As a participant of the LTIP, DSBP and Sharesave Plan, the information in this pack is very important. Please read it carefully.

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1 THIS DOCUMENT AND ANY ACCOMPANYING APPENDICES ARE IMPORTANT AND REQUIRE YOUR IMMEDIATE ATTENTION. IF YOU ARE IN ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU ARE RECOMMENDED TO SEEK YOUR OWN INDEPENDENT FINANCIAL ADVICE IMMEDIATELY FROM YOUR STOCKBROKER, BANK MANAGER, SOLICITOR, ACCOUNTANT OR OTHER INDEPENDENT FINANCIAL OR LEGAL ADVISER AUTHORISED UNDER THE FINANCIAL SERVICES AND MARKETS ACT 2000, IF YOU ARE IN THE UNITED KINGDOM, OR FROM ANOTHER APPROPRIATELY AUTHORISED INDEPENDENT FINANCIAL ADVISER IF YOU ARE IN A TERRITORY OUTSIDE THE UNITED KINGDOM. From: Scarlet Bidco Limited 1 December 2017 Dear Optionholder, Recommended cash offer for Servelec Group plc by Scarlet Bidco Limited to be effected by means of a scheme of arrangement under Part 26 of the Companies Act 2006 As a participant of the LTIP, DSBP and Sharesave Plan, the information in this pack is very important. Please read it carefully. As a result of the Offer, options under the LTIP, DSBP and Sharesave Plan will become exercisable to the extent set out in this letter. To exercise your options you will need to complete, sign and date the enclosed Form of Election and return it to Ian Shaw at Servelec Group, Rotherside Road, Eckington, Sheffield S21 4HL or by to ian.shaw@servelec-group.com as soon as possible and in any event to be received by no later than 4.30p.m. on 29 December As you know, Servelec Group plc (Servelec) and Scarlet Bidco Limited (Bidco) announced on 23 November 2017 that they had reached agreement on the terms of a recommended cash offer pursuant to which Bidco will acquire the entire issued and to be issued share capital of Servelec (the Offer). We are writing to explain how the Offer will affect the options that you hold over Servelec ordinary shares (Servelec Shares) under (a) the Servelec Long Term Incentive Plan (the LTIP); (b) the Servelec Deferred Share Bonus Plan (the DSBP); and (c) the Servelec Save As You Earn Share Option Plan (the Sharesave Plan), (together, the Servelec Share Schemes) and the action you will need to take. This communication describes legal processes and therefore is unavoidably technical in nature. The attached Glossary is intended to help you understand the capitalised terms that are used in this communication. You should read this letter, the Appendices and the Scheme Document (copies of which are available on the Servelec website at This communication relates to the outstanding options you hold under the Servelec Share Schemes (the Options). Details of your outstanding Options will be provided to you separately. The Offer The Offer will be implemented by way of a Court process, known as a scheme of arrangement (the Scheme). The Scheme is a procedure that requires both the approval of Servelec Shareholders, which will be sought at shareholder meetings expected to be held on 22 December 2017, and sanction of the Scheme by the Court, which is scheduled to take place in mid-january 2018 (the Court Sanction). It

2 is currently expected that the Scheme will then become effective on 15 January 2018 (which is known as the Effective Date of the Scheme) and at this time Servelec will be owned by Bidco. If approved, the effect of the above is that all of the Servelec Shares in issue will be acquired by Bidco in return for pence per Servelec Share in cash (which Bidco will pay). The full terms of the Offer (and the Scheme) are set out in the Scheme Document. If you already hold Servelec Shares, you should have received a copy of the Scheme Document in your capacity as a Servelec Shareholder. This letter, and the accompanying Appendices, do not address the steps you can take in relation to Servelec Shares you already hold, and you should refer to the Scheme Document for a full description of your voting rights in respect of Servelec Shares. How does the Offer affect your Options under the Servelec Share Schemes? 1. LTIP As a result of the Offer, your unvested LTIP Options will become exercisable on the date that the Court sanctions (i.e. approves) the Scheme to the extent the performance conditions are satisfied. The Servelec Remuneration Committee intends to dis-apply the provisions under the LTIP rules under which the number of Servelec Shares over which you would otherwise be able to exercise your LTIP Options will be reduced to take account of the fact that your LTIP Options will become exercisable (to the extent the performance targets have been satisfied) prior to the end of the relevant vesting period. You will be able to exercise your LTIP Option on Court Sanction by completing the relevant Form of Election appended to this letter. Your LTIP Option has a one-month exercise period, so if you would prefer to exercise your LTIP Option during the month following Court Sanction, please contact Ian Shaw (by to ian.shaw@servelec-group.com). You will be notified by the Servelec Remuneration Committee whether, and if so, the extent to which, the performance conditions applicable to your LTIP Options have been satisfied. You can use the enclosed Form of Election to elect to exercise on Court Sanction. You will be able to exercise your LTIP Options on Court Sanction and the number of Servelec Shares over which your LTIP Options have vested will be issued and the Servelec shareholder register will be updated accordingly. The Servelec Shares you acquire will be sold to Bidco as part of the Offer and in return you will receive pence per Servelec Share in cash. The proceeds will be transferred to your nominated bank account as soon as possible following completion of the Offer subject to deduction on account of any estimated income tax and NICs liability. A final adjustment of your income tax and NICs liability will be processed in your next regular salary payment following the exercise. There would be an income tax charge on exercise of your LTIP Options. 2. DSBP As a result of the Offer, your unvested DSBP Options will become exercisable in full on the date that the Court sanctions the Scheme. You will be able to exercise your DSBP Option on the Court Sanction by completing the relevant Form of Election appended to this letter. Your DSBP Option has a one-month exercise period, so if you would prefer to exercise your DSBP Option during the month following Court Sanction, please contact Ian Shaw (by to ian.shaw@servelec-group.com). You can use the enclosed Form of Election to elect to exercise on Court Sanction. You will be able to exercise your DSBP Option on Court Sanction and the number of Servelec Shares over which your DSBP Options have vested will be issued and the Servelec shareholder register will be updated accordingly. The Servelec Shares you acquire will be sold to Bidco as part of the Offer and in return you will receive pence per Servelec Share in cash. The proceeds will be transferred to your nominated bank account as soon as possible following completion of the Offer subject to deduction on account of any estimated income tax and NICs liability. A final adjustment of your income tax and NICs liability will be processed in your next regular salary payment following exercise. There would be an income tax charge on exercise of your DSBP Options. 2

3 3. Sharesave Plan Normally, you would keep saving until the end of your three-year savings contract and then decide if you wanted to use your savings to buy Servelec Shares. However, as a result of the Offer, your unvested Sharesave Options will become exercisable on the date that the Court sanctions the Scheme to the extent of your savings, which you have accumulated at the date of exercise. You will be able to exercise your Sharesave Options on the Court Sanction or at any time during the 6 months following the Court Sanction. You may continue to accumulate savings until the date that you exercise your Sharesave Options. You can use the enclosed Form of Election to make one of two choices in respect of your Sharesave Options: Choice A. Exercise on Court Sanction. Choice B. Exercise at any time within the six months after Court Sanction. 1 In more detail: Choice A: You will be able to exercise your Sharesave Options on Court Sanction and buy the number of Servelec Shares that can be acquired at the option price using the savings you have made in the Sharesave Plan at that date. The Servelec Shares you acquire will be sold to Bidco as part of the Offer and in return you will receive pence less the Option Price per Servelec Share in cash. The proceeds will be transferred to your nominated bank account as soon as possible following completion of the Offer subject to deduction on account of any estimated income tax and NICs liability. A final adjustment of your income tax and NICs liability will be processed in your next regular salary payment following exercise. However, you would stop making your normal monthly contributions when you exercise and you would not be able to exercise your Sharesave Options in respect of the remainder of the Servelec Shares under option. There would not be an income tax charge on exercise. Choice B: Under Choice B you will continue to make your normal monthly contributions for up to 6 months until you exercise, which will enable you to buy a greater number of Servelec Shares. Your Servelec Shares will be acquired by Bidco and in return you will receive less the Option Price pence per Servelec Share in cash. The proceeds will be transferred to your nominated bank account as soon as possible following the exercise subject to deduction on account of any estimated income tax and NICs liability. A final adjustment of your income tax and NICs liability will be processed in your next regular salary payment following exercise. There would be an income tax charge on exercise. The tax consequences of each of the choices above are explained in more detail in Appendix 1. You should make your choices using the enclosed Form of Election. What actions do I need to take? You need to complete the Form of Election appended to this letter and return it to Ian Shaw using the contact details set out in the Form of Election as soon as possible and in any event no later than 4.30p.m. on 29 December Note that any references in this letter and its Appendices to an exercise six months after the Court Sanction are intended to refer to exercises at the last practicable date. 3

4 What happens if I take no action? If you take no action: Your LTIP and DSBP Options will lapse one month after the Court Sanction. Your Sharesave Options will lapse six months after the Court Sanction. You will not be able to acquire any Servelec Shares, but you will have all your savings returned to you automatically after that date. What if the Offer does not complete? If the Offer does not proceed, for whatever reason, your Options will continue just as they are currently and you will be able to keep saving until the normal vesting date applicable to your Options, subject to the rules of the Servelec Share Schemes. What if I wish to have my savings returned to me instead of exercising the Sharesave Option? With regards to your Sharesave Options you may request at any time to have your savings returned to you instead of having the right to exercise the option. If you wish to do so you should contact the Yorkshire Building Society helpline on What happens if I leave employment? Please note that the choices described above do not apply to any Options that lapse (or have already lapsed) before you have exercised your Options (for example on leaving employment in certain circumstances). 1. LTIP If you leave employment due to injury, disability, redundancy, death or any other reason as the Servelec Remuneration Committee decides before the Court Sanction, any outstanding LTIP Options will, unless otherwise determined by the Servelec Remuneration Committee, continue and become exercisable on Court Sanction. You will need to exercise on Court Sanction using the Form of Election or exercise your LTIP Options during the one month following Court Sanction in respect of your LTIP Options. If you leave employment before the Court Sanction for any other reason, your unvested LTIP Options will lapse immediately upon leaving. Your vested LTIP Options remain exercisable and you will need to exercise on Court Sanction using the Form of Election or exercise your LTIP Options during the one month following Court Sanction in respect of your vested LTIP Options. If you decide to exercise one month following the Court Sanction and leave employment due to injury, disability, redundancy, death or any other reason as the Servelec Remuneration Committee decides during the one month following the Court Sanction but before you have exercised your LTIP Options, your LTIP Options will remain exercisable until the end of the one month following the Court Sanction. If you leave employment for any other reason, your unvested LTIP Options will lapse immediately upon leaving if you have not elected to exercise them. Your vested LTIP Options will remain exercisable until the end of the one month following the Court Sanction. 2. DSBP If you leave employment due to injury, disability, redundancy death or any other reason as the Servelec Remuneration Committee decides before the Court Sanction, your outstanding DSBP Option will become exercisable. You will need to exercise on Court Sanction using the Form of Election or exercise your DSBP Options during the one month following Court Sanction in respect of your DSBP Options. Your DSBP Option will lapse at the end of the one month period after Court Sanction. If you leave employment before the Court Sanction for any other reason, your DSBP Option will lapse immediately upon leaving. If you decide to exercise one month following the Court Sanction and leave employment due to injury, disability, redundancy or death or any other reason as the Servelec Remuneration Committee decides during the one month following the Court Sanction but before you have exercised your DSBP Options, your DSBP Options will remain exercisable until the end of the one month following the Court Sanction. 4

5 If you leave employment for any other reason, your DSBP Options will lapse immediately upon leaving if you have not elected to exercise them. 3. Sharesave Plan If you leave employment due to injury, disability, redundancy, retirement or death before the Court Sanction, any outstanding Sharesave Options will be exercisable for up to six months from your leaving date (or for 12 months in the event of death). If you leave employment before the Court Sanction for any other reason, your Sharesave Options will lapse immediately upon leaving. If you elect Choice B (exercise six months following the Court Sanction) and leave employment due to injury, disability, redundancy, retirement or death during the six months following the Court Sanction (the Exercise Period) but before you have exercised your Sharesave Options, your Sharesave Options will remain exercisable during the Exercise Period. If you leave employment for any other reason, your Sharesave Options will lapse immediately upon leaving unless you have made the final monthly savings contribution in relation to any of your Sharesave Options. Any Sharesave Options in relation to which you have made all of your monthly contributions will remain exercisable during the Exercise Period. If any of your Sharesave Options lapse, you will be able to have all your savings which relate to that Sharesave Option returned to you. What about tax? General tax information on the impact of the Offer on your Options is included in Appendix 1 to this communication. Please note that this does not constitute tax advice and the tax treatment will depend on your particular individual circumstances. If you have any questions about your tax position you are strongly advised to take independent financial and/or tax advice. Important notice The Servelec Directors, who have been so advised by Investec Bank plc as to the financial terms of the Offer (in its capacity as independent advisers to Servelec for the purposes of Rule 3 of the City Code on Takeovers and Mergers), confirm that they consider the terms of the proposals for each of the Servelec Share Schemes as described in this communication and the enclosed Appendices to be fair and reasonable in the context of the Offer. In providing advice to the Servelec Directors, Investec has taken into account the commercial assessments of the Servelec Directors. The Servelec Directors recommend that you exercise your Options before they lapse. You should consider your own personal circumstances, including your tax position, when deciding your preferred timing for exercising your Options. What if you have questions? If you have any questions about the Offer, your Options and your choices, please contact Ian Shaw (by to ian.shaw@servelec-group.com). Servelec cannot give you investment advice. If you are in any doubt about the action you should take, you should consult your stockbroker, bank manager, solicitor, accountant or other independent legal or financial adviser, who (where relevant) is authorised and appropriately regulated under the Financial Services and Markets Act 2000, or an appropriately authorised financial adviser if you are in a territory outside the UK. Yours faithfully, Yours faithfully, Richard Last For and on behalf of Servelec Group plc Edward Shuckburgh For and on behalf of Scarlet Bidco Limited 5

6 Appendix 1 Servelec Share Schemes: UK tax summary This appendix contains a summary of the main UK tax implications of making the choices described in the Servelec Share Schemes communication for employees of Servelec. The summary is based on existing law and what Servelec and Bidco understand to be current HMRC practice as at November The summary is intended as a general guide only and applies only to participants resident for tax purposes in the UK throughout the time between the date that the Options were granted to them and the time that they are exercised. It does not constitute tax advice to any individual participant. If you are in any doubt about your tax position or you are a resident or otherwise subject to taxation in a jurisdiction outside the UK and in particular if your tax residency has changed during the period between grant and exercise, you should consult your own tax adviser immediately. Income tax and National Insurance Contributions (NICs) 1. LTIP Income tax and NICs will be payable on exercise at Court Sanction and if exercised during the one month following Court Sanction. The amount which is subject to tax will be calculated based on the difference between the value of the Servelec Shares you receive and the exercise price paid to buy the Servelec Shares. 2. DBSP Income tax and NICs will be payable on exercise at Court Sanction and if exercised during the one month following Court Sanction. The amount which is subject to tax will be calculated based on the difference between the value of the Servelec Shares you receive and the exercise price paid to buy the Servelec Shares. 3. Sharesave Plan Choice A: If you decide to exercise your Sharesave Options on Court Sanction: There is no income tax and no NICs to pay. Choice B: If you decide to exercise your Sharesave Options six months following the Court Sanction: Income tax and NICs will be payable. The amount which is subject to tax will be calculated based on the difference between the value of the Servelec Shares you receive and the exercise price paid to buy the Servelec Shares. Capital gains tax (CGT) CGT is chargeable on your aggregate capital gains (less allowable losses) in a tax year to the extent they exceed your CGT annual exemption in the relevant tax year. For the tax year ending 5 April 2018, the annual exemption is 11,300. Receipt of the cash consideration from Bidco will be treated for CGT purposes as a disposal of all of the Servelec Shares you buy from the exercise of your options under the Servelec Share Schemes because you will receive 100% cash consideration for your Servelec Shares. The CGT rules are complicated. However, in summary your gain will be calculated as the difference between the amount that you receive from Bidco for your Servelec Shares and the base cost of your Servelec Shares. Your base cost for the resulting Servelec Shares will normally be equal to the exercise price paid to buy the Servelec Shares plus any amount which was subject to income tax when you exercised your Option related to those shares. 6

7 Therefore, in relation to your LTIP Options, DSBP Options and (if exercised under Choice B) your Sharesave Options, you would not normally be expected to realise a chargeable gain from the disposal of Servelec Shares acquired under those Options because your base cost will be approximately equal to the cash consideration received from Bidco. If you exercise your Sharesave Options under Choice A, there will be no amount subject to income tax on exercise and your base cost will be limited to the price paid to buy the Servelec Shares. You would therefore be expected to realise a chargeable gain on the disposal of Servelec Shares exercised under Choice A. However, for CGT purposes there are share identification rules that determine which shares you are deemed to have disposed of. Accordingly, your base cost for CGT purposes may be different (and a larger chargeable gain may arise) to what you expect if you already hold Servelec Shares acquired at different times and/or you acquire Servelec Shares under other Servelec share options or awards, whether at the time of the Court Sanction or in the six months following the Court Sanction. Accounting for income tax and CGT Any income tax or NICs arising on exercise will be deducted at source by your employer before the payment is made to you. Any CGT on the sale of Servelec Shares is payable by you to HMRC under self-assessment. No tax withholding will be applied when you exercise your Sharesave Options. You are recommended to put aside money to pay any tax due when the time comes. Under self-assessment rules you are required to provide HMRC with all information needed to calculate your taxable income and any chargeable gains. Even if you do not automatically receive a tax return, you must request one from HMRC. If they arise on or after 6 April 2017, the tax would be due to be paid to HMRC by 31 January 2019 at the latest. You may be required to make tax payments earlier than these dates if you are liable to make payments on account. If you send in a paper tax return, it must be returned by no later than 31 October after the end of the tax year in which the Option exercise or disposal of shares occurs. If you file your tax return online, you must do so by no later than the following 31 January. 7

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9 Appendix 2 Form of Election This Form of Election is important and requires your immediate attention. It should be read with the enclosed explanatory letter and Scheme Document; definitions used in that explanatory letter and the Scheme Document apply in this Form of Election. This Form of Election must be signed in the presence of a witness (not your spouse or civil partner or a member of your immediate family) aged 18 or over, who should also sign in accordance with the instructions printed below. Please return the completed and signed Form of Election in the envelope provided addressed to Ian Shaw at Servelec Group, Rotherside Road, Eckington, Sheffield S21 4HL or via to ian.shaw@servelec-group.com AS SOON AS POSSIBLE AND IN ANY EVENT SO AS TO ARRIVE WITH IAN SHAW BY NO LATER THAN 4.30P.M. ON 29 DECEMBER Please keep a copy of your completed Form of Election for your records. If you have any questions that relate to your Options, what your choices are or how to complete your Form of Election once you have decided what choice you wish to make, please contact Ian Shaw (by to ian.shaw@servelec-group.com). IF YOU DO NOTHING, your Options will vest on the Court Sanction and if they are not exercised they will lapse one month, in respect of your LTIP and DSBP Options, and six months, in respect of your Sharesave Options, after that date and you will lose the right to buy Servelec Shares. Section 1. Your personal details Full Name Address Post code Telephone number address 9

10 Section 2. Your Election 1. LTIP Please note: for each LTIP Option, tick Box A if would like to exercise the LTIP Option on Court Sanction. If you would like to exercise your LTIP Option during the month following Court Sanction, please contact Ian Shaw (by to ian.shaw@servelec-group.com). Grant Date Exercise Price Approx. Shares under Option at Court Sanction Box A Exercise on Court Sanction November 2013 Nil April 2015 Nil April 2016 Nil April 2017 Nil 2. DSBP Please note: for each DSBP Option, tick Box A if you would like to exercise the DSBP Option on Court Sanction. If you would like to exercise your DSBP Option during the month following Court Sanction, please contact Ian Shaw (by to ian.shaw@servelec-group.com). Grant Date Exercise Price Approx. Shares under Option at Sanction Date Box A Exercise on Court Sanction April 2015 Nil April 2016 Nil 10

11 3. Sharesave Plan Please note: for each Sharesave Option, tick EITHER Box A or Box B. Choice A: if you want to exercise a Sharesave Option on Court Sanction, tick Box A. Choice B: if you want to exercise a Sharesave Option at the end of the six month period, tick Box B. Grant Date Yorkshire Building Society Account Number Monthly savings amount Exercise Price Approx. Shares under Option at Sanction Date (provided no missed payments) Box A Exercise on Court Sanction Box B Exercise at the end of the six month period 2 P OR P OR P OR Section 3. Your declaration and signature I understand and accept that: the choices I have made on this Form of Election are irrevocable (save as permitted) unless the Offer does not proceed; I have read and understood and agree to be bound by the Terms & Conditions set out at Appendix 3 to the Letter and the rules of the LTIP, DSBP and the Sharesave Plan; and I sign this Form of Election as a deed. Dated Your signature Your witness signature Yours witness name (please print) Your witness address (please print) Postcode Your witness daytime telephone number RETURN THIS FORM OF ELECTION IN THE ENVELOPE PROVIDED 2 You retain the right, any time after the Effective Date, to contact the administrators, Yorkshire Building Society to notify them that you wish to exercise your Sharesave Option before the end of the six-month period using your savings at that date. 11

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13 Appendix 3 Completing the Form of Election Declaration By completing and returning the Form of Election you: (a) confirm that you have received and read the letter (the Letter) from Servelec and Bidco dated 1 December 2017 relating to the LTIP, DSBP and Sharesave Plan and have read, understood and agree to these terms and conditions and that you are aware of the terms of the Scheme Document; (b) confirm that each of the Options in respect of which you make a choice is valid and has not lapsed and is free from all mortgages and any third party interests and acknowledge that if any of the Options have lapsed or lapse before the Court Sanction the completion of this Form of Election will be of no effect in relation to those Options; (c) confirm that the decisions which you have made on the Form of Election cannot be withdrawn or altered except with the agreement of Servelec and Bidco and that you have signed the Form of Election as a deed; (d) accept that documents or payments sent by, to or from you in connection with your Options will be sent at your own risk to the address shown on the Form of Election; (e) acknowledge that neither Servelec nor Bidco will be responsible for any consequential loss in the event that the Form of Election is incorrectly completed or where it has not been possible to obtain clarification of your instructions or where the Form of Election is delayed or fails to arrive; (f) appoint Servelec, or any person nominated by Servelec, as your attorney and authorise such attorney to execute, complete and sign and submit any document and to do anything on your behalf as necessary or desirable to give effect to the choices you have made in the Form of Election and confirm that all powers of attorney and authorities given by you under the terms of this letter and the Form of Election are given by way of security for the performance of your obligations and cannot be withdrawn or altered in accordance with section 4 of the Powers of Attorney Act 1971 and you undertake to ratify and confirm any action properly taken on your behalf by any such attorney; (g) acknowledge that if you decide to exercise any Option conditionally upon the Scheme being sanctioned by the Court, you irrevocably agree to exercise each Option that you have indicated you wish to exercise on the Form of Election (i) where you have elected Choice A for the Sharesave Plan or completed a Form of Election for the LTIP or DSBP, on the Court Sanction; or (ii) where you have elected Choice B for the Sharesave Plan, on the last day of the six month period following the Court Sanction; or in respect of the LTIP and DSBP, you have contacted Ian Shaw (by to ian.shaw@servelec-group.com) to exercise your LTIP Option and/or DSBP Option in the month following Court Sanction; (h) acknowledge that any Servelec Shares you acquire on the exercise of any Option after the Effective Date will be acquired automatically by Bidco for cash consideration only in accordance with the articles of association of Servelec (as amended from time to time); (i) save to the extent that your employer has an obligation to account for such liabilities following exercise, agree that you will be responsible for payment direct to the tax authorities of any income tax and capital gains tax liability arising in connection with your Options; and (j) agree that the delivery of the Form of Election duly signed may, if Servelec and Bidco determine it appropriate, be treated as being as effective as if it were duly completed and received by any deadline specified in this letter, notwithstanding that it is not completed or received strictly in accordance with the Form of Election, and these terms and conditions, or by the deadline specified. In the event of any differences between the letter or the Appendices and the rules of the relevant Servelec Share Schemes (as appropriate) or applicable legislation, the rules of the Servelec Share Schemes or applicable legislation (as appropriate) will prevail. The description of the potential tax consequences above are without prejudice to any rights you may have under your employment contract. 13

14 Bidco means Scarlet Bidco Limited; CGT means capital gains tax; Glossary A brief explanation of some definitions Court means the High Court of Justice in England and Wales; Court Sanction means the date on which the Court sanctions the Scheme under section 899 of the Companies Act 2006; DSBP means the Servelec Deferred Share Bonus Plan; DSBP Options means the options over Servelec Shares granted to employees and former employees of Servelec and its subsidiaries under the DSBP; Effective Date means the date on which the Scheme becomes effective in accordance with its terms; Exercise Period means the six months following the Court Sanction; Form of Election means the form of election relating to your Options enclosed with this letter; HMRC means HM Revenue & Customs; LTIP means the Servelec Long Term Incentive Plan; LTIP Options means options over Servelec Shares granted to employees and former employees of Servelec and its subsidiaries under the LTIP; NICs means National Insurance Contributions; Offer means the recommended cash offer pursuant to which Bidco will acquire the entire issued and to be issued share capital of Servelec; Options means the outstanding options under the Servelec Share Schemes; Servelec means Servelec Group plc; Servelec Directors means the directors of Servelec; Servelec Shareholders means the holders of Servelec Shares; Servelec Shares means Servelec ordinary shares having a par value of 18 pence each; Servelec Share Schemes means the LTIP, DSBP and the Sharesave Plan; Scheme means the procedure by which Bidco will become the holder of the entire issued and to be issued ordinary share capital of Servelec; Scheme Document means the document setting out the terms of the Scheme dated 1 December 2017 sent to Servelec Shareholders; Sharesave Options means Options over Servelec Shares granted to employees and former employees of Servelec and its subsidiaries under the Sharesave Plan; and Sharesave Plan means the Servelec Save As You Earn Share Option Plan. 14

15 Recommendation The distribution of this document and/or the accompanying documents (in whole or in part) in or into jurisdictions other than the United Kingdom may be restricted by the laws of those jurisdictions and therefore persons into whose possession this document comes should inform themselves about, and observe, any such restrictions. Any failure to comply with any such restrictions may constitute a violation of the securities laws of any such jurisdiction. Raymond James Financial International Limited is authorised and regulated by the Financial Conduct Authority in the UK. Raymond James is acting exclusively as financial adviser to Bidco and Montagu and no one else in connection with the Offer and will not be responsible to anyone other than Bidco and Montagu for providing the protections afforded to clients of Raymond James nor for providing advice in connection with the Offer or any matter referred to in this Announcement. Investec Bank plc is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority in the UK. Investec is acting exclusively for Servelec and no one else in connection with the Offer and will not be responsible to anyone other than Servelec for providing the protections afforded to clients of Investec nor for providing advice in connection with the Offer or any matter referred to in this Announcement. YBS Share Plans is part of Yorkshire Building Society (YBS Share Plans, Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ, ybsshareplans.co.uk). Yorkshire Building Society provides share plan trustee and administration services, including deposit taking, in the UK and subject to English law and regulation and will not be responsible for share plan deposits held by local savings carriers outside the UK. Yorkshire Building Society is a member of the Building Societies Association and is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Yorkshire Building Society is entered in the Financial Services Register and its registration number is Head Office: Yorkshire House, Yorkshire Drive, Bradford, BD5 8LJ. All communications with Yorkshire Building Society may be monitored/recorded to improve the quality of their service and for their customers protection and security. Charges to 0845 numbers may vary. Prices can be checked with customers phone providers. Mobile calls usually cost more. The directors of Servelec accept responsibility for the information contained in this letter. To the best of the knowledge and belief of the directors of Servelec (who have taken all reasonable care to ensure that such is the case), the information contained in this letter is in accordance with the facts and does not omit anything likely to affect the import of such information. The directors of Bidco accept responsibility for the information contained in this letter. To the best of the knowledge and belief of the directors of Bidco (who have taken all reasonable care to ensure that such is the case), the information contained in this letter is in accordance with the facts and does not omit anything likely to affect the import of such information. The Montagu Investment Committee Members, whose names are set out in the Scheme Document, accept responsibility for the information contained in this letter. To the best of the knowledge and belief of the Montagu Investment Committee Members (who have taken all reasonable care to ensure that such is the case), the information contained in this letter is in accordance with the facts and does not omit anything likely to affect the import of such information. This document does not constitute, and may not be used for the purposes of, an offer to sell or an invitation or the solicitation of an offer to subscribe for or buy, any securities by any person in any jurisdiction: (a) in which such offer or invitation is not authorised; (b) in which the person making such offer or invitation is not qualified to do so; or (c) in which, or to any person to whom, it is unlawful to make such offer, solicitation or invitation or where the making of such offer, solicitation or invitation would impose any unfulfilled registration, qualification, publication or approval requirements on Servelec, Bidco or any of their respective directors, officers, agents, affiliates and advisers. No action has been taken nor will be taken in any jurisdiction by any such person that would permit a public offering of any securities in any jurisdiction where action for that purpose is required, nor has any such action been taken with respect to the possession or distribution of this document other than in any jurisdiction where action for that purpose is required. Neither Servelec nor Bidco nor their respective directors, officers, agents, affiliates or advisers accept any responsibility for any violation of any of these restrictions by any other person. 15

16 sterling