Nine Chapters Capital Management LLC

Item 5: Fees and Compensation
The Adviser’s fees are set forth in each Fund’s Offering Documents and are described in the
advisory contracts it enters into with the Funds. All of NCCM’s Clients are “qualified
purchasers” (as defined in Section 2(a)(51) of the Investment Company Act, as amended).

Compensation received by NCCM from the Funds is generally comprised of fees based on a
percentage of assets under management and performance-based amounts. The Adviser will
receive an asset based management fee, depending on the class offered, of the aggregate fair
market value of the relevant Fund’s net assets, although reductions may be negotiated with
Investors on a case-by-case basis. Management fees are deducted monthly in advance.

The Funds bear their own expenses, including but not limited to, the fees payable to the
Administrator, its legal, accounting, administrative expenses, auditing, tax preparation and other
professional expenses, research expenses, filing fees and expenses, custodial fees, bank services
fees, the fees and expenses of the Directors, indemnification obligations, the costs of printing and
distributing periodic and annual reports and statements, expenses relating to updating Fund
disclosure materials or terms of investment, regulatory and compliance expenses (including the
Fund’s reasonable share of Investment Manager reporting obligations up to $50,000) directly
relating to the Fund, interest on any indebtedness and other borrowing charges and the costs of
brokerage services.

The Master Fund will pay brokerage commissions (including those on options and futures trades),
spreads, mark-ups on securities, swaps and forwards, short dividends, currency hedging costs,
interest expenses in respect of margin accounts, repurchase agreements and other indebtedness
and other transaction fees and costs in connection with its investments and trading, including all
of the commissions, fees and expenses charged by the prime brokers. The Onshore Feeder and

Offshore Feeder generally bear their pro rata share of these costs indirectly as an Investor in the
Master Fund.

Investors should review all fees charged by NCCM, its affiliates, and others to fully understand
the total amount of fees to be paid by the Funds.

Item 7: Types of Clients
NCCM provides advisory services to the Funds. The Funds are private investment funds offered
under Regulation D of the Securities Act of 1933 and exempt from registration under Section 3(c)
of the Investment Company Act. The Funds are in the process of winding down and are no longer
offered.