Klosters Capital LLC

ITEM 5.      FEES AND COMPENSATION

Management Fees

Klosters offers advisory services for fixed asset-based fees that are set in and governed by the
Agreements (as defined below), and which are anticipated to be determined based on the
amount of client’s assets managed by the Firm, as follows:

                                     Klosters Capital LLC
                                   Management Fee Schedule
               Account Value                                      Fee Percentage
              Up to $1,000,000                                        1.25%
          $1,000,001 - $10,000,000                                    1.00%
          $10,000,001 - $20,000,000                                   0.75%
          $20,000,001 - $50,000,000                                   0.60%
              Over $50,000,000                                        0.50%

The Firm may also provide certain specified services for a fixed, non-asset-based fee, which will
be negotiated with the clients and depends on a variety of factors. All fees will be governed by
the Agreements. The fees that our clients will pay us are provided for in the investment
management agreements (“Agreements”) that the clients execute with us. All such fees, including
asset-based fees and such fixed, non-asset-based fees, typically are paid quarterly in arrears. The
client shall instruct the custodian of its accounts to debit the accounts to pay the advisory fees
each quarter. Clients may negotiate the fees they agree to pay. Klosters charges a minimum
quarterly fee of USD 1,500.

Other Fees and Expenses

Additional fees and expenses for which a client may be responsible are described in the

Agreements. In addition to the fees charged by Klosters, clients are responsible for their own
custodial fees and will incur brokerage and other transaction costs (please refer to the Item 12
Brokerage Practices for more information). To the extent that clients’ accounts are invested in
mutual funds or exchange-traded funds, those funds pay a separate layer of management fees,
trading, administrative, and other expenses which are described in each respective fund’s offering
documents (i.e., prospectus).

Neither we nor any of our “supervised persons” accepts compensation for the sale of securities or
other investment products.

ITEM 7.      TYPES OF CLIENTS

Klosters Capital provides portfolio management services to individuals, corporations or other
entities. The minimum amount for establishing an Account is generally $1,000,000. Initial account
sizes of a lesser amount may be accepted at Adviser’s discretion.