Diorite Capital Management LLC

ITEM 5: FEES AND COMPENSATION

         The offering documents for the Fund set forth the specific fees and other material terms
regarding an investment. For the Fund, all Investors pay a non-refundable management fee to
Diorite Capital Management at the monthly rate of 0.16667% (2% annual) of the net assets
attributable to each of the Investors, in advance (the “Management Fees”). The General Partner
Entity also receives an annual performance-based allocation from each Investor in the Fund in the
amount of 20% of the net profits allocated to the Investor for each year. This performance-based
allocation is more fully described in Item 6: Performance-Based Fees and Side-by-Side
Management. The management fee and the performance-based allocation are fixed, but Diorite
Capital Management and the General Partner Entity have the discretion to waive or reduce either
of these with respect to any Investor.

       Under the terms of its Limited Partnership Agreement with the Fund, Diorite Capital
Management deducts the Management Fees mentioned above directly from each Investor’s capital
account in the Fund. No portion of the Management Fees is refundable if an Investor withdraws
during a month. Investors are not charged any redemption fees.

        Through the Fund, each Investor indirectly pays for its share of all costs and expenses directly
related to investment transactions or to the operation of the Fund including brokerage commissions,
borrowing charges on securities sold short, margin interest, custodial fees, certain database and
research subscription costs, legal, accounting and audit fees and expenses, tax-preparation fees,
governmental fees and taxes, bookkeeping and other professional fees, costs of Fund reporting,
Fund-related compliance costs, costs of Fund governance activities (such as obtaining Limited
Partner consents if and when necessary and appropriate), costs and expenses associated with
negotiating and entering into contracts and arrangements in the ordinary course of the Fund’s
business, costs and expenses of third party administrators retained for Fund purposes, costs and
premiums of any fidelity and performance bonds and general partner liability and errors and
omission insurance coverage obtained in the General Partner’s discretion, litigation costs, and all
other expenses related to the operation of the Fund and/or the purchase, sale or transmittal of Fund
assets. Diorite Capital Management pays for its own direct operating expenses including rent, costs
of administrative personnel, and travel and entertainment costs, without reimbursement from the
Funds.

        Neither Diorite Capital Management nor its principal accepts commissions or other
compensation for the sale of interests in the Fund or in connection with the purchase or sale of any
securities for the Funds.

        The Sub-Advised Funds pay management and performance-based fees that are comparable
to those paid by the Fund. The precise amounts of which are negotiated on a case-by-case basis
with each Sub-Advised Fund as set forth in each Investment Management Agreement.

ITEM 7: TYPES OF CLIENTS

        Diorite Capital Management provides investment advisory services to the Fund and the
Sub-Advised Funds and not individually to the Investors in the Fund or in any of the Sub-Advised
Funds. The Fund requires newly admitted Investors to be “accredited investors” under Regulation
D of the Securities Act and “qualified clients” under the Advisers Act. The Sub-Advised Funds
require newly admitted Investors to be “accredited investors” under Regulation D of the Securities
Act and “qualified purchasers” under the ICA. Additionally, the Fund has a minimum investment
requirement of $500,000 for Investors, although this minimum may be waived or reduced as
provided in the Fund’s offering documents. The Sub-Advised Funds similarly have minimum
investment amounts as set forth in their respective Investment Management Agreements.

ITEM 8: METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

        All Investors in the Fund receive a Private Placement Memorandum (“PPM”) and other
offering documents before being given the opportunity to invest in the Fund. The PPM for the
Fund discusses in detail the investment objectives, investment strategy and risk factors relating to
an investment in the Fund. The following is a summary of the information that appears in more
detail in the PPM, which should be reviewed by all potential Investors.

Introduction

        The Fund’s objective is to maximize absolute returns in variable market and economic
conditions, while managing risk and preserving capital. The Fund seeks absolute returns and does
not target its returns against any stock or other market index.

INVESTMENT STRATEGY

        Diorite Capital Management utilizes proprietary quantitative models based on statistical
analysis to select and execute trades for the Fund. To date, these strategies have focused around
the statistical patterns or trends that persist in the period following dissemination of earnings
reports and how that information is likely to be digested and reflected in stock prices in the several
days following announcement. The strategies attempt to identify and profit from momentum and
reversion during the post-earnings period. Diorite Capital Management has developed and refined
these models over many years and has implemented them with actual capital, not computer
simulations. The models are designed to continuously adjust to be approximately market neutral
and to initiate and trade in positions based on market factors as they continue to unfold.

        Diorite Capital Management believes that by utilizing this type of systematic and
quantitative investment platform that selects securities and executes trades in an unbiased manner,
subjective judgments that often dilute manager performance are eliminated. Diorite Capital
Management’s focus is on statistical accuracy, investment discipline and consistent
implementation.

        Risk management processes are incorporated in the strategies in the form of concentration
limits on positions in each company and limits based on the average volume of particular securities
in which the Fund is invested. Directional market exposure is mitigated through use of broad
market-based ETFs to counterweight the particular directional bent of the portfolio at any
particular time.

         In pursuit of its investment objective the Fund and the Sub-Advised Funds may typically
hold, sell, sell short, and otherwise deal in U.S. equity securities, foreign equity securities, and
other financial instruments such as ETFs (exchange traded funds). The Fund the Sub-Advised
Funds do not typically buy, sell, write, or trade options and other derivative instruments.
Depending on conditions and trends in the financial markets, Diorite Capital Management may
pursue other strategies or employ other techniques it considers appropriate and in the best interests
of its clients. The Investment Management Agreements with clients typically does not impose
specific limits on the types or amounts of securities or other instruments in which the Fund may
invest, the types of positions it may take, the concentration of its investments (whether by sector,
industry, asset class or otherwise), or the amount of leverage it may employ.

        Diorite Capital Management incorporates the use of leverage to attempt to maximize
returns. In essence, Diorite Capital Management seeks to create investment returns which
demonstrate a high SHARPE ratio (reward achieved for the given risk taken) and to leverage those
returns by a factor of 5-6 times the amount of actual capital invested. This type of leveraged
investment approach is fairly typical with quantitative based strategies. The use of leverage
increases both the proportionate amount of potential gain, as well as potential loss, relative to
invested capital. If the value of a margin position declines, the securities serving as collateral for
such margin position may be liquidated, resulting in a loss proportionately greater than would be
the case absent such use of leverage.

        Although Diorite Capital Management invests primarily in publicly-traded equity
securities (including exchange traded funds), in the interest of both preserving capital and taking
advantage of profit opportunities, Diorite Capital Management retains the flexibility to invest in a
broad range of securities, asset classes and situations and use a broad range of specialized
investment techniques.

       The investment strategies typically involve active trading and it is expected that its
managed portfolios will turnover many times during the course of each year. The portfolios are
not managed with a view toward tax efficiency and it is expected that trading profits will be
substantially all short term capital gains which are currently taxed at rates equivalent to ordinary
income.

RISKS RELATING TO INVESTMENT STRATEGY AND TECHNIQUE
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