S.L. 370.12 Art. 5Payment of performance fees.

(1) Performance fees may be payable on:

(a) new high NAV per share over the life of the scheme, where the starting price is the initial offer price or any other benchmark if this is higher, or

(b) the out-performance of a relevant index.

(2) In the event of subregulation (1)(a):

(a) no performance fee shall be paid or accrued until the NAV per share exceeds the "water mark", that is, the highest of either the previous highest NAV per share on which the performance fee was paid (if any), the initial offer price, or any other benchmark. The performance fee shall only be payable on the increase over the "water mark"; and

(b) where a relevant index exists, such index should be used as a benchmark as is referred to in paragraph (a) of this subregulation. In the case of such index being the "water mark", the performance fee shall only be payable on the amount by which the scheme out performs the index.

(3) In the event of subregulation (1)(b), the index must be relevant to the scheme. The performance fee shall only be payable on the amount by which the scheme out performs the index. Any underperformance of the index in preceding periods since launch shall be recouped before a fee becomes due in subsequent periods: Provided that a performance fee shall not be payable if its NAV per share is below its initial offer price.