Edge Focus Capital Management LLC

5.   Fees and Compensation

     Portfolio Management

     Discretionary Managed Account Fees

     The Firm’s fee for EF Accounts may vary and may be negotiated on a case-by-case basis. However, the
     Firm generally charges its EF Account clients a periodic fee, based on the performance of the EF Account,
     at a rate that increases at higher levels of performance. The Firm reserves the right to negotiate its fees
     up or down, based on a variety of factors, including, but not limited to, the size, composition and
     complexity of the EF Account, length and nature of the Firm’s relationship with the client, special
     services agreed upon with the client or other factors deemed relevant by the Firm.

     In general, fees are billed in arrears after the end of the relevant performance period, according to the
     exact fee schedule established in an Investment Advisory Agreement, where appropriate. Upon
     termination, a client will receive a pro rata invoice for advisory fees outstanding from the beginning of
     the billing period up to the date of termination. Lower fees for comparable services may be available
     from other sources.

The client will also incur brokerage commissions and other transaction costs as part of regular portfolio
trading, which commissions and costs are separate from the Firm’s investment advisory fee. Brokerage
practices are discussed in Item 12 of this brochure.

Private Investment Fund Fees

The Firm generally charges its Fund clients a management fee equal to a percentage of assets under
management. The Firm also charges performance-based fees for qualified clients.

Management fees are negotiated with each fund and may vary by investment class. Management fees
are based upon a percentage of a fund’s assets under management. Generally speaking, the Firm
charges fund clients a management fee of up to 1.5%. The Firm reserves the right to negotiate higher or
lower management fees, or to waive such fees entirely. There is no refund provision for the management
fee.

Management fees are paid monthly or quarterly and are based on the assets in the relevant fund client’s
portfolio(s) at the beginning of every month or quarter, as applicable. Specific management fee and
related expense and billing information are outlined in a fund’s Offering Memorandum.

Performance-based fees or allocations are also charged depending on a respective client’s requirements
and qualifications (referred to in Item 6). Generally speaking, the Firm (or an affiliate thereof) charges
Fund clients a performance fee or allocation of up to 20% of the net profit (if any) allocated to the capital
account or portfolio of each member of the respective fund. Performance-based fees and allocations and
the potential conflicts of interest associated with such types of compensation are discussed in Item 6
below.

Separately Managed Account Fees

The Firm generally charges its Separately Managed Account Clients a management fee as detailed in the
Investment Management Agreement. Management fees are negotiated with each Separately Managed
Account and may vary. The Firm reserves the right to negotiate higher or lower management fees, or to
waive such fees entirely. There is no refund provision for the management fee. Specific management
fee and related expense and billing information are outlined in a Separately Managed Account’s
Investment Management Agreement.

Separately Managed Accounts may also pay Acquisition and Performance Fees to the Firm.

Other Costs Involved

Other types of costs may include, but are not limited to, transaction costs comprised of security trading
costs, brokerage or custodian fees, servicing fees as well as margin costs.

Each Fund has incurred legal and organizational expenses in connection with its formation and offering,
which will be borne by each Fund (and, therefore, indirectly by its investors). In addition, each Fund
will also bear ongoing operating expenses, which may include, without limitation, accounting
(including third-party accounting services) and tax preparation fees and expenses; ongoing printing and
duplication expenses, bookkeeping, director services (if any), recordkeeping, legal, consulting and other
professional expenses; reasonable due diligence expenses such as background checks, travel and other
such costs; commissions, brokerage fees (if any) and other transaction and investment-related costs
relating to the purchase, sale, or retention of the Fund’s portfolio investments, including research
expenses, market data costs, price quote data costs and the costs of any independent accountants or
other experts or consultants engaged by the Firm in connection with specific investments; exchange,
board of trade or other trading or execution facility membership or participation expenses (including,
without limitation, any expenses related to the Fund’s participation in any note trading platforms); its

        pro rata portion of insurance expenses (including, but not limited to, E&O, D&O, cyber or any other
        form of insurance related to the Fund and its management and operations); technology expenses
        including, but not limited to, risk management systems; custodial fees; administrator expenses
        (including middle/back office services and the costs and expenses of the fund administrator);
        governmental and agency fees and taxes (if any) imposed on the Fund (or that the Fund is required to
        withhold or pay with respect to any of its investors); the legal and accounting costs incurred in
        connection with an audit of its tax return (if any); any interest, fees (including commitment fees), and
        costs of Fund-related borrowings (including borrowings related to positions held on margin); legal fees
        and costs in connection with the preparation and submission of regulatory and compliance-related
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7. Types of Clients

       The Firm provides advisory services to Funds and to EF Accounts for institutional clients.

       For EF Accounts, the Firm generally imposes a minimum account size requirement of $1,000,000.

       An investor in the Funds and any other private fund sponsored or managed by the Firm is generally
       required to be at least an “accredited investor,” as defined by Regulation D under the Securities Act of
       1933, as amended. Any client for whom a performance fee and/or allocation is charged must be a

       “qualified client” as such term is defined in Rule 205-3 of the Investment Advisers Act. The CEO of the
       Firm must approve any client that does not meet the “accredited investor” standard.

       The minimum investment in the Funds is set forth in the applicable Fund’s Offering Memorandum, and
       is subject to increase, reduction or waiver by the Firm, but in compliance with all applicable rules and
       regulations.

       Prior to providing management services, clients will be required to enter into one or more written
       agreements, which set forth the services the Firm will provide, the fees to be charged, and other terms
       and conditions regarding the relationship.

       Client relationships vary in scope, discretionary power, and length of service.