AW Jones Advisors LLC

Item 5 – Fees and Compensation
Advisory Fees and Compensation

The Adviser receives asset-based fees and performance-based fees from the Funds and the Insurance Fund,
which vary depending on the fund, share class and series of investment. Affiliates of the Adviser may
receive performance-based allocations from the Funds and the Schechter Fund, which vary depending on
the fund, share class, series of investment and side letters and/or fee arrangements. Please refer to the
relevant Confidential Offering Memorandum or Confidential Explanatory Memorandum, where applicable,
for details regarding these fees and allocations.

The Adviser also may receive an asset-based or performance-based fee from non-Fund Clients for whom
the Adviser creates customized portfolios of hedge funds or consults on such portfolios. These asset-based
fees are determined by the Adviser based on the assets managed for the client and the complexity of the
tailored portfolio but are not expected to exceed 1.00% per annum.

The Adviser typically does not negotiate fees but may do so in the future; and the Adviser reserves the right
to waive or reduce fees based on a variety of factors, including the nature of investments, length of
relationship with the Adviser or related persons, and other factors, in its sole discretion. Certain employees
and related persons of the Adviser invest their capital in the Funds and do not pay fees or allocations to the
Adviser.

Payment of Fees

The Adviser deducts the Funds’ management fee, which is calculated from each applicable investor’s
capital account, and is paid by the investment manager of the Insurance Fund the sub-advisory fee.
Underlying investors are not billed for fees. Management fees are assessed quarterly in advance based on
the net asset value at the beginning of each quarter. Performance-based compensation is deducted from
investor capital accounts at the end of the calendar year or at the time of a withdrawal prior to the end of
the year if investors have experienced new net profits above a high-water mark. In the case of funds where
the Adviser serves as Sub-Advisor, the process of fee payment is the same as described in this paragraph.
Three of the funds advised by the Adviser are in a master-feeder structure. Fees and allocations are charged
at only one level of the structure – i.e., the fees and allocations are charged only in the vehicle in which an
investor is directly invested, and investors are not charged double layers of fees and allocations by the
Adviser and its affiliates for the services the Adviser provides. Management fees and allocations are
prorated for investments made and redeemed during any fiscal period that is less than a calendar quarter or
year as described above.

The Adviser bills individual Clients for their tailored portfolio and asset-based fees quarterly in advance.

Other Fees and Expenses

The Funds bear their own expenses including legal, accounting, third-party administration, auditing
expenses, organizational expenses, directors’ fees and expenses, certain research-related expenses, fees paid
to Portfolio Funds (e.g., management and performance fees), and other investment-related expenses
including the pro rata share of the expenses of any investment entities or accounts in which the Funds may
invest, and other reasonable expenses related to the purchase, sale or transmittal of Fund assets. Certain
research-related expenses are allocated between the Funds and the Adviser based on assets under
management with respect to the Funds and the Clients unless the expense is solely for the purpose of the
Funds or the Clients. The Adviser will pay the share allocable to non-Fund Clients. The feeder fund also
bears its pro rata share of the expenses (other than the management fee and incentive allocation) of the
master fund.

The Adviser provides services to the Funds and Insurance Fund which invest in other investment vehicles
(“underlying funds”) and may invest in separately managed accounts whose managers (“underlying
managers”) typically charge: (i) an asset-based fee (that generally ranges anywhere from 1% to 2%
annually) and (ii) an incentive fee (that generally ranges anywhere from 0% to 20% of net capital
appreciation of the Fund’s investment for the year, in some cases above a specified benchmark). The fee
rates vary for each such underlying fund and in some cases higher rates apply. Thus, two layers of fees
exist.

The non-Fund Clients of the Adviser will bear their own fees and expenses associated with investments in
private funds, including private funds managed by AWJ. Private fund managers will also typically charge
clients a performance fee of approximately 20% of the annual profits. All fees that Clients pay to underlying
managers are in addition to the advisory fee paid to the Adviser.

Employees of the Adviser that are Qualified Clients (as defined in Advisers Act rule 205-3), may be Clients
of the Adviser. The Adviser will waive the advisory fees for employees’ investments.

Prepayment of Fees

As described above, the management fee is paid quarterly in advance by the Funds, the Insurance Fund and
the Clients to the Adviser. If termination of an advisory contract occurs during a period in which a fee is
charged in advance, the investor or Client will receive a refund of a pro rata portion of the fee to the investor
or Client for the remaining portion of the period.

Additional Compensation and Conflicts of Interest

The supervised persons of the Adviser do not receive compensation for the sale of securities or other
investment product while providing investment advisory services. The Adviser has policies and procedures
in place to ensure that the investment advisory services provided, and the instruments recommended to
Clients, do not provide compensation that would incentivize supervised persons to act in a manner that
conflicts with the interests of the Clients.

Item 7 – Types of Clients
As described in Item 4, the Adviser provides discretionary investment advisory services to the A.W. Jones
funds using a “fund-of-funds” strategy, and to the Schechter Fund, which are offered to high net worth
individuals, family offices, wealth advisors, foundations, endowments, and other institutions and to the
Insurance Fund which are offered to insurance companies.

The Adviser generally requires that an investor invests a minimum of $250,000 to become an investor in a
Fund, subject to exceptions at the sole discretion of the Adviser or its affiliates. In the case of A.W. Jones
Fund Ltd. the minimum initial investment may be lower but may not be waived below the applicable
statutory minimum (currently $100,000).

For the non-Fund Clients, the Adviser may provide discretionary or non-discretionary investment advisory
services to high net worth individuals, family offices, registered investment advisors, investment
consultants, institutions, endowments and foundations subject to a minimum account size of $1,000,000,
subject to exceptions at the discretion of the Adviser.

The Adviser also provides non-discretionary consulting services to another investment adviser under a
consulting agreement.