Common use of PERFORMANCE ADJUSTMENT EXAMPLE Clause in Contracts

PERFORMANCE ADJUSTMENT EXAMPLE. The following example illustrates the application of the Performance Adjustment: Based on these assumptions, the Fund calculates the Adviser's management fee rate for the month-ended December 31 as follows: - The portion of the annual basic fee rate of 0.70% applicable to that month is multiplied by the Fund's average daily net assets for the month. This results in the dollar amount of the basic fee. - The +0.30% difference between the performance of the Fund and the record of the Index is divided by 3.75, producing a rate of 0.08%. - The 0.08% rate (adjusted for the number of days in the month) is multiplied by the Fund's average daily net assets for the performance period. This results in the dollar amount of the performance adjustment. - The dollar amount of the performance adjustment is added to the dollar amount of the basic fee, producing the adjusted management fee.