CIM Investment Management Limited

Item 5. Fees and Compensation

Asset-Based Compensation

CIM charges each client an investment management fee based on the value of the client’s assets under
management. For pooled investment vehicle clients where CIM is the investment manager these fees range
between 0.85 per cent per annum and 2.00 percent per annum depending on the investment strategy followed.
For managed accounts and advisory arrangements these fees vary depending on the size of the client account
and range between 0.12% and 0.40% per annum

Investment management fees are usually charged each month in arrears and are normally based on the total
market value of the assets in the client account (including net unrealized appreciation or depreciation of
investments and cash, cash equivalents and accrued interest) on the last day of the month but can also be
based on weekly or daily values throughout the month.

If a new client account is established during a month or a client makes an addition to its account during a month,
the investment management fee will be prorated for the number of days remaining in the month. If a client’s
investment management agreement is terminated or a withdrawal is made from a client account during a month,
the fee payable to CIM will be calculated based on the value of the assets on the termination date or withdrawal
date and prorated for the number of days during the month in which the investment management arrangement
was in effect or such amount was in the account.

These fees are negotiable.

Performance-Based Compensation

CIM may also be paid a performance-based fee, which is compensation that is based on a share of capital gains
on or capital appreciation of the assets of a client (such as a client that is a pooled investment vehicle). This
compensation may be paid to CIM or to a related person of CIM and ranges between 10% and 20% of the
capital gains or the capital appreciation. In the case of managed accounts arrangements performance fees
may be calculated by reference to performance compared to a specified benchmark.                   Under certain
circumstances, receipt of performance-based compensation may be subject to a hurdle rate of 6%.

These fees are negotiable.

In the case of certain managed accounts CIM deducts the investment management fee and the performance-
based fee from the client account by instructing the client’s custodian. In all other cases CIM does not deduct
the investment management fees and performance fees from client accounts. Instead CIM bills clients. The
client may select the method by which it would like to pay the investment management and performance fees.
CIM usually deducts client accounts or bills clients for investment management fees monthly.

In addition to paying investment management fees and, if applicable, performance-based fees, client accounts
will also be subject to other investment expenses such as custodial charges, brokerage fees, commissions and
related costs; interest expenses; taxes, duties and other governmental charges; transfer and registration fees
or similar expenses; costs associated with foreign exchange transactions; other portfolio expenses; and costs,
expenses and fees (including, investment advisory and other fees charged by investment advisers with, or funds
in, which the client’s account invests) associated with products or services that may be necessary or incidental
to such investments or accounts.

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Item 7. Types of Clients

CIM’s clients consist of private funds, other investment managers and other institutions such as sovereign
wealth funds.

CIM requires that a client invests a minimum of $5 million (subject to regulatory requirements) to open an
account and to maintain a minimum account size of $5 million. If the account size falls below the minimum
requirement due to market fluctuations only, a client will not be required to invest additional funds with CIM to
meet the minimum account size. The minimum amount for an advisory account is $500,000.

With respect to any client that is a pooled investment vehicle, any initial and additional subscription minimums
are disclosed in the offering memorandum for the pooled investment vehicle.

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