LGK Advisors LLC

FEES AND COMPENSATION

The advisory fees applicable to each Fund are set forth in detail in each Fund’s offering
documents. The advisory fees applicable to each Managed Account are set forth in detail in each
Managed Account’s investment management agreement or other agreement with LGK. LGK
and its affiliates typically charge an asset-based fee and earn performance-based fees or
compensation. The management fee for each Fund or Managed Account (the “Management
Fee”) is generally calculated and paid quarterly in advance and ranges from 1% to 2% per annum
of the applicable assets under management based on capital commitments (including uncalled
capital commitments), invested capital, or net asset value, depending on whether the applicable
account’s investment period has expired. The performance-based fee or compensation (the
“Performance Compensation”) for each Fund or Managed Account generally ranges from 15%
to 20% of the realized gains of the account as set forth in the applicable investment management
or operating agreement.

                                                                  LGK Advisors, LLC & Affiliates
                                                                    Form ADV Part 2A Brochure
Performance Fees are typically calculated and accrued quarterly or annually. LGK and/or its
affiliates may and in the past have waived or reduced (by rebate or otherwise) the Management
Fee or Performance Fee with respect to a Client or investor. LGK does not charge or earn fees
on capital invested by affiliates or employees of LGK.

Fees and compensation paid or allocated by the Funds or Managed Accounts to LGK or its
affiliates are generally deducted directly from the assets of such Clients by LGK instructing the
administrator or custodian to effect such payments or allocations. For the Funds or Managed
Accounts with Performance Fees structured as an incentive fee, the Performance Fees are
generally paid or allocated from the applicable Fund or Managed Account into an escrow
account, after tax payments are made, which escrowed amount is released to LGK upon meeting
certain milestones. For Funds or Managed Accounts with Performance Fees structured as an
allocation, the general partner or managing member of such vehicle receives the Performance
Fees as an allocation of the vehicle’s distributions. LGK has agreed and may in the future agree
to serve as the investment adviser, investment manager, general partner, or manager or other
similar role of a Fund or Managed Account and charge Management Fees or Performance Fees
that are more favorable than the fees described above.

The ability of investors in the Funds or Managed Accounts to withdraw or redeem their
investments is limited by the terms of the applicable partnership, governing, or operating
agreement, and, typically, investors may not withdraw or redeem their interests. The ability of
such investors to terminate the obligation to pay or bear the applicable Management Fees or
Performance Fees or to terminate their investment in a vehicle is consequently limited. In the
event of such a termination, the amount of any fees or expenses to be paid or refunded will be
determined as provided for in the applicable agreement.

A.       Expenses and Expense Allocations

In addition to the Management Fees and Performance Fees paid to LGK, unless provided
otherwise, Clients also bear certain operational expenses or reimburse LGK for any such
expenses paid by LGK on their behalf. The expenses that Clients pay or bear can vary, so
Clients and investors in the Funds should review the applicable management agreement,
partnership agreement, or offering memorandum to determine which expenses they may pay or
bear. Unless provided to the contrary in the management agreements, partnership agreements, or
offering or similar documents governing a Fund or Managed Account, the expenses that Clients
may pay or bear include the following:

        Organizational and initial offering costs, expenses relating to the offer and sale of the
         interests in the Funds and Managed Accounts (including travel expenses related thereto),
         expenses relating to conducting due diligence on investors, and the legal and other out-of-
         pocket fees and expenses payable to third parties in connection with the creation of new
         classes of such interests and the negotiation of arrangements with investors therein.

        Costs and expenses incurred in connection with the operational activities of a Fund or
         legal vehicle.

                                                             LGK Advisors, LLC & Affiliates
                                                               Form ADV Part 2A Brochure
   Expenses relating to the cost of purchasing and monitoring investments (e.g., due
    diligence expenses, brokerage commissions, escrow fees, and trading costs), investment
    related expenses, including but not limited to legal fees and investment sourcing expenses
    (whether or not such investments are consummated), structuring fees and expenses, and
    broker expenses.

   Expenses relating to a Client’s hedging activities and a Client’s share of the expenses of
    the investment, aggregating, or special purpose vehicles in which it invests, and the costs
    and expenses related to or connected with the establishment and activities of any special
    purpose vehicles.

   Valuation expenses, news and quotation equipment and services, and data-related
    services and subscriptions.

   Research expenses, fees and expenses of research-related service providers, expenses
    related to research-related publications, investor relations, and research and sourcing
    (including travel expenses related thereto).

   Administration fees, fees and expenses related to custodial and bank services (including
    custody audit fees and wire fees), expenses paid to third parties in connection with
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TYPES OF CLIENTS

LGK provides investment advisory services to Funds and Managed Accounts, as described
above. The minimum investment amount and other requirements applicable to an investment in
a Fund are described in the relevant offering memorandum or investment management,
partnership, or operating documents and typically can be waived. The requirements for
establishing a Managed Account or dedicated investment vehicle are negotiable and may vary by
strategy or Client.