Magarian Capital Management LLC

Item 5          Fees and Compensation

(A) Private Fund Management

Magarian receives compensation from the Fund as disclosed in the Fund’s governing documents, which
includes a management fee based on a percentage of assets under management between 1.2% and 1.6%,
and an incentive allocation or carried interest of between 15-20%, subject to a hurdle rate. The precise
management fee and incentive allocation depend on the specific class of interests and potential side letter
for each investor. Investors should review the Fund’s offering documents for full details.

In addition, the Fund pays all operating expenses and other costs of the Fund, including fund formation
costs, due diligence costs and expenses, custodial fees, brokerage commissions, fees and expenses charged
by mutual funds and exchange-traded funds (if any), clearing fees, interest and taxes incurred in connection
with or related to its investments, and many other costs and expenses, which are costs investors will bear.

The types of expenses borne and paid by the Fund are much broader than the types of expenses that an
advisory client of Pine Valley might bear and pay as a managed account client. For example, among others,
the Funds pay: tax preparation costs and filing fees; expenses associated with preparing and distributing
financial, tax and performance reports; insurance and bonding costs (including any costs associated with
errors and omissions insurance that covers us and our employees and principals); costs related to
compliance with applicable laws (including costs we incur in complying with laws and regulations that
apply to us as a result of our services to the Fund); and costs of the fund’s legal counsel. The Fund’s
organizational and offering documents include details regarding the fees, costs and expenses associated
with the Fund and govern an investment in Fund, including with respect to fees, operating expenses and
other costs of the Fund. Occasionally, the general partner of the Fund will authorize the use of side letters.
Any investor in the Fund must read and understand the Fund’s organizational and offering documents.

(B) Sub-Advisory Services

Magarian is compensated by Pine Valley and does not receive fees directly from underlying clients.
Magarian and Pine Valley have negotiated an agreement whereby Pine Valley compensates Magarian based
on agreed upon metrics. Magarian does not receive commissions or other transaction-based compensation.

Item 7           Types of Clients

Magarian provides services to the Fund and Pine Valley. The Fund generally accepts accredited investors
and qualified purchasers as applicable. Any minimum investment amount or other qualification
requirements related to an investment in the Fund are set forth in the Fund’s offering documents.