New Generation Advisors LLC

Item 5: Fees and Compensation

NGA typically charges a management fee and also receives a performance allocation or fee based
on the appreciation in the fund or account.

For managing the two limited partnerships for which it is the general partner (each, an “NGA
Fund” or the “Fund” and collectively, the “NGA Funds” or the “Funds”), NGA charges each
investor in the NGA Fund (and indirectly in any feeder fund) a 1.0% annual management fee,
payable quarterly in arrears, and it receives a performance allocation equal to 15% of gains to each
investor, payable annually in respect of the prior 12 months. The performance allocation is subject
to a “high water mark” such that if the capital account of an investor in an NGA Fund’s value
declines, NGA does not earn a performance allocation until such value rises above the level of the
prior performance allocation.

See also “Item 14: Client Referrals and Other Compensation” below.

The management fees are typically deducted from the client accounts monthly or quarterly, as
applicable, per the terms of the underlying Fund documents. Performance allocations and fees are
typically deducted from the client accounts annually or at the time of any redemption. Upon
request, NGA may (but is not required to) bill the client for direct payment.

Typically, custody fees and auditing fees (where applicable) are charged to the applicable NGA
Funds. In addition, when NGA incurs legal fees or other expenses directly related to a specific
client account (e.g., legal and/or other related fees incurred in connection with the restructuring of

a particular security held in a specific client account), those fees are charged to that client account.
Also, brokerage commissions and similar transaction costs are borne by the applicable client
accounts. For more information on NGA’s brokerage practices, see Item 12, below.

Neither NGA nor any of its members or employees receives any compensation relating to the sale
of securities or other products.

Types of Clients).

A detailed listing of specific conflicts of interests are contained in each Fund’s Offering
documents. In general, and as applicable to NGA’s clients, NGA will endeavor to avoid conflicts
of interest and fully disclose material facts concerning any conflict that does arise with respect to
any client. NGA has adopted policies and procedures to address and mitigate conflicts of interest
and will resolve conflicts that arise in accordance with such policies and procedures and such
Fund’s organizational documents.

NGA has a Code of Ethics that applies to all employees. The key aspects of the Code are that all
employees must at all times strive to act in the best interests of clients, avoid conflicts of interests,
comply with all laws and regulations and observe the highest standards of professionalism. Among
other things, the Code limits the value of gifts and entertainment that NGA employees may accept
from brokers and other providers of services to the firm. The Code of Ethics is overseen and
enforced by NGA’s Chief Compliance Officer. Copies of the Code of Ethics are available on
request.

NGA has a Personal Trading Policy that applies to all employees. NGA personnel are not permitted
to buy for client accounts any security of a company in which they, or any other NGA employees,
have a material financial interest. However, NGA personnel are permitted to purchase or sell
securities for their own account that are held in client portfolios, but only after prior written
approval from the President of NGA. NGA does not permit the trading of any security in a personal
account if the firm is actively considering any action with respect to such security for client
accounts. The Personal Trading Policy is overseen and enforced by NGA’s Chief Compliance
Officer. Copies of the Personal Trading Policy are available on request.

NGA and its affiliates may provide investment advice to other clients, including investment funds
and managed accounts that follows investment programs similar to, or different from, that of other
Funds. In addition, NGA and its affiliates, and the members, managers and/or principals thereof,
may have investments in other clients of NGA or interests in the performance of other clients of
NGA which pose conflicts of interest. Conflicts of interest among certain Funds and such other
clients may exist, which include, but are not limited to, those described herein.

NGA’s interest in the performance of the Funds may create an incentive for NGA to make
investments that are riskier or more speculative than would be the case if NGA had no such interest.

Purchase and sale orders generally may be combined for all clients managed by NGA with each
entity paying its pro rata share of the total commission and paying or receiving its pro rata share
of the total cost or sales proceeds. From the standpoint of a Fund, simultaneous identical portfolio

transactions for a Fund and the other clients of NGA may decrease the prices received, and increase
the prices required to be paid, by a Fund for its portfolio sales and purchases.

There may be a conflict of interest in the allocation of certain investment opportunities among
Funds. A Fund could be disadvantaged because of activities conducted by NGA or its affiliates for
other Funds managed by NGA as a result of, among other things: legal restrictions on the combined
size of positions which may be taken for Funds managed by NGA or their affiliates, thereby
limiting the size of a Fund’s position, and the difficulty of liquidating an investment for more than
one account where the market cannot absorb the sale of the combined positions. In addition, there
may be circumstances under which NGA, on behalf of one or more Funds managed by NGA, will
consider participating in investment opportunities in which one or more other Funds do not intend
to invest or intend to invest only on a limited basis. NGA and its affiliates will evaluate a variety
of factors which may be relevant in determining whether a particular situation or strategy is
appropriate and feasible for a particular Fund or other account managed by NGA at a particular
time, including, without limitation, the nature of the investment opportunity taken in the context
of the other investments at the time, the liquidity of the investment relative to the needs of the
particular entity, the investment objectives and restrictions or regulatory limitations on the
particular entity and the transaction costs involved. Because these considerations may differ for
each Fund in the context of any particular investment opportunity, the underlying investment
activities of the Funds may differ from time to time.