Hargreave Hale AIM VCT 2 (Ordinary Share) HHVT

Objective:

Management Contract & Fees:

The Companys Investment Manager is Hargreave Hale Limited. The investment management agreement terminates on a 12 calendar months notice, subject to earlier termination in certain circumstances. The Investment Manager receives an investment fee of 1.5% p.a. of the net asset value of the Company, calculated and payable quarterly in arrears. A performance related incentive fee will be payable at the rate of 20% of any dividends paid to shareholders in excess of 6p per ordinary share per annum, provided that the NAV per share is at least 95p. The first payment will be made after 28 February 2010 provided cumulative distributions in the first three accounting periods exceed 18p per Ord. Thereafter, a performance related incentive fee will be payable annually provided the hurdles have been exceeded, with any cumulative shortfalls below 6p per Ord having to be made up in subsequent years before the incentive fee becomes payable. Any performance related incentive fee payable will be shared equally between the Investment Manager and Keydata Investment Services Limited. The Company is in negotiations with the administrators of Keydata Investment Services Limited to determine an appropriate settlement in ending the agreement between the two parties.