Nexxus Holdings Advisors LLC

Item 5      Fees and Compensation

In most circumstances, Nexxus will charge a management fee (“Management Fee”) and
annual performance allocations (“Performance Fee”). Management Fees typically range
between 1% – 2% of net assets of the client account annually. Management Fees are
generally payable monthly in arrears and are debited directly from client accounts.

Nexxus may in its absolute discretion waive or rebate all or any part of the Management
Fee. Affiliates of Nexxus are typically exempt from Management Fees and Performance Fees.
Neither Nexxus nor any of its affiliates receive any compensation for the sale of securities or
other investment products.

Nexxus’s clients will also be charged certain expenses resulting from Nexxus’s investment
activities, including, but not limited to:

(a) investment costs and expenses (e.g., expenses which relate to the investment of the
clients’ assets, including, without limitation, fees and expenses incurred by Nexxus in
connection with engaging third parties to conduct due diligence and research or
negotiate the terms of certain investments, expenses relating to short sales, clearing and
settlement charges, custodial fees, bank service fees, and the cost of investigating actual
or potential investments, including travel expenses),

(b) brokers’ commissions, borrowing charges on securities sold short and any issue or
transfer taxes chargeable in connection with any securities transactions,

(c) the costs and expenses of products and services relating to research concerning
clients’ investments or potential investments including, without limitation: professional
fees relating to investments such as expenses of consultants and experts, the costs of
obtaining third-party research products and services (including, without limitation, the
cost of research reports relating to securities, issuers, market segments or geographic
regions, the costs of portfolio modelling and analyses, the costs of third-party pricing
services and price quotation services, the costs of computerized historical financial
databases and the costs of credit ratings services), the costs of subscriptions or
publications regarding investments, and the costs of computer hardware and software to
the extent that such hardware or software is used for research, accounting expenses
such as the cost of an accounting software package, the charges and expenses of legal
advisers, tax advisers and auditors, all taxes and corporate fees payable to governments
or agencies, directors’ fees and expenses, interest on borrowings, communication
expenses with respect to investor services and all expenses of meetings of shareholders
and of preparing, printing and distributing financial and other reports, proxy forms,
prospectuses and similar documents, the cost of compliance and portfolio analysis
software packages, the cost of insurance for the benefit of the directors, litigation and
indemnification expenses and extraordinary expenses not incurred in the ordinary
course of business, the cost of obtaining and maintaining any listing of the shares on any
stock exchange, all other organizational and operating expenses and other similar expenses
and extraordinary expenses.

Item 7      Types of Clients
Nexxus provides investment advice and investment management services to certain
private funds, which are pooled investment vehicles that are organized as domestic
limited liability companies Investors in certain clients will from time to time include
Nexxus’s affiliates and trusts or other entities for their benefit. In addition to the private
funds, Nexxus provides advisory services to affiliated and unaffiliated entities that are
organized as trusts, corporations or other business entities.

Nexxus, in conjunction with its clients, may form additional private fund vehicles or
special purpose vehicles to facilitate investments. In certain cases, minimum
investments may be required to participate in a particular investment opportunity. In
addition, Nexxus requires that clients and investors in the private funds must be
“accredited investors,” as defined in Rule 501(a) of Regulation D, promulgated pursuant
to Section 4(2) of the Securities Act of 1933, as amended, as well as “qualified
purchasers,” as defined in Section 2(a)(51)(A) of the Investment Company Act of 1940,
as amended.