Gavltd International Corporation

Item 5.        Fees and Compensation

Fees. GAVLTD is an SEC-registered investment adviser that delivers this brochure only to
qualified purchasers as defined in section 2(a)(51)(A) of the Investment Company Act of 1940, as
amended. Therefore, information on how GAVLTD is compensated for its advisory services and
its fee schedule are not included here.

GAVLTD typically deducts management fees directly from client accounts but may bill a client
for such amounts on request.

Accounts that invest in mutual funds also pay, indirectly, investment advisory fees to the managers
of those funds. GAVLTD believes that its fees are competitive with fees charged by other
investment advisers for comparable services. Comparable services may be available, however,
from other sources for lower fees.

Termination of Accounts. Except as may be otherwise negotiated in particular cases, a client may
terminate an account by giving GAVLTD 30 days’ prior written notice. In all cases, expenses and
the pro rata portion of the management fee through the date of termination are charged to the
account. GAVLTD will refund all prepaid but unearned advisory fees on termination of a client’s
account.

Expenses. Each account is responsible for its own costs and expenses, including trading costs and
expenses (such as brokerage commissions, expenses related to short sales, and clearing and
settlement charges) and ongoing legal, accounting and bookkeeping fees and expenses. GAVLTD
bears its own operating, general, administrative and overhead costs and expenses, other than the
expenses described above. All or part of these costs and expenses may be paid, however, by
securities brokerage firms that execute clients’ securities trades, as discussed in Item 12 below.

Item 7.          Types of Clients

GAVLTD generally requires a minimum of $1,000,000 to open an individually managed account,
but may waive this minimum. GAVLTD’s clients may include institutions, trusts, endowments
and pension plans.