Terms and Conditions - Proposed Placing

RNS Number : 3798G

JPMorgan American IT PLC

11 May 2011

 



Press Release

For immediate release

11 May 2011

JPMorgan American Investment Trust plc

(the "Company")

Proposed Placing of new Ordinary Shares

Terms and Conditions

IMPORTANT INFORMATION FOR PLACEES ONLY

MEMBERS OF THE PUBLIC ARE NOT ELIGIBLE TO TAKE PART IN ANY PLACING. THIS DOCUMENT AND THE TERMS AND CONDITIONS SET OUT AND REFERRED TO HEREIN ARE DIRECTED ONLY AT PERSONS SELECTED BY COLLINS STEWART EUROPE LIMITED ("COLLINS STEWART" OR THE "PLACING AGENT") WHO ARE "INVESTMENT PROFESSIONALS" FALLING WITHIN ARTICLE 19(5) OF THE FINANCIAL SERVICES AND MARKETS ACT 2000 (FINANCIAL PROMOTION) ORDER 2005 (THE "FPO") OR "HIGH NET WORTH COMPANIES, UNINCORPORATED ASSOCIATIONS ETC" FALLING WITHIN ARTICLE 49(2) OF THE FPO OR TO PERSONS TO WHOM IT MAY OTHERWISE LAWFULLY BE COMMUNICATED (ALL SUCH PERSONS TOGETHER BEING REFERRED TO AS "RELEVANT PERSONS"). THIS DOCUMENT AND THE TERMS AND CONDITIONS SET OUT HEREIN MUST NOT BE ACTED ON OR RELIED ON BY PERSONS WHO ARE NOT RELEVANT PERSONS.  ANY INVESTMENT OR INVESTMENT ACTIVITY TO WHICH THIS DOCUMENT RELATES IS AVAILABLE ONLY TO, AND WILL BE ENGAGED IN ONLY WITH, RELEVANT PERSONS.

THE ORDINARY SHARES THAT ARE THE SUBJECT OF A PLACING (THE "PLACING SHARES") ARE NOT BEING OFFERED OR SOLD TO ANY PERSON IN THE EUROPEAN UNION, OTHER THAN TO "QUALIFIED INVESTORS" AS DEFINED IN ARTICLE 2.1(E) OF DIRECTIVE 2003/71/EC (THE "PROSPECTUS DIRECTIVE"), WHICH INCLUDES LEGAL ENTITIES WHICH ARE REGULATED BY THE FINANCIAL SERVICES AUTHORITY (THE "FSA") OR ENTITIES WHICH ARE NOT SO REGULATED WHOSE CORPORATE PURPOSE IS SOLELY TO INVEST IN SECURITIES.

The Placing Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "Securities Act") or under the securities laws of any state or other jurisdiction of the United States and may not be offered, sold, resold or delivered, directly or indirectly, in or into the United States or to or for the benefit of U.S. Persons (as such term is defined in Rule 902 of Regulation S under the Securities Act ("Regulation S")) absent registration, except pursuant to an exemption from or in a transaction not subject to the registration requirements of the Securities Act. No public offering of the Placing Shares is being made in the United States. Each Placing (as defined below) is being made outside the United States in offshore transactions (as defined in Regulation S) meeting the requirements of Regulation S under the Securities Act. Persons receiving this document (including custodians, nominees and trustees) must not forward, distribute, mail or otherwise transmit it in or into the United States or use the United States mails, directly or indirectly, in connection with any Placing.

This document does not constitute an offer to sell or issue or a solicitation of an offer to buy or subscribe for Placing Shares in any jurisdiction including, without limitation, the United States, Canada, Australia, the Republic of South Africa, New Zealand, the Republic of Ireland or Japan or any other jurisdiction in which such offer or solicitation is or may be unlawful (a "Prohibited Jurisdiction"). This document and the information contained herein are not for publication or distribution, directly or indirectly, to persons in a Prohibited Jurisdiction unless permitted pursuant to an exemption under the relevant local law or regulation in any such jurisdiction.

The distribution of this document, the Placing and/or issue of the Placing Shares in certain jurisdictions may be restricted by law and/or regulation. No action has been taken by the Company, the Placing Agent, or any of their respective Affiliates (as defined below) that would permit an offer of the Placing Shares or possession or distribution of this document or any other publicity material relating to such Placing Shares in any jurisdiction where action for that purpose is required. Persons receiving this document are required to inform themselves about and to observe any such restrictions.

Collins Stewart Europe Limited, which is authorised and regulated in the United Kingdom by the Financial Services Authority, is acting for JPMorgan American Investment Trust plc and for no one else in connection with each Placing and will not be responsible to anyone other than JPMorgan American Investment Trust plc for providing the protections afforded to clients of Collins Stewart Europe Limited or for affording advice in relation to any Placing, or any other matters referred to herein.

By participating in a Placing (as defined below), each person who is invited to and who chooses to participate in the relevant Placing (a "Placee") by making an oral offer to take up Placing Shares is deemed to have read and understood this document in its entirety and to be providing the representations, warranties, undertakings, agreements and acknowledgements contained herein.

Details of the Placing Agreement and the Placing Shares

The Company and JPMorgan Asset Management (UK) Limited (the "Investment Manager") have entered into a placing agreement dated 6 April 2011 (the "Placing Agreement") with Collins Stewart, under which the Placing Agent has, subject to the terms set out therein, agreed to use reasonable endeavours, as agent of the Company, to procure Placees for the Placing Shares in one or more placings from time to time (each a "Placing").

The Placing Shares will, when issued, be credited as fully paid and will rank pari passu in all respects with each other and with the existing Ordinary Shares, including the right to receive all dividends and other distributions to be paid by reference to a record date falling after the date of issue of the Placing Shares.

The Placing Shares will be issued free of any encumbrance, lien or other security interest.

Details specific to each Placing, including the maximum number of Placing Shares available thereunder, the price per Ordinary Share payable to the Placing Agent by all Placees in the relevant Placing (the "Placing Price") and the expected timetable for the relevant Placing, will be announced by the Company on the day of such Placing.

Application for listing and admission to trading

Application will be made to the FSA (as the competent authority for listing) for admission of the Ordinary Shares to the Official List maintained by the FSA in accordance with section 74(1) of the Financial Services and Markets Act 2000 (as amended) ("FSMA") for the purposes of part VI of FSMA and to London Stock Exchange plc (the "London Stock Exchange") for admission to trading of the Ordinary Shares on the London Stock Exchange's market for listed securities ("Admission"). The date on which it is expected that Admission will become effective and that dealings will commence will be announced by the Company separately in respect of each relevant Placing.

Participation in, and principal terms of, the Placings

Prospective Placees will be identified and contacted by the Placing Agent.

Collins Stewart will re-contact and confirm orally to Placees the size of their respective allocations and a trade confirmation will be dispatched as soon as possible after the closing of a Placing.  Collins Stewart's oral confirmation of the size of allocations and each Placee's oral commitments to accept the same will constitute a legally binding agreement pursuant to which each such Placee will be required to accept the number of Placing Shares allocated to the Placee at the Placing Price and otherwise on the terms and subject to the conditions set out herein and subject to the memorandum and articles of association of the Company.

The Placing Agent (after consulting with the Company and the Investment Manager) reserves the right to scale back the number of Placing Shares to be subscribed by any Placee.  The Company and the Placing Agent also reserve the right not to accept offers to subscribe for Placing Shares or to accept such offers in part rather than in whole.  The Placing Agent shall be entitled to effect each Placing by such method as it shall in its sole discretion determine. To the fullest extent permissible by law, neither the Placing Agent, any holding company thereof, nor any subsidiary, branch or affiliate of the Placing Agent (each an "Affiliate") nor the Investment Manager or any person acting on behalf of any of the foregoing shall have any liability to Placees (or to any other person whether acting on behalf of a Placee or otherwise).  In particular, neither of the Placing Agent, nor the Investment Manager, nor any Affiliate thereof nor any person acting on behalf of any of the foregoing shall have any liability to Placees in respect of its conduct of any Placing.  No commissions will be paid to Placees or directly by Placees in respect of any Placing Shares.

Each Placee's obligations will be owed to the Company and to the Placing Agent. Following the oral confirmation referred to above, each Placee will also have an immediate, separate, irrevocable and binding obligation, owed to the Placing Agent, to pay to the Placing Agent (or as the Placing Agent may direct) in cleared funds an amount equal to the product of the Placing Price and the number of Placing Shares such Placee has agreed to acquire.  The Company shall allot such Placing Shares to each Placee following each Placee's payment to the Placing Agent of such amount.

All obligations of the Placing Agent under a Placing will be subject to fulfilment of the conditions referred to below under "Conditions of the Placing".

Conditions of the Placing

Each Placing is conditional upon the Placing Agreement becoming unconditional in respect of that Placing and not having been terminated in accordance with its terms.

The obligations of the Placing Agent under the Placing Agreement (which are several obligations) are conditional, inter alia, on the Company and the Investment Manager delivering to the Placing Agent, by no later than 12.00 p.m. on the date of the relevant Placing, certificates confirming, inter alia, that none of the representations, warranties and undertakings given by the Company or the Investment Manager, respectively, in the Placing Agreement has been breached or was untrue, inaccurate or misleading when made or would cease to be true and accurate were it to be repeated by reference to the facts subsisting on the date of the certificates.

If (a) the conditions are not fulfilled (or to the extent permitted under the Placing Agreement waived by the Placing Agent), or (b) the Placing Agreement is terminated in the circumstances specified below, the relevant Placing will lapse and each Placee's rights and obligations hereunder shall cease and determine at such time and no claim may be made by a Placee in respect thereof. The Placing Agent shall not have any liability to any Placee (or to any other person whether acting on behalf of a Placee or otherwise) in respect of any decision it may make as to whether or not to waive or to extend the time and/or date for the satisfaction of any condition in the Placing Agreement or in respect of any Placing generally.

By participating in a Placing, each Placee agrees that its rights and obligations hereunder terminate only in the circumstances described above and under "Right to terminate under the Placing Agreement" below, and will not otherwise be capable of rescission or termination by the Placee.

Right to terminate under the Placing Agreement

Collins Stewart may, at any time before the settlement date of any Placing, terminate the relevant Placing by giving notice to the Company if:

a) there has been a breach of any of the warranties which is material in the context of the relevant Placing; or

b) one or more of the warranties was untrue or inaccurate in a manner which was material in the context of the relevant Placing when given or, by reason of any event occurring or circumstance arising after the date of the Placing Agreement, any one or more of the warranties would cease to be true and accurate in a manner which is material in the context of the relevant Placing if repeated at that time; or

c) the Company or the Investment Manager has failed to comply with any obligation under the Placing Agreement or otherwise relating to the relevant Placing which is material in the context of the relevant Placing.

By participating in a Placing, each Placee agrees with Collins Stewart that the exercise by Collins Stewart of any right of termination or other discretion under the Placing Agreement shall be within the absolute discretion of Collins Stewart and that Collins Stewart need not make any reference to the Placee in this regard and that, to the fullest extent permitted by law, Collins Stewart shall not have any liability whatsoever to the Placee in connection with any such exercise.

No prospectus

Each Placing will be conducted pursuant to exemptions from the requirements to prepare a prospectus set out in the Prospectus Directive and the rules and regulations made pursuant thereto. No prospectus or other offering document has been or will be prepared by or on behalf of the Company nor approved by the UK Listing Authority in connection with any Placing.

Each Placee, by accepting a participation in the relevant Placing, agrees that the content of this document is exclusively the responsibility of the Company and confirms to the Placing Agent and the Company that it has neither received nor relied on any information, representation, warranty or statement made by or on behalf of the Placing Agent (other than the amount of the relevant Placing participation in the oral confirmation given to Placees and the trade confirmation referred to below), any of its Affiliates, the Investment Manager, the Company or any persons acting on behalf of any of the foregoing and neither the Placing Agent, any of its Affiliates, the Company, the Investment Manager or any persons acting on behalf of any of the foregoing will be liable for the decision of any Placee to participate in the relevant Placing based on any information, representation, warranty or statement which the Placee may have obtained or received (regardless of whether or not such information, representation, warranty or statement was given or made by or on behalf of any such persons). By participating in a Placing, each Placee acknowledges to and agrees with the Placing Agent for itself and as agent for the Company, that, except in relation to the information contained in this document, it has relied on its own investigation of the business, financial or other position of the Company in deciding to participate in the relevant Placing. Nothing in this paragraph shall exclude the liability of any person for fraudulent misrepresentation.

Registration and settlement

Settlement of transactions in the Placing Shares (ISIN GB0008465055) following Admission will take place within the CREST system, using the DVP mechanism, subject to certain exceptions.  The Placing Agent reserves the right to require settlement for and delivery of the Placing Shares to Placees by such other means as it deems necessary, if delivery or settlement is not possible or practicable within the CREST system within the timetable set out in respect of the relevant Placing or would not be consistent with the regulatory requirements in the Placee's jurisdiction. 

Each Placee allocated Placing Shares in a Placing will be sent a trade confirmation stating the number of Placing Shares allocated to it, the Placing Price, the aggregate amount owed by such Placee to Collins Stewart and settlement instructions. Placees should settle against CREST ID: 288. It is expected that such trade confirmation will be despatched on the date of each Placing and that this will also be the trade date. Each Placee agrees that it will do all things necessary to ensure that delivery and payment is completed in accordance with either the standing CREST or certificated settlement instructions which it has in place with the Placing Agent.

It is expected that settlement will be on a T+3 basis in accordance with the instructions set out in the trade confirmation.

Interest is chargeable daily on payments not received from Placees on the due date in accordance with the arrangements set out above at the rate of 2 percentage points above the base rate of Barclays Bank Plc.

Each Placee is deemed to agree that if it does not comply with these obligations, the Placing Agent may sell any or all of the Placing Shares allocated to the Placee on such Placee's behalf and retain from the proceeds, for its own account and profit, an amount equal to the aggregate amount owed by the Placee plus any interest due. The Placee will, however, remain liable for any shortfall below the aggregate amount owed by such Placee and it may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties) which may arise upon the sale of such Placing Shares on such Placee's behalf.

If Placing Shares are to be delivered to a custodian or settlement agent, the Placee should ensure that the trade confirmation is copied and delivered immediately to the relevant person within that organisation.

Insofar as Placing Shares are registered in the Placee's name or that of its nominee or in the name of any person for whom the Placee is contracting as agent or that of a nominee for such person, such Placing Shares will, subject as provided below, be so registered free from any liability to PTM levy, stamp duty or stamp duty reserve tax. If there are any circumstances in which any other stamp duty or stamp duty reserve tax is payable in respect of the issue of the Placing Shares, neither Collins Stewart, nor the Company shall be responsible for the payment thereof. Placees will not be entitled to receive any fee or commission in connection with any Placing.

Representations and Warranties

By participating in a Placing, each Placee (and any person acting on such Placee's behalf):

1.   represents and warrants that it has read and understood this document in its entirety and acknowledges that its participation in the relevant Placing will be governed by the terms of this document as supplemented by such terms specific to the relevant Placing as are announced by the Company prior to the closing of the relevant Placing;

2.   represents and warrants that it has the power and authority to subscribe for the Placing Shares to be issued to it under the relevant Placing and to execute and deliver all documents necessary for such subscription and the person orally committing to subscribe for the Placing Shares on its behalf has been duly authorised to do so;

3.   agrees to indemnify on an after-tax basis and hold harmless each of the Company, Collins Stewart, the Investment Manager, their respective Affiliates and any person acting on their behalf from any and all costs, claims, liabilities and expenses (including legal fees and expenses) arising out of or in connection with any breach of the representations, warranties, acknowledgements, agreements and undertakings in this document and further agrees that the provisions of this document shall survive after completion of the relevant Placing;

4.   acknowledges that the new Ordinary Shares of the Company will be admitted to the Official List of the UK Listing Authority, and the Company is therefore required to publish certain business and financial information in accordance with the rules and practices of the FSA (collectively, the "Exchange Information") and that the Placee is able to obtain or access the Exchange Information without undue difficulty;

5.   acknowledges that neither the Placing Agent, nor the Investment Manager, nor any of their respective Affiliates nor any person acting on their behalf has provided, and will not provide it with any material or information regarding the Placing Shares or the Company; nor has it requested the Placing Agent, any of its Affiliates nor any person acting on their behalf to provide it with any such material or information;

6.   acknowledges that neither the Placing Agent, nor the Investment Manager, nor any of their respective Affiliates nor any person acting on their behalf will be responsible for or shall have any liability for any information, representation or statement relating to the Company contained in this document or any information previously published by or on behalf of the Company and neither the Placing Agent, nor the Investment Manager, nor any of their respective Affiliates nor any person acting on their behalf will be liable for any Placee's decision to participate in a Placing based on any information, representation or statement contained in this document or otherwise. Each Placee further represents, warrants and agrees that the only information on which it is entitled to rely and on which such Placee has relied in committing to subscribe for the Placing Shares is contained in this document (as supplemented by such terms specific to the relevant Placing as are announced by the Company prior to the closing of the relevant Placing) and any Exchange Information, such information being all that it deems necessary to make an investment decision in respect of the Placing Shares, and that it has relied on its own investigation with respect to the Placing Shares and the Company in connection with its decision to subscribe for the Placing Shares and acknowledges that it is not relying on any investigation that the Placing Agent, the Investment Manager, any of their respective Affiliates or any person acting on their behalf may have conducted with respect to the Placing Shares or the Company and none of such persons has made any representations to it, express or implied, with respect thereto;

7.   acknowledges that it has not relied on any information relating to the Company contained in any research reports prepared by Collins Stewart, its Affiliates or any person acting on its or any of its Affiliates' behalf and understands that (i) none of Collins Stewart, any of its Affiliates nor any person acting on its behalf has or shall have any liability for public information or any representation; (ii) none of Collins Stewart, any of its Affiliates nor any person acting on its behalf has or shall have any liability for any additional information that has otherwise been made available to such Placee, whether at the date of publication, the date of this document or otherwise; and that (iii) none of Collins Stewart, any of its Affiliates nor any person acting on its behalf makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of such information, whether at the date of publication, the date of this document or otherwise;

8.   represents and warrants that (i) it is entitled to acquire the Placing Shares under the laws and regulations of all relevant jurisdictions which apply to it; (ii) it has fully observed such laws and regulations and obtained all such governmental and other guarantees, consents and authorities which may be required thereunder and complied with all necessary formalities; (iii) it has all necessary capacity to commit to participation in the relevant Placing and to perform its obligations in relation thereto and will honour such obligations; (iv) it has paid any issue, transfer or other taxes due in connection with its participation in any territory; and (v) it has not taken any action which will or may result in the Company, the Placing Agent, any of their respective Affiliates or any person acting on their behalf being in breach of the legal and/or regulatory requirements of any territory in connection with the relevant Placing;

9.   represents and warrants that the issue to the Placee, or the person specified by the Placee for registration as holder, of Placing Shares will not give rise to a liability under any of sections 67, 70, 93 or 96 of the Finance Act 1986 (depositary receipts and clearance services) and that the Placing Shares are not being acquired in connection with arrangements to issue depositary receipts or to issue or transfer Placing Shares into a clearance system;

10.  represents and warrants that it understands that the Placing Shares have not been and will not be registered under the Securities Act or under the securities laws of any state or other jurisdiction of the United States (as defined below) and that the Company has not been registered as an "investment company" under the United States Investment Company Act of 1940, as amended;

11.  represents and warrants that it is, or at the time the Placing Shares are acquired, it will be, (a) the beneficial owner of such Placing Shares and is neither a person located in the United States of America, its territories or possessions, any state of the United States or the District of Columbia (the "United States") nor a U.S. Person, (b) acquiring the Placing Shares in an offshore transaction (as defined in Regulation S under the Securities Act) and (c) will not offer or sell, directly or indirectly, any of the Placing Shares in the United States or to or for the benefit of a U.S. Person, except in accordance with Regulation S or pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act;

12.  represents and warrants that it has not offered or sold and will not offer or sell any Placing Shares to persons in the United Kingdom prior to Admission except to "qualified investors" as defined in Article 2.1(e) of the Prospectus Directive;

13.  represents and warrants that it has only communicated or caused to be communicated and will only communicate or cause to be communicated any invitation or inducement to engage in investment activity (within the meaning of section 21 of FSMA) relating to the Placing Shares in circumstances in which it is permitted to do so pursuant to section 21 of FSMA;

14.  represents and warrants that it has complied and will comply with all applicable provisions of FSMA with respect to anything done by it in relation to the Placing Shares in, from or otherwise involving the United Kingdom;

15.  represents and warrants that it has complied with its obligations in connection with money laundering and terrorist financing under the Criminal Justice Act 1993, the Proceeds of Crime Act 2002, the Terrorism Act 2000, the Anti-terrorism Crime and Security Act 2001 and the Money Laundering Regulations 2007 (the "Regulations") and, if it is making payment on behalf of a third party, that satisfactory evidence has been obtained and recorded by it to verify the identity of the third party as required by the Regulations;

16.  represents and warrants that it is (a) a person falling within Article 19(5) of the FPO or (b) a person falling within Article 49(2)(a) to (d) of the FPO and undertakes that it will acquire, hold, manage or dispose of any Placing Shares that are allocated to it for the purposes of its business;

17.  represents and warrants that it is a qualified investor as defined in section 86(7) of FSMA, being a person falling within Article 2.1(e)(i), (ii) or (iii) of the Prospectus Directive;

18.  undertakes that it (and any person acting on its behalf) will pay for the Placing Shares acquired by it in accordance with this document on the due time and date set out in the announcement of the timetable specific to the relevant Placing against delivery of such Placing Shares to it, failing which the relevant Placing Shares may be placed with other Placees or sold as the Placing Agent may, in its absolute discretion, determine and it will remain liable for any shortfall below the net proceeds of such sale and the placing proceeds of such Placing Shares and may be required to bear any stamp duty or stamp duty reserve tax (together with any interest or penalties due pursuant to the terms set out or referred to in this document) which may arise upon the sale of such Placee's Placing Shares on its behalf;

19.  acknowledges that none of the Placing Agent, any of its Affiliates, the Company, the Investment Manager nor any person acting on their behalf is making any recommendations to it or advising it regarding the suitability or merits of any transaction it may enter into in connection with any Placing, and acknowledges that neither the Placing Agent, any of its Affiliates, the Company, the Investment Manager nor any person acting on their behalf has any duties or responsibilities to it for providing advice in relation to any Placing or in respect of any representations, warranties, undertakings or indemnities contained in the Placing Agreement or for the exercise or performance of any of Collins Stewart's rights and obligations thereunder, including any right to waive or vary any condition or exercise any termination right contained therein;

20.  undertakes that (i) the person whom it specifies for registration as holder of the Placing Shares will be (a) the Placee; or (b) the Placee's nominee, as the case may be; (ii) neither the Placing Agent nor the Company will be responsible for any liability to stamp duty or stamp duty reserve tax resulting from a failure to observe this requirement; and (iii) the Placee and any person acting on its behalf agrees to acquire the Placing Shares on the basis that the Placing Shares will be allotted to the CREST stock account of Collins Stewart which will hold them as settlement agent as nominee for the Placees until settlement in accordance with its standing settlement instructions with payment for the Placing Shares being made simultaneously upon receipt of the Placing Shares in the Placee's stock account on a delivery versus payment basis;

21.  acknowledges that any agreements entered into by it pursuant to these terms and conditions (including any non-contractual obligations) shall be governed by and construed in accordance with the laws of England and it submits (on behalf of itself and on behalf of any person on whose behalf it is acting) to the exclusive jurisdiction of the English courts as regards any claim, dispute or matter arising out of any such contract;

22.  acknowledges that it irrevocably appoints any director of the Placing Agent as its agent for the purposes of executing and delivering to the Company and/or its registrars any documents on its behalf necessary to enable it to be registered as the holder of any of the Placing Shares agreed to be taken up by it under any Placing;

23.  represents and warrants that it is not a resident of any Prohibited Jurisdiction and acknowledges that the Placing Shares have not been and will not be registered nor will a prospectus be cleared or passported in respect of the Placing Shares under the securities legislation of any Prohibited Jurisdictions and, subject to certain exceptions, may not be offered, sold, taken up, renounced, delivered or transferred, directly or indirectly, within any Prohibited Jurisdiction;

24.  represents and warrants that any person who confirms to Collins Stewart on behalf of a Placee an agreement to subscribe for Placing Shares and/or who authorises Collins Stewart to notify the Placee's name to the Company's registrar, has authority to do so on behalf of the Placee;

25.  acknowledges that the agreement to settle each Placee's acquisition of Placing Shares (and/or the acquisition of a person for whom it is contracting as agent) free of stamp duty and stamp duty reserve tax depends on the settlement relating only to an acquisition by it and/or such person direct from the Company of the Placing Shares in question. Such agreement assumes that the Placing Shares are not being acquired in connection with arrangements to issue depositary receipts or to issue or transfer the Placing Shares into a clearance service. If there were any such arrangements, or the settlement related to other dealing in the Placing Shares, stamp duty or stamp duty reserve tax may be payable, for which neither the Company, nor the Placing Agent will be responsible. If this is the case, the Placee should take its own advice and notify Collins Stewart accordingly;

26.  acknowledges that the Placing Shares will be issued and/or transferred subject to the terms and conditions set out in this document and otherwise as stated in any supplemental announcement made by the Company of the specific terms of the relevant Placing;

27.  acknowledges that when a Placee or any person acting on behalf of the Placee is dealing with Collins Stewart any money held in an account with Collins Stewart on behalf of the Placee and/or any person acting on behalf of the Placee will not be treated as client money within the meaning of the relevant rules and regulations of the FSA. The Placee acknowledges that the money will not be subject to the protections conferred by the client money rules; as a consequence, this money will not be segregated from Collins Stewart money in accordance with the client money rules and will be used by Collins Stewart in the course of its business; and the Placee will rank only as a general creditor of Collins Stewart (as the case may be);

28.  acknowledges and understands that the Company, the Placing Agent, and others will rely upon the truth and accuracy of the foregoing representations, warranties, agreements, undertakings and acknowledgements;

29.  acknowledges that until 40 days after the later of the commencement of the relevant Placing and the relevant closing date, an offer or sale of Placing Shares within the United States by any dealer (whether or not participating in the relevant Placing) may violate the registration requirements of the Securities Act if such offer or sale is made otherwise than in accordance with Rule 144A under the Securities Act or pursuant to another exemption from registration under the Securities Act to a person that is a "qualified purchaser" (as defined in Section 2(a)(51) of the United States Investment Company Act of 1940, as amended); and

30.  acknowledges that the basis of allocation will be determined by the Placing Agent (after consulting with the Company and the Investment Manager) in its absolute discretion. The right is reserved to reject in whole or in part and/or scale back any participation in any Placing.

The acknowledgements, agreements, undertakings, representations and warranties referred to above are given to each of the Company, the Placing Agent, and the Investment Manager (in each case for its own benefit and, where relevant, the benefit of its Affiliates and any person acting on its behalf) and are irrevocable.

No UK stamp duty or stamp duty reserve tax should be payable to the extent that the Placing Shares are issued or transferred (as the case may be) into CREST to, or to the nominee of, a Placee who holds those shares beneficially (and not as agent or nominee for any other person) within the CREST system and registered in the name of such Placee or such Placee's nominee.

Any arrangements to issue or transfer the Placing Shares into a depositary receipts system or a clearance service or to hold the Placing Shares as agent or nominee of a person to whom a depositary receipt may be issued or who will hold the Placing Shares in a clearance service, or any arrangements subsequently to transfer the Placing Shares, may give rise to stamp duty and/or stamp duty reserve tax, for which neither the Company nor Collins Stewart will be responsible and the Placee to whom (or on behalf of whom, or in respect of the person for whom it is participating in the relevant Placing as an agent or nominee) the allocation, allotment, issue or delivery of Placing Shares has given rise to such stamp duty or stamp duty reserve tax undertakes to pay such stamp duty or stamp duty reserve tax forthwith and to indemnify on an after-tax basis and to hold harmless the Company and Collins Stewart in the event that any of the Company and/or Collins Stewart has incurred any such liability to stamp duty or stamp duty reserve tax.

In addition, Placees should note that they will be liable for any capital duty, stamp duty and all other stamp, issue, securities, transfer, registration, documentary or other duties or taxes (including any interest, fines or penalties relating thereto) payable outside the UK by them or any other person on the acquisition by them of any Placing Shares or the agreement by them to acquire any Placing Shares.

All times and dates in this document may be subject to amendment.  The Placing Agent shall notify the Placees and any person acting on behalf of the Placees of any such changes.

This document has been issued by the Company and is the sole responsibility of the Company.

Past performance is no guide to future performance and persons needing advice should consult an independent financial adviser. 

The rights and remedies of Collins Stewart, the Investment Manager and the Company under these terms and conditions are in addition to any rights and remedies which would otherwise be available to each of them and the exercise or partial exercise or partial exercise of one will not prevent the exercise of others.

Each Placee may be asked to disclose in writing or orally to Collins Stewart:

(a)        if he is an individual, his nationality; or

(b)        if he is a discretionary fund manager, the jurisdiction in which the funds are managed or owned.

End

For further information please contact:

JPMorgan Asset Management (UK) Limited                        [phone]

Craig Cleland/David Barron

Collins Stewart Europe Limited                                        [phone]

Robbie Roberson/Andrew Zychowski/Stephen Newby

 

END

 

 

IOEEANSFFLKFEEF