Hmount Asset Management HK Limited

Item 5: Fees and Compensation

  i.    Management Fee

During the term of the Trading Agreement, the Company is entitled to a management fee
(“Management Fee”) in relation to the assets of Asia Series 8, which shall be equal to 0.50%
per annum of the latest Net Asset Value as of the first day of a calendar month (after giving
effect to any capital contributions on such date and withdrawals as of the immediately
preceeding date) accrued monthly and payable in USD quarterly in arrears out of the assets
of Asia Series 8.

  ii.   Performance Fee

The Company is also entitled to receive an annual performance fee (“Performance Fee”) in
arrears, from the Series with respect to the appreciation in the value of each deposit of cash
added to the assets of Asia Series 8 (each a “tranche”) above the prevailing High Water Mark
(as defined below) and the “Benchmark” (defined as the MSCI China Value Total Return Index
(Bloomberg Ticker: DUVACF)) so that each Tranche is charged a Performance Fee that
equates fairly with the performance of the Tranche. This method of calculation ensures that –
(i) any Performance Fee paid to the Company is charged only on a Tranche that has
appreciated in value above the Benchmark; and (ii) that Performance Fees for a year are
imposed only on the portion of appreciation in excess of the High Water Mark measured for
each Tranche.

The period for calculating the Performance Fee (“Performance Fee”) shall begin at the
inception of each Tranche and end a) initially on the month end date that is no less than 11
months and no more than 12 months later and b) every one-year anniversary thereafter (i.e.
any money deposited on 1 October 2019 will have the initial Performance Period end on
September 2020 followed by a Performance Period ending on 30 September 2021 and each
September 30th thereafter). If the assets of Asia Series 8 are removed by the Series prior to
the end of the relevant Performance Period (including by reason of termination of the Trading
Agreement), the Performance Period for that cash flow shall be deemed to end on the date of
the removal (the “Redemption Period”).

At the end of each Performance Period, the Performance Fee shall be an amount equal to
(12%) of the positive difference between the Net Asset Value of each Tranche (net of
Management Fees and expenses attributable to the assets of Asia Series 8) as of the end of

the Performance Period (or on the Redemption Date) less the “Performance Value” of the
Benchmark for the same period (which shall equal the hypothetical value of Tranche invested
in the Benchmark). The Performance Fee will not be payable until all subject to a “High Water
Mark” mechanism so that the Performance Fee will not be payable until all prior net losses are
recouped as described below: High Water Mark means, in relation to the payment of the
Performance Fee in respect of each Tranche, the greater of: (i) the amount initially added by
the Series to the Account Assets (i.e. cost); or (ii) the highest value of the particular Tranche
(net of prior Management Fees, Performance Fees and fees and expenses attributable to the
Account Assets) at which a Performance Fee has been paid at the end of any pervious
Performance Period (if any).

 iii.   Payment

On behalf of the Series, the Investment Manager shall direct or otherwise cause the Custodian
to deduct and pay such Management and Performance Fees from Asia Series 8 to the
Company in arrears on a quarterly basis for Management Fees and at the end of each
Performance Period in arrears for Performance Fees. Management and Performance Fees
will be accrued by Tranche and as such any mid-month contributions or withdrawals will be
adjusted accordingly. Such payments shall be transmitted within 30 days after the receipt of
the Company’s invoice for the relevant period and fee.

Item 7: Types of Clients

The Company provides non-discretionary advisory services to Asia Series 8 in which Asia
Series 8 is the only client of the Company from the legal perspective.

The underlying investors of Asia Series 8 are comprised of investors ranging between
“accredited investors” as the term is defined in Rule 501 of Regulation D of the Securities Act
1993 as amended and “qualified purchasers” pursuant to Section 2(1)(51) of the Investment
Company Act. The investors primarily consist of banks or thrift organizations, corporate and
public pension plans, endowments, foundations, high net worth individuals or other business
entities not listed above.

It should be remarked that the Company is not involved in the client on-boarding procedures
of Asia Series 8 as this is conducted by the Investment Manager of ABS Direct Equity Fund
LLC, i.e. ABS Investment Management, LLC.