Peter Kimmelman Asset Management LP

Fees and Compensation

PKAM charges management fees for both individual and institutional accounts that are generally a
percentage of assets under management and range from 0.75% to 1.50%. These fees are negotiable
and vary by client and amount of service required. Payment for those fees is expected to be made
when the fees are invoiced monthly or quarterly (as the case may be), in arrears, based on the value
of the account at the end of the quarter. Clients may also incur other fees or expenses such as
custodian and brokerage fees (see p. 10 – Brokerage Practices).

Performance-Based Fees and Side-By-Side Management

Both investors and clients invested solely in private equity funds pay performance-based fees based
on distributions from those funds. Those fees range from 5% to 7.5% and are negotiated at the time
the investments are made. They are payable at the time distributions are made after investors have
fully recovered their cost basis. We do not have any situations where certain PKAM clients pay
performance-based fees on investments while other clients investing in the same or similar vehicles
do not, so there is no side-by-side management of accounts. It is noted that performance-based fee
arrangements may create an incentive for money managers to make investments that are riskier or
more speculative than would be the case in the absence of such performance-based compensation
arrangements. Performance compensation is charged in compliance with applicable law and rules.

Types of Clients

The clients of PKAM fall into three primary categories: institutions; high-net-worth individuals and
families; and pooled investment vehicles structured either as special-purpose or series Delaware LLCs
or Delaware LPs, or as Cayman Islands exempted unit trusts.

PKAM’s institutional clients consist of several offshore investment vehicles whose investment
portfolios are structured, monitored, and modified on our recommendations. Each is a Cayman
Islands exempted unit trust that is administered either from Cayman or from Hong Kong. The
underlying beneficial owners of most of the units in these trusts are known to us and have asked us
to assist them in setting up those offshore vehicles. There are other institutional unit-owners that are
known to us only as account numbers administered by trustees as is mandated by Japanese law under
which those unit owners are obligated to operate.

Advising high-net-worth families formed the original foundation of our professional practice and
continues to be an important part of our business. Each such family may include individuals, trusts
of various sorts, foundations or other charitable ventures, joint family investment vehicles, or other
entities. Generally, each such person or entity is a separate client of PKAM.

The special-purpose and series LLCs and LPs are pooled investment vehicles used for a variety of
individuals and entities, some of whom are Peter Kimmelman family-related and some of whom are
unrelated clients. For the LLCs, the manager or managing member is Peter Kimmelman. For the LPs,
the general partner is Peter Kimmelman.