Lapis Advisers LP

Item 5 – Fees and Compensation

All fees are subject to negotiation.

The specific manner in which fees are charged by Lapis Advisers, LP is established in a
client’s written agreement with Lapis Advisers, LP. Lapis Advisers, LP will generally bill its
fees on a quarterly basis. Accounts initiated or terminated during a calendar quarter will be
charged a prorated fee. Upon termination of any account, any prepaid, unearned fees will
be promptly refunded, and any earned, unpaid fees will be due and payable.

Lapis Advisers, LP’s fees are exclusive of brokerage commissions, transaction fees, and
other related costs and expenses which shall be incurred by the client. Clients may incur
certain charges imposed by custodians, brokers, third party investment and other third
parties such as fees charged by managers, 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 Lapis Advisers, LP’s
fee, and Lapis Adviser’s LP shall not receive any portion of these commissions, fees, and
costs.

Item 12 further describes the factors that Lapis Advisers, LP considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness
of their compensation (e.g., commissions).

Item 7 – Types of Clients

Lapis Advisers, LP provides portfolio management services to limited partnerships.