Macau Property Opportunities (Ordinary Share) MPO

Objective:

Management Contract & Fees:

The Manager will receive an annual management fee of 2.0% of net assets. The Manager will be entitled to a performance fee of 20% of the excess of the Adjusted NAV per Ord at the end of the relevant performance period over the higher of (i) the basic performance hurdle (an amount equal to the US dollar equivalent of the Placing Price increased at a rate of 10% p.a.) (ii) the Adjusted NAV per Ord at the start of the relevant performance period; and (iii) a `high watermark, multiplied by the time weighted average of the Ordinary Shares in issue in the relevant performance period. In addition, the Manager will be entitled to a super performance fee of a further 15% of the excess of the Adjusted NAV per Ord at the end of the relevant performance period over the higher of (i) the super performance hurdle (the US dollar equivalent of the Placing Price increased at a rate of 25% p.a. on a compounding basis up to the end of the relevant performance period); (ii) the Adjusted NAV per Ord at the start of the relevant performance period; and (iii) a `high watermark, multiplied by the time weighted average of the Ordinary Shares in issue in the relevant performance period. The Manager will pay part of its fees to the Investment Adviser, who will receive no fees and expenses directly from the Company. The contract is terminable inter alia with 12 months notice after the third anniversary. The Administrator will be paid a annual fee of 0.1% of the NAV (subject to a minimum fee of GBP75,000) and the agreement is terminable with 90 days notice. As Nominated Adviser, Collins Stewart will receive an annual fee of GBP20,000 and will receive a further GBP20,000 per annum for its role as broker. Both contracts are terminable on one months notice.