Mercator Asset Management LP

Item 5 Fees and Compensation

   A. Fee Schedule
       A fee for separate account clients is typically charged based on a percentage of the assets under
       management in accordance with the following schedule:

    ASSETS UNDER MANAGEMENT                     QUARTERLY              EQUIVALENT ANNUAL BASIS
    On amounts up to $25,000,000                0.1875%                0.75%
    Next $25,000,000                            0.1500%                0.60%
    Next $25,000,000                            0.1375%                0.55%
    Next $225,000,000                           0.1250%                0.50%
    Next $200,000,000                           0.1000%                0.40%
    Next $300,000,000                           0.0500%                0.20%
    Over $800,000,000                           negotiable             negotiable

      Depending on various factors, including the nature of the investment responsibility and/or the
      account and whether the client has an investment in the MIF, the fee may be negotiable or a fixed
      fee may be set on an annual basis. Clients with fixed fee arrangements or whose fee is calculated
      based on a flat percentage of assets under management may pay us higher fees than fees based on
      the fee schedule described above. Our investment services may be cancelled by the client at any
      time and such cancellation will be without penalty. We can cancel our investment agreement by
      providing a client thirty (30) days’ advance written notice.

   B. Billing of Fees
       Under the fee schedule, fees are computed quarterly based on assets outstanding at the end of the
       quarter and are billed in arrears for the three-month period. All separate client accounts’ are
       billed for management fees incurred.

       Participants in the MIF, however, may select to either have us deduct their management fees
       directly from their account OR have us bill them for management fees incurred.

       For participants that have also retained the adviser for one or more separate account mandates,
       assets invested in MIF may be combined with the clients other assets under management for
       purposes of computing fees, and a portion of the fees paid in respect of MIF may be used to offset
       such other fees.

   C. Other Fees and Expenses
       We may, from time to time, offer investment or financial advice on specific request. Fees and
       other terms for such services may vary and would be determined by the time involved and
       complexity and cost of research or other effort necessary.

      Fees for registered investment clients are as disclosed in the offering materials which include
       brokerage and other transaction costs (see Item 12) and may be revised at any time.

      Fees for MIF are as disclosed in the offering memorandum and may include brokerage and other
       transaction costs (see Item 12). In addition, the fund may incur various operating expenses,
       including, without limitation, foreign exchange, tax, legal and other miscellaneous or
       extraordinary expenses.

Item 7 Types of Clients

       We generally provide investment advice to:
          • Investment companies
          • Pooled investment vehicles
          • Corporate and public pension and profit sharing plans
          • Trusts, estates or charitable organizations

       MAM considers each prospective client on an individual basis. Generally, we will not
       accept a new client to manage with assets of less than $50 million unless special
       circumstances are present.