Marvin & Palmer Associates

FEES AND COMPENSATION

       We provide investment advisory services to our clients whom we bill for our services based on a
percentage of assets under management. In certain circumstances, fees are also based, in part, upon the
performance of the client’s portfolio under management.

         We invest our clients’ assets in accordance with each client’s investment objectives. Our fee
schedule for U.S. accounts managed according to the U.S. long only strategy is 0.75% to 1.00% of the
market value of the assets invested for the first $100 million and is negotiable thereafter. The fee schedule
for accounts managed according to our global strategies is 1.00% of the market value of the assets
invested plus a performance allocation fee of 10% of the net profits earned in the account and subject to
a high-water mark. Clients are generally billed in advance or arrears, or as agreed upon, at the end of
each quarter. We negotiate our fees, and we sometimes offer lower fees to clients who have business or
personal relationships with us. In circumstances where clients request to pay fees in advance, they are
able to do so. Where fees are prepaid, the client is entitled to a refund of any unused portion of the
advisory fee determined pro rata on the number of days elapsed in the current billing period. Our intent
is to provide such a refund to any client who chooses to pay in advance. In general, a client may terminate
its agreement with us on written notice.

         We manage assets for qualified investors for which we receive fees that, in some instances,
include a performance fee component negotiated with the client. The performance fee component of a
client’s advisory fee is generally calculated either (a) as a percentage of a client’s profits over a stated
period of time and may be measured in comparison to a specific benchmark or index or (b) as a
percentage of the client’s assets under management where the amount of the percentage varies according
to the performance of the client’s portfolio under management, over a period of time, in comparison to a
specific benchmark or index. Potential investors should note the following: (i) with a performance fee,
the adviser may receive compensation based on unrealized appreciation as well as realized gains, (ii) the
period used to measure performance for a performance fee will be based on a limited period and may
not reflect the adviser’s long-term performance and (iii) the benchmark or index, if any, against which
performance is measured for the purpose of calculating the performance fee may not precisely match the
investment characteristics of the portfolio managed by the adviser. Having a performance fee creates an
economic incentive for the adviser to make investments that are more speculative than would be the case
in the absence of a performance fee. We intend to make comparable investment decisions in all accounts
that follow the same investment strategy. When two accounts follow the same investment strategy, we do
not intend to make different investment decisions in the two accounts because one account is billed on a
performance fee basis and the other is billed on the basis of assets under management.

         We bill our separately managed account clients for services rendered. We generally do not deduct
fees from our clients’ accounts, although we will arrange to do so if requested. We generally bill our
clients quarterly. Fees will be appropriately adjusted in the event the client adds to or removes assets from
the account, or the assets of the account are used to pay service fees, such as, but not limited to,
management fees or custody fees. Clients who have separately managed accounts will incur brokerage
costs, transaction costs and custodian costs charged by other service providers in addition to the
management fee that we charge. Brokerage practices are discussed under the heading Brokerage
Practices, below.

        The Investment Entities pay to us, in our capacity as general partner and/or adviser, an annual
fee, payable in quarterly installments, based on the fair market value of its assets at the end of each
quarter. As discussed elsewhere, the Investment Entities also pay other fees such as legal and accounting
fees. The basic management fees paid by the U.S. Partnership is 0.75% of the value of the partnership’s
net assets. The basic management fee for the Global Fund is 1.00% of the market value of the assets
invested plus a performance allocation fee of 10% of the net profits earned in the account and subject to
a high-water mark.

       We negotiate reduced management fees, capped expenses and other terms with investors in the
Investment Entities and have the ability to waive fees with respect to them.

        We or an affiliate maintains a capital account in the Investment Entities and, therefore, we are
allocated a pro rata portion of its net profits (or net losses).

        The Investment Entities pay, or reimburse us for, all fees and expenses incurred by or on their
behalf in the ordinary and usual course of business, including, without limitation, rent, taxes, office
overhead and administrative expenses, telephone and all other communications expenses, all as
determined in our sole discretion. The Investment Entities also pay for accounting and software expenses,
legal expenses, custodial fees and related fees in connection with the safekeeping of their securities,
brokerage commissions and other fees and expenses related to securities trading, all as determined in our
sole discretion. Third-party vendors provide certain administrative services to the Investment Entities,
such as the maintenance of its books and records, for which the Investment Entities pay. The offering
memoranda of the Investment Entities provide full descriptions of such arrangements. Brokerage
practices are discussed under the heading Brokerage Practices, below.
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TYPES OF CLIENTS

        The types of clients we serve include or may include the following:

        •   Private Funds (“Investment Entities”);
        •   Pension and profit-sharing plans;
        •   Investment companies, including mutual funds;
        •   Other pooled investment vehicles;
        •   Trusts, estates and charitable organizations;
        •   Corporations and business entities other than those listed above;
        •   State or municipal government entities;
        •   Banking and thrift institutions; and
        •   High net worth individuals.

       In our capacity as general partner or an adviser to the Investment Entities, we manage their assets
and investments. The Investment Entities are more fully described under Advisory Business, above.

        We have not set a minimum initial value requirement for new accounts but will accept accounts
on a case-by-case basis.

                METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

       In executing an investment strategy, we may make use of one or more of the following types of
investments:

        •   Equity securities, including (1) exchange listed securities, (2) securities traded over-the-
            counter and (3) securities of non-U.S. issuers;
        •   Depositary receipts and equity-linked derivatives;
        •   Warrants;
        •   United States government securities;
        •   Options contracts on securities and swap transactions;
        •   Futures contracts; and
        •   Exchange traded funds.

         We may purchase shares in initial public offerings ("IPO Shares") for accounts that we manage.
We generally allocate IPO Shares pro rata across eligible client accounts other than the Investment Entities
in which our employees, our directors or our Advisory Board members are investors. A client account is
eligible to participate in IPO Shares if the investment is consistent with the account’s investment objectives
and limitations and the account has sufficient funds available for investment. If we are not able to obtain
sufficient IPO Shares in a particular issue to give all eligible accounts a meaningful portion of IPO Shares,
we will allocate the IPO Shares across one or more designated groups of accounts on a rotating basis.
Accounts will be grouped generally according to similarities in investment objectives, limitations and
size. We may adjust IPO Share allocations to allocate round lots. We may also make exceptions to our
general allocation methods consistent with equitable principles, provided such exceptions are generally
applied with consistency and are approved by our senior administration officer or such officer’s
designate.

         We may engage in securities lending on behalf of the U.S. Partnership in the future, although we
do not do so at present. If we were to engage in securities lending, the securities lending activities would
be supervised by a securities lending agent that would be compensated for its services by a portion of the
revenues earned from such activities. We do not engage in securities lending on behalf of the Global Fund,
but under a prime brokerage arrangement the assets of the Global Fund may be loaned by the prime broker
in partial compensation for the provision of prime brokerage services.

        Our investment analysis methods include principally fundamental analysis and relative price
strength screening. We also rely upon charting and technical analysis.

        The main sources of information that we use include the following:
        •   Inspections of corporate activities;
        •   Annual reports; prospectuses; filings with the Securities and Exchange Commission;
        •   Research materials prepared by others;
        •   Corporate ratings services;
        •   Financial newspapers and magazines;
        •   Company press releases; and
        •   Artificial intelligence to assist with searching and compiling investment information (no Firm
            or client information is provided to any artificial intelligence searches).

       The investment techniques that we use to implement any investment strategy may include one or
more of the following:
        •   Long term purchases (securities held at least a year);
        •   Short term purchases (securities sold within a year);
        •   Trading (securities sold within 30 days);

        •   Short sales;
        •   Margin transactions;
        •   Options writing, including covered options, uncovered options or spreading strategies;
        •   Synthetic securities representing stock index futures or various groups of securities and
            options on such synthetic securities for hedging purposes.

       The accounts that we manage generally keep small cash balances, although under some
investment mandates we may have discretion to hold substantial cash balances.

        We generally have authority to determine, without obtaining specific client consent, the
following:
        •   Which securities are to be bought and sold;
        •   The amount of securities to be bought or sold;
        •   The broker or dealer to be used; and
        •   The commission rates to be paid.

        Except as described above, we generally do not suggest to clients which brokers they should use.

         Other than limitations imposed by applicable law, the only qualifications to our broad authority
to determine, without specific client consent, the amount and type of securities to be bought or sold, the
broker or dealer to be used and the commission rate to be paid are those contained in the specific
guidelines, restrictions or limitations of the client relating to investments or brokers or dealers that from
time to time we may agree to follow. Such guidelines, restrictions or limitations could have the effect of
limiting the selection of brokers or dealers for such client’s account or of limiting or otherwise affecting
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