16th Amendment Advisors LLC

Item 5          Fees and Compensation

As a general matter, the Firm’s management, or advisory fee for a discretionary engagement
service ranges from 0.1% to 2.00%, depending on the nature and complexity of the assignment.
Such amounts are typically paid monthly or quarterly in advance and are calculated on the
market value plus accrued interest of the assets on the month-end or quarter-end, as the case
may be. Notwithstanding the foregoing, depending on the nature of the assignment, the
Adviser may enter into engagements with higher management fees or include incentive
allocations. There is no fee charged on the management of the proprietary equity capital of the
Managing Members and certain employees.

The Adviser’s Advisory fees are generally deducted from the custodial account of the client in
compliance with regulatory procedures and consistent with the terms of the agreement
between the Adviser and the client. In the event that the Adviser bills the client directly,
payment is due upon receipt of the Adviser’s invoice. Generally, the Adviser shall deduct fees
and/or bill clients monthly or quarterly in advance, based upon the market value plus accrued
interest of the assets on the last business day of the previous month. The standard managed
account agreement between the Adviser and the client will continue in effect until terminated

by either party by written notice in accordance with the terms of the Investment Advisory
Agreement. To the extent the client withdraws, or the account is terminated prior to the end of
such prepaid period, the Adviser will issue a rebate for such unused prepaid services. With
respect to Vicksburg, the fees and compensation are deducted from the prime brokerage
account of the Fund and wired to the Adviser. This is done by the Administrator of the Fund
after it completes calculation of the net asset value of the Fund. Similarly, the incentive or
performance allocation, if any, is deducted from the prime broker account in accordance with
Offering Documents.

The municipal bond market is over the counter and as a result, most of the trading is done as a
trade away – that is, not directed through the client custodian. When 16th AA buys or sells a
bond for a client of the Adviser, the price or yield that is negotiated by 16th AA for the bond may
include a “mark-up” by the executing dealer. Such price or yield negotiated for the given trade
is the price or yield for the bond reflected on the client’s account statement. There is no extra
fee charged by the Adviser or Sub-Adviser. As a general matter, custodians for the Adviser’s
services charge flat ticket fees for each municipal bond trade. The per ticket amount is
generally subject to the size of the account and the amount of trading. In certain instances, the
custodian may charge an asset-based fee in lieu of a ticket fee. To the extent the Adviser
purchases equities or other “commission” based products, there may be additional fees or
expenses passed through to the client.

The Adviser generally requires a minimum asset level of $500,000 for investment advisory
services. The Adviser, in its sole discretion, may charge a lesser investment management fee
and/or waive or reduce its minimum asset requirement based upon certain criteria (i.e.,
anticipated future earning capacity, anticipated future additional assets, dollar amount of
assets to be managed, related accounts, account composition, negotiations with client, etc.).

With respect to private funds and pooled investment vehicles, the terms of withdrawal are
outlined in detail in the private offering documents but usually require a notice period and a
specific date and may include limits on the amount and frequency of the withdrawal.

None of the Adviser, its affiliates, nor their employees accept compensation from the sale of
securities or other investment products.

Item 7          Types of Clients

The Adviser’s clients shall generally include individuals, family offices, business entities,
investment funds, and/or trusts and estates. The Adviser generally requires an annual minimum
asset level of $500,000 for investment advisory services. The Adviser, in its sole discretion, can
reduce its minimum asset requirement based upon certain criteria (i.e., anticipated future
earning capacity, anticipated future additional assets, dollar amount of assets to be managed,
related accounts, account composition, competition, negotiations with client, etc.). Please
Note: As a result of the above, similarly situated clients could pay different fees. In addition,
similar advisory services may be available from other investment advisers for similar or lower
fees.