The Manager is paid an annual management fee equivalent to 2.5% of the Company.' net assets which is paid quarterly in arrears. A performance fee is payable to the Manager when the total return on net proceeds of the ordinary shares exceeds 8% per annum (simple) on net funds raised. The performance fee payable in any one year is capped at 5% of net assets. To the extent that the total return exceeds the threshold, a performance fee (plus VAT) will be paid to the Manager of 10% of the excess.