Atlantic Investment Management Inc

Item 5 – Fees and Compensation

        Each Atlantic Fund is typically charged a management fee equal to a percentage of net assets and
an annual performance fee or allocation equal to a percentage of the net appreciation of each account at the
end of each fiscal year, which are paid directly to Atlantic or to an affiliate of Atlantic. Other client accounts
are subject to different fee arrangements.

        The current fee schedule for the Atlantic Funds is generally as follows:

                  Management Fee: 1% - 1.5% annually
                  Performance Compensation: 15% - 20% annually, as described below

        Fees vary for different client accounts and investors depending, for example, on the date an
investment was made or the amount invested. In calculating performance-based compensation, any loss in
an account is carried forward so that no performance-based compensation is charged to the account unless
any prior loss has been recouped, subject to certain adjustments (i.e., subject to a loss carry forward or high
water mark). Management fees are ordinarily paid quarterly in advance and prorated for any period less
than a full quarter. Performance-based compensation is generally paid annually in arrears, or upon
termination of an account or withdrawal of an investment in an Atlantic Fund.

        All investors in Atlantic Funds should review the Governing Documents for the relevant Atlantic
Fund for more complete information on the fees and compensation payable with respect to a particular
Atlantic Fund.

         Atlantic, in its discretion, may negotiate, waive or modify the management fees or performance-
based compensation for certain client accounts or investors in an Atlantic Fund, including employees and
affiliates of Atlantic, without entitling any other investors to a waiver or modification.

         Investors in the Atlantic Funds have the right to withdraw all or a portion of their investment,
subject to certain minimum dollar requirements, effective at the end of a particular month or quarter with
prior written notice (depending upon the terms of the particular Atlantic Fund). A client agreement can be
cancelled as mutually agreed upon by the parties or as specified in the investment advisory agreement.
Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and any earned,
unpaid fees will be due and payable.

         Atlantic’s compensation is exclusive of brokerage commissions, transaction fees, custodial fees,
and other costs and expenses that will be incurred by an Atlantic Fund or client account. Clients may incur
other charges imposed by custodians, brokers, or other counterparties, as well as interest and commitment
fees on loans and debit balances, research and data service costs, transfer taxes, wire transfer and electronic
fund fees, and other fees and taxes on brokerage accounts and securities transactions. The Atlantic Funds
also incur certain operating expenses, including administration, accounting, tax, legal, and directors’ fees
and expenses. Refer to the offering documents for each Atlantic Fund for more detailed information about
the operating expenses of each Atlantic Fund. Expenses are allocated among participating accounts in
proportion to their participation in a particular investment, in proportion to their respective net asset values,
or in such other manner as Atlantic determines to be equitable.

         See Item 12 (Brokerage Practices) below for more information about the brokerage commissions
that will be incurred by clients of Atlantic.

Item 7 – Types of Clients

        Atlantic provides portfolio management services to the Atlantic Funds, which are organized either
as U.S. limited partnerships or foreign corporations. Investors in the Atlantic Funds include institutions,
endowments and foundations, funds of funds, family offices, high net-worth individuals and other privately
placed pooled investment vehicles. The Atlantic Funds are offered exclusively to accredited investors as
defined in Regulation D under the Securities Act of 1933 pursuant to an exemption under either Section
3(c)(1) or Section 3(c)(7) of the Investment Company Act, and are therefore not required to register as
investment companies under the Investment Company Act.