( Investee(Company(is( more(105p( per( 100p( contributed,(the(
Directors(will(receive(a(performance(fee(of(35%(of(all(returns(to(an(Investor(above(105p(per(100p(contributed.(
The(en8tlement(to(performance(fees(may(be(paid(in(cash(or( structured(by(way(of(subscrip8ons(for(shares(in(Investee(Companies(
by(or(on(behalf(of(the(Directors.(
OTHER INVESTEE COMPANY CHARGES
Each(Investee(Company(will(bear(the(costs(of(its(own(trade,(including(ongoing(administra8on.
The(reasonable(third(party(expenses(incurred(in,(and(the(reasonable(costs(of(providing(services(to(the(Investee(Companies(by(the(
the(Directors( (together( with( their( Associates)(may(be( charged( to( the( Investee(Companies( (as(appropriate),(including,(but( not(
limited(to(legal,(accoun8ng,(company(secretarial,(taxa8on,(audit,(administra8on,(transac8onal(and(all(other(associated(costs.
The(Directors(reserve(the( right( to(provide(addi8onal( services,(which(are( separate( from(their(responsibili8es(as(directors,(to( the(
Investee( Companies( and( (together( with( their( Associates)( may( be( en8tled( to( receive( fees( and/or( other( benefits( in( return( for(
providing(such(addi8onal(services((including,(but(not(limited(to,(specialist(recording,(marke8ng(and/or(promo8on(services).
VAT
All(fees(and(costs(are(exclusive(of(VAT,(which(will(be(charged(where(applicable.
Page 24
PART 3
THE STRATEGY
INVESTMENT PROCESS
The(Share(Centre,(on(behalf(of(the(Investors,(will( arrange(for( each(Investor( to(invest(pro4rata(in(the(Investee(Companies,(each(of(
which(will(carry(on(a(separate(trade(within(the(music(industry.
INVESTEE COMPANIES
Amplify(Music(SEIS(4(will(invest(in(a(porrolio(of(ten(pre4iden8fied(start4up(music(companies.(These(Investee(Companies(will(each(
sign( and( develop( one((or( more)(ar8st(s)(selected( by(the( Directors( of(the(Investee(Companies((each( a( Signed( Ar8st),(as(set4out(
below.
The(Directors(will(always(follow(a(diligent(and(disciplined(selec8on(process,(iden8fying(ar8sts(where(there(is(genuine(poten8al(to(
create(long4term(success(and(high(mul8ple(returns.
DIVERSIFICATION
By(inves8ng(in(the(Amplify(Music(SEIS(4,(Investors(have(the(opportunity(to(achieve(diversifica8on(across:
ten(companies
at(least(five(ar8sts
mul8ple(music(genres
mul8ple(revenue(streams
The( Investee(Companies( and( their( Directors( will( be( genre( agnos8c( in( the( ar8st( sec8on( process,(however( genres(that( may(be(
included(in(the(Porrolio(are:
rock
pop
dance
urban
country
jazz
classical
It( is( intended( that,( across( the( Investee( Companies,( the( Porrolio( will( generate( revenues( from( publishing,(live( performances,(
merchandising,(sponsorship(and(recordings.
For(more(informa8on,(please(refer(to(the(Poten8al(Revenue(Sources(sec8on(contained(in(Part(3.
RISK MITIGATION
In(order(to(reduce(investment(risk,(each(of(the(Investee(Companies(has(obtained(provisional(advance(assurance(from(HMRC(that(
its(trade(should(be(qualifying(for(SEIS(purposes.
Page 25
Also,(by(inves8ng(pro(rata(across(the(Investee(Companies,(Investors(reduce(their( exposure(to(any(par8cular( Investee(Company(to(
only(10%( of( their( Subscrip8on.(The( Investee( Companies( will( sign( and( develop( a(diversified( range(of( ar8sts( across( a(range( of(
genres(and( sub4sectors(of(the(music( industry.(By(inves8ng(in( a(diversified(range(of( ar8sts( and( genres,(the(concentra8on( risk(of(
any(one(ar8st(or(genre(proving(unsuccessful(is(propor8onately(reduced.
The(Directors(will(carry(out(thorough(due(diligence(on(prospec8ve(ar8sts,(vigorous(interviews(with(their(managers(and(extensive(
analysis(of(the(ar8sts’(development(plans.(Once(the( Investments(have(been(made(in( the(Investee(Companies,(the(Directors(will(
also( provide( Investee( Companies( with( a( range( of( business( support( services( covering( business( management,( financial(
management(and( strategic( advice.(The( lack(of(expert( advice(is(a(key(factor(in( the(failure(of( many(music( start4ups;(while( many(
music( ar8sts(and(their( personal( managers(are( highly(crea8ve(and( driven(individuals,(many(have(limited(experience(of(business(
and(finance.(
As(such,(the(Directors’(support( (in(par8cular( from(the(MMF(Directors)(during(the(Investee(Companies(forma8ve(years(is(likely(to(
reduce(the(risk(of(the(Investee(Companies(not(performing(to(levels(predicted(by(their( business(plans(or(failing(due(to(factors(that(
would(have(otherwise(been(avoidable(with(expert(advice.
MONITORING INVESTMENTS
Building(a(strong(working(rela8onship(with(ar8sts((and(their(managers)(is(ouen(key(to(the(success(of(ar8st(investments(and(never(
more(so(than( with( emerging(ar8sts,(such(as(those( in(which(the(Investee(Companies(will( invest.(This(is(something(the(Directors(
will(always(priori8se.(
As(set(out(in(the(risk(mi8ga8on(sec8on(above,(the(Directors(will(play(an(ac8ve(role(in(the(Investee(Companies(during(the(course(
of( the( Investment.( There( will( always( be( an( open( line( of( communica8on( between( the( Directors( and( the( ar8sts’(managers( to(
ensure( that( the( business( of( the( Investee( Company(is( proceeding( in( line( with( the( business( plan.(The( Directors( will( pay( close(
axen8on(to(results(and(thoroughly(compare(with(forecasts.(
EXITING INVESTMENTS
The(Directors(have( experience(in( structuring(exits(from(ar8st(investments( and( will(advise(the( Investee( Companies(on( poten8al(
exit(strategies.(
The(Directors(will( take(a(long4term(view(on( the(Investee(Companies(and(will(aim(to(only(look(at( the(possibility(of(facilita8ng(an(
exit( from(an(Investment(auer(it( has(been(held(for(at( least( three(years,(thereby(ensuring(that(the(Investment(has(met(one(of(the(
key(qualifying(condi8ons(necessary(for( Investors(to(obtain(the(Tax(Reliefs.(However,(there(may(be(occasions(where(an(earlier(sale(
is(a(commercially(sensible(decision((for(example,(if(a(third( party(offered( to(purchase(100%(of(the(Shares(in(an(Investee(Company(
for(five(8mes(the(price(at(which(Investors(bought(their(Shares,(then(the(financial(advantages(of(the(offer( would(outweigh(the(tax(
advantages(that(would(be(forfeited(by(selling(the(Shares).
It(is(an8cipated(that(most(exits(from(Investments(will( take(place(auer(they(have(been( held(for( three( years(to(four( years(though(
some(could( take(longer( depending(on(market(condi8ons(and( the(situa8on( with( the( ar8st( that(has(been( signed( by(the(Investee(
Companies.
For(more(informa8on,(please(refer(to(the(Roadmap(&(Exit(Strategy(sec8on(contained(in(Part(3.
Page 26
ARTIST SELECTION PROCESS
The(ar8st(selec8on(process(of(each(Investee(Company(will(be(led(by(the(MMF(Director(and(will(be(fundamentally(based(on:(
the(raw(musical(talent(of(the(ar8st
the(capability(of(the(ar8st(manager
the(revenue(poten8al(of(the(ar8st
In(terms(of(revenue(poten8al(of(the(ar8sts,(it(is(a(specific(criterion(of(investment(that(the(ar8st(selected(must(be(able(to(secure(
Minimum(Revenue(Guarantees(from(suitable(third(par8es.
NUMBER OF ARTISTS
It(is(currently(intended(that(each(Investee(Company(will(sign(one(ar8st.(It(is(also(intended(that(one(ar8st( will(be(signed(to(both(a(
Recording(Company(and( a(Publishing( company.(In( this( case,(it( would(mean(that( Porrolio(will( contain( five( ar8sts(that( are(each(
signed( to(two( out(of( the(ten(Investee(Companies(contained( in(the( Porrolio.(However,(it(is(possible( that(the( MMF(Director( may(
seek(to( sign( more( than( one( ar8st( per( Investee( Company,( in( which( case( Investors( would( have( more( than( five( ar8sts( in( their(
Porrolio.
TYPE OF ARTISTS
While(the(spread(of(ar8sts(across(the(Porrolio(is(intended(to(offer(a(breadth(with(regard(to(the(music(genres,(the(Directors’(focus(
will(be(first(and(foremost(to(iden8fy(prospec8ve(ar8sts(with(key(characteris8cs(including:
already(genera8ng(revenues((or(with(a(clear(path(to(revenue(genera8on(within(18(months)(
ability(to(secure(Minimum(Revenue(Guarantees(from(suitable(counterpar8es((in(line(with(standard(industry(prac8ce)
high(growth(poten8al(with(the(possibility(of(realising(a(return(of(mul8ple(8mes(the(Investment(in(the(Investee(Company
evidence(that(a(ar8st’s(recordings(or(performances(are(innova8ve(and(have(market(poten8al(through(external(valida8on(
led(by(inspiring,(energe8c(and(ambi8ous(ar8st(manager(s)(capable(of(delivering(the(forecast(investment(returns
IDENTIFYING ARTISTS
The(Investee(Companies(will(find(prospec8ve(ar8sts(in( a(number( of(ways.(The(members(of(the(MMF(have(an(established(track(
record(in( iden8fying(successful(ar8sts.(The(nature(of(the(MMF’s(business,(represen8ng(ar8st(managers,(means(it(already(has(an(
exis8ng(network(of( ar8st( managers( with( poten8al(deal( flow.(Through( their( extensive(industry(network,(the(MMF(have(already(
iden8fied( a(pipeline( of( possible( ar8sts.(Due( to( the( reputa8on( of( the( MMF(within( the( music( industry,( the( MMF(also( expects(
prospec8ve(ar8st(managers(to(approach(them(directly.(
ARTIST DEAL TERMS
The(Investee(Companies(will(aim(to(sign(ar8sts(on(the(best( possible(terms.(Each(ar8st(signed(by(the(Investee(Companies(will(be(
at(a(different( stage(of( development( in(their( careers(and(this(will(naturally(be(reflected(in( the(in( the( deal( terms(that( are(agreed(
with(them.(The(more( established( an(ar8st(is,(the(lower( risk(a( deal( with(them(is(likely(to( be,(so(the(deal(terms(are( likely(to( be(
more(weighted(in(their(favour,(and(vice(versa.
It( is( intended( that( a( common( characteris8c( of( the( ar8st( deals( will( be(that( the( Investee( Companies(will,( across( the( Porrolio,(
par8cipate(in(all(revenue(streams(available(to( the(ar8st(including(publishing,(live(performances,(merchandising,(sponsorship(and(
recordings.
For(more(informa8on,(please(refer(to(the(Poten8al(Revenue(Sources(sec8on(contained(in(Part(3.
Page 27
STEP-BY-STEP ARTIST SELECTION PROCESS
Step 1
Iden8fy(the(available(pool(of(talent(via(the(MMF(and(Amp(Channel(Music’s(industry(network(consis8ng(of(
hundreds(of(the(UK’s(top(ar8st(managers(and(other(key(talent(sources
Step 2
MMF(filters(and(grades(the(long4list(of(talent(sourced(in(Step(1(above,(first(in(terms(of(the(talent(of(the(ar8sts(and(
then(in(terms(of(the(capability(of(the(ar8st(managers
Step 3
MMF(provides(Amp(Channel(Music(with(a(shorter(list(of(suitable(ar8sts(for(the(Investee(Company(to(invest(in(and(
Amp(Channel(Music(undertakes(quan8ta8ve(analysis/due(diligence(on(the(ar8sts(on(the(short4list
Step 4
Amp(Channel(Music(supplies(the(MMF(Director(of(each(Investee(Company(with(an(approved(short(list(of(ar8sts(
from(which(they(will(select(the(ar8st((or(ar8sts)(they(believe(has(the(poten8al(to(deliver(the(best(returns
Step 5
Amp(Channel(Music(and(the(MMF(Director(nego8ate(the(best(possible(deal(terms(with(the(selected(ar8st((or(
ar8sts)(based(on(the(stage(of(their(career(and(enter(into(full(form(contracts
Page 28
POTENTIAL REVENUE SOURCES
Set( out( below(are( examples( of( poten8al( sources( of( revenue( that( may(be( generated( from( the(two( different( types(of( Investee(
Company(that(Amplify(Music(SEIS(4(will(invest(in,(Recording(Companies(and(Publishing(Companies.
RECORDING COMPANIES
It(is(intended(that( the(ar8st(s)(will( create(new(audio(and(audiovisual( recordings(for( each( Recording(Company.(Once(the(ar8st(s)(
has(created(new(recordings,(each(Recording(Company(intends(to(exploit(them(globally.(
Recording revenues
Physical(record(sales((CD,(vinyl,(DVD(and(Blu4ray)
Digital(record(sales((downloads,(streaming(and(subscrip8on(services)
Synchronisa8on((Synch)(with(video((TV,(films,(adver8sing,(video(games(etc.)
The(exploita8on(strategy(will(be(determined(once(the(new(recordings(have(been(created.(
The exploitation strategy
Licensing(the(recordings(to(record(labels(in(return(for(an(advance(and(a(royalty
Manufacturing,(marke8ng(and(distribu8ng(the(recordings(independently
PUBLISHING COMPANIES
It(is(intended(that( the(ar8st(s)(will( create(new(songs(and(live(performances(for( each( Publishing(Company.(Once(the(ar8st(s)(has(
created(new(songs(and(live(performances,(each(Publishing(Company(intends(to(exploit(them(globally.(
Publishing revenues
Mechanical(royalty(income(from(the(use(of(the(songs(on(commercial(recordings(that(are(released(for(sale(to(the(public(in(
physical,(digital(or(any(other(format
Performance(income(generated(from(the(performance(of(the(songs,(whether(live,(in(a(club(or(broadcasted(on(television,(
radio,(the(internet,(or(any(other(kind(of(performance
Synch(income(from(the(use(of(songs(in(connec8on(with(a(soundtrack(for(a(film,(television(program,(webisode,(video,(or(some(
other(audio/visual(format(or(media
Print(music(income(from(the(sale(of(sheet(music(and/or(lyrics(sheets(of(songs,(whether(as(a(single(song(or(as(a(book(
containing(a(number(of(songs
Live performance and other related revenues
Ticket(sales(for(tours(produced(by(the(ar8st(s)
Fes8val(and(other(performance(fees(for(events(produced(by(third(par8es
Merchandise(sold(on(tour,(at(fes8vals(and(via(other(channels((high(street(retailers,(internet(sites)
Sponsorship(of(tours(and(other(brand4able(ac8vi8es
Page 29
EXPENDITURE & REVENUE
Assuming( full( subscrip8on,( the( following( charts( provide( an( example( of( how( capital( may( be( u8lised( and( revenue( may( be(
generated(by(the(Investee(Companies(across(the(Porrolio(as(a(whole.
ANALYSIS OF EXPENDITURE
8%
Recording(advance(=(8%
Recording(costs(=(10%
Video(Costs(=(6%
Marke8ng(costs(=(22%
Publishing(advance(=(8%
Live(performance(advance(=(8%
Live(tour(costs(=(38%
10%
38%
6%
22%
8%
8%
ANALYSIS OF REVENUE
Physical(record(sales(=(13%
Digital(record(sales(=(22%
Synch(&(licensing(=(6%
Live(performance(=(48%
Publishing(=(9%
Sponsorship(=(2%
9% 2%
13%
22%
48%
6%
The% above% charts% are% illustra4ve% only%and% the% analysis% they%represent% is% based% on% a% number% of% assump4ons.% Income% and%
expenditure%will%vary%widely%from%ar4st%to%ar4st.%The%above%informa4on%should%not%be%viewed%as%a%reliable%indicator%of%future%
performance%of% any% of% the%Investee% Companies% to% which% this% Memorandum% relates.%Prospec4ve% investors% should% read% this%
Memorandum%in%full%before%making%any%investment%and%should,%in%par4cular,%read%the%risk%factors%set%out%herein.
Page 30
ROADMAP & EXIT STRATEGY
ROADMAP
Funds( will( be( u8lised( by( the( Investee( Companies( respec8vely( according( to( a( pre4agreed( plan( and( corresponding( budget.(
Development(strategies(will(vary(from(ar8st(to(ar8st(but,(broadly(speaking,(the(ar8st(development(strategy(will(be(as(follows:
Year 1
Song(wri8ng,(recording(and(live(performance(development
Years 2 & 3
Release(campaign(for(recordings(plus(live(performance/promo8onal(tour
Year 4
Auer(three(years,(the(success(of(the(ar8st(s)(will(be(evaluated(and(exit(op8ons(will(be(considered
EXIT STRATEGY
Auer(the(three4year(SEIS(Minimum(Holding(Period(has(expired,(the(Investee(Companies(will(each,(separately,(consider(whether(it(
is(appropriate(to(present(shareholders(with(the(opportunity(to(realise(the(value(in(that(Investee(Company.(Such(op8ons(to(realise(
value(may(include:
Sale(of(the(Investee(Company(to(a(third(party
Buy4back(of(Shares(by(the(Investee(Company
Sale(of(the(Investee(Company’s(assets(and(liquida8on
While( each( of( the( above( op8ons( will( be( carefully( considered( at( the( relevant( 8me,( the( most( axrac8ve( of( these( op8ons( to(
shareholders(is(likely( to( be,(where( terms( can( be( agreed,( the( sale( of( assets( and( music( rights( to( a( major( label( or( the( ar8st(s)(
themselves(at(market(value(on(arm’s(length(commercial(terms(and(the(subsequent(liquida8on(of(the(relevant(Investee(Company.
Page 31
PART 4
THE TEAM
THE ADMINISTRATOR
THE SHARE CENTRE
Since( being( founded( in( 1991,( The( Share( Centre( has( grown( to( become( one( of( the( UK’s( most( trusted( and( well4known( retail(
stockbrokers.(It( is(the( main( trading(subsidiary(of(Share(plc,(whose(shares(are(publicly(traded(on( AIM(and( Asset( Match,(and(is(a(
member(firm(of(the(London(Stock(Exchange,(as(well(as(being(authorised(and(regulated(by(the(FCA(.
In(2003(The(Share(Centre(launched(an(EIS(administra8on(service(for(EIS(porrolios.(The(Share(Centre’s(EIS(administra8on(service(
takes(care(of(the(back4office(work.(Amplify(Music(SEIS(4(benefits(from(this(end4to4end(service,(which(includes:
A(custodian(service(to(ensure(the(safekeeping(of(investments
Applica8on(handling,(including(an84money(laundering(procedures
Maintenance(of(the(investor(register
Statements(and(valua8ons(twice(a(year
Share(dealing(and(placing(of(investments
In(2013(The(Share(Centre(won(several(awards(including:
Best(Online(Stockbroker(4(Financial(Times
Best(Online(Stockbroker(4(Investors(Chronicle
Best(Execu8on4only(Stockbroker(4(Financial(Times
Best(Execu8on4only(Stockbroker(4(Investors(Chronicle
Best(Online(Stockbroker(4(Personal(Finance(Awards
Page 32
THE DIRECTORS
MUSIC MANAGERS FORUM
MMF(was(established( in(1992( and(is( now( the( largest( representa8ve( body(of(ar8st( managers( in(the(world.(MMF(has( over( 400(
members(in(the(UK(and(represents(over(1,000(of(the(world’s(most(successful(acts.(MMF(is(the(collec8ve(voice(of(its(members(and(
their(ar8sts.(One(of(its(key(objec8ves(is(facilita8ng(investment(into(emerging(talent.(
Investment Director: Brian Message
Brian(is(a(partner( in(Courtyard( Management(and( founding(shareholder( of(ATC.(Together( with(his( partners,(he( manages,(invests(
and( partners(with( over( 20( ar8sts( including(Band( of( Skulls,(Eliza( Doolixle,(Faithless,(PJ( Harvey,(Nick( Cave,(Radiohead( and( Ka8e(
Melua.(Through( his(work( with( the( MMF,( he( promotes( the( opportuni8es( provided( by( current( technological( change,( both( for(
ar8sts,( their( partners( and( the( music( industry( as( a( whole.( Brian( is( also( a( qualified( accountant( and,( before( entering( ar8st(
management(in(1995,(worked( at( Arthur( Andersen(and(then(EMI(Records.(As(well(as(being(Chairman( of(the(UK(MMF,(Brian(is(an(
advisor(to(the(Featured( Ar8st(Coali8on,(a(director(of(UK(Music(and(is(a(mentor(for(Doug(Richard’s((of(Dragons(Den(fame)(School(
for( Crea8ve(Startups,(all(of(which( give(him( a( significant( role( to(play(in( defining(the(landscape(for(the(next( genera8on( of(ar8sts(
and(music(entrepreneurs.
CEO: Jon Webster
Jon( Webster( has(worked(for( two(people(most(of( his(life(4(himself(and(Richard( Branson.( (Most( of(his(career( was(spent(at(Virgin,(
where(he(began(as(a(shop(assistant( in(1975(and(ended( up(being(appointed(Managing(Director(in( 1988.( (He(was(instrumental( in(
devising(the(Now!( That's(What(I(Call(Music(brand.(Following(the(EMI(purchase(of(Virgin( in(1992,(he(decided(to(leave( corporate(
life(and(set(up(his(own(company,(working(with(Virgin(acts(including(Genesis,(Peter(Gabriel,(UB40(and(Mike(and(the(Mechanics.(In(
1992(he(also(founded(the(pres8gious(Mercury(Music(Prize.((In(May(2005,(auer(13(years(working(for(himself,(he(was(appointed(as(
a( Director( of( the( BPI,( the( UK( record( industry( trade( body,( and( since( 2007( he( has( been( the( CEO( of( the( MMF,( steering( the(
membership(body(through(a(series(of(cri8cal(changes(that(are(impac8ng(the(whole(music(industry.
MMF board members
Interna8onally(renowned( ar8st( managers(who( sit( on( the( MMF’s( board( of(directors( alongside( Brian( Message(and( Jon( Webster(
(with(examples(of(the(ar8sts(they(manage(against(their(names)(are:
Adam(Tudhope(–((Mumford(&(Sons,(Laura(Marling)(
Carol(Crabtree(–((Zero(7,(Louis(La(Roche)
Erik(Nielsen(–((Elton(John,(James(Blunt)
Gary(McClarnan(–((Mr(Scruff,(Homelife)
Ian(McAndrew(–((Arc8c(Monkeys,(Travis)
Paul(Burger(–((Blondelle,(Yasmin(Levy)
Scox(Rodger(–((Paul(McCartney,(Arcade(Fire)(
Tim(Clark(–((Robbie(Williams,(Passenger)
AMP CHANNEL MUSIC
Amp(Channel(Music(is(a(specialist(music(investment(firm(that(was(established(by(Tom(Bywater( in(2007.(Tom(founded(the(Power(
Amp(Music(Fund( (Power(Amp),(which( launched(its( first(EIS(offering(in(2008,(focusing(on( established( UK(ar8sts.(Power(Amp(has(
since(signed( numerous(household(name(acts(including(the(80’s(ska4pop(band( Madness(who,(following(Power( Amp’s(investment,(
have( gone( on( to( be( heralded( by( mainstream( press( as( a( “na8onal( treasure”.( Tom( con8nues( to( offer( similar( ‘hit’( ar8st( EIS(
investment(opportuni8es(and(now(also(offers(SEIS(investments(into(emerging(talent.(Prior(to( founding(Power( Amp,(Tom(worked(
for(Ci8group,(where(he(qualified(as(an(Investment(Adviser(and(worked(in(New(York(and(London.
Page 33
PART 5
THE COMPANIES
INVESTEE COMPANIES
Shares(are(being(offered(in(ten(separate(Investee(Companies.(Five(are(Recording(Companies(and(five(are(Publishing(Companies.
RECORDING COMPANIES
PUBLISHING COMPANIES
AMPLIFY RECORDS 141 LIMITED
Company Number: 09315410
AMPLIFY SONGS 141 LIMITED
An offer of up to 150,000 new ordinary
shares of £1 each at £1 per share
Page 34
COMMON CHARACTERISTICS
Each%Investee%Company%is%making%an%offer%for%subscrip4on%of%150,000%ordinary%shares%at%a%subscrip4on%price%of%£1%per%share%to%
raise%£150,000.%The%expected%issued%share%capital%of%each%Investee%Company,%assuming%full%subscrip4on,%will%be:
Number of ordinary shares
Nominal amount
150,001
£150,001
Directors
To(be(an(individual(MMF(Director(and(Amp(Channel(Music(ac8ng(as(a(corporate(director
Incorporation
Each(Investee(Company(was(incorporated(and(registered(in(England(and(Wales(as(a(private(company(limited(by(shares.
The(registered(office(of(each(Investee(Company(is(Hamilton(House,(80(Stokes(Crou,(Bristol,(BS1(3QY.
The(principal(legisla8on(under(which(each(Investee(Company(operates(is(the(Companies(Act(2006(and(regula8ons(made(
under(the(Companies(Act(2006.
The(liability(of(the(members(of(each(Investee(Company(is(limited.
Each(Investee(Company(has(never(traded(and,(save(as(described(herein,(has(no(assets(or(liabili8es.
None(of(the(Investee(Companies(have(any(subsidiaries.
Share capital of the company
At(the(date(of(this(document(the(issued(share(capital(of(each(Investee(Company(is(1(share,(which(is(credited(as(fully(paid(up(
by(Tom(Bywater(without(any(premium((Subscriber(Share).
Pursuant(to(the(Ar8cles(of(Associa8on(of(each(Investee(Company,(the(directors(have(general(and(uncondi8onal(authority(to(
exercise(all(powers(of(each(Investee(Company(to(allot(shares(in(the(capital(of(each(Investee(Company(up(to(an(aggregate(
nominal(amount(of(£300,000(for(a(period(of(five(years(from(the(date(of(adop8on(of(the(Ar8cles.
Share rights
The(principal(rights(axaching(to(the(Shares(of(each(Investee(Company,(which(are(described(fully(in( the(Ar8cles(of(Associa8on(of(
each(Investee(Company,(are(as(follows:(
Each(Share(will(en8tle(the(holder(thereof(to(one(vote(on(a(poll.(
No(dividends(will(be(paid(by(the(Investee(Company(without(the(prior(agreement(of(the(holders(of(a(majority(of(the(Shares
Dividends(paid(by(the(Investee(Company(will(be(shared(by(the(holders(of(the(fully(paid(Shares(in(propor8on(to(the(number(of(
Shares(held(by(them.(
On(a(sale(of(the(whole(of(the(issued(share(capital(of(the(Investee(Company,(the(proceeds(of(sale(will(be(allocated(between(the(
holders(of(the(fully(paid(Shares(in(propor8on(to(the(number(of(Shares(held(by(them.(
On(a(winding4up(of(the(Investee(Company,(the(surplus(assets(of(the(Investee(Company(will(be(allocated(between(the(holders(
of(the(fully(paid(Shares(in(propor8on(to(the(number(of(Shares(held(by(them.
Issue of Shares
Each( of(the(Investee( Companies(will( not( allot( and/or( issue( any(Shares( un8l( such( 8me( as( the( Minimum( Service(Size(has( been(
reached.(If(the(opportunity(to(invest(in(each(Investee(Company(is(oversubscribed,(the(directors(of(the(relevant(Investee(Company(
may(exercise(their(absolute(discre8on(to(scale(down(applica8ons.
Transfer of shares
Shares(are( freely(transferable( by( the(members,(however,(the( directors(may,(in( their( absolute( discre8on,(refuse( to( register( the(
transfer(of(a(share(to(any(person(and,(if(they(do(so,(the(instrument(of(transfer(must(be(returned(to(the(transferee(with(a(no8ce(of(
refusal(and(the(reasons(for(the(refusal(unless(they(suspect(that(the(proposed(transfer(may(be(fraudulent.(
Page 35
Directors’ Appointment
The(holder(of(the(Subscriber(Share(for(the(8me(being(shall( have(the(right( (subject(to(applicable(law)(to( appoint( any(persons((or(
companies)(to(be(a(director(of(the(Investee(Company(and(to(remove(or(replace(any(such(person.(Any(appointment(shall(be(made(
by(no8ce(in(wri8ng(addressed(to(the(Investee(Company.(Save(as(specified(in(the(Ar8cles,(neither(the(members(nor(the(directors(
shall(have(the(right(to(appoint(or(remove(a(director(without(the(prior(wrixen(consent( of(the(holder( of(the(Subscriber(Share.(The(
holder(of(the(Subscriber(Share(at(the(date(of(this(document(is(Tom(Bywater.
Directors’ Remuneration
The(services(of(the(directors(shall(be(provided(to(the(Investee(Company(under( lexers(of(appointment.(The(directors(shall(remain(
as(directors(of(the(Investee(Company(unless,(amongst(other(things:
they(resign(as(directors(of(the(Investee(Company
they(are(removed(from(their(offices(as(directors(of(the(Investee(Company(pursuant(to(any(power(to(do(so(given(by(their(
respec8ve(board(or(to(other(members(of(the(Investee(Company(by(statute(or(the(Ar8cles
they(become(prohibited(by(law(from(being(a(director(for(any(reason
Save(as(set(out(above,(there(is(no(exis8ng(or(proposed(service(contract(between(any(director(and(the(Investee(Company(which(is(
not(terminable(without(payment(of(compensa8on(within(one(year.
Indemnities and Directors’ Liability Insurance
Any(director,(or(former(director,(of(the(Investee(Company(may(be(indemnified(out( of(the(Investee(Company's(assets(against(any(
liability(incurred(by(that(director(in( connec8on(with( any(negligence,(default,(breach( of(duty(or( breach(of(trust( in(rela8on(to( the(
Investee( Company( or( an( associated( company,( any(liability( incurred( by( that( director( in( connec8on( with( the( ac8vi8es( of( the(
Investee(Company(or(an(associated(company(in(its(capacity(as(a(trustee(of(an(occupa8onal(pension(scheme((as(defined(in(sec8on(
235(6)( of( the( Act),( and( any( other( liability(incurred( by( that( director( as( an( officer( of( the( Investee( Company( or( an( associated(
company.(This(provision( does(not( authorise(any(indemnity(which( would( be(prohibited(or( rendered(void(by(any(provision(of( the(
Act( or( by( any(other( provision( of( law.(The( directors( may( decide( to( purchase( and( maintain( insurance,(at( the( expense( of( the(
Investee(Company,(for( the(benefit( of(any(director,(or(former(director,(in(respect(of(any(relevant(loss((as(defined(in(the(Ar8cles(of(
Associa8on).
Directors and Other Interests
Save( as( disclosed( in( this( Memorandum,(no( director( has( any(interest,(beneficial( or( non( beneficial,( in( the( share( capital( of( the(
Investee(Company,(nor( are(they(aware(of( any(persons(who,(directly(or( indirectly,(jointly(or( severally(exercises(control(over( the(
Investee(Company.
Litigation
The(Investee(Company(is(not,(nor(has(it(been,(involved(in(any(legal(or(arbitra8on(proceedings(and(no(such(proceedings(are(ac8ve,(
pending(or,(so( far( as(the( directors( are(aware,(threatened( against( the(Investee(Company(which( are(having(or( may(have(or( have(
had,(since(the(incorpora8on(of(the(Investee(Company,(a(significant(effect(on(the(Investee(Company's(financial(posi8on.
Loans
The( Investee( Company( reserves( the( right( to( use( the( assets( of( the( Investee( Company( to( borrow( monies( if( this( is( deemed( to(
provide(a(commercial(benefit(to(the(Investee(Company.(At(all(8mes(the(directors(will(act(in(the(way(they(consider,(in(good(faith,(
to( be(most(likely(to(promote( the(success(of( the(Investee(Company(for( the(benefit(of( its(Shareholders(as(a(whole(in(accordance(
with(their(statutory(and(fiduciary(du8es.
Documents for Inspection
Copies( of( the( following( documents( are( available( to( any(prospec8ve( investor( or( to( their( relevant( advisers( from(each( Investee(
Company(upon(wrixen(request:
Ar8cles(of(Associa8on(of(each(Investee(Company
Confirma8on(of(provisional(SEIS(advance(assurance(from(HMRC
Page 36
PART 6
THE RISKS
Investors%should% be%aware%that% the% value% of% any%Investment% in% an% Investee%Company% can% fluctuate.%In% addi4on,%there% is%no%
guarantee%that%the%valua4on%of%an%Investment%will%fully%reflect%the%underlying%net%asset% value%or%the%ability%to%buy%and%sell%the%
Investment%at%that%valua4on.%
Investors%should%be%fully%aware%of%the%highYrisk%nature%of%seed%investments%in% startYup%companies.%In% addi4on,%the%statements%
regarding% taxa4on% in% this% document% are% merely% a% summary% and% should% not% be% viewed% as% cons4tu4ng% tax% advice.%
Representa4ons%in%this%Memorandum%with%respect%to%Tax%Reliefs%relate%to%the%generic%posi4on%of%a%UK% resident%individual% taxY
payer%and%do% not% amount%to% tax%advice%to% any%person.%The%informa4on%below% does%not% purport% to%be%exhaus4ve.%Addi4onal%
risks% and% uncertain4es,% not% presently% known% to% the% Issuer,% the% Administrator% and% the% Investee% Companies,% or% which% are%
currently%deemed% immaterial,%may%also% have%an% adverse%effect% on% the% business%of%the%Investee%Companies.%Investors%should%
consider%carefully%whether%an% investment% in% Amplify%Music%SEIS%4% is%suitable%for%them%in%the%light% of% the% informa4on% in% this%
document% and% their% personal% circumstances.% It% is% strongly% recommended% that% Investors% seek% the% advice% of% their% financial%
adviser%or%other%appropriately%qualified%professional%adviser.%
INVESTEE COMPANY RISKS
Small unquoted companies
Investment( in( smaller,(unquoted( companies,(by( its( nature,( involves( a(high( degree( of( risk.(Proper( informa8on( for( determining(
their( value( or( the( risks( to( which( they( are( exposed( may(also( not( be( available.( Investment( in( such( companies( can( offer( good(
investment( returns(but(the(market( for( their( shares( is(ouen( illiquid(and( uncertain(by(its(nature.(Consequently,(such( investment(
involves(a( higher( degree( of( risk( than( a(porrolio( of( quoted( shares.(Realisa8on( of( investments( in( unquoted( companies(can( be(
difficult( and(may(take( considerable(8me.(Investment(in( smaller( and( unquoted( companies( is(likely(to( involve(a(higher( degree(of(
risk(than(investment(in(larger(companies(and(those(traded(on(the(main(market(of(the(London(Stock(Exchange.(Smaller(companies(
generally(may(have(limited( product( lines,(markets(or( financial(resources(and( may(be(more(dependent( on(their( management(or(
key(individuals(than(larger(companies.(
No liquid market on a public exchange for investments
There( is(no( liquid( market( on(any(public( exchange(or( elsewhere,(nor( is(there(intended( to(be( such(a(market(for( Investments;( as(
such,(an(Investment(made(through(the(Service(will(not(be(readily(realisable.(
Investee Company performance
The(performance(of(the(Porrolio(will(depend(on( the(ability(of( the(Investee(Companies( to(perform( in(line(with(their( respec8ve(
business(plans.
(
Regulatory change
Legal(and(regulatory(changes(could(occur(that(may(adversely(affect(the(Investee(Companies(or(their(Investors.(These(may(include(
environmental,( safety,( labour( and( other( regulatory( and( poli8cal( authori8es,( or( force( majeure( acts,(terrorist( events,(or( other(
opera8ng(risks.(
The value of investments may fluctuate
The(value(of(Investments(in(the(Investee(Companies(may(go(up(or(down.(An(Investor(in(the(Investee(Companies(may(not(get(back(
the(full(amount(invested(and(consequently(may(lose(some(or(all(of(the(funds(invested.(
Medium-long term investment
The(8ming(of(exits(from(Investee(Companies(may(take(longer(than(an8cipated.(An(Investment( in(the(Investee(Companies(should(
be(considered(a(medium(to(long4term(investment.(
Page 37
Suitability
The(performance(of(Amplify(Music(SEIS(4(is(dependent(on(the(performance(of(the(Investee(Companies.(Investee(Companies(may(
fail,( Investments( may( be( realised( for( substan8ally(less( than( the( acquisi8on( cost,( or( they( may( be( impossible( to( realise( at( all.(
Investee(Companies(may(accept( other( equity(or(debt( capital(which(ranks(higher( than(the(Investments(made(through(the(Service(
in( an( insolvency( situa8on.( Investors( should( only( consider( inves8ng( if( this( is( a( risk( they( can( afford( to( bear,( having( taken(
independent(advice.
Structure of Investment in the Investee Companies
Each(Investor’s(holding(in(an(Investee(Company(will(represent(a(minority(posi8on.(Investors(will,(therefore,(have(limited(control(
over( the( decisions( taken( by(shareholders(in( the(Investee( Companies,(and( may( be(outvoted( by(shareholders(together( holding(
larger(propor8ons(of(the(shares.
Retention of key directors or employees
Small(businesses(are( highly(dependent(on(the(skills(of(their(management(teams.(The(departure(of(any(of(a(Investee(Company’s(
directors(and/or(key(employees(or(the(directors(themselves(could(have(a(material(adverse(effect( on(the(business(of(the(Investee(
Companies.(
No warranty on valuations
No(warranty(is(given(on(any(valua8ons(provided(to(Investors(that(any(such(valua8on( is(capable(of(being(axained(on(a(realisa8on(
of(the(Investment.(
Industry Specific Risks
The(Investee(Companies(will(invest(in(the(ac8vi8es(of(music(ar8sts.(Those(ar8sts(are(not(guaranteed(to(succeed.(The(ar8sts(may(
not(be( widely(known( and( therefore( may(not( have( a(proven( record( of(commercial( success.(Success(will( depend( on( the( ar8sts’(
output(having(market(appeal,(which(will(be(subject(to(a(number(of(factors,(including(audience(tastes,(which(cannot(be(predicted.(
The( Investee( Companies( intend( to( reduce( risk( by( seeking( contracted( Minimum( Revenue( Guarantees.( Such( guarantees( may,(
however,(be(subject(to(condi8ons(and(are(always(subject(to(the(solvency(of(whoever(is(providing(the(guarantee.(
Capital At Risk
Investors’(capital(is(at(risk.(Investors(may(not(recover(the(whole,(or(any(part,(of(their(Investments(in(the(Investee(Companies.
Past performance
The( past( performance( of( the( directors( and( their( respec8ve( management( teams,( or( of( companies( managed( by( them,(is( not(
necessarily(a(guide(to(the(future(performance(of(the(Porrolio.(
RISKS RELATING TO INVESTORS SEEKING TAX RELIEFS
There%are%several%circumstances%in%which%an%Investor%could%cease%to%qualify%for%any%of%the%Tax%Reliefs%offered%by%the%SEIS%and%as%
a%result%any%tax%which%would% have%been%payable%to% HMRC,%but% for%the%Investors%obtaining%Tax%Reliefs,%could%become%payable.%
These%circumstances%may%relate%to%an%Investee%Company%ceasing%to%be%an%SEIS%Qualifying%Company%or%the%Investor%themselves%
failing%or%ceasing%to%qualify%for%SEIS%Relief.
Loss of Capital Gains Re-Investment Relief
Capital(Gains(Re4Investment(Relief(under(the(SEIS(could(be(lost(if(an(Investor(ceases(to( be(resident(in(the(United(Kingdom(within(
three(years(of(making(an(Investment(through(the(Service.(
Receipt of value
An(Investor( could(cease(to(qualify(for(the(SEIS(Relief(if( they(have(received(value(from(a(Investee(Company(at(any(8me(since(its(
incorpora8on(or( within(three(years(of(making(their( Investment(through(the(Service.(Payment(of(a(dividend,(however,(would(not(
typically(be(regarded(as(a(receipt(of(value.(
Page 38
Cessation of trade
If(an(Investee( Company(ceases(to( carry(on( its( business( within( three( years(of( an(Investment,(this( could(prejudice( its(qualifying(
status(under(the(SEIS.(The(situa8on(will(be(closely(monitored(with(a(view(to(preserving(the(Investee(Company’s(qualifying(status(
but(this(cannot(be(guaranteed.
Failure to meet SEIS qualifying requirements
A(failure(to(meet(the(qualifying(requirements(for(the(SEIS(could(result(in:(
the(requirement(for(Investors(to(repay(the(50%(SEIS(Income(Tax(Relief(under(the(SEIS(received(on(subscrip8on(of(shares(in(the(
Investee(Companies(and(interest(on(the(same
a(liability(to(tax(on(capital(gains(following(a(disposal(of(an(Investment
the(loss(of(Capital(Gains(Re4Investment(Relief(in(respect(of(SEIS(Qualifying(Investments
HMRC approval
Provisional(approval(has(been(given(by(HMRC(that(each(of(the(Investee(Companies(and(their(ac8vi8es(should(qualify(under(SEIS,(
and(that( SEIS(claims(will(be(agreed.(However,(there(is(no(guarantee(that(HMRC( approval( will(not(be(subsequently(withdrawn.(In(
those(circumstances,(Subscrip8ons(will( not( be(returned(to( Investors.(If(HMRC( approval( is(subsequently(withdrawn,(Tax( Reliefs(
would(not(be(available(to(Investors(or(would(be(withdrawn.(
SEIS requirements
Under(the(SEIS(rules,(an(Investee(Company(in(which(an(Investor( invests(is(required(to(have(u8lised(in( its(qualifying(trade(at(least(
70%( of(the(amount(it( raises( or( have(been( trading(for( four( months( before( the(Investor( through( the(Service( can( claim( any(SEIS(
Relief.(In( addi8on,(the( Investee( Company(must(use(all( the(remaining(30%( of(Investment( monies( for( which(SEIS(Relief( has(been(
claimed(within(three(years(of(the(Investment(being(made.(
If(a(Investee(Company(fails(to(u8lise(these(funds(correctly,(the(Investee(Company(would(be(in(breach(of(the(SEIS(regula8ons(and(
tax(relief(may(be(unavailable(or(withdrawn.(
The(directors(expect( Investments(to( comply(with(the(requirements(and(for( Investee(Companies(to(u8lise(their( funds(within( the(
prescribed(limits.(
Sale within three years
A(sale( of(an( Investment(within(three(years(will( result( in( the( SEIS( Income( Tax( Relief(available(upon( investment(of( those(shares(
becoming(repayable(to(HMRC.(
The SEIS Qualifying Investment may be realised at any time
The(Investee(Companies(retain( complete(discre8on(to( realise(the(Investments(at( any(8me,(even(if(some(or( all(of(the(Tax( Reliefs(
rela8ng( to(that( Investment( may(be(lost.(In( making(such( a(realisa8on,(the( Investee( Companies(have( no( obliga8on( to( take(into(
account(the(tax(posi8on(of(Investors((individually(or(generally).
Investors should take appropriate Independent Professional Advice
It(is(possible(for( Investors(to(lose(their(Tax(Reliefs(by(taking(or(not(taking(certain(steps;(Investors(are(advised(to( take(appropriate(
independent(professional(advice(on(the(tax(aspects(of(their(Investment.(
No liability for loss of value
The(Issuer( and( the( directors( shall(not(be( liable( for(any(loss(incurred( by(an( Investor( in(rela8on( to( value(received( by(any(person(
from(any(Investee(Company(or(as(a(result(of(a(change(in(circumstances(of(an(Investee(Company(at(any(8me.(
The%informa4on%in%this%document%is%based%upon%current%taxa4on%and%other%legisla4on%and% any%changes%in%the%legisla4on%or%in%
the% levels% and% bases% of,% and% reliefs% from,% taxa4on% may% affect% the% value% of% an% Investment% in% the% Investee% Company.% Tax%
legisla4on% and%HMRC%prac4ce%are%subject% to% change%at%any%4me%and%the%Tax%Reliefs%may%be% amended% or%withdrawn.%The%tax%
reliefs% referred%to%in% this%document%are% those%currently%available%and% their%value%depends%on%the%individual%circumstances% of%
Investors.%
Page 39
NATURE OF THE SERVICE
Neither( the(Issuer( nor( the(Administrator( is(providing(any(advice(on( the(suitability(of(the(Service,(or(the(Investee(Companies,(for(
the(Investor.(Investors(should(seek(the(advice(of(their(financial(adviser.
Each(Investor's( Subscrip8on( will( be(divided( equally(between( the( ten(Investee( Companies.(The( size( of(the(Investor’s( respec8ve(
Investment( in( each( Investee( Company( will,( therefore,( be( in( propor8on( to( the( size( of( their( respec8ve( Subscrip8ons.( The(
Administrator(will(be(responsible(for( the(administra8on(of(the(Investment.(Please(note(however( that(the(Administrator(will(not(
provide( an( individual( porrolio( management( service( for( Investors( which( is( suitable( for( their( individual( financial( and( other(
circumstances(but(is(undertaking(only(to(administer(the(mechanics(of(Investments.(
Auer( the( three4year( SEIS(Minimum(Holding(Period( has(expired,(each( of( the( Investee( Companies( will( seek(to( realise(value( for(
Investors.(It(is(intended(that(the(Investee(Companies(will(realise(their(value(between(three(years(and(four(years(from(the(Closing(
Date(of(the(Service,(but(it( cannot( be(guaranteed(that( the(Investments(made(can( easily(be( realised(within( this( period(and,(even(
where(they(can(be(realised,(that(this(can(be(done(on(an(advantageous(basis.(
POTENTIAL CONFLICTS OF INTEREST
The(Issuer( may(enter( into(fee(sharing(arrangements(with( third(party(marketeers,(including(distributors(and(placement( agents,(or(
other( advisers(who( refer(Investors(to( the( Investee( Companies,(and( such( marketeers(may(have( a( conflict( of(interest(in(advising(
prospec8ve( investors( whether( to( invest( in( the( Service.(Any( poten8al( conflicts( of( interest( will( be( dealt( with( according(to( the(
Ar8cles(Of(Associa8on(of(the(relevant(Investee(Companies.(The(MMF(Directors(are(specifically(disallowed(to( sign(an(ar8st( to(the(
companies(they(direct(that(they(manage((or(have(vested(interests(in)(owing(to(a(clear(and(unresolvable(conflict(of(interest.
GENERAL RISKS
The( subscrip8on( for( shares( in( the( Investee( Companies( and( the( performance( of( shares( will( not( be( covered( by( the( Financial(
Services(Compensa8on(Scheme(or(by(any(other(compensa8on(scheme.(
If( the( Minimum( Service( Size( is( not( reached( by( the( 27th( March( 2015,( or( such( other( date( as( the( Issuer( may( determine,( no(
Investments(will(be(made(and(Investors’(monies(will(be(returned(without(interest.(
FORWARD LOOKING STATEMENTS
Investors( should( not( place( reliance( on( forward4looking( statements.( This( document( includes( statements( that( are( (or( may( be(
deemed( to( be)(“forward(looking(statements“,(which( can( be( iden8fied( by(the(use( of(forward4looking(terminology(including(the(
terms( “believes”,( “con8nues”,( “expects”,( “intends”,( “may”,(“will”,(“would”,(“should”( or,( in( each( case,(their( nega8ve( or( other(
varia8ons( or( comparable( terminology.( These( forward4looking( statements( include( all( maxers( that( are( not( historical( facts.(
Forward4looking( statements( involve( risk( and( uncertainty( because( they( relate( to( future( events( and( circumstances.( Forward4
looking(statements(contained(in(this(document,(based( on(past(trends(or(ac8vi8es,(should( not(be(taken( as(a(representa8on( that(
such(trends(or(ac8vi8es(will(con8nue(in(the(future.(
The%investment% described%in% this%document% may%not% be%suitable%for%all%Investors.%Investors%are%accordingly%advised% to%consult%
an%investment% adviser%authorised%under%the%Financial% Services%and%Markets%Act% 2000,%and% an% appropriately%qualified%taxa4on%
adviser,%prior%to%inves4ng.%
Page 40
PART 7
GLOSSARY OF TERMS
In%the%Memorandum,%including%the%Investor%Agreement,%the%
following%expressions%and%abbrevia4ons%have%the%meanings%
given%below,%unless%the%context%otherwise%requires.
Administrator
The( Share( Centre( Limited,(a( limited( company( registered( in(
England(and(Wales(with(registered(number(02461949(whose(
registered( office( is( Oxford( House,( Oxford( Road,( Aylesbury,(
Buckinghamshire,(HP21(8SZ,(which( is( a(member( firm( of( the(
London( Stock(Exchange( and( is( authorised( and( regulated( by(
the(FCA(under(registra8on(number(146768
Administrator Fee
the(annual(fee(of(0.5%((per(year)(that(is(described(in(the(Fees(
&(Expenses(sec8on(contained(in(Part(2
Administrator Standard Terms
the( standard( terms( of( the( Administrator( under( which( the(
Investor(appoints(the(Administrator(to(provide(administra8ve(
and( custodian( services( to( the( Investor( in( rela8on( to( the(
ac8vi8es(of( their( Porrolio(and( the(Nominee( is(appointed( as(
the(Investor’s(nominee
Amp Channel Music
Amp(Channel(Music( Limited,(a(limited(company(registered(in(
England(and(Wales(with(registered(number(06431544(whose(
registered(office(is(at( Park(House,(10(Park(Street,(Bristol,(BS1(
5HX
Application Form
an( applica8on( form( to( invest( in( Amplify( Music( SEIS( 4(
completed( by(the(prospec8ve( Investor( in( the(form(provided(
by( the( Issuer,( which( is( contained( in( the( Appendices( and(
forms(part(of(the(Memorandum
Application Pack
the( applica8on( pack( which( accompanies( the( Memorandum(
and(by(which(prospec8ve(Investors(will(invest(in(the(Service
Articles of Association
the(ar8cles(of(associa8on(of(any(Investee(Company
Associate
means( any( person( or( en8ty,( which( (whether( directly( or(
indirectly)( controls( or( is( controlled( by( another( party( or( is(
under( common( control( with( that( party.( For( the( purpose( of(
this(defini8on(“control”( shall(be(deemed(to( refer(also(to( any(
power(to( exercise(significant(influence(over( the(opera8ng(or(
financial(policies(of(any(person(or(en8ty
BVCA
the(Bri8sh(Private(Equity(and(Venture(Capital(Associa8on
relief( from( CGT,(as(described( in( the( Tax( Advantages( sec8on(
contained(in(Part(1
relief( from( CGT,(as(described( in( the( Tax( Advantages( sec8on(
contained(in(Part(1
CGT
capital(gains(tax(pursuant(to(Taxa8on(of(Chargeable(Gains(Act(
1992
Closing Date
the( closing( date( of( the( Service,( which( is( expected( to( be(
Friday(27th( March( 2015,(or( such(other( date(s)(as(the(Issuer(
may( determine,( unless( the( Target( Service( Size( is( reached(
earlier( and( the( Service( is( closed( earlier( (in( the( Issuer’s(
discre8on).((There(may(be(more(than(one(Closing(Date
CIS or Collective Investment Scheme
as(defined(in(the(Financial(Services(and(Markets(Act(2000
Dealing Fee
the( fee( of( 0.35%( (per( transac8on)( that( is( described( in( the(
Fees(&(Expenses(sec8on(contained(in(Part(2
Directors
MMF(Directors(and(Amp(Channel(Music
Directors Fees
the(monthly(fees(payable(to(the(Directors(that( are(described(
in(the(Fees(&(Expenses(sec8on(contained(in(Part(2
Distributor Fees
the( one( off( fee( of( 2%( (payable( from( the( Ini8al( Fee)( that( is(
described(in(the(Fees(&(Expenses(sec8on(contained(in(Part(2
Page 41
FCA
Financial(Conduct(Authority
HMRC
HM(Revenue(&(Customs
IHT
Inheritance(Tax
Inheritance Tax Relief
relief( from( IHT,(as( described( in( the( Tax( Advantages( sec8on(
contained(in(Part(1
Initial Fee
the( one( off( fee( of( 7%( that( is( described( in( the( Fees( &(
Expenses(sec8on(contained(in(Part(2
Intermediary
a( person/company( who( promotes( and( markets( the( Service(
and(arranges(the(investment(for(the(Investor
Intermediary Fees
the( one( off( fee( of( 3%( that( is( described( in( the( Fees( &(
Expenses(sec8on(contained(in(Part(2
Investee Companies
the( separate( companies( in( which( Amplify(Music( SEIS(4( will(
invest( in( according( to( the( terms( of( the( Memorandum,(
including( the( Investor( Agreement,( which( are( all( SEIS(
Qualifying(Companies(and(are(described(in(Part(5
Investee Company
Any(one(of(the(Investee(Companies(in(which(an(Investment(is(
made
Investment
An( investment( in( an( Investee( Company( executed( for( an(
Investor(through(the(Service
Investor
an( individual( (and( certain( trustees)( that( completes( an(
Applica8on( Form( in( the( form( enclosed( with( this(
Memorandum(which( is(accepted( by(the( Issuer(and( so( enters(
into(an(Investor(Agreement(and(invests(through(the(Service
Issuer
Sapphire( Capital( Partners(LLP,(a( limited( liability(partnership(
with(registered( number( NC000562(whose(registered( office(is(
28(Deramore(Park,(Belfast,(BT9(5JU,(which(is(authorised(and(
regulated(by(the(FCA(under(registra8on(number(565716
Investor Agreement
the(agreement(to( be(entered(into(by(each(Investor,(which( is(
contained( in( the( Appendices( and( forms( part( of( the(
Memorandum
Issuer Fee
the(one(off( fee(of(2%( (payable(from( the( Ini8al( Fee),(out( of(
which( 0.75%( is( payable( to( Amp( Channel( Music,( that( is(
Loss Relief
relief(from(capital(losses,(as(described( in(the(Tax(Advantages(
sec8on(contained(in(Part(1
Memorandum
the( informa8on( memorandum( rela8ng( to( the( Service,(
including( the( Investor( Agreement( and( Applica8on( Form,(
which( has( been( issued( and( approved( by( the( Issuer( for( the(
purposes(of(sec8on(21(of(FSMA
MiFID
Markets( in( Financial( Instruments( Direc8ve( (2004/39/EC)( (as(
amended( and( supplemented(from(8me(to(8me)( and( a(“non4
MiFID”( person,( IFA( or( fund( means( any(person,( IFA( or( fund(
which( is( not( regulated( by( the( regulatory(regime( introduced(
by(MiFID
minimum(revenue(guarantees(such(as(advances,(pre4sales(or(
the(like,(which(are(in(line(with(standard(industry(prac8ces
Minimum Service Size
the( aggregate( amount( of( Subscrip8ons( by( Investors(
amoun8ng(to(a(minimum(of(£500,000((or( such(other(amount(
that(the(Issuer(may(determine(in(its(absolute(discre8on)
MMF or Music Managers Forum
Music( Managers( Forum( Limited,( a( company( limited( by(
guarantee( registered( in( England( and( Wales( with( registered(
number(02784834(whose(registered(office(is(at(4(Gees(Court,(
London,(W1U(1JD
MMF Director
An( individual( director( of( the( Investee( Companies( that( has(
been(appointed(from(the(MMF’s(own(board(of(directors
Nominee
Share( Nominees(Limited,( a( wholly(owned( subsidiary(of( The(
Share(Centre(Limited
Page 42
Offers
the( offers( to( subscribe( for( SEIS( Qualifying( Shares( of( the(
separate( Investee( Companies( through( the( Service( in(
accordance( with( the( terms( of( the( Memorandum,( which(
includes(the(Investor(Agreement
Performance Fee
the( performance( fee( payable( to( the( Directors( that( is(
(
Portfolio
the( monies( an( Investor( contributes( to( the( Service( on( or(
before(a(Closing(Date(plus(all(Investments(made(through( the(
Service( which( are( allocated( to( an( Investor( and(registered( in(
the(name(of(the(Nominee(on(the(Investor’s(behalf(and(which(
are( contributed( out( of( such( monies( plus( all( income( and(
capital(profits(arising(thereon
Service or Amplify Music SEIS 4
the( Amplify( Music( SEIS( 4( service( which( describes( the(
arrangement( whereby(Investors( may( invest( in( the( Investee(
Companies(on(the(terms(set(out(in(the(Memorandum
Shares
ordinary( equity( shares( in( an( Investee( Company(subscribed(
for(by(Investors(through(the(Service
Signed Artist
an( ar8st( signed( by( an( Investee( Company,( which( (for( the(
avoidance(of(doubt)(may(refer(to(a(band(or(act
Subscription
the( total( gross( amount( contributed( by( an( Investor( in(
accordance(with(the(terms(of(the(Memorandum
Qualifying Investment
an(Investment(in(an(SEIS(Qualifying(Company
Target Service Size
the( aggregate( amount( of( Subscrip8ons( by( Investors(
amoun8ng(to(a(maximum(of(£1,500,000
SEIS
Seed( Enterprise( Investment( Scheme( under( part( 5A( of( the(
Income(Tax(Act(2007(as(introduced(by(the(Finance(Act(2012
Tax Reliefs
the(tax(reliefs(available(to(SEIS(Qualifying(Investors(who(have(
made(SEIS(Qualifying(Investments
SEIS Income Tax Relief
50%( income( tax( relief( that( a( SEIS( Qualifying( Investor( may(
obtain(where(he/she(has(made(a(SEIS(Qualifying(Investment,(
as( described( in( the( Tax( Advantages( sec8oned( contained( in(
Part(1
VAT
Value(Added(Tax
SEIS Minimum Holding Period
the(period( beginning(with(the(issue(of(Shares(of(the(Investee(
Company(and(ending(three(years(later
In% this% Memorandum% (and% unless% the% context% otherwise%
requires),%a%reference%to% a%4me%of% day%is%to%the%4me%of%day%
in% London,%a%reference%to%a%page%or%Part% is%to%a%page%or%part%
of% this% Memorandum,%a% reference% to% "£"% or% "p"% is% to% the%
lawful% currency% of% the% United% Kingdom% and% the% masculine%
shall%include%the%feminine.
SEIS Qualifying Company
a(company(which(is(a(qualifying(company(for(the(purposes(of(
the(SEIS
SEIS Qualifying Investment
an( investment( by( a( SEIS( Qualifying( Investor( in( a( SEIS(
Qualifying(Company(which(meets( all( other( condi8ons(in( the(
SEIS(necessary(to( obtain( SEIS(Relief( including( holding( on( to(
the(relevant(Shares(for(the(applicable(three(year(period
SEIS Qualifying Investor
an(investor(which(is(a(qualifying(investor( for(the(purposes(of(
SEIS
SEIS Qualifying Shares
means(ordinary(shares(in(an(Investee(Company
Page 43
INVESTOR AGREEMENT
This%Investor%Agreement% sets% out% the%terms%and% condi4ons%
agreed% between% the% Investor% named% in% the% Applica4on%
Form,% the% Issuer,% the% Investee% Companies% and% the%
Administrator% rela4ng% to% the% Investor’s% par4cipa4on% in%
Amplify%Music%SEIS%4.
1. Definitions, Construction and Interpretation
1.1(The(terms(used( in(this(Investor( Agreement( shall(have(the(
meanings(defined(in(the(Glossary(Of(Terms(as(set4out(in( Part(
7(of(the(Memorandum,(which(this(Investor(Agreement(forms(
a(part(of.
1.2( Words( and( expressions( defined( in( the( FCA(Rules( which(
are( not( otherwise( defined( in( this( Investor( Agreement( shall,(
unless( the( context( otherwise( requires,( have( the( same(
meaning(in(this(Investor(Agreement.
1.3( Any( reference( to( a( statute,( statutory( instrument( or( to(
rules( or( regula8ons( shall( be( references( to( such( statute,(
statutory(instrument(or(rules(and(regula8ons(as(from(8me(to(
8me( amended,( re4enacted( or( replaced( and( to( any(
codifica8on,( consolida8on,( re4enactment( or( subs8tu8on(
thereof(as(from(8me(to(8me(in(force.
1.4( References( to( the( singular( only( shall( include( the( plural(
and(vice(versa.
1.5(Personal( pronouns( in( the( singular( are(references( to( the(
Investor(and(in(the(plural(are(references(to(the(Issuer.
1.6(Unless(otherwise(indicated,(references(to(clauses(shall(be(
to(clauses(in(this(Investor(Agreement.
1.7( Headings( to( clauses( are( for( convenience( only( and( shall(
not(affect(the(interpreta8on(of(this(Investor(Agreement.
2. Investing through the Service
2.1(This(Investor(Agreement(comes(into(force(on(the(date(on(
which( your( Applica8on( Form( is( accepted.( If( so,( the(
Administrator(will(no8fy(you( in(wri8ng(that( your(Applica8on(
Form(is(accepted(in(respect(of(the(Service.
2.2( This( Investor( Agreement( enables( you( to( appoint( the(
Administrator( to( act( on( your( behalf( to( make( the( venture(
capital( investments( specified( in( this( Memorandum( into( the(
Investee(Companies.
2.3(I,(the(Investor,(hereby(appoint(the(Administrator,(on( the(
terms( set( out( in( this( Investor( Agreement,(to( report( on( my(
Investments.(The(Administrator( accepts(its(appointment( and(
obliga8ons(on(the(terms(set(out(in(this(Investor(Agreement.
2.4(I( acknowledge(that( the( Administrator( will( be( appointed(
to( carry( out( administra8on( and( custodian( services( on( my(
behalf(pursuant( to( the( terms( of(the(Administrator( Standard(
Terms,(which(are(set( out(in(full(in(Schedule(3(of(this(Investor(
Agreement.
2.5(I(acknowledge(that(the(Administrator(will( arrange(for( the(
Nominee(to(be(my(nominee(in(respect(of(my(Porrolio(and(to(
carry( out( on( my( behalf( the( services( set( out( in( the(
Administrator(Standard(Terms.
2.6(This(Investor(Agreement( shall(be( read(together( with( the(
Investment( Criteria( set( out( in( Schedule( 1( of( the( Investor(
Agreement,(the(Terms(of(Investment(set(out(in(Schedule(2(of(
the( Investor( Agreement( and( the( Administrator( Standard(
Terms(set(out( in(Schedule(2(of(the(Investor( Agreement,(all(of(
which(are(incorporated( in(this(Investor( Agreement(as(if(they(
were(set(out(in(full.
3. Subscriptions
3.1(You:
a)
must( make( a( Subscrip8on( of( not( less( than( the(
Minimum( Subscrip8on( shown( in( your( Applica8on(
Form(at(the(same(8me(as(submi}ng(your(Applica8on(
Form(to(invest(through(the(Service;
b)
may(make( further( Subscrip8ons( up( to( and( including(
the(Closing(Date;(and
c)
may(not(make(any(Subscrip8ons(auer(the(final(Closing(
Date(unless(with(the(permission(of(the(Issuer.
3.2( Subscrip8ons( received( shall( be( deposited( in( a( client(
account(pursuant(to(clause(7.7(pending(their(investment.
4. Services
4.1( The( Administrator( provides( the( administra8on( services(
on( the(terms(set(out(in(this(Investor(Agreement.(Neither( the(
Issuer( nor( the( Administrator( will( exercise( any(discre8onary(
powers( in( rela8on( to( the( selec8on( of,( or( exercising( rights(
rela8ng(to,(the(Investee(Companies(in(which(the(Investor(will(
invest.( The( Investor,( by( virtue( of( comple8ng( the( Investor(
Agreement,( is( solely( responsible( for( selec8ng( the( Investee(
Companies( in( which( to( invest( and( will( be( responsible( for(
exercising(any(rights(rela8ng(to(the(Investee(Companies.
4.2( The( Administrator( will( arrange( for( the( provision( of(
nominee( services( in( rela8on( to( the( holding( of( Investee(
Company( shares( by( the( Nominee( under( the( Administrator(
Standard(Terms.
4.3( You( hereby( authorise( the( Issuer( and( the( Administrator(
(and( grant( to( the( Issuer( and( the( Administrator( a( power( of(
axorney)( to( act( on( your( behalf( and( in( your( name( to( agree(
and( do(all( such(acts,(transac8ons,(agreements( and(deeds( as(
the(Issuer( may(deem( necessary(for( the(purposes( of( making(
the( Investments( into( the( Investee( Companies( described( in(
this( Memorandum( and( this( authority( (and( power( of(
axorney)(shall(be(irrevocable(and( shall(survive,(and(shall(not(
be( affected( by,(your( subsequent(death,(disability,(incapacity,(
Page 44
incompetence,( termina8on,( bankruptcy,( insolvency( or(
dissolu8on.
4.4( The( Issuer( and( the( Administrator( shall( not,( unless(
otherwise( authorised,( have( any( authority( to( act( on( your(
behalf(or(as(your(agent.
5. Investment Criteria
5.1(In(providing(the(Service,(the(Issuer(and(the(Administrator(
shall(at(all(8mes(have(regard(to:
a)
the(need( for( the( Investments( in( Investee( Companies(
within( your( Porrolio( to( axract( the(tax( advantages(in(
accordance( with( the( Investment( Criteria( and(
restric8ons( set( out( in( Schedule( 1( of( this( Investor(
Agreement;(and
b)
all(Applicable(Laws.
5.2( Surplus( cash( held( prior( to( Investment( in( Investee(
Companies(will(be(placed( by(the(Administrator(on( deposit( in(
accordance(with(clause(7.7.
6. Terms applicable to transaction
6.1( In( effec8ng( transac8ons( through( the( Service,( the(
Administrator(shall(act(in(accordance(with(the(FCA(Rules.
6.2(Where( relevant,(it( is( agreed( that( all( transac8ons( will( be(
effected(in( accordance(with(the(rules(and(regula8ons( of(any(
relevant( market,(exchange(or( clearing(house((and(the(Issuer(
shall( take(all( such(steps( as( may(be(required( or( permixed( by(
such( rules( and(regula8ons(and/or( by(good( market( prac8ce)(
through( which( transac8ons( are( executed( and( to( all(
Applicable(Laws(so(that:
a)
if( there(is(any(conflict( between( the(provisions( of(this(
Investor( Agreement( and( any( such( rules,( customs( or(
Applicable(Laws,(the(laxer(shall(prevail;(and
b)
ac8on(may(be( taken(as(thought(fit( in(order( to(ensure(
compliance(to( any( such( rules,( customs( or( Applicable(
Laws.
You( should,(however,(be(aware(that( the(Investee(Companies(
will( be( unquoted,( small( companies( and( your( Porrolio( will(
therefore(be(invested(in(unlisted(securi8es;(there(is(therefore(
generally( no( relevant( market( or( exchange( or( consequent(
rules( and( customs( and( there( will( be( varying( prac8ces( for(
different( securi8es.( Transac8ons( in( such( securi8es( will( be(
effected( on( the( Administrators( Standard( Terms( set( out( in(
Schedule(3(of(this(Investor(Agreement.
6.3( Subject( to( the( FCA( Rules,(transac8ons( for( one( Investor(
will(be(aggregated(with(those(for( other( Investors(pursuant(to(
clause(6.4.(They(may(also(be(aggregated(with(transac8ons(for(
other(clients(of(the(Issuer,(and( of(its(Connected(Persons,(and(
Associates( and( their( Connected( Persons( and,( if( so,( any(
Investments( made( pursuant( to( such( transac8ons( will( be(
allocated( on( a( fair( and( reasonable( basis(in(accordance(with(
the(FCA(Rules( and( endeavours(will( be( made(to( ensure( that(
the( aggrega8on( will( work( to( the( advantage( of( each( of( the(
Investors,( but( you( should( be( aware( that( the( effect( of(
aggrega8on( may( work( on( some( occasions( to( an( Investor’s(
disadvantage.
6.4( When( the( Administrator( makes( an( Investment( in( a(
Investee( Company( for( you( and( on( behalf( of( the( other(
Investors,(the(Administrator( will( procure( that(the(number( of(
shares(in( the(relevant(Investee(Company(to(be(subscribed( as(
an(Investment( for( you( shall(be(in( the( propor8on( which( your(
Subscrip8ons( bears( to( the( total( Subscrip8ons( by( all( other(
such(Investors(through(the(Service.
7. Custody and Administration
7.1( The( Administrator( shall( be( responsible( for( providing(
administra8ve( and( custodian( services( in( rela8on( to(
Investments(and( the(safe(keeping( of( the( cash( comprised( in(
your(Porrolio(from(8me(to(8me,(including(the(sexlement(of(
transac8ons,( collec8on( and( distribu8on( of( income( arising(
from( Investments( and( the( effec8ng( of( other( administra8ve(
ac8ons( in( rela8on( to( Investments( such( as( vo8ng( on( the(
terms(and( condi8ons( set( out( in( the( Administrator( Standard(
Terms.
7.2( The( Investee( Company(shares( will( be( registered( in( the(
name( of( the( Nominee.( All( such( Investee( Company( shares(
within( your(Porrolio(will(be(beneficially(owned(by(you( at( all(
8mes( but( the( Nominee( will( be( the( legal( owner( of( the(
Investee(Company(shares.
7.3( As( set( out( in( the( Administrator( Standard( Terms,( the(
Nominee’s( du8es( shall( be( solely( of( a( mechanical,(
safeguarding(and(administra8ve(nature,(ac8ng(in(accordance(
with( all( reasonable( and( lawful( instruc8ons( from( you( in(
accordance( with( the( Investor( Agreement( or( received( from(
8me(to(8me(concerning(the(Investments.
As(set(out(in(the(Administrator(Standard(Terms,(the(Nominee(
will( hold( any(8tle(documents(or( documents( evidencing(8tle(
to( the( Investments.(Individual( Investor( en8tlements( are(not(
iden8fiable( by( separate( cer8ficates( or( other( physical(
documents(of(8tle(or(external(electronic(records.
7.4(Investee(Company(shares(or( 8tle(documents(may(not( be(
lent( by( you( to( a( third( party( and( nor( may( there( be( any(
borrowing( by( you( against( the( security( of( the( Investee(
Company(shares(or(such(8tle(documents.
7.5( The( following( applies( to( maxers( arising(with( regard( to(
shareholder(rights(in(each(Investee(Company:
a)
Investee( Company( Mee8ngs(–( the( Administrator( will(
arrange( for( you( to( receive(details(of( any(mee8ngs( of(
Investee( Companies( in( which( you( are( invested,( and(
any(other( informa8on( issued( to( shareholders(in( such(
Investee( Companies,( if( you( at( any( 8me( in( wri8ng(
request( such( details( and( informa8on( (either(
specifically( in( rela8on( to( a( par8cular( Investee(
Company( investment( or( generally( in( respect( of( all(
Investee(Company(investments).(You( shall(be(en8tled,(
Page 45
as( a( maxer( of( right,( to( vote( as( you( see( fit( at( any(
mee8ng( of( shareholders( in( a( Investee( Company( in(
which(you(hold(an(investment.
b)
Varia8on(of(Investee(Company(Share(Capital( –(if(there(
is( any( proposed( varia8on( of( the( share( capital( of( an(
Investee( Company( (whether( that( varia8on( is( a(
capitalisa8on( issue( (other( than( a( scrip( dividend),(
rights(issue,(consolida8on,(subdivision(or( reduc8on( of(
capital(or(otherwise):
i)
if(a(bonus(or( capitalisa8on( issue(and(no(ac8on(
is( required( to( be( taken,(the( Administrator( will(
be( no8fied( and( the( resultant( Investee(
Company(shares(will( be(automa8cally(credited(
to(your(holding;
ii)
if( a( rights( issue( or( other( proposed( varia8on,(
the( Nominee( will( send( you( such( summary( of(
the( proposal( and( you( will( take( the( required(
ac8on((if( any),(and( if(no(instruc8on(is(received(
from(the(you,(the(Nominee(will(allow(the(rights(
to( lapse.( Lapsed( proceeds(in( excess( of( £3( will(
be( credited(to( you.(Sums(less( than(this(will(be(
retained( for( the( benefit( of( the( Nominee.(
However,( if( nil( paid( rights( in( a( secondary(
market( are(acquired(for(you,(such(rights(will(be(
taken( up,( unless( you( provide( contrary(
instruc8ons;
iii)
offers( will( be( accepted( by( the( Nominee( only(
upon(instruc8ons(received(from(you;
iv)
your( en8tlement( to( new( Investee( Company(
shares( will( be( to( the( nearest( whole( share(
rounded( down( and( the(aggregate( of(frac8onal(
en8tlements(may(be(held(by(the(Nominee.
c)
Investee( Company( Liquida8on( 4( in( the( case( of( a(
proposal( to( wind( up,( amalgamate( or( take( over( an(
Investee(Company(you(will(be(sent(a(summary(of(the(
proposal(and(the(required(ac8on(to(be(taken((if(any).
7.6(Where(applicable(you(are(responsible(for( complying(with(
all( requirements( under( the( Takeover( Code(applicable( to(you(
in( your( capacity( as( a( holder( of( Investee( Company( shares,(
including( obliga8ons( to( no8fy( the( FCA( and( the( Takeover(
Panel( of( dealings( in( relevant( shares( during( a( takeover( or(
merger.
7.7(Unless(otherwise(agreed,(cash( will(be(held(in(accordance(
with( the( client( money( rules( of( the( FCA.( Your( Subscrip8on(
monies(and(all(dividends(and(proceeds(of(sale(of(Investments(
pending( their( distribu8on( will( be( deposited( by( the(
Administrator( with( an( authorised( and( reputable( banking(
ins8tu8on( in( a( client( account( in( the( name( of( “The( Share(
Centre(4( Amplify”(with( client( trust(status( together( with(cash(
balances( belonging( to( other( Investors.( The( mandate( for(
opera8on( of( the( account( shall( be(held(by(the(Administrator(
and( any(interest( arising( therefrom(will( be( retained( to( cover(
administra8on(costs(and(not(paid(to(Investors.(
Share( dividends( shall( not( be( receivable( under( this( Investor(
Agreement(otherwise(than(in(cash.
Interest( will( be( payable( on( all( credit( balances( on( the( bank(
account( and( shall( be( paid( to( Amp( Channel( Music( as( a(
contribu8on( towards( its( 8me( spent( drauing( the( relevant(
contents(of(this(Memorandum.
7.8( You( confirm( that( in( no( event( shall( an( investment(
counterparty( dealing( with( the( Issuer,( the( Administrator( or(
the(Nominee(with( respect(to( any(document(signed( or(ac8on(
undertaken( for( or( on( behalf( of( you( in( accordance( with( this(
Investor( Agreement( be(obliged( to( inquire( into( the( necessity(
or( expediency(of( any(act( or( ac8on( of( you,(the( existence(or(
non4existence(of(any(fact(or( facts(which(cons8tute(condi8ons(
precedent(to(acts(by(you(or(any(act(or(failure(to(act(by(you(or(
as(to(any(other(maxer(whatsoever(involving(you.(You(declare(
that( a(person(who( deals(with( the(Nominee(and(the(Issuer( in(
good( faith( may( accept( a( wrixen( statement( signed( by( the(
Nominee(or(the(Issuer(to(the(effect(that(their(appointment(as(
such(hereunder( has(not(been(revoked(as(conclusive(evidence(
of(that(fact.
8. Reports & Information
8.1( You( will( be( provided( with( contract( notes( for( each(
Investee(Company(transac8on(by(the(Administrator.
8.2(The(Administrator(shall(send(you(a(report(rela8ng(to(your(
Porrolio,(complying(with(the(FCA(Rules,(every(six( months,(in(
respect( of( the( periods( ending( on( or( around( 5( April( and( 5(
October.( Reports( will( include( a( measure( of( performance( in(
the(later( stages( of( the( Service(once(valua8ons(are( available(
for( the( Investments.( Investments( will( be( valued( by( the(
Directors( in( accordance( with( appropriate( IPEVC( Valua8on(
Guidelines(from(8me(to(8me(prevailing.
8.3( The( Issuer,( the( Administrator( and( the( Nominee( shall(
supply( such( further( informa8on( which( is( in( its( respec8ve(
possession( or( under( its( control( as( you( may( reasonably(
request( as( soon( as( reasonably( prac8cable( auer( receipt( of(
such(request.
8.4(Any(contract(notes,(statements,(reports(or(informa8on(so(
provided(by(the(Issuer,(the(Administrator(or( the( Nominee(to(
you( will( state( the( basis( of( any( valua8ons( of( Investments(
provided.
9. Fees & Expenses
The(Issuer,(the(Administrator( and( the(Directors(shall( receive(
fees( and( the( reimbursements( of( their( costs( and( expenses(
respec8vely,( which( are( set( out( in( the( Fees( &( Expenses(
sec8on(contained(in(Part(2.
Page 46
10. Resources
The( Issuer,( the( Administrator( and( the( Directors( shall( each(
devote( such( 8me( and( axen8on( and( have( all( necessary(
competent( personnel(and( equipment(as(may(be(required( to(
enable( them( to( provide( their( respec8ve( services( properly(
and( efficiently,( and( (where( applicable)( in( compliance( with(
the(FCA(Rules.
11. Your Obligations
11.1( Your( use( of( the( Service,( which( is( established( by( this(
Investor( Agreement,(is(set(up( on(the(basis(of(the(declara8on(
made(in(your(Applica8on(Form,(which(includes(the(following(
statements(made(in(rela8on(to(your(Subscrip8on:
the(fact(as(to(whether(or(not(you( wish(to(seek(SEIS(Relief(
for(the(Investments(in(Investee(Companies;
that( you( agree(to( no8fy(the(Issuer( if(any(Investment(is(in(
any( Investee( Company( with( which( you( are( connected(
within( sec8on( 163( and( sec8ons( 166( to( 177( and( within(
Part(5A(of(ITA(2007;
that(you(agree(to(no8fy(the(Issuer(if,(within(three(years(of(
the(date( of( issue( of( shares( by(a( Investee(Company,(you(
become( connected( with( that( Investee( Company( or(
receive(value(from(that(Investee(Company;(and
that( you( will( provide(the(Issuer( with( your(tax(district,(tax(
reference(number(and(na8onal(insurance(number.
11.2(You( hereby(confirm( that(the(informa8on( stated(in( your(
Applica8on(Form(in(these((and(all(other)(respects(is(true(and(
accurate(as(at(the(date(of(this(Investor(Agreement.
11.3( You( must( immediately( inform( the( Issuer( in( wri8ng( of(
any( change( of( tax( status,( other( material( change( in(
circumstance(and(any(change( in(the( informa8on( provided( in(
the(Applica8on(Form(to(which(clause(11.1(above(refers.
11.4( In( addi8on,( you( must( provide( the( Issuer( and( the(
Administrator( with( any( informa8on( which( they( reasonably(
request(from(8me(to( 8me( for( the(purposes(of( providing(the(
Service(pursuant(to(the(terms(of(this(Investor(Agreement.
and( during( the( course( of( your( investment( therein( through(
the( Service.( The( Directors( have( established( and( act( as(
directors(of( the( Investee(Companies,(so( they(are( connected(
to( the( Investee( Companies.( Regarding( such( pre4exis8ng(
rela8onship(with(Investee(Companies,(the(Directors(have(put(
forward( the( Investee( Companies( on( the( basis( that( they(
genuinely(believe(they(meet( the( Investment( Criteria(set(out(
in( schedule(1( and( in( any(event,(it( shall(be( you( who( has(and(
exercises( exclusive( and( final( discre8on( on( all( investments(
made(by(the( Service(by(virtue( of(entering(in( to( this(Investor(
Agreement.
13.2(The(Directors(may(provide( similar( services(or( any(other(
services( whatsoever( to( any( client( and( they( shall( not( be(
required( to( account( to( you( for( any( profits( earned( in(
connec8on( therewith.( So( far( as( is( deemed( prac8cable,( the(
Directors( will( use( all( reasonable( endeavours( to( ensure( fair(
treatment( between( Investors( and( such( other( clients( in(
compliance(with(the(FCA(Rules.
13.3(The( Directors,(and(any(of( their( Associates( shall( not( be(
liable( to( account( to( you( for( any( profit,( commission( or(
remunera8on( made( or( received( from( or( by(reason( of( such(
transac8ons( or( any( connected( transac8ons.( For( example,(
such( poten8al( conflic8ng( interests( or( du8es( may( arise(
because:
a)
remunera8on(or( other( benefits(by(reason( of(ac8ng(in(
similar( transac8ons( involving( companies( whose(
b)
securi8es(are(held(for(you;
the(Directors( or( any(of( their( Associates( may(take( an(
equity(stake(in( an(Investee(Company(whose(securi8es(
are( held( for( you( at( a( price(not( below( the( issue( price(
available(to(you(subject(to(sub4(clause(13.3(c);
c)
12. Delegation and Assignment
The( Issuer( (and( the( Administrator( and( the( Nominee( where(
reasonable( and( as( may( be( agreed( with( the( Issuer)( may(
employ( agents( and( subcontractors,( including( their(
Associates,( to( perform( any( administra8ve,( custodial( or(
ancillary( services( to( assist( the( Issuer( in( performing( its(
services,(in( which(case(it( will( act(in( good( faith(and( with( due(
diligence(in( the(selec8on,(use(and( monitoring(of(agents.(Any(
such(employment(of(agents(shall(not(affect(the(liability(of(the(
Issuer( (or( the( Administrator( and( the( Nominee( where(
appropriate)(under(the(terms(of(this(Investor(Agreement.
13. Potential Conflicts of Interest and Disclosure
13.1(The(Directors(or(Associates(of(the(Directors(may(provide(
other( services( to( some( of( the( Investee( Companies( prior( to(
the( Directors( or( any(of( their( Associates( may( receive(
the(Directors’(or( any(of( their( Associates’(en8tlement(
to( the(performance(fees(described(in( schedule(2( may(
be( structured( by( way( of( subscrip8ons( for( Investee(
Company(shares( by( or( on( behalf( of( the( Directors( or(
their( Connected( Persons,(or( their( Associates,(or( their(
Connected( Persons,( and/or( others( with( whom( the(
Directors(may(share(such(en8tlement.(Those(Investee(
Company(shares(may(be( subscribed( at( a(price( below(
the( issue( price( available( to( you( and( may( dilute( the(
returns(to( you( but( only(to( the( extent( of( the( value( of(
the( performance( fees( and( subject( to( the( condi8ons(
described(in(schedule(2;(and
d)
any(of(the(Directors’(Associates(or( Connected(Persons(
may( be( or( become( a( director( of,( hold( or( deal( in(
Page 47
securi8es(of,(or(is(otherwise(interested(in(any(Investee(
Company(whose(securi8es(are(held(or(dealt(in(on(your(
behalf.
14. Liability
14.1( The( Issuer,( the( Administrator( and( the( Directors( agree(
that( each( of(them(will(at(all(8mes(act(in(good( faith(and(with(
reasonable(care(and( due(diligence.(Nothing(in( this(clause(14(
shall(exclude(any(duty(or( liability(owed(to(you( under(the(FCA(
Rules.
14.2( Neither( the( Issuer,( the( Administrator( or( the( Directors(
shall(be(liable(for(any(loss(to(you(arising(from(any(transac8on(
or(for(any(other(ac8on(made(in(accordance(with(this(Investor(
Agreement.( The(Issuer,( the( Administrator( and( the(Directors(
will(only(be( liable(to( the(extent(that( such(loss(is(directly(due(
to(the(negligence(or(willful(default(or( fraud(of(the(Issuer,(the(
Administrator( and( the( Directors( or( any( of( their( officers,(
agents(or(employees.
14.3(The(Administrator( accepts(responsibility(for( the(holding(
of(Investee(Company(shares(in(the(name(of(the(Nominee(and(
for( the( acts( and( omissions( of( the( Nominee,( provided,(
however,( that( the( Administrator( shall( not( be( liable( for( any(
loss(to(you(arising(from(any(ac8on(it(takes(in(accordance(with(
this(Investor( Agreement,(except( to( the(extent(that( such( loss(
is(directly(due(to( the(negligence(or( wilful( default( or(fraud( of(
the(Issuer(or(any(of(its(officers,(agents(or(employees.
14.4( Subject( to( clauses( 6.5( and( 12,( neither( the( Issuer,( the(
Administrator( nor( the( Directors( shall( be( liable( for( any(
defaults( of( any( counterparty,( agent,( banker,( nominee( or(
other( person( or( en8ty( which( holds( money,( investments( or(
documents( of( 8tle( for( the( Service,( other( than( such( party(
which(is(their(Associate.
14.5(In( the(event( of( any(failure,(interrup8on( or( delay(in( the(
performance( of( the( the( Issuer,( the( Administrator( or( the(
Directors(respec8ve(obliga8ons(resul8ng(from(acts,(events(or(
circumstances(not( reasonably(within( their( control((including(
but(not(limited(to(acts(or( regula8ons(of(any(governmental(or(
suprana8onal( bodies(or( authori8es)(or(breakdown,(failure(or(
malfunc8on(of(any(telecommunica8ons(or( computer( service(
or( systems,( you( acknowledge( that( neither( the( Issuer,( the(
Administrator( nor( the( Directors,( as( appropriate,( shall( be(
liable( or( have( any(responsibility(of( any(kind( for( any(loss(or(
damage(thereby(incurred(or(suffered(by(you.
14.6( The( Issuer,(the( Administrator,( the( Investee( Companies(
and( the( Directors( give( no(representa8ons( or( warranty(as( to(
the( performance( of( your( Porrolio.(Investments( in( Investee(
Companies( are( high( risk( investments( and( are( not( Readily(
Realisable(Investments.(There(is(a(restricted(market( for( such(
investments( and( it( may( therefore( be( difficult( to( sell( the(
investments( or( to( obtain( reliable( informa8on( about( their(
value.(By(entering(into( this(Investor( Agreement( you( confirm(
that( you( have( carefully( considered( the( suitability( of( the(
Investee( Companies,( have( read( and( understood( the(
Memorandum( including( in( par8cular( the( risk( warnings( set(
out(therein,(and(have(your(own(independent(advice.(Nothing(
in( this(clause(14( shall( exclude( the( liability(of( the( Issuer,(the(
Administrator(and(the(Directors(for(any(acts(of(fraud.
15. Realisation
15.1(The(Investee(Companies(will(seek(to(realise(Investments(
within( a( reasonable( period( auer( the( applicable( three( year(
SEIS(qualifying(period.(You(acknowledge(that(there(can(be(no(
guarantee(as(to(the(performance(or(value(of(Investments,(or(
the( achievability( or( 8ming( of( realisa8ons.( On( realisa8on( of(
Investments,( the( Administrator( shall( arrange( that( the(
proceeds(will((net( of(fees(and(costs,(including(bank(charges)(
be( paid( to( you( in( accordance( with( the( Administrator(
Standard(Terms.
15.4(If(the( Minimum( Service(Size(is( not( reached( by(5pm( on(
Friday( 27th( March( 2015,( or( such( other( date( as( may( be(
determined( by( the( Issuer( and( no8fied( to( Investors,( no(
Investments( will( be( made( and( Investors’( monies( will( be(
returned(without(interest.
16. Confidential Information
16.1(Neither( the(the( Issuer,(the( Administrator,(the(Directors(
nor( you( shall( disclose( to( third( par8es( or( take( into(
considera8on( for( purposes( unrelated( to( the( Service(
informa8on(either:
a)
the(disclosure(of( which( by(it( would(be( or( might( be(a(
breach(of(duty(or(confidence(to(any(other(person;(or
b)
which( comes( to( your( no8ce( or( the( no8ce( of( a(
Connected(Person(of(the(Issuer,(the(Administrator( and(
the( Directors( but( properly( does( not( come( to( the(
actual( no8ce( of( that( party( providing( services( under(
this(Investor(Agreement.
16.2(The(Issuer,(the(Administrator(and(the(Directors(will(at(all(
8mes( keep( confiden8al( all( informa8on( acquired( in(
consequence(of(the(services,(except(that(informa8on(may(be(
disclosed:
a)
as( may( be( necessary( and( appropriate( in( connec8on(
with(the(proper(performance(and(enforcement(of(this(
Investor(Agreement;
b)
to( a(proposed( or(actual( direct(successor( in(interest(to(
one(of(the(par8es;
c)
where(the(informa8on(is(in(the(public(knowledge;
d)
which( a(party(is( en8tled( or( bound( to( disclose( under(
compulsion(of(law;
e)
to(a(tax(or(regulatory(authority(in(compliance(with(any(
applicable(legal(requirements;
f)
is( given( to( their( professional( advisers( where(
reasonably( necessary( for( the( performance( of( their(
professional(services;(or
Page 48
g)
which( is( authorised( to( be( disclosed( by( the( relevant(
party.
16.3( The( Issuer,( the( Administrator( and( the( Directors( may(
verify( your( iden8ty( and( assess( your( financial( standing.( In(
doing( so,( one( or( more( credit( reference( agencies( may( be(
consulted(which(will(record(a(search.
17. Complaints and Compensation
17.1( The( Issuer,( the( Administrator( and( the( Directors( have(
established( procedures( for( considera8on( of( complaints,(
which( are( (where( applicable)( in( accordance( with( the( FCA(
Rules.(Details( of( these( procedures( are( available( from( them(
on(request.(Should(you(have(a(complaint,(you(should(contact(
the( Issuer.( If( they( cannot( resolve( the( complaint( to( your(
sa8sfac8on,(you( may(be( en8tled( to( refer( it( to( the(Financial(
Ombudsman(Service.
17.2(The(protec8ons(offered( by(the(FCA(do(not( apply(to( the(
Investee( Companies( and( compensa8on( under( the( UK(
investor( compensa8on( scheme( will( not( be( available( in( the(
event(of(the(failure(of(any(of(the(Investee(Companies.
18. Notices, Instructions and Communications
18.1(No8ces(of( instruc8ons(to( the( Issuer,(the(Administrator(
or( the( Directors( must(be( in(wri8ng(and(signed( by(you( or( on(
your( behalf,(except( as(otherwise(specifically(indicated(in(this(
Investor(Agreement.
18.2(The(Issuer,(the(Administrator(and(the(Directors(may(rely(
and(act(on(any(instruc8on(or(communica8on(which(purports(
to(have(been(given(by(persons(authorised(to(give(instruc8ons(
by(you(under(the(Applica8on(Form( or(subsequently(no8fied(
by( you( from( 8me( to( 8me( and,( unless( that( relevant( party(
receives( wrixen( no8ce( to( the(contrary,( whether( or( not( the(
authority( of( such( person( shall( have( been( terminated.(
Without( prejudice( to( the( foregoing,( in( no( event( shall( any(
such( party(dealing(with( your( representa8ve( with( respect( to(
any(document( signed(or( ac8on(undertaken( on(behalf(of(you(
be(obliged(to(inquire(into(the(necessity(or(expediency(of(any(
act( or( ac8on( of( you,( the( existence( or( non4existence( of( any(
fact(or(facts(which(cons8tute(condi8ons(precedent(to(acts(by(
you( or( any(act( or( failure( to( act( by( you( or( as( to( any( other(
maxer(whatsoever(involving(you.
18.3( All( communica8ons( with( you( shall( be( sent( (whether(
postal( or( electronic)(to( the(latest( address(you(have( supplied(
in( wri8ng( to( the( Issuer,(the( Administrator( or( the( Directors(
and(shall(be(deemed(received(by(you(on(the(second(day(auer(
pos8ng(or( on(the(day(auer( dispatch( in(the(case(of(electronic(
communica8on.( All( instruc8ons( by( you( shall( be( made( in(
wri8ng.( Telephone( conversa8ons( between( you( and( the(
Issuer,( the( Administrator( or( the( Directors( (as( the( case( may(
be)( may(be( recorded.(Communica8ons( sent( by(you( will( be(
deemed( received( only(if( actually(received( by(the( Issuer,(the(
Administrator( or( the( Directors( (as( the( case( may( be).( The(
Issuer,(the( Administrator( and(the(Directors(will( not( be(liable(
for( any(delay(or( failure( of(delivery((for( whatever( reason)( of(
any(communica8on(sent(to(you.
19. Unsolicited Real Time Financial Promotions
The( Issuer( may( communicate( an( unsolicited( real( 8me(
financial( promo8on( (i.e.(interac8ve(communica8ons( such( as(
a(telephone(call(or(electronic(mail(promo8ng(investments)(to(
you.
20. Amendments
The(Issuer( may(amend(this(Investor(Agreement(by(giving(you(
wrixen( no8ce( with( immediate( effect( if( such( is( necessary( in(
order( to( comply( with( Applicable( Laws( including( HMRC(
requirements,( or( in( order( to( maintain( the( SEIS(Relief( or( in(
order( to( comply( with( the( FCA( rules.( Any( other( proposed(
amendments(will(be(no8fied(to(you,(and(if(you(fail(or(omit(to(
give( no8ce( of( your( rejec8on( of( the( proposed( amendment(
within( 30( days( of( the( date( of( the( amendment( no8ce,(this(
Investor(Agreement(shall(be(deemed(amended(accordingly.
21. Data Protection
All( data( which( you( provide( to( the( Issuer,(the( Administrator(
and( the( Directors( (as( appropriate)( will( be( held( by( the(
relevant( party(subject( to(the( Data( Protec8on( Act( 1998.( You(
hereby( agree( that( the( Issuer,( the( Administrator( and( the(
Directors(may(pass( your( personal(data( to(each( other( and( to(
other( par8es( insofar( as( is( necessary( in( order( for( them( to(
provide( their( services(as(set( out( in( this( Investor( Agreement(
and( to( the( FCA( (where( applicable)( and( any( regulatory(
authority( which( regulates( them( and( in( accordance( with( all(
other(Applicable(Laws.
22. Entire Agreement
This(Investor( Agreement,(together( with(the(Applica8on(Form(
and( the( other( documents( men8oned( in( it,( comprises( the(
en8re( agreement( of( the( Issuer,( the( Administrator( and( the(
Directors( and( their( Associates( with( you( rela8ng( to( Amplify(
Music(SEIS(4(and(the(provision(of(the(services.
23. Rights of Third Parties
The( Nominee,( the( Administrator,( the( Directors( and( their(
respec8ve(Connected(Persons(may(enforce( any(term( of(this(
Investor( Agreement( which( purports( to( confer( a( benefit( on(
that( person,( provided( that( the( Issuer( and( you( may(amend,(
rescind,( vary,( waive,( release,( assign,( novate( or( otherwise(
dispose(of( all(or( any(of(their( respec8ve( rights(or( obliga8ons(
under( this( Investor( Agreement( without( the( consent( of( any(
person(who(is(not(a(party(to(this(Investor(Agreement.(Save(as(
provided,( a( person( who( is( not( a( party( to( this( Investor(
Page 49
Agreement(has(no( right( under( the(Contracts((Rights(of(Third(
Par8es)( Act( 1999( to( enforce( any( term( of( this( Investor(
Agreement,(but( this( does( not( affect( any( right( or( remedy(of(
such( third( party(which( exists( or( is(available(apart( from( that(
act.
24. Severability
If(any(term,(condi8on(or(provision(of(this(Investor(Agreement(
shall( be(held( to(be(invalid,(unlawful(or( unenforceable(to( any(
extent,(such(term,(condi8on( or(provision( shall(not( affect( the(
validity,( legality( or( enforceability( of( the( remainder( of( this(
Investor(Agreement.
25. Governing Law
This(Investor( Agreement(and(all(maxers(rela8ng(thereto(and(
any(dispute(or(claim(arising(out(of(or( in(connec8on(with(it(or(
its( subject( maxer( or( forma8on( (including( non4( contractual(
disputes( or( claims)( shall( be( governed( by( and( construed( in(
accordance( with( English( law( and( the( par8es( submit( to( the(
exclusive(jurisdic8on(of(the(English(courts.
SCHEDULE 1
Investment Criteria
1.(The(Investee(Companies(will(carry(on( one(or( more( trades(
in(the(music(industry,(with( the(added(bonus(of(obtaining(the(
tax( advantages( associated( with( SEIS( Qualifying( Investments(
in(accordance(with(the(common(investment(policy(described(
in(this(Memorandum.
2.(In(par8cular,(but(without( prejudice(to(the(generality(of(the(
above(statements,(the( criteria(for( the(Service( are(as(set(out(
in((a)(to((d)(below:
a)
each( Investee(Company(in( which( Investments(will( be(
made(are,(so(far( as(the(Issuer(is( aware(at(the(8me( of(
issue(of(the(Memorandum(and(expects(to(be(so(at(the(
8me( of( Investment,( SEIS( Qualifying( Companies( and(
the( Issuer( will( use( all( reasonable( endeavours( to(
ensure( that( Investee( Companies( remain( SEIS(
Qualifying(Companies( throughout( the( three4year(SEIS(
Minimum(Holding(Period;
b)
the( Subscrip8on( of( the( Investor,(by( way( of( inves8ng(
pro(rata( in( each(Investee( Company,(shall( be( invested(
in(a(minimum(of(ten(companies((i.e.(equally(across(all(
ten(Investee(Companies);
c)
10%( of( the( Subscrip8on( of( the( Investor( will( be(
invested(into(each(Investee(Company;(and
d)
the(Service( shall( not( involve( investment( in( any( other(
company(other( than( the( Investee( Companies(defined(
in(the(Memorandum.
3.( Investors( should( be( aware( that( the( Investments( will(
include( non4Readily( Realisable( Investments.( There( is( a(
restricted(market(for( such( Investments(and( it( may(therefore(
be( difficult( to( deal( in( the( Investments( or( to( obtain( reliable(
informa8on(about(their(value.
4.(In(the(event(of(a(gradual(realisa8on(of(Investments(prior(to(
termina8on( of( the( Service( under( Clause( 15.1,( the( cash(
proceeds( of( realised( SEIS( Investments( may( be( placed( on(
deposit(or(invested(in(fixed(interest(government(securi8es(or(
other( investments( of( a(similar( risk(profile.( No( interest( shall(
be(paid(to(the(client.(Proceeds(will(be(paid(out( on(realisa8on(
of( Investments( in( accordance( with( the( Administrator(
Standard(Terms.
SCHEDULE 2
Terms of Investment
The( terms(of( investment( in( the( Investee( Companies,(which(
are( separate( and( in( addi8on( to( the( terms( set( out( in( the(
Investor(Agreement,(are(as(follows.
No( Shares(will(be(issued(or(alloxed(un8l(such(8me(as(the(
Investee( Company( has( received( cleared( funds( with(
respect( to( the( full( amount( required( to( be( paid( in(
connec8on(with(the(Subscrip8on.
The( opportuni8es( to( invest( in( the( Investee( Companies(
will( not( proceed( unless( the( Minimum( Service( Size( is(
reached(by(5pm( on(Friday(27th( March(2015,(though(the(
Issuer( can( resolve( to( extend( that( date( at( its( absolute(
discre8on.
By(comple8ng(and(delivering( an( Applica8on,(you( (as(the(
applicant):(
irrevocably( offer( to( subscribe( for( the( Shares( in(
accordance(with(the(provisions(of(the(Memorandum;(
agree( that,( in( considera8on( of( each( Investee(
Company(agreeing(that( it(will( not,(prior( to( the( offers(
closing,( offer( any( Shares( for( subscrip8on( to( any(
persons( other( than( on( the( terms( set( out( in( this(
Memorandum,( your( Applica8on( cannot( be( revoked(
and( that( this( paragraph( cons8tutes( a( collateral(
contract( which( will( become(binding(upon(dispatch(by(
post,(delivery(by( hand( or( any( other( method( (as( the(
case( may( be)( of( your( Applica8on( Form,( duly(
completed;(
agree(that,(in( respect( of( those(Shares(for( which(your(
Applica8on( Form( has( been( received( and( processed(
and( not( rejected,( acceptance( of( your( Applica8on(
Form( shall( be( cons8tuted( and( evidenced( by( the(
Investee(Company(entering(the(name(of(the(Nominee(
in(the(register(of(members(of(the(Investee(Company.
Page 50
No( person( receiving( a(copy(of( this( Memorandum( or( an(
Applica8on( Form( in( any(territory( other( than( the( United(
Kingdom(may(treat(the(same(as(cons8tu8ng(an(invita8on(
or( offer( to( him,( nor( should( he( in( any( event( use( such(
Applica8on(Form(unless,(in(the(relevant(territory,(such(an(
invita8on( or(offer( could( lawfully(be( made( to(him( or(such(
Applica8on( Form( could( lawfully( be( used( without(
contraven8on( of( any( registra8on,( regulatory( or( other(
legal(requirements.
The( Shares( have( not( been,( and( will( not( be,( registered(
under(the(United(States(Securi8es(Act(1933,(as(amended,(
or( under(the(securi8es(laws(of(any(state(or(other(poli8cal(
subdivision( of(the( United(States,(and(may(not(be( offered(
or( sold( in( the( United( States.( In( addi8on,( the( Investee(
Company(has(not( been,(and(will(not( be,(registered(under(
the( United( States( Investment( Company( Act( of( 1940( (as(
amended).(No( applica8on( will( be( accepted( if( it(bears(an(
address(in,(or( appears(to( have( been(posted(from(within,(
the(United(States.
The(rights(and(remedies(of(the(Investee(Companies(under(
the(Terms(of(Investment(are(in(addi8on( to(any(rights(and(
remedies( which( would( otherwise( be( available( to( the(
Investee(Company(and(the(exercise( or( par8al( exercise( of(
one( right( of( remedy( will( not( prevent( the( exercise( of(
others.
The(dates( and( 8mes( referred( to(in( the( offers(to(invest( in(
the( Investee( Companies( described( in( the( Memorandum(
may(be(altered(by(the(Directors(without(prior(no8ce.
Authorised(financial( intermediaries(who,(ac8ng(on(behalf(
of(their(clients,(return(valid(Applica8on(Form(may(be(paid(
commission( as( set( out( in( the( Fees( &( Expenses( sec8on(
contained(in(Part(2.
Save(to(the(extent(required( by(law,(no(Investee(Company(
shall( be( obliged( to( disclose( to( you( the( nature( of( any(
material( interest( in( the( Investee( Company( or( any(
arrangement( with(the(Investee(Company(which(any(of( its(
members(or(Directors(or(any(ar8st(may(have.
No(Investee(Company(shall(be(liable(to(the(Shareholder( in(
the( event( of( an( insolvency( of( any( bank( with( which( any(
funds(held(by(the(Investee(Company(have(been(deposited(
nor( in( the( event( of( any( restric8on( on( the( ability(of( the(
Investee(Company(to( withdraw(funds(from(such( bank(for(
reasons(which(are(beyond(their(reasonable(control.
Prac8sing(accountants( or(other(professional( persons(that(
are( connected( in( any( way( to( any( of( the( Investee(
Companies( are( excluded( from( making( any( Subscrip8ons(
through( the( Service( at( all.( Any( amounts( found( to( be(
invested( by( such( a( person( will( be( returned( to( the(
par8cipants( concerned( and( will( not( be( used( to( invest(
through(the(Service(at(all.
If(any(of(these(Terms(Of(Investment(or(any(of(the(terms(of(
the( Applica8on( Form( is( or( becomes( illegal,( invalid( or(
unenforceable( in( any( respect( under( the( laws( of( any(
jurisdic8on,(then(the(legality,(validity(and(enforceability(in(
that( jurisdic8on( of( the( remaining( provisions( shall( be(
unaffected( and( the( legality,(validity(and(enforceability( in(
any(other( jurisdic8on(of(that( or( any(other(provision( shall(
be(unaffected.
SCHEDULE 3
Administrator Standard Terms
The(Share(Centre(Limited(Terms(of(Business
Section 1
Terms(of(business(4(applicable(to(all(accounts
1. Introduction
1.1( It( is( important( that( you( read( and( understand( these(
standard( terms(of( business,(which( apply(when( you( open( an(
account(with( The( Share( Centre((the(“Account”),(and(provide(
you( with( informa8on( about( how( it( will( be( operated.(Some(
paragraphs( are( included( to( ensure( there( is( no(
misunderstanding( as( to( who( will( do( what( and( when,( and(
some( are( included( simply( because( different( pieces( of(
legisla8on( (which( include( Acts( of( Parliament)( say( that( we(
must(include(them.(We(have(tried(to(make(them(as(readable(
as(possible.(For( your( own( benefit( and( protec8on(you(should(
read( these( terms( carefully.( If( you( do( not( understand(
anything,(please(contact(us(on(01296(41(41(41.
1.2(Where(you(see(the(words(“you”(or( “your”(in( these(terms(
of( business,(it( means( you( as( the( individual,(or( if( opening(a(
joint( Account,(all( individuals(named( on( the( joint( Account.(If(
you(are(applying(as(an(official(of(a(company(or(a(trust,(then(it(
is(referring(to(the(company(or(trust,(and(not(you(personally.
1.3( The( Share( Centre( Limited( (“TSC”)( is( a( limited( company(
incorporated( in( England( and( Wales(and( its( registered( office(
address( is( Oxford( House,( Oxford( Road,( Aylesbury,(
Buckinghamshire(HP21( 8SZ.(TSC( is(authorised( and(regulated(
by(the(Financial( Conduct( Authority((“FCA”)(to( provide( share(
dealing( and( administra8on( services.( The( FCA( reference(
number( for( TSC( is(146768.( You( can( check( this( on( the( FCA’s(
website(at(www.fca.org.uk.(The(FCA’s(address(is(25(The(North(
Colonnade,(Canary(Wharf,(London(E14(5HS.
1.4( On( the( applica8on( form( for( your( Account,( you( will( be(
asked(to(sign(and(accept( these(terms(of(business((or(click(on(
an( ‘I( accept’( buxon( if( TSC( has( enabled( you( to( open( your(
Account( via( the( Internet),(which( creates( a( legal( agreement(
between( you( and( TSC,( referred( to( in( these( Terms( as( “the(
Agreement”,(provided(TSC(accepts( your( applica8on( to(open(
Page 51
an(Account.(This(Agreement(includes(not(only(these(terms(of(
business,(but(also:
—(the(literature( that(describes(your( Account( in(more(detail;(
and
—(the(Account(tariff;
all( of( which( may( be( amended( by( TSC( from( 8me( to( 8me,(
subject( to( paragraph( 1.7( below,( where( TSC( has( a( valid(
reason.(A(valid(reason( means(in( the(following(circumstances(
only:
—( to( give( effect( to( a( change( in( law,( regula8ons,( industry(
guidance(or(codes(of(prac8ce;
—(as(a(result(of(new(market(prac8ces;
—( for( economic( reasons,( including( a( varia8on( in( taxa8on(
rates( or( costs( incurred( in( supplying( a(product( or( service( (in(
which( case( TSC( will( respond( propor8onately).( No( other(
terms(and( condi8ons(will(apply,(unless(indicated(below(or( as(
no8fied(to(you.
1.5( Before( your( applica8on( can( be( considered( you( must(
agree(to(abide(by(the(terms(of(this(Agreement(in(the(manner(
described( above.(However,( a(legally(binding(agreement( will(
only( arise( once( TSC( no8fies( you( that( it( has( accepted( your(
applica8on.( If( TSC( decides( not( to( accept( your( applica8on,(
there( will( be( no( Agreement,(and( if( you( have( provided( any(
documenta8on( in( support( of( your( applica8on( it( will( be(
returned(to(the(address(shown(on(your(applica8on(form.
1.6(Unless(TSC( otherwise(informs(you(in( wri8ng,(you( will( be(
treated(as(a(‘retail( client’(under(the(rules(of( the( FCA,(which(
means( that( you( are( en8tled( to( the( full( extent( of( applicable(
regulatory( protec8ons.( You( have( the( right( to( request( in(
wri8ng( re4categorisa8on( as( either( a( ‘professional( client’(or(
‘eligible( counterparty’( subject( to( mee8ng( specific( criteria;(
however,( as( a(consequence,( there( will( be(limita8ons( to( the(
level( of( applicable( regulatory( protec8ons.( Such( limita8ons(
will( include( loss( of( access( to( the( Financial( Ombudsman(
Service(and( Financial(Services(Compensa8on(Scheme((which(
are( explained( further( in( paragraph( 12).( Further( details( on(
different( client( categorisa8ons( can( be( obtained( from( TSC’s(
Compliance(team.
1.7(Although(TSC( may(change(this(Agreement(in( accordance(
with(paragraph(1.4(above,(no( change(will(affect( any(rights(or(
obliga8ons( of( yours( arising( prior( to( such( change( becoming(
effec8ve.(TSC( will( give(you( at( least( 30( days(advance(no8ce,(
either( by( post( or( email( (if( applicable( to( you),( of( any( such(
changes.(Where(a(change(results(in( an(increase(in(charges(to(
you,( you( are( free( to( terminate( this( Agreement( within( a(
further( 30( days( of( the( change( becoming( effec8ve( without(
any( addi8onal( charges( over( and( above( those( that( were(
applicable(prior(to(the(change(taking(effect.
1.8( This( Agreement( is( in( English( and( all( future(
communica8ons( with( you( will( also( be( in( English.( The(
Agreement( is(governed(by(English( law(and( in(the(event( of(a(
serious(dispute,(will(be(subject(to(the(exclusive(jurisdic8on(of(
the(English(courts.
1.9(Any(transac8ons(undertaken(for( you(in(stocks(and(shares(
will(be(subject,(where(applicable,(to( the(rules(of(the(London(
Stock(Exchange((“LSE”),(Asset(Match,(Crest((the(system(used(
for( transferring(shares( between(sellers(and(buyers),(Cofunds(
Nominees( Limited( (“Cofunds”,( which( is( used( to( safeguard(
holdings( in( some( collec8ve( investment( funds( such( as( unit(
trusts),( the( FCA( and( all( other( applicable( laws,( rules( and(
regula8ons.(TSC( will( act( as( your( agent( in( any(such( dealings.(
Where( there( is( a(conflict( between( this( Agreement( and( any(
such( laws( and( regula8ons,( the( laxer( will( prevail.(You( must(
also( comply( with( the( City( Code( on( Takeovers( and( Mergers(
(and( the( FCA’s( Disclosure( and( Transparency(Rules( regarding(
the( no8fica8on( of( major( shareholdings),( which( may( be(
relevant( if( you( are( dealing( in( large( quan88es( of( shares.(
Further(details(can(be(obtained(from(TSC’s(Compliance(team.
1.10( There( may( be( occasions( where( a( conflict( of( interest(
develops(between(you(and(TSC(or(between(
you( and( another( customer.( TSC( has( taken( all( reasonable(
steps(to(iden8fy(such( conflicts(of(interest(and(has(a(Conflicts(
of( Interest( Policy(in( place,( designed( to( prevent( conflicts( of(
interest( from( adversely( affec8ng( the( interests( of( its(
customers.(A(summary(version( of(this(Policy(is(set(out( within(
Schedule(1(of(these(terms(of(business.
1.11(Unless(you(have(sought(specific(investment(advice(from(
TSC’s( Advice( team( in( accordance( with( the( Advice( terms( of(
business(set( out(within( Sec8on(5(of(these(terms(of(business,(
all( transac8ons( are( carried( out( on( your( own( ini8a8ve( (i.e.(
‘execu8on( only’).( TSC( is,( therefore,( not( responsible( for(
advising(you( on(the(suitability(of(the(services(or( transac8ons(
provided( or( offered( by( TSC.( You( will( not( benefit( from( the(
protec8on( of( the( FCA’s( rules( rela8ng( to( suitability( which(
would( require( TSC( to( ensure( that( a( product( or( service( is(
suitable( for( you( when( taking( into( account( your( knowledge(
and( experience( in( the( relevant( investment( field,( your(
financial(situa8on(and(your(investment(objec8ves.
1 . 1 2( W h e re( yo u( h ave( re c e i ve d( a( p e rs o n a l i s e d(
communica8on((as(defined(by(FCA)(from(TSC(or(wish( to(deal(
in(a(‘complex’(investment((e.g.(a(warrant,(covered(warrant(or(
‘securi8sed( deriva8ve’)(on( an(execu8on( only(basis,(you( may(
be( required( to( complete( an( appropriateness( test.( This(
requires(TSC(to(ensure(that(you(have(sufficient(awareness(of(
the( risks( involved( in( a(product( or( service( when( taking( into(
account( your( knowledge( and( experience( in( the( relevant(
investment( field( before( TSC( can( accept( your( dealing(
instruc8on.( TSC( reserves( the( right( not( to( accept( an(
instruc8on(to(deal(where(you(fail(such(a(test.
1.13(TSC(does(not(provide(advice(on(the(legal(implica8ons(of(
accep8ng( this(Agreement( and,( unless( otherwise( specifically(
indicated(to(you(by(the(Advice(team,(does(not(provide(advice(
on(aspects(of(taxa8on.
Page 52
2. Cancellation Rights
2.1(You(have(the(right(to( cancel(this(Agreement(for( a(period(
of( up( to( 14( days( (or( 30( days( if( this(Agreement( relates(to( a(
pension)(from(the(day(on(which(TSC(accepts(your(applica8on(
(i.e.(the(date(of(the(welcome(lexer( or(email(that(will(be(sent(
to(you).
2.2( However,( the( right( to( cancel( cannot( apply( to( any(
transac8ons( undertaken( during( the( cancella8on( period,(
where(the(prices(of(the(investments(concerned(can(fluctuate(
within( the( financial( marketplace( and( where( those(
fluctua8ons(are(not(within(TSC’s(control((e.g.(TSC(is(unable(to(
have(any(control(over(the(movement(of(share(prices).
2.3(In( order( to( cancel( the(Agreement,(you(must( ensure( that(
your( wrixen( instruc8ons( to( cancel( are( sent( to( TSC( (or( its(
nominated( agent)(before( the( end( of(the( 14( day((or( 30( day,(
for(pensions)(cancella8on(period.
2.4( If( you( do( decide( to( cancel,( you( must( s8ll( pay( for( any(
services( that( TSC( has( actually(provided( (which( may( include(
re4registra8on( and( commission( charges),( based( on( the(
published(tariff(sheet.
3.(Customer(Informa8on
3.1( You( will( supply( TSC( with( all( informa8on( reasonably(
requested( as( soon( as( prac8cal.( You( confirm( that( all(
informa8on(will(be,(to(the(best(of(your(knowledge(and(belief,(
correct( when( supplied( and( that( you( will( no8fy( TSC( of( any(
changes.
3.2(TSC(will(treat(all(personal(informa8on(about(you(and(your(
financial( affairs( as( confiden8al.( TSC( may( however( disclose(
any(such( informa8on(to( its(authorised(agents( or( if( required(
to( do( so( by( law( or( regula8on,( or( requested( by( a( financial(
regulator,( or( where( you( have( given( your( consent( to( the(
disclosure.(The( informa8on( may(also( be( shared( with( other(
financial(organisa8ons(to( protect(TSC(and(its(customers,(and(
other( financial( organisa8ons( and( their( customers,( against(
financial( crime.( Further( informa8on( on( safeguarding(
customer( data( is( contained( within( TSC’s( Privacy( Policy(
available(from(TSC’s(website,(www.share.com.
3.3(You( agree(that( TSC( may(hold(informa8on(about( you( and(
your(affairs(in(order(to:
—( verify( your( iden8ty( and( financial( standing( (among( other(
things( TSC( is( likely( to( consult( a( credit( or( mutual( reference(
agency,(which(may(retain(a(record(of(our(enquiry);
—( provide( you( with( TSC’s( services( (which( may( also(
necessitate(TSC(liaising(with(third(par8es,(such(as(companies(
and( their( registrars,( and( disclosing( some( aspects( of( your(
personal(informa8on(in(order(to( verify,(or(otherwise(discuss,(
your(investments(in(the(proper(provision(of(TSC’s(services);
—( keep( you( up4to4date( regarding(other( services( which( TSC(
considers( may(be(of(interest( to(you((if(you(would( prefer(not(
to(receive(direct(marke8ng(informa8on,(please(advise(TSC(on(
01296(41(41(41).
3.4(Due( to(an84money(laundering(regula8ons((which( aim( to(
prevent( criminal( property( being( used( or( disguised( as(
legi8mate( wealth)( you( may( have( to( produce( sa8sfactory(
evidence( of( your( iden8ty,( or( the( iden8ty( of( any( person( on(
whose(behalf(you(are(placing(the(dealing(instruc8on,(before(
TSC( can( do( any( business( with( you,( and( from( 8me( to( 8me(
thereauer.(This(iden8fica8on(process(is(designed( to( assist( in(
the(preven8on(of(crime(within(the(financial(services(industry(
and( society(at( large.( If( you( do( not( provide( the( informa8on(
when( requested,( TSC( may( be( unable( to( accept( any(
instruc8ons(from(you(or(provide(you(with(any(other(services.
3.5(TSC(will(only(accept(applica8ons(from(residents(of(certain(
qualifying(countries,(details(of(which( are( available(from(TSC.(
Where( applica8ons( are( received( from( such( residents,(
addi8onal(iden8fica8on(requirements(may(apply.
3.6( You( confirm( that( you( are( not( a( US( person( for( the(
purposes( of( US( federal( income( tax,( and( that( you( are( not(
ac8ng(for,(or(on(behalf(of,(a(US(person.(The(defini8on(of(a(US(
person( includes,( but( is( not( limited( to,( US( ci8zens,( US(
residents,( US( taxpayers( or( those( who( hold( US( dual(
na8onality.(In( the( future,( should( you( become(a( US( person,(
you( agree( to( inform( us( immediately( and( consent( to( the(
automa8c( closure( of( your( Account,( or( any( Account( over(
which(you(are(a(trustee(or(axorney,(whether(solely(or(jointly.
3.7(TSC(is(registered(to( use(your(personal(informa8on(under(
the(Data( Protec8on( Act( 1998((as( may(be( amended).(Under(
the( terms( of( this( Act,( you( are( en8tled( to( a( copy( of( any(
personal(informa8on( TSC(holds( on(computer( and(on( certain(
wrixen(records,(upon(payment(of(the(appropriate(fee.
4. Charges
4.1( You( will( pay( all( applicable( fees,( commissions( and( other(
charges( in(accordance(with(TSC’s( published( tariff(sheet.(You(
must( also( pay( any( applicable( taxes( and( levies( (e.g.( Stamp(
Duty,(market( levies,(overseas(financial(transac8on( taxes(etc.)(
that( TSC( is( required( to(charge( you.(All( such( charges( may(be(
deducted( from( your( Account( or( any(other( account( you( hold(
with(TSC.(Other( taxes( and(costs((e.g.(Capital( Gains( Tax)(may(
also(exist(that(are(not(collected(or(deducted(by(TSC.
5. Your Money and Investments
5.1(Your(money(will(be(handled(in(accordance(with(the(client(
money( rules( of( the( FCA( and( unless( otherwise( agreed( all(
money( received( or( paid( from( or( to( you( must( be( in( Bri8sh(
Pounds(Sterling.
5.2(The( cash( balance( held( on( your( behalf,(and( as(shown( in(
your( Account,(will( be( deposited(with( an( authorised( banking(
ins8tu8on( in( the( name( of( TSC( under( customer( trust( status(
(i.e.( separate( from( TSC’s( money),( together( with( cash(
balances(belonging(to(other(customers(of(TSC.(Such(deposits(
may(be(held(within(instant(access,(no8ce(and/or(unbreakable(
deposit( accounts(with( other( authorised( banking(ins8tu8ons.(
Page 53
TSC( may(debit(or(credit( your( Account(for( all( sums(payable(by(
or( to( you( (including(dividends(you(may(receive(in( cash,(fees(
and(other(amounts(payable(by(you).
5.3( All( payments( to( your( Account( must( be( drawn( on( your(
own( United( Kingdom( (“UK”)( bank( account.( You( may( credit(
money(to(your(Account(by(using(an(acceptable(form(of(debit(
card,(providing(the(sum(to(be(credited( does(not(exceed( such(
limit( as( TSC( may( advise.( All( payments( received,( either(
individually( or( collec8vely,( in( excess( of( £25,000( may( be(
subject(to(clearance,(at(TSC’s(absolute(discre8on,(prior(to(the(
acceptance(of(dealing(instruc8ons(thereon.
5.4(TSC( has(the(right(to( return( money,(whether( received( by(
cheque,( bank( transfer( or( debit( card,( to( ‘source’( (i.e.( from(
where(it( came).(All(money(returned( will( be(done(so( at( your(
own( risk( and( will( be( subject( to( the( normal( 8mings( of( the(
banking(clearance(system.(Where(requested,(money(will(only(
be( transferred( overseas( to( certain( qualifying( countries,(
details(of(which(are(available(from(TSC.
5.5(Interest( will( be( payable( quarterly( on( credit( balances( on(
money( in(your( Account( at( the(rates( published( from( 8me( to(
8me( by( TSC.( Where( you( make( a( payment( to( TSC( to( be(
credited( to( your( Account,( no( interest( will( start( to( be(
calculated(on(this(sum(un8l(the(payment(has(cleared.
5.6(In(the(event(that(TSC(does(not(hear(from(you(for(a(period(
of( 6( years,( has( made( reasonable( axempts( to( contact( you,(
and( such(axempts(have(been( unsuccessful,(any(money(held(
in( your( Account( may( be( released( to( the( benefit( of( TSC.(
Should(you(subsequently(contact(TSC(and(make(a(valid(claim,(
TSC( will(reimburse( the(money(to(you.(However,(interest( will(
not(be(due(to(you(from(the(date(of( release(of(the(money(to(
TSC.
5.7( TSC( has( the( right( to( delay( the( return( of( any( money(
received( from( you( un8l( 10( business( days( auer( the( date( of(
clearance(for(credit(control(purposes.
5.8( All( investments( held( within( your( Account( will( be(
registered( either( in( the( name( of( TSC’s( ‘pooled’( nominee(
company,(Share(Nominees(Limited((the(“Nominee”),(Cofunds(
(in(the(case(of(certain(unit(trusts(and(open4ended(investment(
companies( (“OEICs”))( and/or( Legal( &( General( Assurance(
Society( (“LGAS”)( (in( the( case( of( certain( types( of( pensions)(
and( held( for( you( as( the( beneficial( owner,( together( with(
investments( belonging( to( other( customers( of( TSC.( This(
means( that( there( are( no( separate( cer8ficates,( documents(
evidencing(legal(ownership(or( external( electronic(records( of(
your(individual(investment(holdings.
5.9(The(Nominee,(Cofunds(and(LGAS(hold(the(investments(on(
trust,(such(that(when(customers(buy(or(dispose(en8rely(of(an(
investment(in( accordance(with(this(Agreement,(their(interest(
in( rela8on( to( that( investment( within( the( trust( is(created( or(
ex8nguished(respec8vely.
5.10( On( some( occasions,( because( sexlement( is( carried( out(
on( a(pooled(basis,(your( investments(may(be(used( by(TSC( to(
sexle( another( customer’s( transac8on( (for( instance,( where(
another(customer(wishes(to(sell(a(holding(they(have(only(just(
bought(and( TSC(has(not(yet( received(that( customer’s( stock).(
This( will( not( affect( the( record( TSC( maintains( which( shows(
how(much(stock(is(held(on(your(behalf.
5.11(TSC(may(deliver(or(accept( delivery(of(cer8ficates(and/or(
investments(via(Crest(on(behalf(of(the(Nominee.
5.12( TSC( accepts( responsibility(for( holdings( in( the( name( of(
the(Nominee(and(for( acts(and(omissions(of(the(Nominee,(but(
not(in(rela8on(to(Cofunds(or( LGAS(,(nor(the(acts(or(omissions(
of(Cofunds(or(LGAS.
5.13( Dividends( from( investments( will( usually( only( be(
received(as(cash.
5.14(Overseas(investments(may(be(held( on( behalf(of( TSC( by(
an( overseas( custodian,( its( sub4custodian( or( an( investment(
clearing( system.( TSC( and( the( Nominee( do( not( accept(
responsibility(for( any(losses( arising( from(the(default( of( such(
an( appointed( custodian( or( clearing( system.( It( should( be(
noted( that( there( may( be( different( sexlement,( legal( and(
regulatory(requirements(in(overseas(jurisdic8ons(from(those(
applying( in( the( UK( and( different( prac8ces( for( the( separate(
iden8fica8on(of(investments.
5.15( Overseas( investments( held( by(the( Nominee(may(be( in(
the(form(of( Crest( Depositary(Interests( (“CDIs”).(CDIs(cannot(
be( registered( into( cer8ficates.( CDIs( may( be( liable( for(
withholding(tax( from( the(country(of( origin(of(the(underlying(
investment.( TSC( is( not( obliged( to( reclaim( any( foreign(
withholding( tax( deducted.( If( you( are( unsure( about( the( tax(
implica8ons( of( dealing( in( overseas( investments,(you( should(
seek(independent(tax(advice.
5.16( On( some( occasions,( money( rela8ng( to( overseas(
investments(not(held(by(the(Nominee(may(be(deposited(in(a(
client( bank( account( outside( the( UK.( Money( held( in( its(
country( of( origin( will( be( held( with( an( approved( bank( or(
depositary(unless( the( money( relates( to( the( sexlement( of(a(
transac8on( or( a( series( of(transac8ons(or( the(distribu8on( of(
income( which( is(subject( to( the( law( or( market( prac8ce(of(a(
jurisdic8on(outside(the(UK(and(because(of(the(applicable(law(
or( market(prac8ce,(it(is(not( possible(to( hold(your( money(in(a(
client( bank(account( with( an( approved(bank(or( depositary.(In(
some( cases,(the( bank(or( depositary(with(which( your( money(
may(be( held( outside( the( UK( may( not( have( accepted( that( it(
has(no(right( of(set( off(or( counterclaim(against(your(money(in(
respect(of( any(sum( owed( by(TSC(on( any(other( account(held(
by(TSC(at(the(bank.(The(legal(and(regulatory(regime(applying(
to( such( bank(or( depositary( outside( the( UK( will( be(different(
from(that(of(the(UK(and,(in(the(event(of(a(failure(of(the(bank(
or( depositary,( your( money( may( be( treated( in( a( different(
manner( from(that(which(would(apply(if(the(money(was(held(
by(an(approved(bank(in(the(UK.
5.17(Your( money(may(be(passed(to( another( person,(such( as(
an( exchange,(clearing(house( or( an( intermediate( broker,( for(
Page 54
the(purposes(of(a(transac8on(on(your( behalf(through(or(with(
that( person.(Where(such( a( person( is( located( outside( of( the(
UK,( the( legal( and( regulatory( regime( applying( to( those(
persons(will(be(different(from(that(of(the(UK(and(in(the(event(
of(the(failure(of(such(a(person,(your(money(may(be(treated(in(
a(different(manner(from(that(which(would(apply(if(the(money(
was(held(by(such(a(person(in(the(UK.(
5.18( You( shall( not( charge( or( pledge( the( investments( held(
under( this( Agreement( (e.g.(use(them(as(security( for( a( loan)(
or( dispose( of( all( or( part( of( them( otherwise( than( in(
accordance( with( this(Agreement.(Your(investments(and(cash(
held( by( TSC( or( under( TSC’s( control( shall( at( all( 8mes( be(
subject( to( a( general( lien( and( right( of( set( off( against( all(
amounts(owing(to(TSC(from(8me(to(8me.(In(other(words,(any(
sums( due( to( TSC( in( respect( of( commissions,( costs,( fees,(
expenses( or( other( amounts( payable( under( this( Agreement(
(plus( any(applicable( value( added( tax)( may( be( deducted( or(
withdrawn( (upon(at(least( 3(business(days(prior( no8ce)( from(
any(of( your( investments( or( cash( held( by( TSC( and( TSC( may(
have(recourse(against( and( sell,(realise(or(dispose(of(any(such(
assets(and( apply(the(proceeds(in( or(towards(the(discharge(of(
such( sums.( Any( such( sale,( realisa8on( or( disposal( shall( be(
conducted( in( the( manner( and( at( the( price( TSC( believes(
reasonably( necessary( in( the( circumstances( (without( being(
responsible( for( any( loss( or( reduc8on( in( price),( subject( to(
compliance(with( the(FCA’s(rules(in(connec8on(with(any(such(
sale,( realisa8on( or( disposal.( The( proceeds( of( any( sale( or(
disposal( of( such( assets( (net( of( costs)( will( be( applied( in( or(
towards(the(discharge(of(your( liabili8es(and( TSC(will(account(
to( you( for( any(balance.(In( the( event( that( such( proceeds( of(
sale(are(insufficient(to(cover( the(whole(of(your(liabili8es,(you(
remain( liable( for( the( balance.( A( cer8ficate( in( wri8ng( from(
TSC(that(any(power( of(sale(or(other( disposal(has(arisen(and(is(
exercisable(shall( be(conclusive(evidence(of(the(fact( in(favour(
of( a(purchaser( or(transferee(of(the(whole(or(any(part( of(any(
such(assets.
5.19(Subject(to( paragraph( 5.12( above,(in( the( event( of(there(
being( a( shorrall( in( the( total( quan8ty( of( money( or( an(
investment( held( in( a(pooled( nominee(or( client( money(bank(
account,( compared( with( the( quan8ty( or( balance( which(
should( be( held( for( customers,( or( in( the( event( of( an(
authorised(banking( ins8tu8on,(the( Nominee,(Cofunds,(LGAS(
or( any( other( third( party( custodian,( bank( or( counterparty(
used( by( TSC( defaul8ng( (e.g.( if( they( become( insolvent),(
customers( may( have( to( bear( that( shorrall( on( a( pro4rata(
basis.(
5.20(Unless(you(are(otherwise(informed,(TSC(will(provide(you(
a( statement( either( in( paper( or( on( our( website( via( account(
sign4in( of( your( investments( at( least( once( in( any( 6( month(
period,(which(will(be(based(on(deal(date(informa8on((i.e.(the(
effect( of( purchases( or( sales( which( are( unsexled( at( the(
statement(date(will(be(reflected).
5.21(Unless(otherwise(indicated,(TSC(will(not(accept(or(make(
third( party( payments( on( your( behalf.( All( receipts( and(
withdrawals( of( money( and( investments( must( be( received(
from,( or( paid( to,( an( account( in( your( name( or,( in( certain(
circumstances( such( as( your( death( or( incapacity,( your( legal(
representa8ves.
5.22( In( the( event( that( an( investment( ceases( to( be( sexled(
through( Crest,( TSC( will( use( its( reasonable( endeavours( to(
con8nue(to(offer(a(dealing,(sexlement( and(pricing(service(in(
that( investment( insofar( as( reasonably( prac8cable( in( the(
circumstances.( TSC( reserves( the( right( to( charge( any(
addi8onal( costs( associated( with( such( dealing( and/or(
sexlement(to(you.
6. Dealing
6.1(TSC(may(carry(out(transac8ons(in(such(investments(as(are(
shown( on( the( published( tariff( sheet,( unless( you( are( a(
permanent( resident( of( a( country(outside( the( UK,(in( which(
case(restric8ons( may(apply.(TSC( will( not( deal(in( investments(
which( have( been( suspended( from( dealing.( TSC( may( also(
decide( not( to( accept( your( dealing( instruc8ons( or( other(
instruc8ons(rela8ng(to(your(Account(in(certain(circumstances(
(for( example,( where( TSC( is( concerned( about( the(lawfulness(
of( the( transac8on( or( instruc8on).(TSC( may( refuse( to(accept(
any(dealing(instruc8ons(from(individuals(who(are(resident(or(
domiciled(in(any(overseas(country,(if(acceptance(of(a(dealing(
instruc8on( would( require( TSC( to( comply( with( any(
governmental( or( regulatory(procedures( or( other( formali8es(
of(such(country.
6.2(All(instruc8ons(to( TSC(to( deal(in(investments(must( be(on(
either( a( ‘limit( price’( basis( (where( you( set( the( maximum( or(
minimum( price(at( which( you( are( prepared( to( deal)( or( ‘best(
price’( basis( (where( TSC( will( take( all( reasonable( steps( to(
obtain( the( best( possible( result( for( you).( For( both( types( of(
order,(TSC(will(seek(to(obtain(the(best(possible(result,(subject(
to(any(limit(price(specified(in(the(case(of(a(limit(price(order,(in(
accordance(with(its(Order(Execu8on( Policy,(which(is(detailed(
within( Schedule(2( of(these( terms( of(business.(By(placing(an(
order(to(deal,(you(acknowledge(that(you(have(read(and(agree(
to(be(bound(by(the(Order(Execu8on(Policy.(
6.3( Where( you( instruct( TSC( on( a( best( price( basis( and( the(
number( of( shares( or( units( to( be( dealt( is( larger( than( the(
investment’s(normal(market( dealing(size,(the( price(obtained(
may(differ( from( the( price(indicated( to( you(at( the( 8me( your(
instruc8on(to(deal(was(placed.
6.4(TSC(may(aggregate((i.e.(combine)(your( orders(with(those(
of(other(customers,(which(may(operate(on(some(occasions(to(
your( disadvantage.( Further( informa8on( is( contained( within(
TSC’s( Order( Alloca8on( Policy,( which( is( detailed( within(
Schedule(3(of(these(terms(of(business.
6.5(Where(you(submit(a(dealing(instruc8on(to(TSC( orders(are(
dealt( as(soon(as(reasonably(prac8cable(in(the(circumstances.(
Page 55
For(many(investments((predominantly(equi8es),(if(submi}ng(
a(best( price( order( via( TSC’s(Internet( dealing( facili8es,(if( the(
market( is(open(and(a(price(is(available,(a(price(quota8on(will(
be( displayed( on( your( Internet(screen,(and( will(be( valid( for(a(
period( of( 10( seconds,(during( which( 8me( you( must( confirm(
your(dealing(instruc8on(in(order(to(obtain(that(price((subject(
always( to( that( price(quota8on( not( being( withdrawn( by( the(
relevant(Retail(Service(Provider).(If(you(fail(to(do( so,(you(can(
obtain( a( revised( price( quota8on( later.( Please( note( that(
although( the( price( quota8on( is( held( for( 10( seconds,( the(
prevailing(price(within( the( marketplace( could( have( risen( or(
fallen(during(this(10(second(period.(If(you(specify(a(limit(price(
on( your( dealing( instruc8on,( and( that( limit( price( can( be(
achieved( within( the(market,(your( dealing( instruc8on( will( be(
dealt(immediately(without(the(display(of(any(price(quota8on.(
6.6(Where(you(have(submixed(a(dealing(instruc8on(via(TSC’s(
Internet(dealing(facility(for( outside(the( usual(business(hours(
of(the(LSE(or(relevant(market,(the(dealing(instruc8on(will(be(
executed(as(soon( as(reasonably(prac8cable(auer( 8.00am( on(
the(next( day( that( the( LSE( or( relevant( market( re4opens.( You(
acknowledge(that( TSC(may(not( necessarily(obtain(the(official(
opening( market( price( and( that( price( movements( may( be(
more( vola8le( when( the( market( first( opens.( The( difference(
between( the( buying( and( selling( prices( on( some( securi8es(
may( also( be( greater( at,( or( around,( this( 8me.( It( may( be(
advisable(for( you(to( enter(a(limit( price,(as(opposed(to(a(best(
price,( dealing( instruc8on,( outside( the( normal( hours( of( the(
LSE( or( relevant( market,( or( when( submi}ng( dealing(
instruc8ons.
6.7(If(a(dealing(instruc8on( cannot( be(executed(automa8cally(
for(whatever(reason,(it(will,(if(possible,(be(manually(executed(
as(soon(as(reasonably(prac8cable.(
6.8(Limit( prices(may(be(placed(on(dealing(instruc8ons(for( up(
to( 365( calendar( days.(Limit( prices( may(be( cancelled( and( re4
submixed( at( your( discre8on,( provided( the( dealing(
instruc8on( has( not( been( executed.( Where( any( limit( order(
cannot( be( immediately( executed,( you( agree( that( TSC( need(
not( disclose( or( publish( details( of( your( unexecuted( limit(
orders.(Please(note(that( TSC( does( not( accept( limit(orders( in(
non4UK(traded(securi8es.
6.9(Dealing(instruc8ons(may(not( be( altered( once(they(have(
been( accepted( and( executed( by( TSC.( Where( the( dealing(
instruc8on( submixed( was( incorrect,( you( agree( to( be(
responsible(for( any(costs( or( losses(incurred( by( TSC,(which(a(
reasonable(person(would(consider( to( be(the( probable(result(
of( correc8ng(the( previous( transac8on,(should( TSC( decide( to(
accept(an(instruc8on(to(effect(such(a(correc8on.
6.10( TSC( cannot( guarantee( that( limit( price( dealing(
instruc8ons( will( be( executed( even( if( the( limit( price( is(
reached.(This( could( be( due( to( prevailing(market( condi8ons(
(such( as(a(‘fast( market’,(where(the( market(is( so( vola8le( that(
prices( quoted( in( the(stock( market( are(only(indica8ve(rather(
than( guaranteed),( other( customers( having( placed( similar(
dealing(instruc8ons(but( then( having(an( earlier( 8me(priority(
than( your( dealing( instruc8on( and( their( dealing( instruc8on(
being( executed( in( priority( to( your( dealing( instruc8on,( or(
other(factors(beyond(TSC’s(control.
6.11( All( dealing( instruc8ons( are( only( dealt( automa8cally( if(
they(can( be( completely(sa8sfied;( if(not,(they(will( be(passed(
to( the( Dealing(team(for( manual( ac8on.(Dealing(instruc8ons,(
other( than( dealing( instruc8ons( in( Asset( Match( investments(
(see(paragraph(7(below),(will(not(be(par8ally(filled.
6.12( Dealing( instruc8ons( to( purchase( investments( will( only(
be( executed( if( there( is( sufficient( money(in( your( Account( to(
meet(the(poten8al(cost( of(execu8on((including(all(applicable(
charges)( or,(where( you( are(due( to( receive(proceeds( from(a(
sale,(sufficient(sale(proceeds(to(cover(the(intended(purchase.(
Subject(to(this,(TSC( has(the(discre8on( to(reduce(the(size(of(a(
purchase( dealing( instruc8on( in( the( event( of( adverse( price(
fluctua8ons,( if( there( are( insufficient( funds( in( your( Account(
when(submi}ng(a(dealing(instruc8on.(Dealing(instruc8ons(to(
sell( investments( will( only(be(executed( if(there( are( sufficient(
investments( recorded( within( your( Account( that( can( be(
transferred( to( the( purchaser,( which( shall( not( be( adversely(
affected(by(paragraph(5.10(above.
6.13( In( the( event( of( a( change( in( the( share( capital( of( an(
investment,( or( other( corporate( ac8on,( which( could(
significantly( impact( on( any( current( limit( price( dealing(
instruc8on,( TSC( will( endeavour( to( delete( such( pending(
dealing( instruc8on.( However,(TSC( is( under( no( obliga8on( to(
do(so,(and(it( remains(your(responsibility(to(ensure(limit(price(
dealing( instruc8ons( remain( valid( and( to( make( any(
adjustments( you( consider( necessary( or( desirable( to( reflect(
any(changes(to(prevailing(market(condi8ons.
6.14( You( recognise( and( accept( that( certain( features((where(
available)(and(risks(apply(to(the(use(of(different(types(of(limit(
price(dealing(instruc8ons:
—( stop4loss( dealing( instruc8ons( should( ini8ate( when( the(
price(falls(to(or(below(the(specified(level;
—(tracking(stop4loss(dealing(instruc8ons(should(ini8ate(when(
the(price( falls( by(the( specified( amount( from( the(monitored(
peak(price;
—( sale( price( limit( dealing( instruc8ons( should( ini8ate( when(
the(price(rises(to(or(above(the(specified(price(level;
—( purchase( price( limit( dealing( instruc8ons( should( ini8ate(
when(the(price(falls(to(or(below(the(specified(price(level;
—( certain( factors( may( cause( the( bid4offer( spread( of( an(
investment( to( increase,( even( momentarily,(to( a( wide( level,(
thereby( causing( a( stop4loss( dealing( instruc8on( to( be(
ini8ated;
—( market( vola8lity( may( result( in( limit( price( dealing(
instruc8ons( being( ini8ated,( but( with( the( resul8ng( order(
being(executed( at( a(price(which(is( above(or( below(the(price(
you(set.
Page 56
These(wide(bid4offer( spreads(may(nevertheless( be(the( most(
favourable(prices(quoted(for(the(investment(at(that(8me.
6.15( Limit( price( dealing( instruc8ons( and( automated( price(
alerts((only(available(to( Internet(users)(that(reach(the(end(of(
their( expiry(date( are( deleted( auer( close(of( business( on( the(
expiry( date:( it( is( your( responsibility( to( renew( them( if( you(
require(this.
6.16( Limit( price( dealing( instruc8ons( and( price( alerts( are(
monitored(each(working(day(from(8.00am(un8l(4.30pm.(
6.17(TSC( may(retain( any(commissions( received( from( a( third(
party(arising( from( transac8ons( carried( out( for( you( and( the(
amount( of( such( commission( and( the( iden8ty( of( the( third(
party(will(be(available(upon(request.(In(addi8on,(TSC(may(pay(
a(share(of(the(fees(or(commissions(charged(to( you(with(third(
par8es( and( the( amount( paid( to( the( third( party( and( its(
iden8ty(will( be( available( upon( request.( Such( instances( can(
include(where(a(third(party(has(introduced(you(to(TSC.
6.18( You( accept( that( the( prices( and( values( of( stock(market(
investments,( and( products( related( to( them,( together( with(
the(income(that(they(produce,(can(go(down(as(well(as(up(and(
you( may( get( back( less( than( your( ini8al( investment.( In(
addi8on,(the( levels(and( bases( of( taxa8on( may( also( change,(
both( generally( and( in( rela8on( to( specific( products( and(
investments.(Consequently,(TSC( cannot( accept( responsibility(
for( any(movements( in( the( value( of(your( investments(or( for(
monitoring( whether( they( con8nue( to( be( suitable( for( you,(
even( where( TSC( ini8ally( provided( you( with( investment(
advice.( Past( performance( is( no( indica8on( of( future(
performance.( Where( you( are( dealing( in( more( complex(
investments,(there(may(be(a(greater( risk(that( you( could( lose(
your(ini8al(investment.
6.19( You( will( be( sent( a( contract( note,( either( in( paper( or(
electronic( format,( following( a( transac8on,( except( where(
otherwise(permixed(by(the(FCA’s(rules.(Any(query(in(rela8on(
to( the( contract( note( should( be( raised( by( you( within( 5(
business( days( of( receipt( so( that( any( maxers( arising(can( be(
promptly(resolved,(otherwise(TSC( will( assume(that(you(have(
accepted(the(contents(of(the(contract(note.(Prior(to(receiving(
the(contract( note,(for( informa8on( about( the( status( of( your(
order,( you( can( contact( a( member( of( TSC’s( Dealing( team(or(
view(the(status(online(at(www.share.com.(
6.20( Where( you( instruct( TSC( to( deal( or( otherwise( act( in(
rela8on( to( your( money( or( investments( by( tone4phone,(
internet( or( other( automated( access(route,(provision(of( your(
customer(reference(number,(password(and(part(of(your( own(
chosen(memorable(word(shall( be(sufficient( authority(for(TSC(
to( act( upon( such(instruc8ons.(The(password(and(memorable(
word(must(remain(your(personal(secret.(You(must(change(the(
password( and( memorable(word( if(you( believe( anybody(else(
knows(them(and( no8fy(TSC(immediately(if(you( discover( that(
they(have( been( lost( or( compromised.( TSC( will( not( be(liable(
for( any(unauthorised(use(of( a(password(or( memorable(word(
resul8ng( from( negligence( on( your( part( or( loss( arising(
therefrom.( TSC( may( withdraw( the( password( or( memorable(
word(where(the(wrong(number(is(entered(more(than(once(or(
in(other(circumstances.
6.21(If(you(intend( to( purchase( a(unit( trust( or( OEIC,(you( will(
need( to( confirm( that( you( have(read( the( relevant( simplified(
prospectus(or(key(investor(informa8on(document.(You(will(be(
provided( access( to( these( important( documents( during( the(
dealing( process( or( you( may( request( a( copy( from( TSC’s(
Dealing( team.( When( dealing( in( unit( trusts( or( OEICs(
administered( by( Sharefunds( Limited,( TSC’s( sister( company,(
dealing(instruc8ons(must(normally(be(received(and(validated(
by(midday(for(dealing(that(day.(All(other(unit(trust( and( OEIC(
dealing( instruc8ons( must( be( received( and( validated( by(
10.00am(if(they(are(to(be(dealt(that(day.
6.22( If( you( intend( to( purchase( an( exchange( traded( fund(
(“ETF”),( you( should( read( the( addi8onal( risk( warnings,(
including(details(of(the( limited( protec8on(available(from( the(
UK( regulatory(system,(which( are(available(on( TSC’s(website.(
You(will(also(need(to(confirm(that(you(have(read(the(relevant(
simplified( prospectus(or( key(investor(informa8on(document.(
You( will( be( provided( with( access( to( these( important(
documents( during(the(dealing(process(or( you(may(request(a(
copy(from(TSC’s(Dealing(Team.
6.23(HM(Revenue(and( Customs((“HMRC”)(may(challenge(any(
purchase( or( sale( prices( in( less( liquid( investments( for( open(
market( valua8on(purposes((for(instance,(for(assessing(capital(
gains(tax(liability).(When( assessing(tax( liabili8es(arising(from(
a( transac8on( in( less( liquid( investments,( you( should( seek(
independent(tax(advice,(and(should(not(necessarily(rely(upon(
any(transac8on(price(or(contract(note(as(evidence(of(an(open(
market(value.
7. Asset Match
7.1( Dealings( in( Asset( Match( investments( are( subject( to( the(
terms(and( condi8ons(set(out(in(Schedule(4(of(these(terms(of(
business.
8. Settlement
8.1( Once( TSC( has( executed( your( dealing( instruc8on,( sale(
proceeds( (if( a( sale)( or( investments( (if( a(purchase)( will( only(
become( available( to( you( once( those( sale( proceeds( or(
investments(have(been(received(in(full(by(TSC.
8.2(Where( the(an8cipated(sale(proceeds( or( investments(are(
not(received( in( full,(you( will,(along(with( all( other( applicable(
customers(of(TSC:
—(if(purchasing(investments:(be(en8tled,(in(the(chronological(
order( in( which( instruc8ons( were( received( by( TSC,( to( the(
relevant( investments( actually( delivered( to( TSC( and,( in( the(
event( of( any(delivery(shorrall,( to( the( repayment( of( a( cash(
Page 57
sum( from(TSC’s(client( sexlement( bank(account(equal( to( the(
whole(or(relevant(part(of(the(sum(debited(from(your(Account(
in(respect(of(the(relevant(investments;
—( if( selling( investments:( be( en8tled,( in( the( chronological(
order( in( which( instruc8ons( were( received( by( TSC,( to( cash(
actually( received( by( TSC( and( in( the( event( of( any(payment(
shorrall,( to( the( return( of( the( relevant( investments( held( by(
the(Nominee,(Cofunds(or( LGAS,(as(appropriate,(equal(to( the(
whole( or( relevant( part( of( the( number( of( shares,( bonds,(
warrants(or(units(originally(sold.
9. Investment Communications
9.1( In( the( case( of( changes( in( the( share( capital( of( your(
investments,(receipt(of(a(no8ce(of(conversion(or( proposal( to(
wind4up,( amalgamate( or( take4over( a( company( or( other(
corporate(ac8on(where(the(investments(are( held( for(you( by(
TSC:
—( a( bonus( or( capitalisa8on( issue( will( be( automa8cally(
credited( to( your( Account(and( details( will( be(sent( out( to(you(
auer(the(event;
—( otherwise( (where( appropriate( and( subject( to( paragraph(
9.2(below)( you(will(be( sent( a(summary(of( the(proposal(prior(
to(the(event(and(the(required(ac8on(to(be(taken((if(any);
—(if,(on(a(rights(issue,(open( offer( or(exercise(of(warrants,(no(
instruc8on(is(received( from(you,(the( Nominee(will( allow( the(
rights,( en8tlements( or( warrants( (as( applicable)( to( lapse.(
Lapsed( proceeds( received( by( the( Nominee( in( excess( of( £1(
will(be(returned(to(you.(Sums(less(than( this(may(be(retained(
for(the(benefit(of(TSC;
—( all( offers( will( be( accepted( upon( them( being( declared( as(
going( ‘compulsory’( whether( or( not( any( instruc8ons( have(
been(received(from(you;
—( your( en8tlement( to( shares( will( be( to( the( nearest( whole(
share,( rounded( down,( and( the( aggregate( of( frac8onal(
en8tlements( may( be( held( by( the( Nominee( for( TSC.( Cash(
received( by( the( Nominee( represen8ng( frac8onal(
en8tlements( in( excess( of( £1( will( be( returned( to( you.(Sums(
less(than(this(may(be(retained(for(the(benefit(of(TSC;
—( any(charges( imposed( by(the( company(or( its( registrar( will(
be(applied(to(your( Account(in(accordance(with(paragraph(4.1(
above.
9.2( Whilst( TSC( undertakes( to( no8fy( you( of( all( corporate(
ac8ons(rela8ng(to(your( investments,(there(may(be( instances(
where( TSC( is( not( advised( of( a( corporate( ac8on( by( the(
company(or(its(registrar,(either( at(all(or(in(sufficient(8me,(and(
consequently(cannot(no8fy(you(of(the(terms(of(the(corporate(
ac8on.( In( such( event,(TSC( will( accept( the( default( op8on( of(
the( corporate( ac8on( on( your( behalf( and( cannot( be( held(
responsible( for( any( loss( that( you( may( incur( or( any( other(
outcome(imposed(by(the(company(or(its(registrar.
9.3( Some8mes(the( terms( of( a(corporate(ac8on( will( require(
an( elec8on( to( be( made( on( behalf( of( the( Nominee’s( en8re(
holding(in( a( company( on( an( ‘all( or( nothing’( basis.(In( these(
circumstances,( TSC( may( be( unable( to( obtain( appropriate(
instruc8ons( from( all( customers( holding( that( investment(
within(the(Nominee.(In(such(event,(TSC(reserves(the(right(not(
to( offer( this( en8tlement( to( you,(but( will( use( its(reasonable(
efforts( to( offer( you( an( alterna8ve( en8tlement,( which( may(
not(match(the(en8tlement(offered(by(the(company.
9.4( If( partly( paid( shares( held( for( you( are( the( subject( of( a(
claim(for(any(due(balance(and(no(valid(instruc8on(is(received(
from(you,(TSC(may(sell(sufficient(of(your(investments(to(meet(
the(claim.
9.5( Where( instruc8ons( are( sought( from( you,( TSC( and( the(
Nominee(will((other(than(as(referred(to(elsewhere(within(this(
Agreement( or( in( accordance( with( any( other( no8fied(
procedure)(only(act( if(instruc8ons(are(received( from(you((or(
are( reasonably( believed( to(have(been( received( from( you(or(
from( your( authorised( agent).( Where( TSC( has( not( received(
your( instruc8ons( by( the( date( specified( by( TSC( within( the(
summary(of(the(corporate(ac8on,(TSC(will(accept(the(default(
op8on( of(the(corporate(ac8on(on( your( behalf(and(cannot(be(
held( responsible( for( any( loss( that( you( may( incur.( For(
administra8on( reasons,( the( date( specified( by( TSC( for( the(
provision( of( your( instruc8ons( may( be(earlier( than( the( date(
specified( by(the( company(or( its( registrar.( For( the( avoidance(
of( doubt,(even( where(you(have(sufficient( funds( within( your(
Account,( TSC( will( not( exercise( any( rights,( en8tlements( or(
warrants((as(applicable)(on( your( behalf(without(your(specific(
instruc8ons.
9.6( As( your( investments( are( pooled( with( other( customers,(
there( may( be( occasions( when( your( en8tlement( to( such(
corporate( ac8ons( referred( to( in( paragraph( 9.1( above( may(
have( been( different( had( you( held( the( shares( in( your( own(
name.( In( such( a( situa8on( TSC( shall( take( such( steps( as( it(
considers( to(be(fair( in(the( circumstances,(which( may(include(
dividing(the(whole( en8tlement( received( from( the( corporate(
ac8on( between( you( and( other( customers( or( trea8ng( any(
frac8onal( en8tlements( in( the( same( way( as( the( company(
concerned,(ac8ng(through(its(registrars.
9.7(If(TSC( receives(no8ce(of(a(class(ac8on(or( group( li8ga8on(
order( that( is( being( proposed( or( taken( concerning( your(
investments,( TSC( will( not( be( obliged( to( inform( you( or( act(
upon(that(no8fica8on.
9.8(An(investment(will(be(removed(from(your(Account(either(
upon( confirma8on( from( HMRC( that( the( investment( is( of(
‘negligible(value’(for(the(purposes(of(a(claim(for(Capital(Gains(
Tax( purposes( under( sec8on( 24(2)( Taxa8on( of( Chargeable(
Gains(Act(1992(or( if(it( is(declared(as(dissolved(at(Companies(
House.
9.9(You( may(apply(to( TSC( for( a(‘proxy’(direc8ng(how( vo8ng(
rights(are(to(be(exercised(by(the(Nominee(in(respect(of(each(
of(your(investments.
Page 58
9.10(If(you(wish(to(receive(communica8ons(direct(from(listed(
companies(in(which(you(are(a(shareholder((such(as(an(annual(
report( and( accounts( and( any( other( informa8on( issued( to(
shareholders),(you( may( opt4in( for( these( Shareholder( Rights(
(as( defined( in( Part( 9,( Companies(Act( 2006)( either( via(TSC’s(
website(or(by(telephoning(TSC’s(Shareholder( Rights(team(on(
08456( 185( 180.( While( it( is(compulsory(for( listed( companies(
to( provide( this( informa8on( to( those( that( opt4in,( unlisted(
companies((such(as(those(on(AIM)(are(not(obliged(to(respond(
to( such( opt4in( instruc8ons.(You( may( also( apply( for( a( proxy(
cer8ficate(to( axend( mee8ngs( of( shareholders(in( companies(
in( which( you( have( invested.( TSC( may( inform( the( relevant(
company(in(which(you(hold(such(an( investment,(or( its(agent,(
of(your(name,(address(and(any(other(necessary(details.
9.11(Shareholder(benefits(will(only(be( available(to( you(if( the(
relevant(company(has(agreed(with(TSC(to(provide(them.
10. Liability
10.1( You( agree( to( be( responsible( for( any( costs( or( losses(
incurred( by( TSC( and/or( the( Nominee,( which( a( reasonable(
person( would( consider( to( have( been( incurred( by( them( and(
be(reimbursable(to(them:
—( as( a( result( of( your( specific( request,( fault,( omission( or(
dishonesty;(and
—(arising(from(the(proper( performance(of( their( func8ons(or(
exercise(of(their(rights(under(or(otherwise(in(connec8on(with(
this(Agreement,(except(where(such(costs(or(losses(are(due(to(
their( fraud,( wilful( default( or( negligence.( TSC( and/or( the(
Nominee( shall( not( be( responsible( for( any( costs( or( losses(
incurred(by(you,(except(where(this(is(due(to(TSC’s(and/or( the(
Nominee’s( fraud,( wilful( default( or( negligence.( Neither( this(
paragraph( nor( anything( else( within( this( Agreement( will(
restrict(or( exclude(any(duty(or(liability(owed(to(you(under(the(
rules(of(the(FCA,(the(Financial(Services(and(Markets(Act(2000(
(“FSMA”),(Financial(Services(Act(2012(or(under(common(law.
10.2( If( TSC( fails,( interrupts( or( delays( performing( its(
obliga8ons(under( this( Agreement( because( of( a( breakdown,(
failure( or( malfunc8on( of( any( telecommunica8ons( or(
computer(services(or(systems((internally(or(externally)(or(any(
other( event( not( reasonably( within( its( control,( then( TSC( will(
not(be(liable(to( you.(TSC( will( not( be(responsible(for(any(loss(
or( damage( caused(by(such( an(event( or( suffered( by(you( as(a(
result( of(such(events.(This( includes,(but( is( not( restricted(to,(
any( delay,( breakdown( or( failure( of( any( transmission( or(
telecommunica8on( or( computer( systems(or( facili8es,(strikes(
or( other( industrial( ac8on( or( dispute,( or( the( failure( of( any(
relevant( exchange,( clearing( house,( broker,( independent(
souware( vendor,( sexlement( agent( or( bank( to( perform( its(
obliga8ons( or( to( operate( efficiently( and( correctly( or( any(
other(event(which(is(reasonably(outside(TSC’s(control.
10.3( TSC( may,( at( any( 8me( where( it( reasonably( considers( it(
necessary( or( desirable( to( do( so,( suspend( all( or( any( of( its(
services(including,(without(limita8on,(to( carry(out(repairs,(or(
to(upgrade(hardware(or( souware(or( to(correct(any(hardware(
or( souware(error( and(it(shall( not( be( liable(for( losses( arising(
from(the(suspension.
10.4(Whilst(TSC( will( use(its(reasonable(endeavours(to( ensure(
that( its(Internet(websites(are(available(at( all( 8mes,(it( will(not(
be(liable(for(any(loss(or(damages(resul8ng(from(the(websites(
being(inaccessible.(Access(to(the(websites(may(be(suspended(
temporarily(or(permanently(and(without(no8ce.
10.5( Where( TSC( provides( certain( calculator( tools( on( its(
websites,(TSC( does( not( accept( responsibility(for( the( validity(
or( results(produced(by(these(tools.(It(is(your( responsibility(to(
verify(the(accuracy(of(their(output.
10.6(TSC(is(not(responsible(for(the(security(or(transmission(of(
electronic(instruc8ons(either(from(TSC(or(from(you.
10.7( Where( informa8on,( or( links( to( other( informa8on,( on(
TSC’s( websites( consists( of( pricing( or( performance( data,( or(
other( informa8on( which( has( been( obtained( from( third(
par8es,( TSC( will( not( normally( have( carried( out( any(
independent( verifica8on( of( such( data( and( does( not( accept(
liability(for( any(reliance( placed( upon( such( data,(where( that(
data(is(proven( to(be( inaccurate(or( incomplete.(Furthermore,(
you( undertake( not( to( distribute,( sell( or( license( any(content(
contained( on( TSC’s( websites.( You( agree( that( TSC( or( its(
authorised( agents( may( at( all( reasonable( 8mes( and( on(
reasonable(no8ce(have(access(to(and(inspect(your( computer(
systems,( accounts,( records( and( other( documents( (in( both(
hard( copy( and( machine( readable( form)( in( rela8on( to( any(
suspected( re4distribu8on,( re4sale( or( sub4licensing( of( the(
content.
10.8( The( informa8on( contained( within( TSC’s( websites(
originated( by(TSC( is( believed( to( be( correct,( but( cannot( be(
guaranteed.
11. Termination
11.1( You( may( terminate( this( Agreement( immediately( by(
contac8ng( TSC;( TSC( reserves( the( right( to( request( this( in(
wri8ng.( TSC( may(terminate( this(agreement( with( reasonable(
advance( no8ce( to( you,( or( immediately( on( wrixen( no8ce(
where(there(are(serious(grounds(for(doing(so.(
11.2( In( the( event( of( your( death,( upon( receipt( of( a( sealed(
copy(of( the( UK( grant( of( representa8on( of( your( estate,(TSC(
will(instruct(the(Nominee(to(deliver(your(investments(to(your(
personal(representa8ves.(An84money(laundering(regula8ons(
may(apply.
11.3(If( you(have( a(joint( Account,(in(the( event(of(your(death,(
the( Account( will( con8nue( in( the( name(s)( of( the( surviving(
Account( holder(s).( TSC( will( require( proof( of( death( (e.g.( an(
original( or( office( copy( of( a( death( cer8ficate)( prior( to( the(
Account( conver8ng( to( the( surviving( Account( holder’s/
holders’(name(s).
Page 59
11.4(Where( the( value(of(your( Account( falls(below(£100( and(
no( investments( are( held,( TSC( reserves( the( right,( following(
reasonable(no8ce,(to(close(your( Account,(charge(accordingly(
and(forward(any(balance(remaining(to(you.
12.(Complaints(and(Compensa8on
12.1(If(you(have(a(complaint,(please(contact(the(department(
at( TSC( you( have( an( issue( with.( You( can( contact( us( by( any(
means( including( lexer,( telephone( or( email.( If( TSC( cannot(
resolve( the( complaint( to( your( sa8sfac8on,( you( may( be(
en8tled( to( refer( it( to( the(Financial(Ombudsman( Service,(the(
independent( complaints( handling( body( for( the( financial(
services( industry.( A( copy( of( TSC’s( complaints( handling(
procedure(is(available(upon(request.
12.2(TSC(par8cipates(in(the(Financial(Services(Compensa8on(
Scheme,( established( under( the( FSMA,( which( provides(
compensa8on( to( eligible( investors( in( the( event( of( the( firm(
being(unable(to(meet(its(customer(liabili8es.(Payments(under(
the(protected( investment( business(scheme(are( limited( to( a(
maximum( of( the( first( £50,000( of( the( claim.( Further(
informa8on(is(available(from(TSC’s(Compliance(team.
13. General
13.1(All(wrixen(or( electronic( communica8ons(TSC(sends(you(
will(be(to( the(latest( address(no8fied( by(you(to( TSC(and( shall(
be(assumed(received(by(you(on(the(second(day(auer(pos8ng(
or( on( the( day( auer( despatch( in( the( case( of( electronic(
communica8on.( Communica8ons( sent( by( you( shall( be(
deemed(received(only(if(actually(received(by(TSC.
13.2( Telephone( calls( may( be( recorded( for( the( purpose( of(
training,(monitoring(quality(and(regulatory(compliance.
13.3(Should( you( cease( to(live(in( a( qualifying(country((details(
of( which( are( available( from( TSC),( your( Account( will( be(
terminated( and( all( investments( held( can( either( be(
transferred( to(you,(or( sold;(any(money(or( sale(proceeds(will(
be(returned(to(you.
13.4(You(agree(that(TSC(may(from(8me(to(8me(telephone(or(
otherwise( contact( you( to( discuss( poten8al( or( exis8ng(
investments( or( investment( services,( subject( to( compliance(
with(the(rules(of(the(FCA,(and(you( are(willing(to(accept( such(
calls,(unless(you(advise(otherwise.
13.5(TSC(and(the(Nominee(may(employ(agents(on(such(terms(
as( they( think( fit.( TSC( will( sa8sfy( itself( that( any( person( to(
whom( it( delegates( any( of( its( func8ons( or( responsibili8es(
under( the( terms( agreed( with(you( is(competent( to( carry(out(
those(func8ons(and(responsibili8es.(TSC( will(take(reasonable(
care(in(the(selec8on(and(supervision(of(such(agents.(
13.6(Should(any(clause(within(this(Agreement(or(part(thereof(
become( or( be( declared( illegal,(invalid( or( unenforceable( for(
any(reason,(the(remainder(of(the(clause(and(Agreement(shall(
be(unaffected(and(shall(remain(in(full(force(and(effect.
13.7(The(Contracts((Rights(of(Third( Par8es)(Act(1999( will(not(
apply(to(this(Agreement,(which(means(that(only(you(and(TSC(
have( the( right( to( enforce( any( of( the( terms( and( condi8ons(
men8oned.
Section 2
Additional terms of business for Seed Enterprise
Investment Scheme Accounts
The(terms(of(business(in( this(sec8on(are(only(relevant(to(you(
if( you( are( opening( a( Seed( Enterprise( Investment( Scheme(
(“SEIS”)( Account,( in( which( case,( the( terms( of( business( in(
paragraphs( 1( to( 13(shall( also( apply,(where( relevant.(Should(
any( terms( within( paragraphs( 1( to( 13( conflict( with( these(
Addi8onal( Terms( of( Business,( the( Addi8onal( Terms( of(
Business(will(prevail.
14. SEIS Accounts
14.1(You(acknowledge(that(TSC:
—( is(the( administrator( and( custodian( of( your( SEIS( Account,(
which(forms(part(of(the(SEIS(Service;
—(is(not(the(Issuer( of(the(SEIS(Service(and(is(not(responsible(
for( the( suitability( or( appropriateness( of( the( SEIS( Service,(
either(at(the(point(of(sale(or(thereauer;
—( may( only( act( upon( the( instruc8ons( of( you( and/or( the(
Issuer(of(the(SEIS(Service(in(rela8on(to(your(SEIS(Account;
—(is( not( responsible(for( the(contents(of( any(documenta8on(
rela8ng( to( the( SEIS( Service,( other( than( these( terms( of(
business(or( other( documenta8on(required( to(be(sent( to(you(
by( TSC( in( discharge( of( TSC’s( regulatory( obliga8ons.( In(
par8cular,(TSC(is(not(responsible(for( the(contents(of(the(SEIS(
Service( brochure( or( prospectus,( and( has( not( issued( or(
approved( the( contents( of( these( documents( in( accordance(
with(sec8on(21(FSMA.(
Section 3
Schedule 1
Conflicts of Interest Policy - Summary Version
TSC( aims( to( iden8fy( and( prevent( conflicts( of(interest( which(
may(arise(between(itself(and(its(customers,(and(between(one(
customer( and( another,( in( order( to( avoid( any(adverse( effect(
on( its( customers.(This( Policy(sets( out( procedures,(prac8ces(
and( controls( in( place( to( achieve( this.( The( avoidance( of(
poten8al( conflicts( of( interest( is( a( key( considera8on,( so(
opera8onal( structures( and( procedures,(password4controlled(
systems,( data( hierarchy,( and( the( clear( segrega8on( of( roles(
and( responsibili8es(are( all( designed( to( work(preven8ng(any(
conflicts( arising( in( the( first( place.( This( Policy( applies( to( all(
officers( (whether( Execu8ve( or( Non4Execu8ve),( employees(
and(any(persons(directly(or( indirectly(linked( to(the( Share(plc(
group( of( companies( (“the( Group”)( and( refers( to( all(
interac8ons(with(all(customers(of(the(Group.
Page 60
Scope
Types( of(conflict( which( may(carry(a( material( risk(of( damage(
to(the(interests(of(a(customer(include,(but(are(not(limited(to,(
the( following.Where( the( Group( or( any( person( directly( or(
indirectly(linked(to(the(Group:
—(Is(likely(to(make(a(financial(gain(or( avoid(a(financial(loss(at(
the(expense(of(the(customer;
—(Has(an(interest(in(the(outcome(of(a(service(provided(to,(or(
of(a(transac8on(carried(out(on(behalf(of,(the(customer(which(
is(dis8nct(from(that(customer’s(interest(in(that(outcome;
—(Has(a(financial(or( other( incen8ve(to(favour( the(interest(of(
another(customer(or(group(of(customers(over(the(interests(of(
the(customer;
—(Carries(on(the(same(business(as(the(customer;
—( Receives,( or( will( receive,( from( a( person( other( than( the(
customer( an( inducement( in( rela8on( to( the(service(provided(
to( the( customer( in( the( form( of( monies,(goods( or( services,(
other(than(the(standard(commission(or(fee(for(that(service;
—( Designs,( markets( or( recommends( a( product( or( service(
without( properly(considering(all( the(Group’s( other( products(
and(services(and(the(interest(of(their(customers.
Guarding(against(conflicts(of(interest
A(number( of( different( safeguard( systems(and( processes(are(
in( place(in( order( that(the(poten8al( for( conflicts(of(interest(is(
minimised:
—( Personal( account( dealing( requirements( upon( all( officers,(
employees( and( certain( associates(of( TSC( in( rela8on( to( their(
own(investments;
—( An( Investment( Research( Policy( covering( the( produc8on(
and(dissemina8on(of(investment(research(by(TSC;
—( A(Register( of( Informa8on( logging( receipt( and( use( of( any(
‘inside(informa8on’(by(TSC;
—( Chinese( Walls( restric8ng( the( flow( of( price( sensi8ve(
informa8on(within(TSC;
—( A(Gius( and( Inducements(Log(registering( the( solicita8on,(
offer(or(receipt(of(certain(benefits;
—(External( business(interests(conflic8ng(with(TSC’s(interests(
are(prohibited(for(TSC’s(officers(and(employees,(unless(Board(
approval(is(provided;
—( Job( roles( and( system( access( is( subject( to( appropriate(
segrega8on( of( du8es( considera8ons,( detailed( within( a(
separate(Policy;
—( Remunera8on( packages( within( TSC( are( structured( to(
minimise( any( link( with( levels( of( business( generated( with(
retail(customers;
—( Corporate( governance( requirements( are( followed( as(
appropriate(to(the(size(and(nature(of(Share(plc;
—( Legal( and( regulatory( record( keeping( requirements( are(
followed,( including(the( maintenance( of( a( Privacy(Policy( for(
Internet(users;
—(A(Public(Interest( Disclosure(Policy((“whistleblowing”)( is(in(
place(for(TSC(employees;
—( Where( a( conflict( of( interest( arises,( TSC( will,( if( known,(
disclose( it( to( a( customer( prior( to( undertaking( investment(
business(for(that(customer.
A(full(version(of(the(Conflicts(of(Interest(Policy(is(available(on(
request(from(TSC’s(Compliance(team.
Schedule 2
Order Execution Policy
Part One: The Quality of Execution
When(execu8ng(orders(on(behalf(of(customers(in(rela8on( to(
financial( instruments,( TSC( will( take( all( reasonable( steps( to(
achieve( what( is( called( “best( execu8on”( of( customer( orders.(
This( means( that( TSC( will( have( in( place( a( policy( and(
procedures( which( are( designed( to( obtain( the( best( possible(
execu8on( result,( subject( to( and( taking( into( account,( the(
nature(of(customer(orders,(the(priori8es(the(customer(places(
upon(TSC(in( filling(those(orders(and( the( market( in(ques8on,(
and( which( provides,(in( TSC’s(view,(the(best(balance(across(a(
range( of( some8mes( conflic8ng( factors.( TSC( will( take( into(
considera8on( a(range( of(different( factors( which( include(not(
just( price,(but( which( may( also( include( such( other( factors( as(
the( cost( of( the( transac8on,(the( need( for( 8mely(execu8on,(
the( liquidity( of( the( market( (which( may( make( it( difficult( to(
execute(an(order),(the(size(of(the(order(and(the(nature(of(the(
financial( transac8on.( TSC’s( commitment( to( provide( its(
customers( with( “best( execu8on”( does( not( mean( that( TSC(
owes(customers(any(fiduciary(responsibili8es(over(and(above(
the(specific(regulatory(obliga8ons(placed(upon(TSC(or(as(may(
be( otherwise( contracted.(While( TSC( will( take( all( reasonable(
steps(based(on(those(resources(available(to(it( to(sa8sfy(itself(
that( it( will( have( processes( in( place( that( can( reasonably( be(
expected( to( lead( to( the( delivery( of( best( execu8on( of(
customer(orders,(TSC(cannot( guarantee(that(it(will(always(be(
able( to( provide( best( execu8on( of( every( order( executed( on(
each(customer’s(behalf.
Part Two: Order Execution Policy
1.(Customer( orders(must(be(received( on(either(a(‘best( price’(
or( ‘limit( price’( basis(and( are(subject( to( the( requirements( of(
this(execu8on(policy.
2.( Where( a( customer( order( is( received( with( specific(
instruc8ons( rela8ng( to( how( the( order( should( be( executed,(
the(order(will(be(executed(in(line(with(those(instruc8ons;(any(
such( specific( instruc8ons( from( a( customer( may(prevent(TSC(
from(taking(the(steps( that(it( has(designed( and( implemented(
in( its(execu8on( policy( to( obtain( the(best( possible( result( for(
the( execu8on( of( customer( orders( covered( by( those(
instruc8ons.
Page 61
3.( Customer( orders( received( for( transferable( securi8es,( i.e.(
shares,( exchange( traded( funds/commodi8es,( warrants,(
covered( warrants( and(investment( trusts(will(be( executed( on(
one(of(the(following(markets:
a.( London( Stock( Exchange( (“LSE”);( the( LSE( is( a( regulated(
market( and( one( of( the( larger( bexer( known( European(
markets(for(dealing(in(both(UK(and(interna8onal(shares;
b.( Alterna8ve( Investment( Market( (“AIM”);( a( market( for(
smaller4capitalisa8on( growth( companies.( AIM( is( a( not( a(
regulated( market,( but( is( an( exchange4regulated( market(
owned(by(the(LSE;
c.(Asset( Match;(Asset( Match( is(a(Mul8lateral(Trading(Facility(
(“MTF”)( and(not(a(regulated( market.(Asset( Match( is(a(share(
trading(facility,(administered(by(TSC,(specifically(designed( for(
emerging( or( smaller( companies( whose( shares( are(
infrequently( traded.( Customer( orders(for( companies(traded(
on( Asset( Match( must( be( submixed( to( TSC,(or( their( chosen(
broker,(on( a( limit( price( basis(with( shares( being(traded( at( a(
single(price;
d.( and( such( other( markets( as( TSC( considers( appropriate( in(
the(circumstances.
4.(The(choice(of( market(depends(on( which( market( or(MTF(a(
par8cular(security(is(traded(on,(for(example,(where(a(security(
is( only(traded( via(the( LSE,( the( customer( order( can( only( be(
executed( via( the( LSE;( however,( where( the( same( customer(
order( can( be( executed( on( either( of( two( separate( markets,(
e.g.( LSE( or( Asset( Match,( the( market( that( will( result( in( the(
best(possible(result(for(that(customer(order(will(be(chosen.
5.(For( venues( other( than( Asset( Match,(customer( orders(are(
executed( via( specialist( market( makers( known( as( Retail(
Service(Providers((“RSPs”).(TSC(deals(with(a(number( of(RSPs,(
all(of( whom(are(members(of(the(LSE(and(are(authorised(and(
regulated( by( the( FCA.( The( RSPs( quote( a( price( and( size( in(
securi8es( in( which( they( are( registered( and( make( this(
informa8on(available(via(various(informa8on(vendors.
6.(TSC’s( process(for( achieving( the( best( possible( result( for( a(
customer( order( is( ini8ated( by(the( receipt(of( the( order( from(
the(customer.( The( order( is( then( passed,(via( an( informa8on(
vendor,( to( an( automated( polling( system,( which( connects(
directly(to(the(RSPs(registered(with( that(informa8on( vendor(
and(in(the(security(concerned.(The(automated(polling(system(
will( then( iden8fy( the( RSP( offering( the( best( price( for( the(
customer(order;(this(informa8on(is(then(sent(back(to(TSC( for(
acceptance.( The( range( of( RSPs( available( to( TSC( will( be(
dependent( on( which( RSPs( are( accessible( through( the(
informa8on(vendor( used;(TSC( will( be( linked( to( one( or( more(
informa8on(vendors(which( provide(access(to(a(wide(range(of(
RSPs.(
7.(On( some(occasions,(where(the( RSP(is( unwilling(or( unable(
to( execute( the( customer( order( electronically,(the( order( will(
have( to( be( executed( manually( with( the( RSP( over( the(
telephone.
8.( There( may( be( occasions( where,( as( a( result( of( either(
specific( customer( instruc8ons,( the( nature( of( the( security(
being(traded,(or( the( services(being(provided,(that( customer(
orders( will( not( be(executed(on( either( a( regulated( market(or(
MTF.( Where( such( instances( arise,( TSC( will( obtain( the(
customer’s( prior( express( consent( before( proceeding( to(
execute( such( orders.( The( customer’s( prior( express( consent(
may( either( be( in( the( form( of( a( general( agreement( or( in(
respect(of(individual(transac8ons.
9.( Any( customer( orders( received( for( collec8ve( investment(
schemes( (e.g.(unit( trusts( and/or( OEICs)( are( executed( either(
directly( via( the( relevant( fund( manager,( or( via( Cofunds( or(
LGAS.
10.( Where( a(customer( order( is(received( for( a( bond( or( gilt4
edged(security,(it(will(be(either:
—( electronically( executed( via( Bondscape,( an( automated(
service(designed(primarily(for(brokers(and(other( professional(
investment( advisers( trading( small( sizes( of( fixed( interest(
securi8es.( Two4way( prices( are( provided( by( par8cipa8ng(
market( makers.( The( service( automa8cally( selects( the( best(
price(for(execu8on(from(the(compe8ng(market(makers;(or
—(executed(with(an(RSP.
11.( Generally,( there( are( a( number( of( different( execu8on(
factors(which(can(affect(the(outcome(of(customer(orders(e.g.(
price,( cost,( speed,( the( likelihood( of( execu8on( and(
sexlement,(the(size(and(nature(of(the(order.(However,(as(TSC(
does( not( differen8ate( charging( structures( or( sexlement(
processes( between( execu8on( venues,( the( most( significant(
factor( is(considered(to(be(the(price(at(which(the(order(can(be(
executed.( By( achieving( the( best( price( possible( given( the(
execu8on( venues( available,( TSC( delivers( the( best( possible(
result(for(customer(orders(received.
Part Three: Client Acknowledgement
By(placing(an( order( with( TSC,(a(customer(acknowledges(that(
they(have(been(made(aware(of(and(accept(the(nature,(policy(
and( processes( which( TSC( has( in( place( for( providing( best(
execu8on( as(defined(in( this(Order( Execu8on(Policy(and(that,(
in( the( absence(of( any(express(instruc8ons(from(a(customer,(
TSC(shall(have(full(discre8on(to(choose(a(relevant(venue(from(
its(current( list( of( venues( for( execu8ng(any(order( or( orders,(
but( in( doing( so( shall( assess( and( balance( a( range( of( all(
relevant( factors,( including( those( set( out( in( this( policy(
disclosure(statement(which,(in(its(reasonable(determina8on,(
TSC( considers( relevant( to( achieving( the( best( result( for( a(
customer(order.
Schedule 3
Page 62
Order Allocation Policy
Where(TSC( considers(it( necessary(and(in(the(best(interests(of(
the( customer,( a( customer( order( may( be( aggregated( (i.e.(
combined)(with(orders(received(from(other(customers.
Customers( should( be( aware( that( aggrega8ng( orders( in( this(
way(may( work( to( their( disadvantage.( Because( their( shares(
will( be( bought( or( sold( alongside( those( of( other( customers,(
the(price( a( customer( pays(or(receives( may(not( be( the( same(
as( when( buying( or( selling( the( shares( immediately.( The(
market(may(also(quote(a(different(price(because(of(the(larger(
number( of( shares( being(bought( or( sold( together.(The( price(
the(customer( pays(or( receives(could,(therefore,(be( higher(or(
lower( than( if(their( shares(had( been( bought( or( sold( on( their(
own.
With( the( excep8on( of( orders( executed( on( Asset( Match,(
customer( orders( will( only( be( carried( out( where( the( total,(
aggregated( order( can( be( dealt;( in( other( words,( customer(
orders( will( not( be( par8ally( filled.( Par8ally( filled( orders( are(
allowable(on(Asset(Match,(such(that(a(single(order(within(any(
Asset(Match(auc8on( may(be( par8ally(filled,(to( the( extent( of(
the( maximum( executable( volume( of( securi8es( within( that(
auc8on(and(at(the(prevailing(Asset(Match(auc8on(price.
Where( a(customer( applies(for( a(new( issue(of( securi8es((e.g.(
within( an( ini8al( public( offer( or( a( placing)( and( that( offer( is(
oversubscribed,(the(customer(may(receive(a(par8al(alloca8on(
of( securi8es( or( none( at( all.(The( alloca8on( guidelines( of( the(
offer( will( be( followed( wherever( prac8cable( by( TSC( when(
deciding( how( to( allocate( securi8es( where( more( than( one(
customer( has(applied( within( the( same( offer.(In( the( absence(
of( any(guidelines,(TSC( will(allocate(the( securi8es( pro( rata(to(
each(customer’s(applica8on(within(the(offer.
With( the( excep8on( of( orders( executed( on( Asset( Match,(
customer( orders( will( only( be( carried( out( where( the( total,(
aggregated( order( can( be( dealt;( in( other( words,( customer(
orders( will( not( be( par8ally( filled.( Par8ally( filled( orders( are(
allowable(on(Asset(Match,(such(that(a(single(order(within(any(
Asset(Match(auc8on( may(be( par8ally(filled,(to( the( extent( of(
the( maximum( executable( volume( of( securi8es( within( that(
auc8on(and(at(the(prevailing(Asset(Match(auc8on(price.
Where( a(customer( applies(for( a(new( issue(of( securi8es((e.g.(
within( an( ini8al( public( offer( or( a( placing)( and( that( offer( is(
oversubscribed,(the(customer(may(receive(a(par8al(alloca8on(
of( securi8es( or( none( at( all.(The( alloca8on( guidelines( of( the(
offer( will( be( followed( wherever( prac8cable( by( TSC( when(
deciding( how( to( allocate( securi8es( where( more( than( one(
customer( has(applied( within( the( same( offer.(In( the( absence(
of( any(guidelines,(TSC( will(allocate(the( securi8es( pro( rata(to(
each(customer’s(applica8on(within(the(offer.
Page 63
APPLICATION PACK
GUIDE TO THE APPLICATION FORM
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SENDING YOUR APPLICATION
If( you( want( to( invest( in( Amplify( Music( SEIS( 4( you( must(
complete(and(return(the(following:(
Completed( Applica8on( Packs( and( your( payment( of( the(
amount(you(wish(to(invest(should(be(sent(to:(
1. Application Form
This( must( be( completed( by( all( Investors.% PLEASE% CHECK%
YOU%HAVE%SIGNED%AND%DATED%THE%APPLICATION%FORM.%
Amplify Music SEIS 4
c/o(The(Share(Centre
Oxford(House
Oxford(Road
Aylesbury
Buckinghamshire
HP21(8SZ
PLUS(
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DOCUMENT%FROM%LIST%B.
PLUS(
3. Payment
You( must( make(payment(of(the(amount(you( wish(to(invest(
by(sending(a(cheque(or( banker’s(drau.(Cheques(should(be(
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If(you(need(any(assistance(comple8ng(the(Applica8on(Pack(
or( have(any(ques8ons(you( should( contact( your(authorised(
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assistance,(please(do(not(hesitate(to(contact:
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Telephone:(020(8720(9221(
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Page 64
APPLICATION FORM
Please(print(CLEARLY(in(BLACK%INK(and(in(BLOCK%CAPITALS
1
PERSONAL DETAILS
Title:(Mr/Ms/Mrs/Miss/Dr/Other
Forename(s):(
Surname(s):(
Na8onality:(
Na8onal(Insurance(no:(
Permanent(address:
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If(length(of(occupa8on(is(not(more(than(three(years(then(please(provide(your(previous(residen8al(address:(
2
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APPLICATION TO INVEST IN AMPLIFY MUSIC SEIS 4
I(hereby(apply(to(invest(the(following(amount(in(Amplify(Music(SEIS(4:(
£((words):
3
£((figures):
INVESTOR CLASSIFICATION
I(fall(into(the(following(category(of(eligible(investor,(as(set(out(in(the(FCA's(Conduct(of(Business(Sourcebook((8ck(as(applicable):
(Retail(investor(who(has(received(advice((if(applicable,(the(adviser(should(complete(and(sign(sec8on(7)(
(Eligible(counterparty
(Professional(client
Or,(for(whom(appropriateness(has(been(assessed((if(applicable,(the(financial(adviser(should(complete(and(sign(sec8on(7):
(Cer8fied(high(net(worth(investor
(Cer8fied(sophis8cated(investor
(Self4cer8fied(sophis8cated(investor
(Cer8fied(restricted(investor
Page 65
AMPLIFY
MUSIC SEIS 4 | INFORMATION
MEMORANDUM
ACKNOWLEDGEMENTS
AND REPRESENTATIONS
4
a
I(confirm(that( I(am(18(years(of(age(or(older,( and(personally(possess(sufficient( knowledge,(experience( and(exper8se(in(financial(and(
business(maxers((including( experience( with(investments(of(a( similar( nature( to(an(investment( in(the( Amplify(Music(SEIS( 4)(to(be(
capable(of(evalua8ng(the(merits(and(risks(of(an(investment(in(the(Amplify(Music(SEIS(4.(
b
I( acknowledge( that( the( Issuer,( the( Administrator( and( the( Investee( Companies(are( not( providing( advice( on(this(investment( and(
confirm( that(I( have( taken(independent(advice( as(to(the( suitability(of( the( investment(from,( or( that( the( appropriateness(of(the( the(
investment( has(been( assessed( by,( a( duly(authorised(person((such(as(an(independent( financial( adviser)(that( I( deem( necessary( or(
desirable(in(connec8on(with(my(Subscrip8on(and(in(the(comple8on(of(my(Applica8on(Form.
c
I( confirm(that(I( have( read(the( Memorandum,( including( all( Parts(and(Appendices(therein,( and(in(par8cular( the(Investor( Agreement(
and(The(Risks(set(out(in(Part(6.(I(agree(and(declare(that,(having(read(the(the(Memorandum,(I(shall(be(deemed(to(have(had(no8ce(of,(
and(have(fully(understood,(all(informa8on,(terms(or(condi8ons(contained(therein.
d
I(confirm(that,(in(making(my(applica8on,(I(am(relying( solely(on(the(informa8on(contained(in(the(Memorandum,(including( all(Parts(
and(Appendices(therein,(and(not(on(any(informa8on(or(representa8on(in(rela8on(to(the(proposal.(
e
I( agree( and(undertake,( if( my( applica8on(is(accepted,(to(observe,( perform( and(be( bound(by( the( provisions( of(the( Memorandum,(
including(all(Parts(and(Appendices(therein.(
f
I( confirm( that( I( wish(to(invest( in( the( Investee( Companies(as(a( retail(client(under(the( FCA(rules(and(that( I( wish( to(be( classified( as(
having(sufficient( understanding( of(venture( capital(investments,( on(the( basis(that(I(understand(how( to(value( a( start4up(business,( I(
understand(the(risks(involved,(and(I(understand(that(I(could(lose(part(or(all(of(my(capital.
g
I( understand( that( I( will( separately( be( classified( as( a( retail( client( by( the( Administrator( in( respect( of( the( safeguarding( and(
administra8on(services(to(be(provided(to(me.
h
I(acknowledge(that(this(Applica8on(Form(is(not(transferable(or(assignable.
i
I(confirm(my(agreement(that(this(Applica8on(Form(be( governed(by(and(construed(in(accordance( with(the(laws(of(England(and(that(
the( courts( of( England( shall( have( exclusive( jurisdic8on(to( hear( and( determine( any( suit,( ac8on( or( proceedings(and( to( sexle( any(
disputes(which(may( arise( out( of( or( in(connec8on(with( this(Applica8on( Form( and,( for(such(purposes,( I( irrevocably( submit(to(the(
jurisdic8on( of( such( courts.( In( addi8on,( I( irrevocably( waive( any( objec8on( which( I( might( now( or( hereauer( have( to( the( courts( of(
England(being(nominated(as(the( forum( to(hear(and(determine(any(such(suit,(ac8on(or(proceedings(and(to(sexle(any(such(disputes,(
and(agree(not(to(claim(that(any(such(court(is(not(a(convenient(or(appropriate(forum.(
j
I(undertake(to(provide( sa8sfactory(evidence(of(my(iden8ty( in(such(reasonable( 8me((in(each(case( to(be( determined(in(the( absolute(
discre8on(of(the(Administrator)(in(order(to(ensure(compliance(with(the(Money(Laundering(Regula8ons(2007.
k
I( confirm( that( in( my( Subscrip8on,( I( am( not(relying( on(any( informa8on(other( than(that( contained(in( the( Memorandum( and(that(I(
agree( that(no(person(responsible( solely,( jointly(or(severally(for(the( Memorandum(or(any(other( informa8on(provided(in(connec8on(
with(the(Service(will(have(any(liability(for(any(such(informa8on(or(any(representa8on.
l
I(agree(to(provide( the(Issuer,(the( Administrator( and/or(Investee(Companies(with(any(informa8on(that(it(may(request(in(connec8on(
with(my( Subscrip8on( or( to( comply(with( the( requirements( of(the( SEIS( legisla8on(and/or(any( relevant( legisla8on((as( amended( or(
replaced(from(8me(to(8me).
m
I(represent(and(warrant(that,(in(connec8on(with(my(Subscrip8on,(I(have( observed(and(complied(with(the( laws(and(regula8ons(of(all(
requisite( territories,( obtained( any( requisite( governmental( or( other( consents,( complied( will( all( requisite( formali8es(and(paid(any(
issue,(transfer(or(other(taxes(due(in(connec8on(with(my(Subscrip8on(in(any(territory,(and(that(I(have( not(taken(any(ac8on(including(
the(making(of(my(Subscrip8on,(which(will(or(may(result(in(the(Investee(Companies((or(any(of(their(directors,(officers,( employees(or(
agents)(ac8ng(in(breach(of(the(regulatory(or(legal(requirements(of(any(territory(in(connec8on(with(the(Service(or(my(Subscrip8on.
n
I(represent(and(warrant(that(I(am(not(subscribing(using(a( loan(which(would(not(have( been(given(to(me,(or(not(have( been(given(to(
me(on(favourable(terms,(if(I(had(not(been(proposing(to(subscribe(for(the(Shares(in(the(Investee(Companies.
o
I(represent(and(warrant(that(Shares(in(the( Investee(Companies(shall(be(alloxed(to(me(for(bona(fide(investment(purposes(and(not(as(
part(of(a(scheme( or(arrangement,(the(main(purpose(of(which,(or(one( of(the( main(purposes(of(which,(is(the( avoidance(of(tax((note(
that(the(obtaining(of(tax(reliefs(given(under(the(SEIS(legisla8on(does(not,(of(itself,(cons8tute(tax(avoidance).
Page 66
AMPLIFY
MUSIC SEIS 4 | INFORMATION MEMORANDUM
p
I( warrant(and( declare( that(I( am(a(qualifying( investor( for( the( purposes(of(Chapter(2,( Part(5A( of(the( Income( Tax( Act(2007(and(I( will(
no8fy(the(Administrator(immediately(in(wri8ng(if(at(any(stage(I(am(no(longer(within(this(defini8on.
q
I( acknowledge( that( certain( SEIS( Reliefs (may( be( withdrawn( if( I( become( connected(with( an( Investee( Company( and( that( it( is(my(
responsibility(to(inform(an(Investee(Company(should(I(be,(or(become(aware(that(I(am,(connected(with(the(Investee( Company(in(any(
way.
r
I( represent( and(warrant( that( I( am( not(a(US( person(or( resident(of(Canada,( Japan,( Australia( or(the( Republic(of( Ireland(or( any(other(
jurisdic8on(where( the(Service(cannot(lawfully(be( made(available(and(that(I(am(not(applying(on(behalf(of,(or(with(a(view(to,(the( offer,(
sale(or( delivery,( directly(or(indirectly,(to,(or(for(the(benefit(of,(any(US(person(or(resident(of(Canada,(Japan,(Australia(or( the(Republic(
of(Ireland(or(any(other(jurisdic8on(where(the(Service(cannot(lawfully(be(made(available.
s
I(warrant(and(represent(that(I(am(resident(and(ordinarily(resident(in(the(UK(and(that(I(have(been(so(resident(and(expect(to(remain(so(
resident(and(will(no8fy(the(Investee(Company(immediately(in(wri8ng(if(I(cease(to(be(so(resident.
t
I(represent(and(warrant(that(the(informa8on(contained(in(this(Applica8on(Form(is(true,(accurate(and(not(misleading(in(any(respect.
u
I(undertake( that(I(will(not(reproduce(or(distribute(the(Memorandum((including(all(Parts(and(Appendices(therein)(and/or(the(Ar8cles(
of(Associa8on(of(any(Investee( Company,(in(whole(or(in(part(and(that(I(will(not(disclose(any(of(their(content(or(any(other(informa8on(
therein(or(rela8ng(thereto(for(any(purpose(other(than(my(considering(an(investment(in(the(Investee(Companies.
v
I(acknowledge(that(I(am(aware(of(the(specula8ve(nature( of(any(investment(in(the(Investee( Companies(and(that(difficul8es(may(arise(
in(the(selling(or(otherwise(disposing(of(my(interest(in(the(Investee(Companies.
w
I(acknowledge(that(the(Investee(Companies(shall(not(be( liable( to(me( for(any(loss(suffered(by(me(or(arising(from(any(deprecia8on(in(
the( value( of(an( investment( in( any( Investee( Company( or( the( income( derived( from( it( (including,( without( limita8on,( where( such(
deprecia8on(results (from( capital(loss(or(taxa8on(liability)(or( for(the( acts(or(omissions(of(any(third(party(ac8ng( within(their(normal(
competence( or( otherwise( in( any( way(whatsoever,( except( insofar( as(the( same( arises(as(a( result( of(the( Investee( Company's(gross(
negligence,(willful(default(or(fraud.
x
I(acknowledge(that(each(Investee(Company(is(being(established(and(raising(investment(monies(to(conduct(the(trade(as (set(out(in(the(
Memorandum,( but( there( are( no(guarantees(that( such( investment( monies(will( be( deployed(in(accordance( with(any( requirements(
pursuant(to(the(SEIS.(
y
I(agree(that(the( foregoing(representa8ons,(warran8es,(agreements(and(acknowledgments(shall(survive(the( date(of(my(admission(to(
Amplify(Music(SEIS(4(and(this(Applica8on(Form(shall(be(binding(upon(and(inure(to(the(benefit(of(all(par8es(and(their(successors(and(
permixed(assignees.(
z
I( agree( that( any( term( or( provision(of( this(Applica8on( Form( which( is(invalid(or( unenforceable( in(any( jurisdic8on( shall,( as(to( such(
jurisdic8on,( be( ineffec8ve( to( the( extent( of( such( invalidity( or( unenforceability( without( rendering( invalid( or( unenforceable( the(
remaining(terms(or(provisions (of(this(Applica8on(Form(or(affec8ng( the(validity(or(enforceability(of(any(of(the( terms(or(provisions (of(
this(Applica8on(Form(in(any(other(jurisdic8on.(
aa
I( undertake( to( no8fy( the( Administrator( immediately( if( there( are( ever( any( relevant( circumstances( of( which( the( Issuer( or(
Administrator(should(be(aware(in(rela8on(to(my(Subscrip8on(to(Amplify(Music(SEIS(4.(
bb
I(confirm,(in(rela8on(to(my(investment(in(Amplify(Music(SEIS(4,(that:(
I(wish(to(seek(SEIS(Tax(Relief;(
I(am(applying(on(my(own(behalf;(
I(will(no8fy(the(Issuer(of(any(investment(with(which(I(am(connected(within(sec8on(163(and(sec8ons(166(to(177(of(the(Income(
Tax(Act(2007(and(part(5A(of(the(Income(Tax(Act(2007;(and(
I(will(no8fy(the(Administrator(if,(within(three4year(Minimum(SEIS(Holding(Period(from(the(date(of(issue(of(Shares(by(an(SEIS(
Qualifying(Company,(I(become(connected(with(that(SEIS(Qualifying(Company(or(receive(value(from(it.
cc
My(Subscrip8on(will( be( administered(by(the( Administrator( in(accordance( with(the( Administrator(Standard(Terms (set(out( in(full( in(
Schedule( 3( of( the( Investor( Agreement( contained( in( this( Memorandum.( I( have( understood( and( I( agree( to( be( bound( by( the(
Administrator(Standard(Terms.(
Page 67
AMPLIFY
AGREEMENT
5
This(Applica8on(Form(is(executed(and(delivered(as(a(deed(on(the(date(men8oned(below:(
Investor(signature:(
Print(name:
Witness(signature
Print(witness(name:
Witness(address:
Date:
6
by( comple8ng( and(signing( this( Applica8on( Form,( you(confirm(
that(your( iden8ty( may(be( verified(by(electronic(means(such(as(
the(use(of(data(held(by(specialist(agencies.
VERIFICATION
The(verifica8on(of(iden8ty(requirements(in(the( Money(Laundering(Regula8ons(2007(will(apply(and(verifica8on(of(the(iden8ty(of(the(
Applicant( may( be( required.( Failure( to( provide( the( necessary( evidence( of(iden8ty( may( result(in(your( Applica8on(being(treated(as(
invalid(or(result(in(a(delay.
You(must(ensure( that(enclosed(with(the(Applica8on(Form(is(one(document(from(list(A(below( and(one( document(from( list(B(below.(
Each( item( must( be( original,( less( than( six( months(old( and(should(show( your( name( and( permanent( residen8al( address.( Original(
documents(will(be(returned(by( post(at(your( risk.(Verifica8on(of(Investor(iden8ty(may(be( provided(by( means(of(a( ‘‘confirma8on(of(
verifica8on(of(iden8ty’’(in(the(prescribed(form(from(an(EEA(financial(ins8tu8on(or(other(regulated(person(who(is(required(to(comply(
with(EU(Money(Laundering(Direc8ves.
For%all%Applica4ons,%please%provide%one%document%from%list%A%and%one%document%from%list%B:
List A
List B
1.(Bank(statement
1.(U8lity(bill
2.(Building(Society(statement
2.(Council(Tax(bill((for(the(current(year)
The%statement%you% provide%must%show%transac4ons%and%relate%
to%the%bank/building%society%account%from%which%your%payment%
is%drawn.
3.( Benefits( no8fica8on( lexer( from( the( Benefits( Agency(
confirming( the( right( to( benefits( (e.g.( child( benefit,( working(
families(tax(credit)
Please %note%that% statements%printed%via% the%Internet% cannot%be%
accepted.
4.(Original(correspondence(or(tax(no8fica8on(from(HM(Revenue(
&(Customs
We(reserve(the(right(to(request(addi8onal(documentary(evidence.
Page 68
AMPLIFY
ADVISOR
7
To%be%completed%and%signed%by%the%advisor.
I(confirm(that((8ck(as(applicable):
( I( have( advised(the( Investor(named(above( on(their( proposed(investment(in(Amplify( Music( SEIS( 4,(and(that( I( have( sa8sfied( the(
criteria(in(COBS(9(of(the(FCA(Handbook.
Or
(I( have(reviewed(the(appropriateness(of(the(proposed(investment(in(Amplify(Music(SEIS(4(for(the( Investor(named(above(and(have(
complied(with(the(rules(in(COBS(10(of(the(FCA(Handbook(or(equivalent(requirements.
Name:
Stamp(or(full(address:
Regulatory(number:
Telephone(number:
Signature:
Page 69

Amplify Music SEIS 4 Service - v1

Transcription

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