Ann: Unadjusted Net Tangible Assets, page-14

From original prospectus.....

Performance Fee
In addition to the monthly Management Fee, in return for the performance of
its duties as Investment Manager of the Portfolio, the Investment Manager is
entitled to be paid and the Company must pay to the Investment Manager a
performance fee of 20% (plus GST) of the amount (if any) by which the NAV
of the Portfolio before all taxes on the last day of the current Performance
Calculation Period exceeds the High Watermark (as defined in the Investment
Management Agreement) (Performance Fee).
As a worked example, assuming a Performance Calculation Period of
1 January 2016 to 30 June 2016, an initial NAV of the Portfolio before all
taxes of $100,000,000, and a NAV of the Portfolio before all taxes at the end
of the Performance Calculation Period 6.0% higher than at the beginning
(representing an annualised increase of approximately 12.1%)
of $106,000,000:
(a) there would be a Performance Fee payable as the closing NAV of the
Portfolio before all taxes is above the High Watermark, being the initial
NAV of the Portfolio before all taxes, with an aggregate outperformance
of approximately $6,000,000; and
(b) in this instance, there would be an estimated Performance Fee payable at
20.0% of this amount equating to $1,200,000 (plus GST) for the 6 month
Performance Calculation Period; and
(c) the closing High Watermark to be carried forward for future Performance
Calculation Periods is the closing NAV of the Portfolio before all taxes of
$106,000,000 for this worked example.
As a worked example, assuming a Performance Calculation Period of
1 January 2016 to 30 June 2016, an initial NAV of the Portfolio before all taxes
of $100,000,000, and a NAV of the Portfolio before all taxes at the end of the
Performance Calculation Period 6.0% lower than at the beginning (representing
an annualised decrease of approximately 12.1%) of $94,000,000:
(a) there would be no Performance Fee payable as the closing NAV of the
Portfolio before all taxes is below the High Watermark, being the initial
NAV of the Portfolio before all taxes, with an aggregate underperformance
of approximately $6,000,000; and
(b) the closing High Watermark to be carried forward for future Performance
Calculation Periods is the initial NAV of the Portfolio before all taxes of
$100,000,000 for this worked example.