Knightsbridge Advisers LLC

Item 5: Fees and Compensation

Knightsbridge Advisers receives management fees as compensation for the advisory and supervisory
services it provides to certain of its private investment fund clients. Fees are invoiced quarterly in advance
and, in general, are based on a percentage of either the committed capital or net asset value (NAV) of the
respective fund. The fees paid to Knightsbridge by its private investment fund clients range from 0.15% to
2.0% of NAV or committed capital per annum. Certain funds allow for reductions in the management fee
percentages a specified number of years after the initial closing date, and a change in the basis for the
calculation. In addition, certain Knightsbridge related persons, including current and former employees
and board members, receive performance-based compensation of up to 20% of the investment gains of
certain private investment fund clients. The specific terms related to the management fee and
performance-based compensation are set forth in the operative documents for each of the funds, and
each fund may have a different method of calculation. Each investment vehicle that pays Knightsbridge
or a related person a management fee or performance-based fee is a “qualified purchaser” under the
Investment Company Act of 1940, as amended, and the rules thereunder.

Our fees are, in certain cases, negotiable in the sense that limited partners with larger capital
commitments to a fund may pay a lower management fee percentage on their committed capital.
Additionally, limited partners that commit to an initial closing may receive a management fee reduction
for a period of time. The Knightsbridge funds are “closed-ended” and investors in the funds are not
permitted to withdraw capital.

Knightsbridge generally deducts any fees directly from an investment fund’s account with its qualified
custodian. Client limited partners do not have the ability to choose to be billed directly for management
or incentive fees charged to their capital accounts in a fund.

Based on the partnership agreements of each fund, Knightsbridge also invoices its private investment fund
clients for the direct out-of-pocket expenses we incur in the process of monitoring investments and
maintaining investor contacts, including, without limitation, all travel expenses incurred in connection
with visiting investors, portfolio fund managers, and companies. Based on the partnership agreements of
select funds, Knightsbridge may invoice its private investment fund clients for a fund administration

expense. Limited partners will also incur operating expenses, including accounting, audit, tax and other
fees and expenses.

In addition to the fees charged by Knightsbridge, the underlying manager of each portfolio fund in which
a Knightsbridge investment fund invests also charges a management fee, generally ranging from 1.0% to
2.5% of the respective total commitment amount of that portfolio fund and generally receives an incentive
allocation of up to 30% of that portfolio fund’s returns. Limited partners in Knightsbridge funds may also
pay, indirectly, the underlying managers’ transaction costs and other fees and expenses.

Item 7: Types of Clients

Knightsbridge’s clients are private investment funds that are funded by, but not limited to, foundations,
insurance companies, pensions, other institutional investors and high net worth individuals. On occasion,
certain funds accept investment from individuals and entities who have strategic importance to our
company or to the fund in parallel investment partnerships.

Each investor in a Knightsbridge fund must be (1) an “accredited investor” as defined in Regulation D
under the Securities Act, and (2) a “qualified client” as defined in Rule 205-3 of the Advisers Act. In some
cases, Knightsbridge may require an investor to represent that it is a “qualified purchaser” under the
Investment Company Act of 1940, as amended and the rules thereunder. Although each fund varies and
Knightsbridge in some instances accepts lower levels of investment, the stated minimum commitment for
Knightsbridge funds is generally $250,000.