Emergent Capital Advisors LLC

Item 5      Fees and Compensation
In consideration for Emergent’s advisory and other services, Emergent generally is entitled to receive
management fees, and may receive performance allocations, with respect to the Fund. The specific payment
terms and other conditions of management fees and performance allocations available to Emergent are set
forth in the Fund’s governing documents, side letters and/or fee agreements. While the fees and
compensation applicable to the Fund are described in detail in the Fund’s governing documents, side letters
and/or fee agreements, an overview of Emergent’s basic fee schedule is summarized below. A potential
investor should read and review all governing documents in their entirety before making any investment
decisions.

Sub-Advisory Arrangements. Emergent and the Fund’s General Partner, which is an affiliate of Emergent,
intend to be compensated for their services to the Fund by negotiating lower management fees and
performance compensation for the Fund when entering into Sub-Advisory Arrangements, as such term is
defined herein above in Item 4 of this Brochure, and charging a management fee and performance allocation
at the Fund level relating to each Sub-Advisory Arrangement equal to the difference between the Investment
Advisor’s “standard compensation terms” and the negotiated fees/allocations to be paid by the Fund (the
foregoing compensation arrangements, collectively, “Investment Compensation Arrangements”). The
negotiated difference on management fees is the “Negotiated Fee Percentage” and the negotiated difference
on performance compensation is the “Negotiated Performance Percentage.”

With respect to any Investment Advisor, “Standard Compensation Terms” means the terms that such
Investment Advisor offers to third party investors in a commingled investment vehicle or standardized
separate account platform for the same or substantially similar investment strategy as that being considered
by the Fund. An Investment Advisor’s Standard Compensation Terms may exceed a 2% management fee
on net assets and a 20% net profit incentive fee/allocation.

Since investors are not generally permitted to withdraw their investment in the Fund more frequently than
quarterly, refunds of management fees are not available to Fund investors. Performance compensation paid
under the Negotiated Performance Percentage are payable annually in arrears. All performance
compensation payable to Emergent or the Fund’s General Partner will be consistent with the requirements
of Section 205 of the Advisers Act and Rule 205-3 thereunder.

Following are examples of Investment Compensation Arrangements for Managed Account Relationships:
    •   Example 1: If an Investment Adviser’s Standard Compensation Terms provide for an annual
        management fee of 2.0% of the Fund’s capital account balance invested with the Investment
        Adviser and a 20% performance allocation/fee and the Fund negotiates to pay a 1.5% management
        fee and 17% performance allocation/fee to the Investment Adviser, then Emergent may charge up
        to a 0.50% management fee and the General Partner may be entitled to a performance allocation of
        up to 3%.
    •   Example 2: If the Fund invests through a Managed Account Relationship where the Investment
        Adviser has no Standard Compensation Terms and the Fund negotiates to pay a 1.0% management
        fee with no incentive fee, then Emergent may take up to a 1% management fee and the General

        Partner to up to a 20% performance allocation from the Fund in respect of that Managed Account
        Relationship.
    •   Example 3: If an Investment Adviser’s Standard Compensation Terms provide for a 1.5%
        management fee and a 15% performance allocation/fee and the Fund negotiates to pay a 1.0%
        management fee and 10% performance allocation/fee to the Investment Adviser, then Emergent
        may be entitled to up to a 0.5% management fee and the General Partner may be entitled to up to a
        5% performance allocation, each at the Fund level.
    •   Example 4: If an Investment Adviser’s Standard Compensation Terms provide for a 3%
        management fee and 25% performance fee/allocation and the Fund negotiates to pay a 2%
        management fee and a 20% performance allocation/fee, then Emergent may take up to a 1%
        management fee and the General Partner may be entitled to up to a 5% performance allocation,
        each at the Fund level.

Following are examples of Investment Compensation Arrangements for Investment Vehicle Relationships:
    •   Example 1: If an Investment Adviser’s Standard Compensation Terms provide for an annual
        management fee of 2.0% of the Fund’s capital account balance invested with the Investment
        Adviser and a 20% performance allocation/fee and the Fund negotiates to pay a 1.5% management
        fee and 17% performance allocation/fee to the Investment Adviser, then Emergent may be entitled
        to receive a 0.50% management fee and a performance allocation of up to 3%, to be paid in a cash
        payment directly to Emergent by the Investment Adviser.
    •   Example 2: If an Investment Adviser’s Standard Compensation Terms provide for a 1.5%
        management fee and a 15% performance allocation/fee and the Fund negotiates to pay a 1.0%
        management fee and 10% performance allocation/fee to the Investment Adviser, then Emergent
        may be entitled to receive up to a 1% management fee and up to a 10% performance allocation, to
        be paid in a cash payment directly to Emergent by the Investment Adviser.
    •   Example 3: If an Investment Adviser’s Standard Compensation Terms provide for a 3%
        management fee and 25% performance fee/allocation and the Fund negotiates to pay a 2%
        management fee and a 20% performance allocation/fee, then Emergent may be entitled to receive
...

Item 7      Types of Clients
As discussed in Item 4 – Advisory Business of this Brochure, Emergent provides discretionary portfolio
management and investment advisory services to one (1) affiliated (i.e., sponsored) privately offered pooled
investment vehicle (e.g., the Fund) for sophisticated, qualified investors, including high net worth
individuals, pension plans, funds of funds, family offices, endowments, and other institutions. Emergent
provides its investment advisory services to the Fund pursuant to a Management Agreement with Fund’s
General Partner and the Fund. Information about the Fund, and the particular investment objectives,
strategies, restrictions, guidelines and risks associated with an investment, is described in the Fund’s
offering documents (i.e., private placement memorandum), which are made available to investors only
through Emergent or another authorized party

The minimum investment in the Fund is $500,000, although Emergent may accept investments in a lesser
amount at its sole discretion. In addition, Emergent reports its minimum investment limits required of an
investor for the Fund in Schedule D, Section 7.B.(1) – Private Fund Reporting of Part 1 Form ADV, which
is available on the SEC’s website at www.adviserinfo.sec.gov. The searchable IARD/CRD number for
Emergent is 156112.

Generally, investors participating in the Fund are required to meet certain suitability and net worth
qualifications, such as (i) an “accredited investor” within the meaning of Rule 501 of Regulation D under
the U.S. Securities Act of 1933, as amended (the “Securities Act”) or (ii) a “qualified purchaser” as defined
in Section 2(a)(51) of the Investment Company Act of 1940, as amended (the “1940 Act”). As such, the
Fund Emergent manages is exempt from registration as an investment company through the exemption
provided by Sections 3(c)(1) and/or 3(c)(7) of the 1940 Act. Typically, each investor in a private fund that
is exempt from the registration requirements under Section 3(c)(7) of the 1940 Act is required to qualify as
a “qualified purchaser” within the meaning of Section 2(a)(51) of the 1940 Act and is required to certify
that they are at least an “accredited investor” within the meaning of Rule 501 of Regulation D under the
Securities Act and non-U.S. investors are required to certify that they meet the requirements of the
Regulation S safe harbor under the Securities Act. Where Emergent does not charge Performance-Based
Fees to a particular Fund investor, such investors will only be required to qualify as an “accredited investor”
within the meaning of Rule 501 of Regulation D under the Securities Act. As noted above in Item 6 of this
Brochure, if Emergent collects performance related compensation, investors will be required to meet the
requirements of Rule 205-3 under the Advisers Act and certify that they are at least a “qualified client.” A
potential investor in the Fund should read and review all governing documents in their entirety for specific
investor qualifications and before making any investment decisions.

To help the U.S. Government fight the funding of terrorism and money laundering activities, Emergent may
seek to obtain, verify, and record information that identifies each investor who invests in the Fund. In this
regard, when an investor seeks to open an account with Emergent or invest in a Fund managed by Emergent
(including a separately managed account), Emergent may ask for a completed Form W-8/W-9, as
applicable, which includes the name, address, Tax ID/Employer ID number (or any other registration
number issued in the jurisdiction of location or incorporation) and other reasonably required information
that will allow Emergent to identify the investor. Emergent may ask for information and documentation
regarding source of funds to be invested. Emergent also reserves the right to ask for more information
regarding the individuals who are beneficial owners of the investor and/or exercise control over the investor.

Emergent may ask for the names of such beneficial owners and may also ask for address, date of birth, and
other information that will allow Emergent to identify such beneficial owners. Emergent may also request
such other information as may be necessary to comply with applicable law. Furthermore, Emergent may
verify any of the aforementioned information using third-party sources and may share that information as
required by applicable law or in connection with the execution of trades on behalf of that investor. For
certain investors, Emergent may rely on the investor’s broker-dealer, administrator, transfer agent,
custodian or placement agent to obtain, verify and record the required information.