Nevastar Finance Ltd

Item 5.        Fees and Compensation

Nevastar charges clients a fee based upon assets under management and whether the assets are
managed on a discretionary or non-discretionary basis. Nevastar maintains the discretion to vary,
waive or modify the management fee. The standard fee schedule is set forth as follows:

Discretionary Management

Total Assets Being Managed Annual Fee, as a Percentage of Assets Being Managed:

Below $3 million               0.95%
$3 million to 10 million       0.85%
$10 million to $25 million     0.75%
$25 million to $50 million     0.65%
$50 million to $100 million    0.55%
Above $100 million             0.45%

Non-discretionary Management (Advisory Service)

Total Assets Being Managed Annual Fee, as a Percentage of Assets Being Managed:

Below $3 million              0.90%
$3 million to 10 million      0.80%
$10 million to $25 million    0.70%
$25 million to $50 million    0.60%
$50 million to $100 million   0.50%
Above $100 million            0.40%
Nevastar generally does not negotiate fees though the firm reserves the right to do so.

Advisory fees are invoiced after the end of each quarter based on the end of the month value of
the assets held under Nevastar’s management during the quarter. The firm does not charge
management fees in advance: at the appropriate time, Nevastar issues an invoice, which is signed
by one of the firm’s Director and subsequently sent to the custodian bank in order to debit the
management fee from the account. This process is explained in detail under the IMA signed by the
client. A client’s investment management agreement can be terminated at any time, by either party,
for any reason upon 30 business days’ written notice.

The management fees described above do not include other fees and expenses typically incurred
by clients, such as: brokerage commissions; transaction fees; exchange fees; custodial fees;
transfer taxes; wire transfer and electronic fund processing fees; and mark-ups/mark-downs on
security transactions. Additional information about fees and expenses that may be charged to
clients is described in the investment management agreement for each client account. More details
about the firm’s brokerage practices are provided under Item 12 of the present document.

Item 7.        Types of Clients

Nevastar provides investment management services to the following types of U.S. clients: high net
worth individuals, trusts, charities, pensions and corporate entities.

The firm typically requires a minimum initial investment of $3 million to establish an account but
reserves the right to accept accounts below the minimum. For example, the firm may aggregate

accounts of family members to reach the minimum investment amount as part of a family
relationship.