Fermat Capital Management LLC

Item 5: Fees and Compensation
FCM charges clients an investment management fee based on a percentage of the market value of
the assets under management. Certain clients also compensate FCM through a performance-based
fee arrangement. Generally speaking, for ILS clients, the maximum asset-based fee is 1.85% per
year, payable either monthly or quarterly in arrears, depending on the client. For certain ILS
clients, FCM also receives an annual performance-based fee of up to 20% based on the net
increase of an account’s value over a pre-defined benchmark. For TF clients, FCM currently
charges only an asset-based fee, the maximum of which is 2.00% per year, invoiced and payable
monthly in arrears. For limited services as sub-advisor, FCM receives a portion of the investment
management fee, which would equate to a maximum of 0.10% per year, invoiced and payable
quarterly in arrears.

FCM may reduce or waive all or any portion of the asset management fee with respect to any
separately managed account (“SMA”) portfolio or investor in a Fund.

More specifically, For FCM’s ILS Funds, the fees charged will be specified in each Fund’s
offering documents. Fees are calculated by each Fund’s administrator and then invoiced and
deducted from the Funds in arrears. For its SMA’s, FCM does not maintain a standard fee
schedule. Fees are generally negotiated on a case-by-case basis and vary based on factors such as
size of the account, capital and lock-up commitments, investment restrictions (or lack thereof),
and leverage. FCM does not directly debit the investment advisory fees from SMA assets.
Instead, FCM’s SMA fees are calculated by FCM and the client remits payment, on either a
monthly or quarterly basis, in accordance with the applicable investment advisory agreement.
However, FCM will prepare client invoices, if requested, against which clients can reconcile their
calculations.

If for any reason a separately managed account portfolio wishes to terminate an investment
advisory agreement, the client must provide prior written notice in accordance with the terms of
their contract and any fees paid in advance will be returned. In addition to FCM’s investment
management fees, clients will bear trading costs, audit costs, administrative and custodial fees,
fees paid to independent pricing sources, negative interest rate charges related to certain
investments, legal fees from specific transactions, and other expenses that may be charged by
third parties.

With respect to the Funds, investors generally will be permitted to make complete or partial
redemptions, potentially subject to redemption gates or swing pricing, in accordance with the
terms of the Fund’s governing documents. Each Fund sets forth its specific fee structure
(including how it charges fees) along with the additional operational expenses in a confidential
information memorandum or similar offering document provided to prospective investors. In
addition to FCM’s fees, investors will bear indirectly other fees and expenses charged to the Fund.

Neither FCM nor any of its supervised persons accepts compensation (e.g. brokerage
commissions) for the sale of securities or other investment products.

Item 7: Types of Clients
FCM primarily provides investment advisory services to Funds and to separately managed
account portfolios of large institutions such as foreign pension plans, insurance companies, and
Funds of Funds.

Details concerning applicable eligibility criteria for investors in the Funds as well as minimum
investment amounts are set forth in each Fund’s offering documents. For separately managed
account portfolios, FCM generally requires that all clients be “qualified purchasers” (as that term is

defined under the Investment Company Act of 1940, as amended), and FCM may consider
separately managed account portfolios as low as $50 million in size. For Funds, the minimum
investment is generally at the discretion of FCM or the Fund’s governing body.

FCM has entered into separate agreements, commonly referred to as “side letters,” with certain
Fund investors, which provides those investors with additional and/or different rights, (including,
without limitation, with respect to management fees, expenses, minimum investment amounts and
transparency of investment holdings.

FCM acts in various roles in relation to Funds, such as investment manager and delegate
investment manager.