Niles Investment Management LLC

Fees and Compensation

A.     Advisory Services and Fees

The Firm, either directly or indirectly through the Funds’ General Partners, receives management
fees and incentive compensation in connection with the management of the Funds.

The fees and/or compensation applicable to the Funds are set forth in detail in each Fund’s Offering
Documents. A brief summary of fees and compensation applicable to the Funds is provided below.

Management Fee

The Firm is paid a management fee (the “Management Fee”) of between 1.5% and 2% per annum
based upon the net asset value of Fund Investors’ capital account balances as of the beginning of
the month, subject to certain reductions as fully set forth in the Offering Documents.

In the sole discretion of the Firm, the Management Fee may be waived, reduced or calculated
differently with respect to certain Investors, including affiliates and employees of the Funds’
General Partners and the Firm (collectively, “Related Investors”). Typically, no Management Fee
will be paid by any Related Investor.

Incentive Allocation

At the end of each fiscal year, the Funds’ General Partners will be entitled to receive an incentive
allocation based on the investment performance of each respective Fund (the “Incentive
Allocation”). The Incentive Allocation is 20% of the net realized and unrealized gains for the year,
subject to a traditional “high watermark” as more fully set forth in the respective Fund’s Offering
Document.

The Firm and/or the Funds’ General Partners, in its sole discretion, may reduce, waive or calculate
differently the Incentive Allocation with respect to certain Investors, where applicable, including
any Related Investor.

Other Fees and Expenses

NIM may invest in exchange traded funds (“ETFs”) and other pooled investment vehicles on
behalf of its clients. When NIM invests client assets in such vehicles, unless otherwise agreed,
and where permitted by law, the client will bear its proportionate share of fees and expenses as an
investor in such vehicles in addition to NIM’s investment advisory fees.

B.     Payment of Fees

Management Fees are paid monthly in arrears. The Incentive Allocation is paid annually in arrears
or upon withdrawals by Fund Investors. The Management Fee and Incentive Allocation are
generally deducted from each Investor’s capital balance account by the Funds’ administrator.

C.       Additional Expenses

In addition to the fees and allocations described above, each Fund I and Fund II generally bear all
of their own expenses, including but not limited to expenses related to their operations and the
investment of their assets. Each Fund shall bear those expenses as set forth in the applicable
Offering Document, as amended from time to time, including, but not limited to, some or all of
the following:

     •   fees to the administrator;
     •   investment related expenses such as brokerage commissions, research expenses, interest
         on margin accounts and other indebtedness, borrowing charges on securities sold short,
         custodial fees, bank service fees, withholding and transfer fees, entity-level taxes, clearing
         and settlement charges, professional fees (including, without limitation, expenses of
         consultants and experts) relating to investments, and other expenses related to the purchase,
         sale or transmittal of investments;
     •   legal, accounting, audit and tax preparation expenses;
     •   corporate licensing;
     •   expenses related to the maintenance of the Funds’ registered offices;
     •   expenses related to the offering and sale of Interests and other similar expenses related to
         the Funds; and
     •   extraordinary expenses.

Such expenses will be shared on a pro rata basis by all Investors in a Fund. To the extent that
expenses to be borne by a Fund are paid by a Fund General Partner (in excess of its ratable share)
or by the Firm, the applicable Fund will reimburse the Fund’s General Partner or the Firm, as the
case may be, for such expenses.

D.       Prepayment of Fees

In general, the Management Fee and Incentive Allocation is paid in arrears and the Funds will not
pay any fees in advance.

E.       Additional Compensation and Conflicts of Interest

Neither the Firm nor any of its supervised persons accepts compensation (e.g., brokerage
commissions) for the sale of securities or other investment products.

Types of Clients

The Firm’s clients currently consist of Fund I and Fund II, as discussed in Item 4, “Advisory
Business.” Investors in the Funds generally include, among others, institutions, pension plans,
endowments, high net-worth individuals, financially sophisticated individuals, and other
sophisticated investors.

The Firm generally requires Fund Investors to make a minimum capital commitment of at least
$250,000, although the amount of the minimum capital commitment may be waived or modified
by the Firm, or, as applicable, with approval by the Fund’s directors in select cases.