Oberweis Asset Management Hong Kong Limited

Fees and Compensation

Fees
OAMHK and Oberweis have entered into an Inter-Company Services Agreement where OAMHK
receives fees equal to its cost for providing services on behalf of Oberweis' clients, plus an
additional 5%. This fee is paid by Oberweis, and not by Oberweis' clients.
OAMHK does not execute client transactions. All trades on behalf of OAMHK's clients are
executed by Oberweis. Oberweis does not utilize Oberweis Securities, Inc. ("OSI"), an affiliated
broker dealer, to execute orders for its clients unless directed to do so. James W. Oberweis is a
shareholder, employee and registered representative of OSI. Clients who do direct their trades
through OSI will be responsible for reimbursing OSI for costs incurred by Oberweis or OSI with
respect to the account, including but not limited to, the fees charged by National Financial Services
Corporation in connection with the clearing of trades executed by OSI and for the delivery of
statements and trade confirmations (generally, equivalent to $7.95 per equity trade and $6.95 per
bond trade). Oberweis will share a portion of its fees with OSI as compensation for OSI’s services,
and shareholders of OSI include certain of the principals of Oberweis.

See Brokerage Practices for a discussion of brokerage and trade execution practices.

Performance Fees and Side-By-Side Management

Although it does not do so at this time, OAMHK may charge a performance-based fee, which
would be assessed at a base rate on assets under management, plus a percentage of the excess
performance compared to the index best fit for the investment strategy, or based on the net profits
of the account for the calendar year. This could provide an incentive to favor these types of
accounts. However, OAMHK believes this conflict of interest would be mitigated by the fact that,
as described above, OAMHK seeks to manage accounts within an investment strategy in a similar
fashion. In addition, OMAHK has adopted brokerage and trade allocation policies and procedures
as described below.

Types of Clients

OAMHK serves as investment sub-adviser to The Oberweis China Opportunities Fund, a series of
an open-end management investment company (mutual fund). In addition, OAMHK may provide
investment management services to individuals, pension and profit sharing plans, trusts, charitable
organizations, or corporations.

OAMHK generally has a minimum account size of $25 million for clients. However, in its sole
discretion, OMAHK may waive this minimum requirement if circumstances warrant.

Methods of Analysis, Investment Strategies, and Risk of Loss

OAMHK is an active investment manager that searches for what it believes are superior
fundamentals, growth, and valuation characteristics in small- to mid-capitalization equities
globally. OAMHK employs a bottom-up, fundamentals-oriented approach across all of the firm’s
strategies.

China Opportunities Strategy
The China Opportunities strategy invests in: 1) equity securities of companies that are organized
under the laws of The People’s Republic of China, Hong Kong or Taiwan or that are primarily
traded on an exchange or over-the-counter in The People’s Republic of China, Hong Kong or
Taiwan; or 2) equity securities of companies that have at least 50% of their assets in The People’s
Republic of China, Hong Kong or Taiwan or that derive at least 50% of their revenues from
business activities in The People’s Republic of China, Hong Kong or Taiwan but which are listed
and traded elsewhere.

The team seeks to uncover ideas for this strategy from a wide range of sources including: screening
and internal analysis, management interviews, observing and understanding regional country
trends, independent and street research, screening and internal analysis.

The strategy seeks to invest in equity securities that typically exhibit the following characteristics:

   •   Under-Appreciated Revenue and Earnings Growth -- potential for revenue and/or
       earnings growth in excess of consensus expectations.
   •   Timely Catalyst -- a recent positive earnings release or an earnings surprise that tangibly
       and quantitatively begins to confirm that consensus analyst expectations are too low.
   •   Inflection Point of Change – a business that is experiencing change — often from a new
       product, a new management team, or a regulatory change — as these changes can drive
       unexpected or underestimated growth. A significant gap generally exists between
       Oberweis’ forecasts and consensus analyst expectations.
   •   Limited Analyst Coverage – a company not widely followed by other analysts to
       maximize the chances of finding misunderstood situations.
   •   Sustainability – a sustainable business with a competitive position driven by market
       leadership, intellectual capital, or unique manufacturing processes. Put another way, a
       reasonable barrier to competitive entry.
   •   Operating Leverage -- profitable and scalable business model, which tends to generate
       rising net profit margins as revenue growth accelerates.
   •   Valuation -- undervalued based on Oberweis’ growth forecasts and historical valuation
       metrics afforded the company and/or peers.

Investing in securities involves risk of loss that clients should be prepared to bear.

Common stock risk—Because OAMHK invest substantially in common stocks, the value of the
stocks held might increase or decrease in response to the activities of an individual company or in

response to general market and/or economic conditions. Investment in common stocks,
particularly in common stocks of small- and medium-size companies with high growth potential,
can be volatile. Because of this volatility, any investment should be long-term only. Dividends
are expected to be minimal and there can be no assurance that a client’s objective will be met.

Small-sized company risk—Accounts invested in certain strategies are subject to small company
risk. Although OAMHK seek to reduce risk by investing in a diversified portfolio, investing in
smaller, and often newer, companies involves greater risk than investing in larger, more
established companies. Smaller and newer companies often have limited product lines, markets,
management personnel, research and/or financial resources. The securities of small companies,
which may be thinly capitalized, may not be as marketable as those of larger companies. Therefore
the securities of these smaller, newer companies may be subject to more abrupt or erratic market
movements than the securities of larger companies or the market averages in general.

General market risk—Economies and financial markets throughout the world are becoming
increasingly interconnected, which increases the likelihood that events or conditions in one country
or region will adversely impact markets or issuers in other countries or regions. Securities in any
one strategy may under perform in comparison to general financial markets, a particular financial
market or other asset classes, due to a number of factors, including inflation (or expectations for
inflation), deflation (or expectations for deflation), interest rates, global demand for particular
products or resources, market instability, debt crises and downgrades, embargoes, tariffs, sanctions
and other trade barriers, regulatory events, other governmental trade or market control programs
and related geopolitical events. In addition, the value of a strategy's investments may be negatively
affected by the occurrence of global events such as war, terrorism, environmental disasters, natural
disasters or events, country instability, and infectious disease epidemics.

Risks associated with non-U.S. companies—Investments in securities of non-U.S. issuers
involve certain additional investment risks different from those of U.S. issuers. These risks
include: possibility of political or economic instability within a particular country, possibility of
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