Continental Advisors LLC

Fees and Compensation

The Fund generally pay the Adviser a management fee at the end of each calendar quarter equal
to 0.25% of the Fund’s average monthly net asset value during such quarter, which is charged to
the investors’ capital accounts in the Fund. The Fund generally pays its own ongoing operating
and transactional expenses. Operating expenses include, but are not limited to, accounting, audit,
tax and legal fees, regulatory and government filing fees, and software and other technology
related expenses. Transactional expenses include, but are not limited to, brokerage commissions,
interest expenses and any other expenses related to the Fund’s investment activities. Investors in
the Fund incur these fees through their investment in the Fund.

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The specific manner in which fees are charged by the Adviser is established within the applicable
Private Placement Memorandum, limited partnership or other governing agreement and/or in a
client’s written agreement with the Adviser.

The Adviser may waive all or part of any of these fees in respect to any investor’s capital account
by rebate or otherwise and all fees are subject to negotiation.

Performance Fees and Side-by-Side Management

Currently, the Fund does not charge performance fees. Should this change, the Firm will update
this Brochure accordingly.

Types of Clients

Currently, the Adviser’s sole client is the Fund. The Fund is available for investment by
investors, whether individual or institutional, that are both accredited investors and qualified
clients.

An “accredited investor” is generally: 1) an individual with either a net worth (calculated in
accordance with applicable regulations), individually or jointly with a spouse, in excess of
$1,000,000, excluding the value of such person’s primary residence (and also generally
excluding the amount of any indebtedness secured by the individual’s primary residence), or an
annual income in the two most recent calendar years and a reasonable expectation in the current
year in excess of $200,000, individually or $300,000 jointly with a spouse; or 2) an entity with
total assets in excess of $5,000,000.

A “qualified client” is generally an individual or entity with a net worth in excess of $2,200,000,
excluding the value of the individual’s primary residence, or that invests at least $1,100,000 with
the Adviser.

The minimum initial investment in the Fund, which may be waived by the General Partner, is
$500,000. The subscription agreements for the Fund contain more complete definitions of these
terms.

Methods of Analysis, Investment Strategies and Risk of Loss

The Adviser seeks to preserve and grow capital by combining attractive attributes of traditional
actively managed fundamental equity strategies with modern risk management tools and
practices. The Adviser has developed and adheres to consistent research and investment
processes.

The Adviser begins its analysis by developing knowledge of target industries, sectors, subsectors
and themes. Core research focuses on financial services, healthcare, macroeconomics, and

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technology. Macro investment themes are identified, developed and refined by the Adviser. The
Adviser conducts fundamental research and employs proprietary operating models to analyze
target companies. This proprietary information is then incorporated with outside perspectives,
gained through meetings with research analysts, company management and an established
network of industry contacts. The companies that appear to offer the greatest ability to fulfill the
Adviser’s priority of preserving and growing capital are then chosen for the portfolios.

An investment in the Fund or otherwise with the Adviser involves risk; including a potential loss
of an investor’s entire investment. Prospective investors should be aware of the substantial risks
of investing, and any person considering an investment in the Fund should have the financial
sophistication and expertise to evaluate the risks and merits of doing so. Among the risks
investors should be aware of are general investment risks, market risks, strategy risks, investment
instrument risks, structural risks and tax risks.

General risks include, but are not limited to, risk of loss of most or all of an investment ; market
volatility; portfolio illiquidity; trading suspensions by regulatory authorities; financial difficulties
of the banks and/or brokerage firms that the Adviser works with; competition; and general
market conditions.

Market risks include, but are not limited to, general market risk, such as directional price
movements, changes in regulatory environment and changes in market volatility; illiquidity; and
market disruptions.

Strategic risks include, but are not limited to, lack of material restrictions on investment
instruments; uncertainties related to directional trading; potential losses from securities lending,
short sales, hedging and the use of leverage; concentrated investment strategies; and risks arising
from the implementation of new investment strategies.

Investment instrument risks include, but are not limited to, fluctuations in the market value of
equities; options trading; exchange rate risks in foreign investments derivatives; and illiquid
investments.

Structural risks include, but are not limited to, the ability of the Adviser to manage the clients’
investments; handling confidential information; risk of litigation; and potential increases in
government or market regulations.

Any of these risks can result in a material and adverse impact, and partial or total loss of the
investment.

This list does not contain all of the risks involved in investing Investors in the Fund should
thoroughly review the Fund’s Private Placement Memoranda before making a decision to invest.

The Adviser actively focuses on risk management, as it reflects its core investment management
principal and objective “to preserve and grow capital.” The investment team is constantly
involved in risk management and utilizes several tools to optimize, monitor, evaluate and adjust

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the level of risk in the portfolios. Risk is optimized through fundamental analysis, security
selection, position capital at risk and portfolio diversification. Net and gross exposures are
monitored. Risk is evaluated by tracking liquidity, leverage and borrowing and through monthly,
quarterly and annual performance attributions. Based on these combined results, adjustments are
made as well as adjustments in response to on-going market news and events.