Castleark Management LLC

Item 5 - FEES AND COMPENSATION

Fees for advisory services

Separately Managed Accounts

Clients generally pay advisory fees for separately-managed accounts based on a percentage of
assets in the account. CastleArk’s advisory fees are set forth as part of the client’s advisory
agreement. In general, our fees are based on the standard fee schedule in effect at the time of
the commencement of the advisory agreement. Management fees are negotiable and have been
modified from the standard fee schedule for some clients. For comparable services, other
investment advisers may charge higher or lower fees than we charge.

Separately managed account fees are usually calculated and assessed as of the end of the
calendar quarter, based upon the account value as of that date. Some clients have negotiated a
monthly fee assessment.

Investment companies and collective trusts

The fees that CastleArk earns for investment management services to funds and collective trusts
are based on each investment fund’s particular strategy, structure, and other factors. Fees and
other fund charges which are paid by investors may differ depending upon the class of shares or
other factors or circumstances relevant to their particular investment.

Wrap fee accounts

For wrap fee clients, our investment management services are pursuant to an advisory or service
agreement with the Wrap Program Sponsor. Each wrap fee client enters into an agreement with
the Sponsor who provides an array of services, which may include custody, asset allocation,
selection of investment advisers, trade execution and reporting, all or more of which is covered
by a single bundled or “wrap” fee paid to the Sponsor.

Alternative (private) investment funds

CastleArk Alternatives generally receives a management fee and a performance fee from each
private investment fund. The rate and other terms of the management fee and performance fee
may vary from fund to fund and are disclosed in the offering document for each fund.

CastleArk Management’s standard fee schedule

Investment strategy:                        Annual fee rate for assets under management:

Equities
   Large Cap Growth                         0.70% on the first $25,000,000
                                            0.60% on the next $25,000,000
                                            0.50% on the balance

   Mid Cap and SMID Cap Growth              0.85% on the first $25,000,000
                                            0.75% on the next $25,000,000
                                            0.65% on the balance

   Small Cap Growth                         1.00%

   All Cap Growth                           negotiable

Energy, Global Energy and

      MLPs (energy infrastructure

      Master Limited Partnerships)          1.25% to 1.00%

Balanced portfolios                         0.70% on the first $25,000,000
                                            0.60% on the next $25,000,000
                                            0.50% on the balance
Other services

Asset allocation or Risk management         if applicable, fees are generally incorporated in
                                            those for the included investment strategies

   Wrap accounts                              fees we receive are included in the fees paid by
                                              Wrap Program clients. Wrap Program clients should
                                              refer to the disclosure brochure provided by their
                                              Sponsor for the investment management fees and
                                              other information for that Sponsor’s program.

   Model portfolios
   (investment recommendations only)          fees generally correspond to those for discretionary
                                              investment management services (shown above)
                                              but may be discounted

CastleArk Alternatives
   Private funds                              fees and other applicable expenses are set forth in
                                              one or more of the fund’s governing documents,
                                              investment management agreement or offering
                                              memorandum

Fees may be negotiated depending on a client’s particular circumstances, such as asset levels,
service requirements, or other factors. In some cases, CastleArk may agree to offer clients a fee
schedule that is lower than that of other comparable clients in the same investment style

Performance fees for separately managed accounts

CastleArk Management may enter into an advisory services agreement that includes a
performance-based bonus fee. Under such an arrangement, CastleArk can earn compensation
in addition to a percentage of assets under management, dependent upon the performance of
the account. CastleArk earns additional compensation only if appreciation of the client account
for a period exceeds the return for a specified benchmark index for the same period. CastleArk
only agrees to performance-based fee arrangements that are permitted under relevant laws and
regulations, and only for clients that meet the definition of ‘qualified client’ under Rule 205-3 of
the Investment Advisers Act of 1940.

Management fees and performance fees for private investment funds

CastleArk Alternatives, LLC acts as investment adviser to private investment funds. Fees for
those services are based on each investment fund’s particular structure, investment process and
other factors. CastleArk Alternatives generally receives a quarterly management fee of up to .5%
(a 2% annual rate) of the investor’s capital account value as of the end of each calendar quarter.
CastleArk Alternatives may earn a performance fee from one or more of the private funds. The
amount and computational structure of the management fee or the performance fee may vary
...

Types of clients

CastleArk provides investment advisory services to a range of institutional clients, but our clients
are predominantly pension plans, including corporate plans and state and local government plans.
We also serve as adviser or sub-adviser to investment companies and collective trusts. Our
clients may also include foundations and corporate accounts, plus high net worth individuals.

As mentioned above, CastleArk’s affiliated adviser, CastleArk Alternatives, L.L.C., sponsors
private funds for qualified investors. Generally, each underlying investor in a sponsored private
fund must be an “accredited investor” as defined in Regulation D under the Securities Act of 1933,
as amended, and a “qualified purchaser” as defined in the Investment Company Act of 1940.
Certain employees of CastleArk Management who qualify as “knowledgeable employees” under
Rule 3c-5 under the Investment Company Act of 1940 may be permitted to invest directly or
indirectly in the sponsored private funds.

Account requirements

The minimum account size for opening and maintaining a separately managed account by
CastleArk Management is generally $10 million. For investments in private funds managed by
CastleArk Alternatives, the minimum is $1 million. For the wrap fee program to which we provide
advisory services, the program sponsor determines the minimum account size, which is generally
around $100,000.

CastleArk may elect to waive, or to raise or lower the minimum account size for new accounts
from time to time.