Common use of Performance Fee Clause in Contracts

Performance Fee. The terms of the Units in some of the Sub-Funds may allow a performance fee that will be charged in certain situations by a Sub-Fund and allocated to the Management Company to provide an additional incentive for generating performance. However, the performance fee could encourage the Management Company to make investments that are riskier or more speculative than it would if it were receiving only a management fee. Furthermore, the Management Company will receive a part of the performance fee on unrealized gains that may potentially never be realized. Conflicts of Interest. See section "Conflicts of Interest". Unaudited Redemption Price. Calculation and payment of a Unitholder's redemption proceeds will be based on an unaudited Net Asset Value per Unit. Adjustments and revisions may be made to the Net Asset Value and/or Net Asset Value per Unit following the year-end audit of the Segregated Portfolio. Since no adjustments will be made to the proceeds paid to the redeeming Unitholder, the amount paid to the redeeming Unitholder may be higher or lower than it would have been using the audited Net Asset Value per Unit. Such adjustments and revisions will also affect the non-redeeming Unitholders at the time that such adjustment or revision is made.

Performance Fee. The terms of the Units in some of the Sub-Funds may allow a performance fee that will be charged in certain situations by a Sub-Fund and allocated to the Management Company to provide an additional incentive for generating performance. However, the performance fee could encourage the Management Company to make investments that are riskier or more speculative than it would if it were receiving only a management fee. Furthermore, the Management Company will receive a part of the performance fee on unrealized gains that may potentially never be realized. Conflicts of Interest. See section "Conflicts of Interest". Unaudited Redemption Price. Calculation and payment of a Unitholder's redemption proceeds will be based on an unaudited Net Asset Value per Unit. Adjustments and revisions may be made to the Net Asset Value and/or Net Asset Value per Unit following the year-end audit of the Segregated PortfolioSub-Fund. Since no adjustments will be made to the proceeds paid to the redeeming Unitholder, the amount paid to the redeeming Unitholder may be higher or lower than it would have been using the audited Net Asset Value per Unit. Such adjustments and revisions will also affect the non-redeeming Unitholders at the time that such adjustment or revision is made.