Nine Masts Capital Advisers LLC

Item 5: Fees and Compensation

Nine Masts US will receive payment from NMCM for providing sub-advisory services to the
Fund. The sub-advisory fees payable to Nine Masts US by NMCM represent a portion of the
fees received by NMCM from the Fund. The fees, compensation, and expenses applicable to
the Fund are set forth in detail in the respective Governing Documents.

Management Fee

Investors in the Fund managed by NMCM are charged a fee for investment management
services based on assets under management (the “Management Fee”), which is set forth in
the Funds’ offering documents. Annual management fee is in the range of 1.5% to 2% per
annum in respect of the net asset value (“NAV”) of the relevant class of shares or interests.
The Management Fee is payable quarterly in arrears as soon as practicable, and calculated at
the end of each calendar month. The Fund and NMCM may, in their sole discretion, waive,
rebate, or decrease the Management Fee that is payable in whole or in part, in respect of
certain Investors. The Fund may from time to time enter into Side Letters providing for
changes in management fees.

Performance Based Compensation

In addition to Management Fees, NMCM receives performance-based compensation in the
form of a performance fee (the “Performance Fee”) which is set forth in the Funds’
Governing Documents. The Performance Fee will accrue monthly as at the close of business
on each valuation day and generally will be paid annually in arrears. Investors redeeming as of
a date that is not the fiscal year end for the Fund will be assessed a Performance Fee calculated
on a “crystallized” basis.

The Fund and NMCM in their sole discretion, may reduce, waive, rebate, or modify the
Performance Fee with respect to certain investors.

Other Costs and Expenses

The Fund bears all costs and expenses related to their investments and operations, including,
without limitation, brokerage and other transaction costs, clearing and settlement charges,
interest and commitment fees on debit balances or borrowings, borrowing charges on
securities sold short, costs of any liability insurance obtained on behalf of the Fund or the
Board of Directors, custody fees, costs of any litigation or investigation involving the Fund
activities, indemnification expenses, research and investment consultancy expenses, the
Management Fee, remuneration of independent directors of the Fund, out of pocket expenses
incurred by directors of the Fund, the Performance Fee, the fees and expenses of professionals
providing services to the Fund, including legal, audit, accounting, tax, administration, fees and
expenses of the members of the Board of Directors, regulatory costs, any issue or transfer
taxes chargeable in connection with any securities transactions, any entity level taxes,
corporate fees payable to governments or agencies, regulatory filing and license fees, all fees
payable to third party service providers in connection with trade confirmation, holdings and
order reconciliation, communication or information expenses with respect to Investor
services, expenses of meetings of Investors and of preparing, printing and distributing financial
and other reports, proxy forms, offering memoranda and similar documents, the cost of
obtaining and maintaining any future listing of the Funds’ shares or interests on any stock
exchange and any extraordinary fees and expenses incurred by NMCM on behalf of the Fund.
Such expenses are generally shared by all of the Investors. Certain classes of shares will also
be allocated Front Office expenses (any fees, costs and expenses incurred in connection with
organizing, recruiting, employing, retaining and compensating front office staff employed or to

Nine Masts Capital Advisers LLC                                          Form ADV Part 2A

be employed by NMCM, Nine Masts HK, Nine Masts DIFC and/or Nine Masts US) and other
classes of shares will not be charged any management fee, while instead, such investors will
bear their pro rata share of all costs and expenses incurred by NMCM and the investment
advisers in connection with their respective general operations and activities; provided,
however, that certain expenses related to a particular series or class of shares or interests
will only be applied to such series or class.

If, in the future, Nine Masts US manages multiple client accounts, a portion of the Funds’
operating expenses may be shared with other investment entities or accounts managed by
NMCM on an equitable basis.

Sales Compensation

Nine Masts US and its supervised persons do not receive (directly or indirectly) any
compensation from the purchase or sale of securities or investments for the Fund. NMCM
and its supervised persons do not receive (directly or indirectly) sales commissions in
connection with sales of interests in the Fund.

Nine Masts Capital Advisers LLC                                           Form ADV Part 2A

Item 7: Types of Clients

Nine Masts US currently provides investment advisory services for the ultimate benefit of the
Fund through the Subadvisory Agreement. Investors in the Fund primarily include but are not
limited to institutional investors.

The minimum initial investment amount for the Fund is generally USD $250,000 and the
minimum subsequent investment amount is USD $50,000. In certain circumstances, minimum
investment amounts may be amended by a Funds’ directors in consultation with NMCM.

Nine Masts Capital Advisers LLC                                              Form ADV Part 2A