Fundamental Global Investors LLC

Item 5 - Fees and Compensation

A. Below is a discussion of how the Adviser and the Relying Advisers are generally compensated
   in connection with providing advisory services to the current Clients they advise. The Adviser
   and the Relying Advisers may enter into different fee arrangements on a Client by Client basis.

    Management Fees. For its services to the Funds it advises, FGI Funds Management, LLC is
    generally entitled to a management fee (the “Management Fee”), as further outlined in each
    Fund’s respective Offering Documents. For Funds offering multiple series of interests, such
    Management Fee is typically charged at an annual rate of (i) 1.0% of the capital account balance
    or net asset value, as applicable, of each investor’s Series A interests (“Series A Interests”); (ii)
    1.5% of the capital account balance or net asset value, as applicable, of each investor’s Series
    B interests (“Series B Interests”); and (iii) 2.0% of the capital account balance or net asset
    value, as applicable, of each investor’s Series C interests (“Series C Interests”). The
    Management Fee is typically calculated each calendar month and paid each calendar month in
    advance. Certain Funds have different Management Fee structures and certain Funds are not
    charged a Management Fee.

    The Fund for which FGI International USVI, LLC was formed to advise, is in the process of
    being wound up and dissolved. As of the date of this Brochure, FGI International USVI, LLC
    no longer receives a monthly Management Fee from this Fund.

    For its service to the Fund it advises, Fundamental Global Capital Appreciation Advisor, LLC
    charges certain investors a Management Fee at an annual rate ranging from 0.0% to 2.0% of
    the capital account balance of each investor’s interest in the Fund. The Management Fee for
    the Fund is typically calculated each calendar month and paid each calendar month in advance.

    For its service to the Fund it advises, FG Special Situations Fund Advisor, LLC is entitled to
    charge investors a Management Fee at an annual rate up to 2.0% of the capital account balance
    of each investor’s interest in the Special Situations Fund.

    For its service to an institutional client, FG Strategic Consulting, LLC earns a fee equal to
    $100,000 annually.

    Performance Allocation. For Funds managed by FGI Funds Management, the Fund’s general
    partner, or similar entity (the “General Partner”), each of which is an affiliate of the Adviser,
    is generally entitled to a performance-based profit allocation (the “Performance Allocation”)
    at the end of each calendar year, as further outlined in each Fund’s respective Offering
    Documents. For Funds offering multiple series of interests, the Performance Allocation is
    typically charged at the end of each calendar year equal to (i) 10% of the net profits attributable
    to Series A Interests; (ii) 15% of the net profits attributable to Series B Interests; and (iii) 20%
    of the net profits attributable to Series C Interests, but, in each case, the Performance Allocation
    is typically subject to a “rolling high water mark” limitation. In the case of certain Funds,
    including certain Funds that are not charged Management Fees, the General Partner is entitled
    to receive a Performance Allocation of up to 30% with respect to an investor’s positive
    “Performance Change Amount” (as defined in such Fund’s Offering Documents). Certain
    Funds have different Performance Allocation structures, and certain Funds do not charge a
    Performance Allocation.

Net profit includes unrealized appreciation or depreciation of both marketable and, unless the
investment has been placed in a special sub-account, non-marketable investments.

The Fund for which FGI International USVI, LLC was formed to advise, is in the process of
being wound up and dissolved. FGI International USVI, LLC no longer receives a Performance
Allocation from this Fund.

For the Fund advised by Fundamental Global Capital Appreciation Advisors, LLC, the General
Partner is entitled to receive a Performance Allocation ranging from 0.0% to 20.0% of the net
profits attributable to certain investors’ interests in the Fund.

For the Fund advised by FG Special Situations Fund Advisor, LLC, the General Partner is
entitled to receive a Performance Allocation of up to 20.0% of the net profits attributable to
certain investors’ interests in the Special Situations Fund.

Organizational Expenses. A Fund bears the expenses of the organization of the Fund and the
offering of the Fund interests to investors, including legal and accounting fees, printing costs,
travel, “blue sky” filing fees and expenses, and out-of-pocket expenses. The organizational
expenses borne by a Fund are described in more detail in each Fund’s Offering Documents.

Direct Expenses of the Fund. A Fund also bears all costs and expenses directly related to its
investment program, including expenses related to investment research, proxies, underwriting
and private placements, brokerage commissions, interest on debit balances or borrowings,
custody fees, travel expenses incurred by the Adviser or any member of any advisory
committee, and any withholding or transfer taxes imposed on the Fund. A Fund also bears all
out-of-pocket costs of the administration of the Fund, including accounting, audit and legal
expenses, expenses related to regulatory compliance, costs of any litigation or investigation
involving the Fund’s activities, costs associated with reporting and providing information to
existing and prospective investors, and the costs and expenses associated with meetings of
investors, including an annual meeting and formal dinner, if any. A Fund typically also bears
out-of-pocket costs of any technology and communication expenses and SEC-related
compliance expenses incurred by the Adviser in connection with providing services to the
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Item 7 - Types of Clients

As mentioned in Item 4, the Adviser and Relying Advisers provide investment advisory services to
private funds for sophisticated, qualified investors, including high net worth individuals, pension
plans, funds of funds, family offices, endowments, and other institutions, and certain institutional
investors through separate arrangements, on a discretionary and non-discretionary basis.

The minimum investment for a Client varies by Client, although the Adviser or Relying Advisers
may accept investments in a lesser amount at their sole discretion.