Crown Place Regulatory News (CRWN)

7 Apr 2005 09:32

Murray VCT 3 PLC07 April 2005 Murray VCT 3 plc Change of Manager Further to recent announcements, the Board of Murray VCT 3 plc (the "Company")announces that following discussions with Murray Johnstone Limited as ofmidnight on 6 April 2005 Close Venture Management Limited ("Close") has assumedportfolio management and company secretarial responsibility for the Company. On 6 April 2005, the Company reached agreement with Murray Johnstone for anearly handover of the management of the portfolio to Close. The Company hasagreed to pay Murray Johnstone the fees that they would otherwise have beenentitled to up to 8 August 2005 being the date upon which the original notice oftermination would have expired together with certain payments due ontermination. Key features of the new Management Agreement with Close are as follows:- Term: the new Management Agreement operates for an initial 12 month period andis thereafter capable of being terminated by 12 months' notice given by eitherthe Company or Close. It also contains provisions regarding termination formaterial breach. In addition, inter alia, the Company has the right to terminatewith immediate effect subject to the payment of fees in lieu of notice. Fees: Close will be entitled to an annual fee of 1.75% of the Company's netasset value. In addition, Close will be entitled to an incentive fee calculatedannually as 20% of the amount by which the actual growth in NAV (together withrevenue and capital dividends) exceeds the target growth in NAV of not less thanthe Royal Bank of Scotland's base rate plus 2%. Close are also entitled toreceive an administration and secretarial fee of £50,000 per annum. In addition, the Company and Close (and various other funds managed or advisedby Close) have agreed that co-investment will take place with effect from 16 May2005 (or earlier depending on certain matters) on, inter alia, a basis whichrelates to cash available across, inter alia, the whole of Close's venturecapital trust portfolio. Media inquiries: Beattie Communications - Derek Douglas - 01324 602550 This information is provided by RNS The company news service from the London Stock Exchange