Four Tree Island Advisory LLC

Fees and Compensation

FTIA is compensated for providing advisory services based on a percentage of the client’s assets
under management and, if applicable, based on a percentage of the client’s desired level of
breakeven put exposure. Its investment management fees are calculated according to the following
schedule:

                          Schedule of Fees for Traditional Accounts
     (Capital Appreciation Strategy, Total Return Strategy, Curated High Yielders Strategy)

      Assets Under Management (“AUM”)                              Adviser Fee

                 Up to $1,000,000                          1.50% of AUM per annum

         Between $1,000,000 - $2,000,000                   1.25% of AUM per annum

         Between $2,000,000 - $5,000,000                   1.00% of AUM per annum

                 Over $5,000,000                           0.75% of AUM per annum

Fees are deducted directly from each client’s account on a monthly basis by the custodian. This is
known as the automatic payment of advisory fees. On the first business day of every month, fees
for the prior month will be calculated based upon the market value of the assets in the client’s
account on the last business day of the prior month. The fee for the month in which an account
becomes effective and the month in which an account is terminated, in each case if the account is
not in effect throughout such month, will be pro-rated for the number of days in which the account
was in effect.

In situations like this involving the automatic payment of advisory fees by the Custodian: (i) clients
must provide written authorization permitting FTIA’s fees to be paid directly from the client’s
account held by an independent custodian; (ii) FTIA must send the client and the Custodian at the
same time a bill showing the amount of the fee, the value of the client’s assets on which the fee
was based and the specific manner in which the fee was calculated; and (iii) the Custodian must
agree to provide the client with account statements on no less than a quarterly basis, which
statements shall reflect, among other things, all amounts disbursed from the account, including the
amount of the fees paid to FTIA. Client has authorized or will authorize Custodian to pay FTIA’s

fee directly to FTIA, by a debit to client’s account by Custodian. By signing the Advisory Contract,
the Client will be providing written authorization permitting FTIA’s fees to be paid directly from
the client’s account held by an independent custodian. In addition, FTIA will assist the Client in
setting up this automatic payment arrangement with the client’s Custodian.

FTIA requires that new clients maintain a minimum of $2,000,000 invested with FTIA. FTIA also
charges a minimum annual fee of $20,000. FTIA may, in its discretion, occasionally waive this
minimum account size or minimum annual fee. In no event shall FTIA’s annual fee exceed 3% of
the client’s assets under management.

Assets under management will be calculated based on the client’s account value and includes any
equity in a client’s account attributable to client initiated borrowing on margin. To the extent that
a client does borrow against an account, the margin balance will only decline upon client’s
repayment of that margin from either (a) the injection of new funds into the account or (b) client’s
direction of FTIA to sell down positions in their account to repay the margin borrowings.

The fee schedule may be modified by FTIA upon notice to the client and upon the client’s signed,
written consent. Fees charged are generally not negotiable. However, in FTIA’s discretion, FTIA
may choose to negotiate fees or rebate a portion of fees charged in situations where a client has
committed to meeting a breakpoint threshold within a short period of time. In such instances, FTIA
may (1) charge the client the normal stated advisory fee until the client has met the relevant
threshold and then credit the difference between the amount the client actually paid versus the
amount the client would have paid based on the lower fees associated with that breakpoint against
future fees owed by the client, or (2) may enter into a different fee arrangement that is satisfactory
to FTIA and the client. In addition, FTIA may, in its discretion, choose to negotiate fees or rebate
a portion of fees charged to the following types of clients: (1) clients who are employees of FTIA,
(2) clients who are family members of FTIA employees, and (3) clients who are close personal
acquaintances of FTIA’s employees and are playing an active role in FTIA’s operations. In
instances where fees are negotiated, such fees may differ based upon a number of factors,
including, but not limited to, the overall client relationship, the type of account, the size of the
account, the number and range of supplemental advisory and client-related services to be provided
to the client, and other business considerations.

In addition to the advisory fees assessed by FTIA, each client will also be required to pay all
custodial fees, brokerage fees and other transaction costs incurred in connection with FTIA’s
investment advisory services. These fees will be paid by the client directly to the client-designated
custodian or broker-dealer, as applicable. See Item Number 12 of this brochure entitled “Brokerage
Practices,” which discusses FTIA’s brokerage arrangements in greater detail.

FTIA may utilize pooled investment vehicles (such as index funds, mutual funds, or exchange-
traded funds) in a client’s investment portfolio. These investment vehicles incur costs and
expenses and are managed by independent fund advisors. Clients should understand that fund

advisers charge these funds a fee that is distinct and separate from the fee charged by FTIA. A
client could invest in these investment vehicles directly, without the services of FTIA. A client
could also invest in these products through other brokers, agents, or investment advisers that are
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Types of Clients

FTIA generally provides investment advisory services to individuals and institutions. FTIA
requires that clients maintain a minimum of $2,000,000 invested with FTIA. FTIA also charges a
minimum annual fee of $20,000. FTIA may, in its discretion, occasionally waive this minimum
account size or minimum annual fee. In no event shall FTIA’s annual fee exceed 3% of the client’s
assets under management.

In certain circumstances FTIA may allow a client to pool assets from more than one of that client’s
accounts outside of FTIA in order to meet the minimum size relationship criteria for FTIA or as
otherwise permitted in FTIA’s discretion. In those instances, FTIA will manage those multiple
accounts for a client as though they are one account with FTIA so as to facilitate implementation
of FTIA’s strategies.

                 Methods of Analysis, Investment Strategies and Risk of Loss

With respect to the Capital Appreciation Strategy accounts, FTIA generally uses a combination of
a value and growth at a reasonable price (“GARP”) investment strategy. FTIA also constructs
Capital Appreciation Strategy accounts with a concentrated portfolio of investments (typically
between 10-20 core investments). Value investment strategy involves purchasing shares that
appear underpriced based upon some form of fundamental analysis. GARP investment strategy
involves purchasing shares in companies that have strong earnings growth at a good price. The
identification of investment opportunities are primarily based on traditional fundamental security
analysis used to identify valuation metrics that include but are not limited to: industry and sector
fundamentals, entity cash flows, operating and net income, balance sheet structure, and certain

ratio analyses that may include but are not limited to: price-to-earnings, price (net of cash)-to-
earnings, PEG (price-to-earnings to earnings growth), enterprise value to EBITDA, dividend
policy and payout ratios, yield, interest coverage ratios, liquidity, margins, growth rates, and stock
price as a % of its high price.

Capital Appreciation Strategy accounts will typically be comprised of 10-20 investments and will
generally have low turnover. FTIA will attempt to focus on investment opportunities where
downside risk appears limited relative to the upside potential. FTIA’s core investment principles
will be to focus on risk mitigation, to divest (or potentially sell covered calls) when investments
near full valuation, and to sell when new information materially challenges an investment thesis.
Having a concentrated portfolio involves the risk that an adverse event in any specific investment
can result in a significant impact to a client account. The opposite is also true – if a specific
investment materially outperforms, that investment may have an outsized positive impact on the
client account. To the extent FTIA concentrates account investments in a particular industry or
sector, such accounts may be more volatile and fluctuate more in value than accounts investing in
a broader range of securities. Fundamental security analysis involves researching individual
companies and their securities to assess the risk/reward characteristics of those companies.
Securities viewed as undervalued relative to their intrinsic value in the opinion of FTIA are
considered for purchase. Financial statement analysis, strategy assessment and management
capability are components of fundamental analysis. Errors in judgment in this analysis can lead to
losses clients should be prepared to bear. In addition to errors in judgment, forecasts can be
inaccurate, market valuations can change, and companies can miss on their forward guidance of
financial and operating results. Each of these occurrences can also lead to losses clients should be
prepared to bear.

With respect to the Total Return Strategy accounts, FTIA generally constructs diversified
portfolios with attractive yield securities and focuses on traditional value, relative value, and credit
analysis and dividend sustainability/dividend growth potential to construct portfolios. Traditional
value analysis involves determining which shares or fixed income securities are underpriced based
on some form of fundamental analysis. Relative value analysis involves comparing yields of
similar companies and determining which company’s security provides a better relative value or
comparing different securities in a company’s capital structure and determining which of those
securities provides the best relative value (e.g., common stock, preferred stock, subordinated debt,
senior debt). Credit analysis involves evaluating a company’s credit metrics, market position, and
sustainability of its business. Some traditional credit metrics include: interest coverage ratios,
debt/net debt to capital ratios, and debt to cash flow ratios. Dividend sustainability
analysis/dividend growth potential analysis involves evaluating dividend payout ratios, company
growth rates, dividend history, historical and projected variability of earnings, a company’s market
position, and industry outlook for a particular company. In Total Return Strategy accounts, FTIA
will seek to more heavily diversify the portfolio with the goal that no single investment will
represent more than 10% of the portfolio and with investments on average representing less than
5% of the portfolio. FTIA may, in its discretion, deviate from these percentages. Investments will

be determined based on relative value, after tax yield (when appropriate), total return potential,
payout ratio, and credit worthiness. Total Return Strategy accounts face several risks, including,
but not limited to, tax change risk, credit risk, regulatory risk, and interest rate risk.

Although FTIA usually invests closely to its models used for the Capital Appreciation and Total
Return FTIA may in its discretion, but is not required to, deviate significantly from these models
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