Avalon Global Asset Management LLC

Item 5 - Fees and Compensation

Advisory Fees
Avalon receives an annual asset-based fee of 1.5% (“management fee”) from the Funds. The Funds pay the
management fee quarterly in advance. The management fee is based on the net market value of a Fund’s assets at
the beginning of the calendar quarter.

AGAM GP LLC (a separate entity whose principal owners are Nancy Kukacka and Jeffery Christian) is the
managing member or general partner of the Funds, and is entitled to a performance-based fee that is a percentage
of net profits experienced by investors in Offshore Funds (an “incentive fee”), and a similar percentage of special
allocation of net profits experienced by the investors in the U.S. Funds (an “incentive allocation”). The incentive
fee and allocation are calculated and paid annually, generally in an amount equal to 20% of the net profits (realized
and unrealized), if any, from the performance of the Funds. Payment of the incentive fee and allocation is subject
to a “high water mark” (paid only after losses, if any, have been recovered).

As a general matter, fees and other compensation are negotiable in certain circumstances, and arrangements with
particular investors may vary. Avalon believes that its fees are competitive with fees charged by other investment
advisers for comparable services. Comparable services may be available, however, from other sources for lower
fees than those charged by Avalon.

Management fees are typically deducted from the Funds’ accounts on a quarterly basis and incentive
fees/allocations, if any, are deducted on an annual basis and upon an investor’s withdrawal or redemption from a
Fund.

Expenses
The Funds also pay all of their respective ongoing expenses, including fees of the auditors, brokerage,
commissions, clearance, settlement and custody fees, legal fees, taxes, bookkeeping and other professional fees
and all other reasonable expenses related to the management and operation of the Fund or the purchase, sale or
transmittal of Fund assets, as Avalon determines, in its sole discretion.

Avalon may cause some or all of the Fund’s costs to be paid using “soft dollars” – i.e., paid by securities brokerage
firms in recognition of commissions or other compensation (e.g., markups or markdowns in principal transactions
with market makers) paid on securities transactions the Fund executes through those firms. Avalon provides the
Fund with office space, utilities, and other basic “overhead” and administrative facilities and services. The Fund
does not reimburse Avalon directly for the costs of providing those services and facilities. However, Avalon may
cause some or all of those costs to be paid using the Fund’s soft dollars. See “Brokerage Practices” in this
Brochure for further information on brokerage practices and arrangements that may relieve Avalon from certain
costs and expenses.

Item 7 - Types of Clients

Avalon currently does not have any clients other than the Funds. In the future, it may advise additional funds or
clients. Potential investors may read the eligibility criteria and minimum investment requirements in the relevant
Fund’s confidential offering memorandum and subscription application. Avalon may waive some of those
requirements.