Ann: Quarterly Report for the 3 months ended 31 October 2020, page-5

from last years annual report:

The arrangements were approved
by shareholders at Lion’s AGM on 5 December 2012, with
ongoing management fees of 1.5% p.a. based on the direct
investments under management
The Management Agreement provides that Lion Manager
is entitled to an annual incentive which would apply where
Lion’s performance outperforms a benchmark, with the
ability to settle up to 40 percent of any incentive in Lion
shares. As at the date of this report no incentive fee had
accrued with respect to the Lion Manager contract. The
performance fee is calculated as 15 percent of the amount
by which the 3 month average market capitalisation of the
Company attributable to direct investments exceeds a
3 month average hurdle. The hurdle is the higher of:
(a) The Highwater Mark in respect of which an Annual
Performance has been paid; or
(b) The Invested Capital attributable to direct investments
(ie. excluding funds) at the time the Management
Agreement, compounded each month by 8% p.a,
adjusted for new capital raisings and fund distributions
(“Benchmark Amount”).
As at the date of this report, the Benchmark Amount is the
higher hurdle rate at approximately $0.79 per share.