Fort LP

ITEM 5 – FEES AND COMPENSATION

Overview

As compensation for its investment management services, FORT and its affiliates generally
receive a management fee and an incentive or performance fee or profit share allocation.

Managed Accounts

FORT typically charges two types of fees in connection with a Managed Account:

   (1) A monthly management fee (“Management Fee”), payable in arrears, equal to one-twelfth
       of a fixed percentage, ranging from 0% to 4.0% of a Managed Account’s Net Account
       Value (defined below); and

   (2) An incentive fee (“Incentive Fee”) equal to a fixed percentage, ranging from 0% to 40% of
       a Managed Account’s net profit, subject to a high-water mark, as of the end of the
       appropriate measurement period.

Management Fees and Incentive Fees are generally invoiced to the Managed Account. With
respect to a Managed Account, the terms of compensation are negotiated and agreed upon between
the owner of the Managed Account and FORT at the time of entering into an advisory agreement.
Management Fees and Incentive Fees vary between Managed Accounts based on projected account
levels or other factors, and certain Managed Accounts are charged fees at different rates.

Management Fee

FORT generally charges a monthly Management Fee equal to one-twelfth of 2.0% of the Net
Account Value (as defined below) of a Managed Account as of the last business day of each
calendar month, subject to leverage adjustments as characterized below. The Management Fee is
payable regardless of whether a Managed Account is profitable and is calculated prior to reduction
for the Management Fee then due, or any accrued Incentive Fee. The Management Fee is pro-rated
for partial months, if any, to reflect intra-month additions and withdrawals of capital (including
any increases or decreases in notional equity).

“Net Account Value” includes all cash and cash equivalents (valued at cost plus accrued
interest), the liquidating value of all open positions in the Managed Account (less the brokerage
commissions that would be incurred in liquidating such positions), and any notional equity traded
for the account.

The Management Fee is based upon Net Account Value, which includes both actual funds and
nominal or notional equity. Consequently, the Management Fee charged to partially funded
accounts will be a greater percentage of actual funds than of the Net Account Value. For partially

funded accounts, the Management Fee can be calculated as a percentage of actual funds by
multiplying the Management Fee by the ratio of Net Account Value to actual funds.

For example, if the Net Account Value (including notional equity) is twice the size of the actual
funds (a 50% funded account), a 2.0% Management Fee charged based on the Net Account Value
of a Managed Account would be approximately a 4.0% Management Fee based on the actual funds
contributed to such Managed Account. A fully funded Managed Account (i.e., no notional equity)
would simply be subject to a 2.0% fee on actual funds.

The following table illustrates the Management Fee as a percentage of actual funds depending on
the “Funding Level” of a Managed Account. Funding Level represents the ratio of actual funds to
a Managed Account’s Net Account Value to (i.e., a 100% Funding Level represents a fully funded
account with no notional equity):

      Management Fee            Funding           Funding           Funding           Funding
      as a Percentage of         Level             Level             Level             Level
         Net Account
            Value                100%                50%              30%                20%

             2.0%                 2.0%               4.0%            6.67%              10.0%

Incentive Fee

FORT generally charges an Incentive Fee equal to 20% of the net profit, if any, achieved by a
Managed Account, subject to a high-water mark, as of the end of each applicable measurement
period. Net profit includes both unrealized and realized profits but does not include interest income
earned from cash balances left on deposit and is calculated prior to reduction for any accrued
Incentive Fee. The Incentive Fee is pro-rated for capital withdrawals (including reducing notional
equity) or if the Managed Account’s advisory agreement is terminated as of a date other than at
end of the applicable measurement period.

Other Expenses

Each Managed Account is also responsible for making all margin and other payments, and paying
all brokerage commissions and other fees, costs and expenses charged by its broker relating to the
Managed Account. FORT does not share in any portion of these commissions, fees, and costs. For
further information see Item 12, “Brokerage Practices”.

Sub-Advised Account

With respect to the Sub-Advised Account, the fees for services paid to FORT and its affiliates are
established by, and negotiated between, FORT (the “Sub-Adviser”) and Virtus Alternative
Investment Advisers, Inc. (the “Adviser”), who appoints each Sub-Adviser. For the discretionary
services provided by FORT as the Sub-Adviser, the Adviser pays FORT a percentage of the net
advisory fee monthly in arrears. Such fee is paid after the deduction of allowable expenses
calculated in accordance with the terms of Sub-Advised Account’s prospectus, which includes a
complete discussion of fees and expenses paid by the Adviser. FORT may negotiate fee waivers
and/or expense limitation agreements subject to a minimum fee payable.

Private Funds

With respect to a Private Fund, the terms of compensation payable to FORT and its affiliates are
established by FORT at the time of its establishment of a Private Fund and may be negotiated with
certain investors pursuant to a side letter. Each Private Fund’s Offering Documents include a
complete discussion of applicable fees paid by investors in such Private Fund.

Management Fee

FORT deducts a management fee, monthly in arrears, equal to one-twelfth of a fixed percentage
...

ITEM 7 – TYPES OF CLIENTS

Overview

FORT provides advisory services to the following types of Clients: managed accounts, private
funds either sponsored by FORT or its affiliates or sponsored by a third party, including a sub-
advised open-end investments company registered under the Investment Company Act of 1940.

Managed Accounts

A person opening a Managed Account must be (i) a “qualified eligible person” as defined in

Rule 4.7(a) under the Commodity Exchange Act, as amended (the “CEA”), and (ii) a “qualified
client” within the meaning of Rule 205-3 under the U.S. Investment Advisers Act of 1940, as
amended (“Advisers Act”). The standard minimum account size (including notional funds) for
a Managed Account is $5,000,000 for Global Contrarian, and $10,000,000 for Global
Diversified. Additional funds may be added to a Managed Account at any time by prior
arrangement with FORT. FORT may waive or increase minimum account sizes and decline to
accept a new Managed Account or additional funds from an existing Managed Account in its
sole discretion. In addition, a Managed Account must select a broker who has been approved
by FORT.

Sub-Advised Account

FORT provides investment advisory services to investment companies. In providing
management services to the investment company account, FORT is subject to the investment
objectives, policies and restrictions set forth by the Adviser and the investment company’s
applicable prospectus and additional information (“Statement of Information”) filed with the
Securities and Exchange Commission (the “SEC”) as part of the investment company’s
registration statement.

Private Funds

As a general matter, investments in Private Funds formed in the United States are limited to (i)
“accredited investors” within the meaning of Regulation D under the Securities Act; (ii)
“qualified clients” within the meaning of Rule 205-3 under the Advisers Act; and (iii) “qualified
eligible persons” as defined in Rule 4.7(a) under the CEA. Generally, investments in Private
Funds formed in the Cayman Islands are limited to either: (i) U.S. persons that are (A)
accredited investors, (B) qualified clients, (C) qualified eligible persons, and (D) U.S. tax-
exempt investors; or (ii) non-U.S. persons. In addition, certain Private Funds require investors
to be “qualified purchasers” within the meaning of the Investment Company Act of 1940 (in
the case of a Private Fund formed in the Cayman Islands, only U.S. persons are required to be
qualified purchasers).

To invest in a Private Fund, an investor generally must invest a minimum of $2,000,000,
although the general partner or directors of a Private Fund, as applicable, may waive or reduce
this minimum (subject to any minimum as may be required under Cayman Islands law, where
applicable). The minimum investment amount for Private Funds may in the future be higher
for new investors. In addition, certain Private Funds have required much higher minimum
investment amounts in consideration for a reduced Private Fund Management Fee and/or Profit
Share. Each Private Fund’s Offering Documents include a complete discussion of the investor
eligibility requirements and other terms of investment. Investors in a Private Fund include high
net worth individuals and institutional investors. Additionally, employees and other persons
associated with FORT and/or its affiliates invest in certain Private Funds.