GlobeFlex Capital LP

Item 5: Fees and Compensation
GlobeFlex is compensated for our advisory services through the collection of management fees from
separate account clients and the Private Funds. In certain limited circumstances, generally at the
client’s request, GlobeFlex’s management fee rate for an account varies based on the performance
of the account during a specified period. In addition to a management fee, certain clients also pay
GlobeFlex a research fee in lieu of having commissions in their accounts generate soft dollar credits
(see Item 12: Brokerage Practices below).

Separate Accounts

Separate account management fees are invoiced and payable quarterly, in arrears. Management fee
calculations are typically based on the arithmetic average of the value of account assets as of the end
of each month in a quarter, though some clients stipulate a different computation technique in their
separate account advisory agreements. Most advisory agreements currently in place allow clients to
terminate upon 30 days’ written notice.

GlobeFlex’s separate account management fees generally vary with the type and size of portfolio
managed. For each marketed Strategy, the standard annual management fee per annum, calculated
as a percentage of assets under management, is as follows:

      ACWI ex-U.S. Equity:
            0.75% for the first $50 million;
            0.70% for the next $50 million; and
            0.65% for assets in excess of $100 million.

      Emerging Markets Small Cap Equity:
            1.00% for the first $50 million;
            0.95% for the next $50 million; and
            0.90% for assets in excess of $100 million.

      Emerging Markets Equity:
            0.80% for the first $50 million;
            0.70% for the next $50 million; and
            0.60% for assets in excess of $100 million.

      Frontier All Cap Equity:
             1.50% for all assets under management.

      Global Dynamic Equity:
             1.00% for all assets under management.

      International All Cap Equity:
             0.75% for the first $50 million;
             0.70% for the next $50 million; and
             0.65% for assets in excess of $100 million.

      International Micro Cap Equity:
             0.90% for all assets under management.

       International Small Cap Select Equity:
              0.80% for the first $25 million;
              0.75% for the next $25 million; and
              0.70% for assets in excess of $50 million.

       U.S. Small Cap Growth Equity:
             0.85% for the first $25 million;
             0.80% for the next $25 million; and
             0.75% for assets in excess of $50 million.

       U.S. Mid Cap Equity:
             0.70% for the first $25 million;
             0.65% for the next $25 million; and
             0.60% for assets in excess of $50 million.

       U.S. Small/Mid Cap Equity:
             0.80% for the first $25 million;
             0.75% for the next $25 million; and
             0.70% for assets in excess of $50 million.

       U.S. Micro Cap Equity:
             0.90% for all assets under management.

       World ex-U.S. Small Cap Equity:
             0.80% for the first $25 million;
             0.75% for the next $25 million; and
             0.70% for assets in excess of $50 million.

The foregoing describes GlobeFlex’s standard management fee schedules for separate accounts;
however, management fee schedules may be negotiable and arrangements with any particular client
may vary from the foregoing. For example, in some cases, for any particular period the percentage to
be applied to the amount of assets under management may vary depending on the performance of
the account during that period. In some cases our management fees may be greater or lower than
management fees charged by other investment advisers for similar services.

In addition to management fees, client accounts incur brokerage and other transaction costs and
certain accounts pay GlobeFlex a research fee in lieu of having commissions in their accounts generate
soft dollar credits (see Item 12: Brokerage Practices below).

Private Funds

The management fee schedule for each Private Fund is set forth in the respective organizational
documents and offering materials, which are provided to prospective investors. While fees are paid by
the Private Fund, they are typically calculated separately for, and allocated to (borne by) each investor,
depending on the amount the investor has invested in the Private Fund. Management fee schedules
may be negotiable in certain limited circumstances and arrangements with any particular Private Fund
investor may vary from the schedule stated in the organizational documents. At present, certain
investors within each of the Private Funds have modified fee schedules which they negotiated through
side letter agreements. The Private Funds currently do not pay GlobeFlex any performance-based fees.

Private Fund management fees are generally calculated and accrued monthly in arrears, based on
investors’ account balances as of the end of the month. The Private Funds generally pay accrued
amounts to GlobeFlex quarterly.

The Private Funds also bear certain costs of their operations, including costs of researching,
identifying, and/or acquiring investments; certain bookkeeping, accounting, tax preparation, reporting,
and audit fees and expenses; legal fees (including fees paid to GlobeFlex’s counsel for services that
benefit the relevant Private Fund); filing fees; custodial fees; transfer and other taxes; fees and
expenses of the Private Fund’s “partnership representative;” and fees paid to third-party
administrators. These expenses are more fully described in the organizational documents and offering
materials provided to prospective investors. At present, certain investors within some of the Private
Funds have modified operating expense arrangements which they negotiated through side letter
agreements.

Item 7: Types of Clients
We serve primarily institutions (such as pension plans, foundations, corporations, and family office
entities). We also manage the Private Funds and act as sub-adviser to certain outside pooled
investment vehicles. We manage all but one of our client accounts on a discretionary basis.

We focus on accounts we consider large enough to permit efficient management. To that end we
generally impose a $10 million minimum value of assets for starting a small- or medium- capitalization
separate account and $25 million for starting a large- or all-capitalization separate account. We may
waive these dollar value requirements in our discretion; for example, if the client appears to have
significant potential to increase the assets under our management to the minimum in a short period
of time. The minimum investments in the Private Funds range from $500,000 to $10,000,000. We
may waive these investment minimums at our discretion.