Manager Performance Incentive

12 Dec 2006 10:04

Baronsmead VCT 3 PLC12 December 2006 To: RNS Date: 12 December 2006 Company: Baronsmead VCT 3 plc Subject: Manager Performance Incentive The Board of Baronsmead VCT 3 plc (the "Company") announces that from 1 April2007, the following amendments to the Manager Performance Incentives will takeeffect. The publication of the Finance Act 2006 has caused the Board to review again thedesired make-up of the portfolio of the Company and to consider howshareholders' interests can best be served. It has concluded that a higherproportion of funds should be invested in qualifying investments, particularlyunquoted. In order to achieve this, the Manager needs to retain and grow thebest possible management team, in a market where the demand for the top privateequity professionals has become even more competitive. The Co-Investment Plan introduced in winter 2004 will be extended to allowexecutives of the Manager to invest 12%, from the previous 5%, in all of theManager-led unquoted investments made by the Company, Baronsmead VCT plc,Baronsmead VCT 2 plc and Baronsmead VCT 4 plc. At the same time, the Board hasalso agreed a reduction, over a 2 year period, to the performance fee paid tothe Manager from its current level of 20% to 10% of the excess over the hurdlerate. The Board has carefully examined the combined effect of the amendments to theCo-Investment Plan and the performance fee and also engaged Noble & CompanyLimited to review the integrity of the models. The Board believes that thesechanges are likely to lead to improved levels of performance of the Company. For further information contact: Rhonda Nicoll, F&C Asset Management plc: 0131 718 1074 This information is provided by RNS The company news service from the London Stock Exchange