In this case I am proposing that my remuneration is fixed on a time costs basis.

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1 Findlay James (Insolvency Practitioners) Limited Liquidator s Fee and Expenses Estimate I must seek approval to the basis of my remuneration before it is paid and provide the fee approving body with sufficient information for them to make a decision. Insolvency law determines who the fee approving body is (and it depends on the circumstances of the case), but it is usually those creditors who have a direct interest in the amount paid because it impacts on how much those creditors recover. Changes to insolvency legislation on 1 October 2015 also now requires me to give all known creditors details of the work I expect to carry out during the case and the expenses that are likely to be incurred. Also, if my fees are proposed to include remuneration calculated on a time cost basis, I must provide an estimate of those fees. I have provided a fee estimate below and details of where further information can be obtained. Creditors have a right to request further information from a Liquidator and a right to challenge the remuneration of a Liquidator and other expenses following receipt of a progress report. You can find information on Liquidator s fees from the enclosed Creditors Guide to Liquidators Fees. Insolvency law currently allows fees to be calculated in three ways: As a percentage of the value of the property with which the Administrator has to deal with (often referred to as a percentage basis ); or By reference to the time properly given by the Administrator and his staff attending to matters arising in the Administration ( time costs basis ); or As a set amount ( a fixed fee ). The basis of my fees can be combination of the above and different bases can be used for different parts of my work. The fee approving body decides which basis (or combination of bases) should be used to calculate fees, once it is satisfied that the fee basis proposed represents the most appropriate mechanism in the circumstances of the case. In this case I am proposing that my remuneration is fixed on a time costs basis. Fee Estimate Below is a fee estimate for the work proposed to be done on a time cost basis, together with details of the work likely to be included in the Liquidation as a whole. Activity Total Hours Cost ( ) Average hourly rate ( ) Administration and planning 6 1, Realisation of assets 10 2, Statutory compliance and reporting 10 2, Trading Investigations 10 2, Creditors 5 1,

2 Legal and litigation Total 41 9,840 Hourly charge out rates with effect from 1 April 2016 Directors/appointment takers Managers and cashiers Assistants and Support Staff The above estimate has been calculated on a blended rate. A blended rate is calculated as the prospective average cost per hour for the case (or category of work in the case), based upon the estimated time to be expended by each grade of staff at their specific charge out rate. The above fee estimate is based on the following assumptions: The timescale for realising all assets and making all recoveries does not exceed 12 months. No other significant or onerous assets are identified; The Liquidator may be requested by the creditors to investigate specific matters during the investigation process; Full cooperation is received from the director(s) and all other parties whom the Liquidator may contact in connection with this insolvency appointment; The level of creditor enquiries are continued to be received at the rate received to date; There are no complex creditor claims; and Availability and quality of the books and records for the purpose of claims agreement. My remuneration for this work cannot exceed the fee estimate without the prior consent from the fee approving body. I do not anticipate that it will be necessary to seek further approval. It is not anticipated that the work to be undertaken will provide a financial benefit to creditors, but it is required by statute. At this point it is anticipated that there will be no return to creditors. Details of post appointment work anticipated to be undertaken by the Liquidator in connection with this assignment are as follows: Administration and Planning Setting up and administering bank accounts, managing the cash book, completing receipts vouchers and general other cashiering duties, calculating and setting up insolvency bonds, review and completion of case diary lines and checklists to ensure compliance, corresponding with accountants, the Company s bankers, insurers, agents, collating time cost information on the work undertaken by each member of the Liquidator s team and complying with SIP 9, undertaking general administrative work including maintaining/updating Company data onto my systems, case filing and completion of general documents, internal discussions regarding matters to be dealt with, reviewing various documents prepared and correspondence received, signing correspondence, letters and forms, and dealing with various other sundry matters.

3 In addition to continuing with the work set out above, regular reviews of the case as required by my regulatory body, to ensure that all statutory matters are adhered to and the case is progressing, general and on-going planning and formulation of strategy in respect of the Liquidation, undertaking periodic file reviews to ensure compliance and to monitor progression of the Liquidation and outstanding matters to be dealt with, completion of VAT and corporation tax returns; and dealing with various other sundry matters. Realisation of Assets Liaising with the Company s bankers in relation to the recovery of funds held on the Company s bank account and to ascertain whether there have been any post Liquidation credit receipts, liaising with the director, corresponding with the landlord of the Company s former trading premises to obtain and review the lease and to seek agreement to a surrender of the lease, and dealing with various other general matters in relation to the assets of the Company. In addition to continuing with the work set out above; take any necessary actions to investigate whether there are any other assets of the Company of which the Liquidator is not yet aware; consideration of any VAT bad debt relief claims being made and undertaking any work which may be required to submit any such claim(s), consider likelihood of additional recoveries being made e.g. antecedent transactions, mis-selling etc, providing any additional information which may be required. Creditors Unsecured Creditors & Legal Creditors Dealing with creditor enquiries by telephone and , inputting all creditor details and proof of debts received to date onto our system, liaising with creditors solicitors and other representatives. Pensions Undertake necessary investigations to ascertain whether the Company has any pension schemes. In addition to continuing the matters above which will be ongoing throughout the course of the Liquidation, e.g. dealing with creditor enquiries and correspondence, future time estimated to be spent on this category has been based on the number of creditors currently known, with consideration to the likelihood of further creditors coming to light, given the Company s records were not up to date by an estimated 6 weeks, and the work involved with dealing with telephone calls, s, letter correspondence and proof of debts from creditors. Enquiries from creditors are also likely to be ongoing. In the event of any pensions schemes coming to light, take appropriate action to notify all relevant parties and appoint independent trustees if required to provide a report on the duties the Liquidator must carry out in respect to the scheme(s). In due course, the adjudication of preferential claims will be required, together with all associated work with distributing funds to the preferential creditors. Investigations Time has been spent in preparing letters and questionnaires to the directors, in relation to the Company Directors Disqualification Act, which will be reviewed as part of the investigation to be undertaken in the Liquidation. Part of the Liquidator s duties will include carrying investigations and any necessary enquiries into the conduct of the directors in the last three years, establishing what assets the Company has, including any potential claims against directors or other parties, what recoveries could be made and where necessary, to weigh up the means of proceeding the most appropriate course of action and possible further consultation with creditors. A review of the Company s books and records must be undertaken in addition to reviewing any information on any concerns received from creditors in relation to the way in which the Company s business has been conducted. The Liquidator is required to prepare and submit a report on his findings to the Department of business Innovation & Skills within Six Months from his appointment.

4 Statutory Compliance & Reporting As set out SIP 9 analysis, this category relates to time spent in relation to statutory compliance, statutory reports, and meetings, appointment formalities, statement of affairs, bonding to protect the assets available for preferential and unsecured creditors and statutory advertising. Time incurred and charged to these categories includes partner and manager s time for reviewing and signing documentation, and Liquidator s time (shown as other professional ) in collating information for and preparing all statutory documentation; carrying out various statutory duties following the Liquidator s appointment, completion of internal checklist, circulating notice of the appointment to all applicable parties; and attending the Company s trading remises to deal with the collection of the books & records. Going forward, some of the work outlined above will continue, including statutory filings at Companies House, maintenance of the Insolvency bond and the holding of a statutory meeting of the Company s creditors. If required the formal setting up of a creditors committee and regular reporting to them as necessary. In addition to reporting to all creditors and dealing any queries arising following circulation of those reports. Dealing with tax and VAT matters throughout the appointment, bringing the conduct of the Insolvency process to a close when all matters are complete in accordance with the relevant requirements. Legal and Litigation Seeking Legal advice and when needed throughout the assignment. Included in the above are tasks I must perform that may not directly benefit creditors financially. These typically relate to fulfilling obligations imposed by statute or my regulatory body. It is my firm s policy to delegate tasks to appropriate members of staff considering their level of experience and any requisite specialist knowledge, supervised accordingly, so as to maximise the cost effectiveness of the work performed. Matters of particular complexity or significance requiring more exceptional responsibility are dealt with by senior staff or the Liquidator personally. Set out above are the relevant maximum charge-out rates per hour worked for the grades of staff actually or likely to be involved in this assignment. All staff who work on this assignment (including cashiers, support and secretarial staff) charge time directly to the assignment and are included within any analysis of time charged. Time is charged by reference to actual work carried out on the assignment in five minute units. There has been/will be no allocation of any general costs or overhead costs. These rates will apply to each part of our work. Expenses Expenses are defined in SIP 9 as amounts properly payable by an office holder from the estate which are not office holders remuneration or a distribution to creditors. These include disbursements, which are expenses met by and reimbursed to an office holder in connection with an insolvency appointment. They fall into two categories: Category 1 and Category 2: Disbursement Category 1 SIP 9 Definition Payments to independent third parties where there is specific expenditure directly referable to the appointment in question. These include bordereau & insurance premiums, statutory advertising, courier costs, Land Registry searches, postage and postal re-direction costs.

5 Category 2 Costs that are directly referable to the appointment in question but not to a payment to an independent third party. They may include shared or allocated costs that may be incurred by the office holder or their firm, and that can be allocated to the appointment on a proper and reasonable basis. My firm s disbursements policy allows for all properly incurred expenses to be recharged to the case. I do not require approval from the fee approving body/creditors to draw Category 1 disbursements. Specific expenses will be incurred in respect of statutory advertising, postage costs and bonding. It is my firm s policy not to seek to recover Category 2 disbursements. The estimate excludes any potential tax liabilities that may be payable as an expense of the Liquidation in due course because amounts due will depend on the position at the end of the tax accounting period. I do not have a business or personal relationship with any party responsible for approving my remuneration, or any person who provides services to me in respect of the appointment where that relationship could give rise to a conflict of interest. I believe that the basis of my remuneration sought is expected to produce a fair and reasonable reflection of the work that I anticipate will be undertaken, by myself acting as Liquidator, and my staff. Alisdair J Findlay Liquidator