Mercato Management LLC

Item 5 - Fees and Compensation

 Fees for Traverse Funds Investment Advisory Services
 The Traverse Funds generally pay the Adviser an annualized management fee of up
 to 2.0% of total capital commitments as further described in each Traverse Fund’s
 offering documents (the “Management Fee”). The Management Fee is typically
 paid quarterly in advance and is deducted from the applicable Traverse Fund. The
 Management Fee shall be reduced by ten percent (10%) per year under certain
 conditions described in the offering documents; provided, however, that the
 Management Fee shall not be reduced below 1.5% unless the term of the Fund is
 extended by the General Partner.

 Fees for Savory Fund Investment Advisory Services
 The Savory Funds generally pay the Adviser an annualized management fee of up
 to 2.0% of total capital commitments as further described in the Savory Fund’s
 offering documents (the “Management Fee”). The largest investor in the Savory
 Funds pays the Adviser an annualized management fee of 1.75 – 2.00% of called
 capital. The Management Fee is typically paid quarterly in advance.

 Fees for Prelude Fund Investment Advisory Services
 The Prelude Fund generally pays the Adviser an annualized management fee of up
 to 2.0% of total capital commitments as further described in the Prelude Fund’s
 offering documents (the “Management Fee”). The Management Fee is typically
 paid quarterly in advance.

 Other Fees
 In addition, each client is also responsible for certain of its operating expenses
 including, without limitation, legal, accounting, tax, auditing and administrative
 fees, as outlined in its offering documents. Each client is also responsible for
 brokerage commissions and custodial fees paid to third parties.

 Miscellaneous Information about Fees and Compensation
 In the event of a termination of a client’s investment advisory agreement, fees will
 be pro- rated. Any paid but unearned fees will be promptly refunded to such client,

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 and any fees due to the Adviser from this client will be invoiced or deducted from
 the client’s account prior to termination. Notwithstanding the foregoing, the Adviser
 may negotiate or set a management fee different from the foregoing with respect
 to any Fund it manages.

 Additional information related to the foregoing fee discussion is set forth below
 under Item 6 “Performance-Based Fees and Side-By-Side Management” and

Item 7 - Types of Clients

 The Adviser currently provides investment advisory services exclusively to the
 Funds which are the Adviser’s clients, subject to the direction and control of the
 General Partner of each Fund, and not individually to the limited partners of a
 Fund.

 Minimum Investment Requirement for the Funds
 The minimum investment requirement for the Funds generally ranges between
 $1,000,000 to $5,000,000. However, the General Partner of each Fund, in its sole
 discretion, may permit investments that are less than the required minimum
 investment commitment set forth in the applicable Fund’s offering documents.