KPC Terrapin Group LLC

Item 5: Fees and Compensation

The amount and manner in which fees are assessed by KPC Group depends on the type of advisory service
the Firm is performing. The specific fees charged by the Firm are set forth in the Advisory Agreement and
are described below.

          Non-Discretionary Services
KPC Group charges non-discretionary clients an annual management fees up to 1.25% per annum of the
value of the client’s Private Fund portfolio. These fees are negotiable and may vary based on the size of the
portfolio and the scope of the mandate. The value of the non-discretionary assets is generally determined
annually based on the last business day of the year, and the fee is billed quarterly in arrears. New investments,
additions to or redemptions from existing investments that take place after January 1 in any given year will
affect the value of the client’s portfolio prorated on a twelve (12) month calendar year. Such fees include
fees for two separate and distinct sets of services provided: (i) the portion of the fee attributable to sourcing,
vetting, evaluation, selection, and recommendation of one or more Private Funds ranges up to 100 basis
points (1.00%) of the value of the client’s portfolio (“Evaluation Fee”); and (ii) the portion of the fee
attributable to the provision of ongoing reporting, portfolio allocation and analytical services, and
proprietary research and analysis ranges up to 25 basis points (0.25%) of the value of the client’s investments
in all Firm-introduced Private Funds (“Monitoring Fee”). Private Funds recommended by the Firm and
subject to the Monitoring Fee include those Private Funds with which a client invests within three (3) years
of recommendation by the Firm. The Evaluation Fee will be due with respect to a recommended Private
Fund for as long as the client remains an investor of such fund.

The Firm may charge private pooled investment vehicle clients, such as fund-of-funds, a fixed fee or an
annual management fee per annum calculated on the basis of the total assets invested in Private Funds
recommended to the client. The Firm may also charge a monthly portfolio fund Evaluation Fee and/or
Monitoring Fee and an ad-hoc portfolio analysis fee, following the delivery of any ad-hoc reports to the
client’s investment adviser as set forth in the Advisory Agreement.

The Firm may negotiate, administer, and process, on behalf of its clients, fee rebates or other remuneration
from the Private Funds it recommends, or the Private Funds’ general partners (or analogous party) and
Investment Managers solely for the purpose of reducing the fees due to the Firm from its clients. All such
rebates or other remuneration received offsets and reduces fees due the Firm from the Clients on a dollar-
for-dollar basis specific to each Client.

        Discretionary Services
KPC Group charges discretionary clients an annual management fee up to 2.00% per annum of the fair
market value of a discretionary client’s account on the last business day of the quarter. The fees are
negotiable and depend on the size of the client’s account. The Firm calculates the management fee quarterly
on the last trading day of the quarter and such fee will be payable in arrears on the first day of the next
calendar quarter. The Firm adjusts the management fee pro rata for the number of days that the Advisory
Agreement is in effect.

                                            KPC TERRAPIN GROUP, LLC

        Additional Fees and Expenses
The Firm’s fees are charged separately from and in addition to any brokerage commissions, transaction fees,
fund fees or account related costs and expenses (which are incurred by the Private Fund and may include
legal and accounting costs). Clients may incur certain charges imposed by custodians, brokers, and other
third parties such as custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions. Such
charges, fees and commissions are exclusive of and in addition to the Firm’s fees.

Generally, the Firm’s non-discretionary clients are responsible for the organizational expenses of the Private
Fund in which they invest and, on an ongoing basis, all expenses incurred in the operation of the Private
Fund, if any, including any administration fees and any legal and auditing fees, including fees that relate to
extraordinary circumstances, such as tax examinations or litigation involving a fund, and any legal fees
incurred in connection with the continuation of this offering.

Fees for the Firm’s non-discretionary advisory services are not deducted from the client’s assets. Fees for
the Firm’s discretionary advisory services are deducted from the client’s accounts by the account’s custodian.
Clients do not pre-pay any fees. Neither the Firm nor any of its supervised persons accept compensation
for the purchase or sale of securities in connection with any services provided to its clients, including asset-
based sales charges or service fees. The Firm believes that its fees charged to its clients are competitive with
those charged generally by other investment advisers for comparable services. However, some investment
advisers may provide comparable services for lower or different fee structures.

Item 7: Types of Clients

KPC Group offers investment advisory services to high-net-worth individuals, their affiliated trusts,
foundations, endowments and other family entities and institutional investors. The minimum client
portfolio for non-discretionary services is two-hundred and fifty thousand Dollars ($250,000), and the
minimum client account for discretionary services is one hundred thousand Dollars ($100,000), however,
the Firm may accept lower amounts in its sole discretion.