Global Strategic Risk Management LLC

Item 5. Fees and Compensation

The extent to, and specific manner in which, our clients are responsible for fees, performance-based
compensation and expenses is set forth in each client’s applicable written agreement with us (and, in the
case of the Funds, in the Fund Documents).

In general, we deduct our management fees from the Funds on the first day of each calendar quarter. The
IDF’s management fees are accrued monthly and paid quarterly in arrears. We generally receive
performance-based fees or allocations from the Funds on an annual basis and upon the distribution of
capital (such as a withdrawal by a Fund investor).

The Master Fund will pay the Investment Manager, from the applicable capital accounts of the Master
Fund attributable to each Capital Account of each Limited Partner, a management fee quarterly in
advance on the first day of each calendar quarter equal to 0.25% (one percent (1.0%) on an annualized
basis) of the net asset value of each Master Fund capital account corresponding to each Capital Account
of each Limited Partner as of such date (including any capital contributions made to the Partnership as of
such date but before the accrual of any Incentive Allocation). GSRM can negotiate a fee rate that differs
from the rate set forth above.

Management fees, performance-based compensation and/or expenses are reduced or waived in certain
circumstances, including, without limitation, with respect to investments in Funds by our personnel and
other related persons. Our clients pay our management fees in advance. No adjustments will be made to
the management fees or performance-based fees or allocations for any withdrawals, appreciation, or
depreciation in the value of securities held in the account during any fee period. Advisory fees paid in
advance will be refunded pro-rata as of the date of termination if a client terminates the relationship during
a quarter.

As the management fees and performance-based fees and allocations are based directly on the net asset
value of the client accounts, GSRM has a conflict of interest in valuing the assets held in the accounts.
GSRM’s fund administrator, who is responsible for striking the monthly official net asset value (or NAV),
will follow our documented valuation policies in order to mitigate this conflict.

Unless provided otherwise in the applicable Fund Documents, Fund clients generally bear all costs and
expenses associated with their operations, including, without limitation (i) all expenses associated with
the organization and ongoing administration of such Funds, including legal and accounting fees, (ii) all
expenses incurred in connection with communications with investors and the ongoing offer and sale of
interests in the Funds, (iii) all third party administration, accounting, tax preparation, audit, bookkeeping,
directors fees and expenses, the costs of any regulatory filings (including any filings required by the
European Alternative Investment Fund Managers Directive and preparing and filing Form PF),
governmental fees and taxes and legal and compliance fees and expenses of, or relating to, the Funds, (iv)
all expenses incurred for the benefit of the Funds related to the maintenance and procurement of
information technology and data related services, systems and equipment, valuation services, proxy voting
services and insurance, (v) all direct and incidental expenses relating to research and due diligence of
existing and potential investments (including, without limitation, the use of consultants and attorneys) and
research materials, and (vi) all trading and investment related costs and expenses (e.g., brokerage
commissions, margin interest, expenses related to short sales, custodial fees and clearing and settlement
charges). See “Brokerage Practices” below.

To the extent that we incur any expenses for the benefit of multiple clients, we generally will allocate such
expenses in any manner that we deem equitable, taking into account our written agreements with such
clients (and, if applicable, Fund Documents in the case of clients that are Funds) and applicable facts and

circumstances, including the relative size of the applicable entity or account, the nature or source of the
product or service and the benefits derived from and the extent of use of the product or services.
Nonetheless, the portion of an expense that we allocate to a client for a particular product or service might
not reflect the relative benefit derived by such client from that product or service in any particular instance.
Furthermore, it is possible that under some of our advisory contracts we do not require a client to incur
certain expenses, despite the fact that such client will receive a benefit in connection with our incurrence
of such expenses. In such an event, our other clients bear the additional share of any such expenses that
would have been allocable to the client that is not required to incur such expenses. Our expense allocations
often depend on inherently subjective determinations, but the expense allocations made by us will be in
good faith. There are situations in which the appropriate allocation of expenses in the course of evaluating
potential investments is not clear (for example, if a client and one or more other clients considered making
an investment that was not consummated). Expenses will typically be allocated among the clients
participating in the relevant investment or potential investment, except to the extent stated otherwise in
the applicable client agreement or Fund Documents. However, in all cases, subject to applicable legal,
regulatory, contractual or similar restrictions, we will make expense allocation decisions in our sole
discretion in good faith.

GSRM and its personnel generally can be expected to receive certain intangible and/or other benefits
and/or perquisites arising or resulting from their activities on behalf of clients and client portfolio
...

Item 7. Types of Clients

GSRM primarily provides investment advice to clients who are private investment funds and/or insurance
dedicated funds (such as the IDF). Investors in such Funds are generally high net worth individuals and
institutional investors that qualify as “accredited investors” (as defined in Rule 501 under the Securities
Act of 1933, as amended) and “qualified purchasers” (as defined under the 1940 Act). The minimum
original investment in the Funds is generally $2,000,000, subject to the Funds’ discretion to accept lesser
amounts.