Omega Advisers LLC

Item 5: Fees and Compensation
The Management Fee equals a maximum of five percent (5%) monthly and is calculated daily.
The computation of the Management Fee is to be made as of the end of each day and one hundred
percent (100%) of the Management Fee shall be paid immediately thereafter. A pro rata
Management Fee is charged to Clients on any amounts permitted to be invested or withdrawn
during any calendar month.

Omega Advisers uses the average daily balance of assets value for the annual billing period.
Omega Advisers uses the average daily balance of assets value for the annual billing period. The
average daily balance is calculated by taking the sum of a client’s account balance at the end of
each day of the billing cycle divided by the number of days in the billing cycle. Omega Advisers
maintains and/or has access to, a record of a client’s account balance for each day in the billing
cycle. These fees are generally negotiable and the final fee schedule is attached as Exhibit II of the
IAC.

A client is sent an invoice for the Management Fee and the Management Fee is withdrawn
immediately from the client's account. Clients are responsible for the payment of all trading
account fees (i.e. custodian fees, brokerage fees, transaction fees, etc.). A fee per commission trade
of fifteen dollars ($15) will be charged to each client’s account. Those fees are separate and distinct
from the fees charged by Omega Advisers. Omega Advisers is required to disclose that lower fees
for comparable services may be available from other sources. Please see Item 15 of this brochure
for more information regarding the deduction of the Management Fee from client accounts.

Item 6: Performance-Based Fee
Omega Advisers does not charge a performance-based incentive fee.

Item 7: Types of Clients
Omega Advisers generally provides advisory services to the following types of clients:

           ❖ High-Net-Worth Individuals
           ❖ Individuals
           ❖ Institutional Clients

The minimum account size that shall be accepted by Omega Advisers is two thousand U.S. dollars
(USD $2,000.00) and the Client may add to or withdraw funds from its investment account in
increments of one thousand U.S. dollars (USD $1,000.00) at any time, with no minimum
subsequent investment amount. Omega Advisers can waive the minimum account size in its sole
discretion.

Item 8: Method of Analysis, Investment Strategies, and Risk of Loss
Omega Advisers will rely on both fundamental and technical strategies developed by its Managing
Member and Chief Compliance Officer, Mr. Indihar. Mr. Indihar has developed strategies that are
methodical, time tested, and data driven, that he feels are superior to comparable benchmarks on
both an absolute and risk-adjusted basis. Fundamental analysis involves the analysis of financial
statements, the general financial health of companies, and/or the analysis of management or
competitive advantages. Technical analysis involves the analysis of past market data; primarily
price and volume.

Omega Advisers includes fundamental analysis, and momentum analysis to identify potential price
inefficiencies in the market. As a general rule, Omega Advisers employs strategic asset allocation
strategies for portfolio management. Omega Advisers may sometimes use passive-managed index
and exchange-traded funds when appropriate. Omega Advisers minimizes market risk by
maintaining a certain level of liquidity. Omega Advisers also diversifies portfolios to control the
risk associated with traditional markets.

Omega Advisers has a specific investment and trading strategy and Omega Advisers selects clients
whose investment objectives, risk profile and time horizons are a fit for that investment strategy.
The client may change these objectives at any time. The client’s goals and objectives are recorded
during meetings and via correspondence with the client. Each client portfolio is constructed solely
for that client. We do not use model portfolios, and we do not utilize composites to illustrate results.

Accuracy of Public Information Risk. Omega Advisers selects investments, in part, on the basis
of information and data filed by issuers with various government regulators or made publicly
available by the issuers or through sources other than the issuers. Although Omega Advisers
evaluates this information and data and ordinarily seeks independent corroboration as appropriate
and reasonably available, Omega Advisers is not in a position to confirm the completeness,
genuineness or accuracy of such information and data, and in some cases, complete and accurate
information is not available.

Short Selling. Omega Advisers’ investment strategy will involve seeking to profit from securities
believed to be overvalued by entering into short sale positions, both directly and indirectly through
the use options, ETFs, and other trading instruments. When Omega Advisers effects a short sale in
a client’s account, the client may be obligated to leave the proceeds thereof with the custodian and
also deposit with the custodian an amount of cash or other securities that is sufficient under any

applicable margin or similar regulations to collateralize its obligation to replace the borrowed
securities that have been sold. Short selling involves selling securities which are not owned by the
short seller and borrowing them for delivery to the purchaser, with an obligation to replace the
borrowed securities. Short selling allows the client to profit from a decline in market price to the
extent such decline exceeds the transaction costs and the costs of borrowing the securities. In
certain cases, a short sale creates the risk of a theoretically unlimited loss, in that the price of the
underlying security could theoretically increase without limit, thus increasing the cost to the client
of buying those securities to cover the short position. There can be no assurance that the client will
be able to maintain the ability to borrow securities. In such cases, the client can be “bought in”
(i.e., forced to repurchase securities in the open market to return to the lender). There also can be
no assurance that the securities necessary to cover a short position will be available for purchase
at or near prices quoted in the market. Purchasing securities to close out a short position can itself
cause the price of the securities to rise further, thereby exacerbating the loss. Any gain resulting
from a short sale will be decreased (and any loss will be increased) by the transaction costs incurred
in connection with the short sale.

Leverage and Financing Risk. Omega Advisers believes that the use of leverage may enable the
client to achieve a higher rate of return. While leverage presents opportunities for increasing the
client’s total return, it has the effect of potentially increasing losses as well. Accordingly, any event
which adversely affects the value of an investment by the client would be magnified to the extent
the client is leveraged. The cumulative effect of the use of leverage by Omega Advisersin a client’s
account in a market that moves adversely to the client’s investments could result in a substantial
loss to the client which would be greater than if the client were not leveraged. The use of leverage
may create interest expenses for the client, which can exceed the investment return from the
borrowed funds. To the extent the investment return derived from securities purchased with
borrowed funds exceeds the interest the client will have to pay, the client’s investment return will
be greater than if leverage were not used. Conversely, if the investment returns from the assets
acquired with borrowed funds is not sufficient to cover the cost of leveraging, the investment return
...