Diversified Global Asset Management Corporation

Item 5   Fees and Compensation

        Fees for Client Funds and Direct Advisory Clients are established based on client needs
and objectives and are generally two-fold. Management fees are based on a percentage of
assets under management and performance fees are calculated as a percentage of the positive
performance of a Client Fund or Direct Advisory Client portfolio. Management fees are
typically calculated and paid monthly in arrears and performance fees are typically calculated
monthly and paid annually. These fees are generally set out under management or investment
advisory agreements between DGAM or one of its affiliates and a Client Fund or, in respect of
a Direct Advisory Client, in a separate legal agreement.

        From time to time DGAM will enter into individual agreements with particular Client
Funds, investors in Client Funds and Direct Advisory Clients with respect to the amount or
reduction of, and the timing of accrual and payment of management or performance fees.

        DGAM’s fee schedule is omitted because this brochure is only being delivered to
qualified purchasers or knowledgeable employees, each as defined in the Investment Company
Act of 1940, as amended (the “Investment Company Act”).

        DGAM submits an invoice to the independent administrator of the Client Funds, who
individually verifies the calculation and remits payment to DGAM from client assets.

        DGAM will bill Direct Advisory Clients for fees incurred. Payment intervals can be
negotiated with Direct Advisory Clients.

        In addition to the above fees, Client Funds pay operating expenses and organizational
expenses. Operating expenses include the fees and expenses of an administrator and custodian,
directors’ fees and expenses (including insurance costs), prime broker and other investment-
related expenses, (including due diligence, research and travel costs and expenses, any
brokerage commissions, clearing and settlement charges, interest expenses and other charges
for transactions in securities and other instruments, finder fees and custodial fees), quotation
equipment costs, legal, accounting and auditing expenses, the costs of certain regulatory filings
and compliance, risk management and independent securities pricing services, costs incurred
in printing, distributing and otherwise furnishing reports and other financial or investment
information to investors (including related information technology management systems and
investor meetings), litigation expenses and taxes, if any. Organizational expenses include
regulatory filing, legal and accounting fees.

         In addition, Client Funds typically engage one or more fund administrators to perform
certain functions, including but not limited to, coordination of the Client Fund’s legal entity
management function, execution and recordkeeping associated with applicable tax elections
and filings, know-your-customer due diligence, support for the Client Fund’s valuation process
and support of certain investor correspondence, investor data management and reporting
requests as well as data collection required for various regulatory reporting that the Client Fund
is obligated to comply with. These expenses are borne by the investors in the Client Fund.

        The Client Funds pay or otherwise bear certain fees and expenses in connection with
their investments in the underlying hedge funds which may be similar to or more expansive
than those noted above and which would be described in the relevant underlying hedge fund’s

offering documents. The compensation paid to the managers of the underlying hedge funds
typically will include asset-based management fees and/or performance-based fees. Generally,
the underlying hedge funds bear their own operating and investment related expenses, which
are shared by the fund investors (including the applicable Client Funds).

       Direct Advisory Clients also typically will pay some or all of the above fees and
expenses in accordance with the relevant advisory agreement.

         Please also see Item 12 Brokerage Practices below.

Item 7    Types of Clients

         DGAM provides advisory services to Client Funds which are limited liability
investment vehicles typically domiciled in the Cayman Islands. Client Funds that are part of a
master-feeder arrangement have feeder funds (which invest all of their capital, other than
capital reasonably necessary or appropriate to pay any feeder fund expenses or costs, into the
master fund) that are limited liability investment vehicles formed in the Cayman Islands,
United States and Canada. Investors in Client Funds and Direct Advisory Clients are mostly
institutional investors (pension funds, endowments, insurance companies) domiciled globally,
including in Canada, the United States, Europe, Australia and the Middle East. Investors in
Client Funds may also include knowledgeable employees and high net worth individuals. Tail
Hedge Advice is provided to both Client Funds and Direct Advisory Clients.

        Interests in Client Funds are not registered under the Securities Act of 1933, as
amended (the “Securities Act”), and the funds are not registered under the Investment
Company Act and do not have the benefit of the protections afforded by the Investment
Company Act to investors in registered investment companies or more highly regulated
investment funds. Accordingly, interests in Client Funds and Tail Hedge Advice are offered
exclusively to investors satisfying the applicable eligibility and suitability requirements in such
transactions.

      Qualified investors may only invest in Client Funds through a private offering
memorandum or management agreement and Tail Hedge Advice to Direct Advisory Clients

are only offered upon execution of a separately negotiated agreement. The minimum
investment requirements are set out in the offering memorandum or management agreement of
the applicable Client Fund or in the agreement relating to the Tail Hedge Advice. The
minimum investment conditions for each of the Client Funds vary and are disclosed in the
relevant offering memorandum or management agreement. DGAM’s Client Funds are not
accepting any new investors, and DGAM is not accepting any new advisory clients.