AFBI LP

Item 5. FEES AND COMPENSATION

  (A) Generally: All fees are not individually negotiated. The relevant offering documents of the
      Funds fully disclose the terms of the compensation collected by the Firm on behalf of the
      Funds.

     Depending on the Client and terms stated in the offering documents (the “Offering
     Documents”), the Firm charges the Funds a monthly management fee (the “Management
     Fee”). The Management Fee charged to the Master Fund and the Opportunistic Fund is
     equal to 1% of the Trading Level (defined in the applicable offering document) of the
     respective Series’ shares. For Clients structured within a master-feeder fund structure, the
     Firm will receive the Management Fee at the Master Fund level, and, accordingly, no
     Management Fee will be paid at the Feeder Funds level.

     In addition, the Firm shall collect a Performance Allocation (as defined below), equal to a
     certain percentage of the Fund’s net income, as discussed in Item 6, below.

     Regarding SMAs, the Client’s investment management agreement with the Firm will
     define the Management Fees applicable to each Client. Such fees are charged monthly, in
     advance or in arrears, or as otherwise negotiated with the Client.

     No supervised person accepts compensation (e.g., brokerage commissions) for the sale of
     securities or other investment products.

  (B) Payment of Fees. Management Fees are calculated and payable monthly in advance or
      monthly in arrears, depending on the Client, as specified in the applicable confidential
      private placement memorandum and related Offering Documents. No part of the
      Management Fee will be refunded in the event that a Fund Investor withdraws, whether
      voluntarily or involuntarily, all or any of the value in such Fund Investor’s capital account
      on the last business day any month as permitted by the Offering Documents.

  (C) Additional Fees and Expenses: The Firm will be responsible for its own costs and
      expenses. Such costs and expenses include: normal operating overhead, the cost of
      providing relevant support and administrative services (e.g., employee compensation and
      benefits, rent, office equipment, computer systems, insurance (other than as expressly set
      forth in the Memorandum and/or the Governing Documents as an expense of the Funds),
      utilities, telephone, secretarial and bookkeeping services, etc.).

     Nonetheless, the Funds bear all of their own direct and indirect expenses. Any pooled
     investment vehicle which may be organized in the future will bear its own expenses.

     In addition, Clients will incur brokerage and other transaction costs. Clients and/or Fund
     Investors should review Item 12, which discusses conflicts of interest related to brokerage
     practices.

     Details concerning applicable fees and expenses are set forth in the Funds’ Offering
     Documents, and in the case of SMA Clients, in their investment management agreement.

     Withdrawal from the Funds: Subject to certain restrictions described in the Offering
     Documents, each Fund Investor may withdraw from the Funds as of the last day of each
     month, upon at least 30 days’ prior written notice to the Funds’ Administrators (as defined
     therein). Notwithstanding the foregoing, no partial withdrawal will be permitted if the
     value of the Fund Investor’s capital account(s) after such withdrawal is implemented will
     be less than $250,000 (subject to the discretion of the Firm to waive such requirement).

  (D) Fees Paid in Advance: Please review Item 5.(B), above.

  (E) Additional Compensation of Supervised Persons: Neither the Firm nor any of its
      supervised persons accepts compensation for the sale of securities or other investment
      products.

Item 7. TYPES OF CLIENTS

     As discussed in the Advisory Business section above, the Firm currently provides
     investment management services to the Funds, which in turn are offered exclusively to
     qualified, eligible accredited investors. The Firm also offers investment management
     services to sophisticated investors on a discretionary basis through SMAs.

     Although the Firm generally seeks minimum investments from its Funds’ investors
     (depending on the fund and Series subscribed as disclosed in the Funds’ legal documents),
     the Firm can waive such minimums in its discretion.

     For information regarding minimum investment amounts in any SMA, please refer to the
     relevant investment management agreement.