Pinnacle Asset Management LP

Fees and Compensation

Pinnacle receives management fees from each of the PNR Funds, OPP Fund and PGMLP as well
as from PPF Master, PACP Master, PSOC Master, PVA Master and PPG Master, equal to a
percentage of the net asset value of an investor’s investment in such Pinnacle Fund. The
management fees charged to investors in the Funds vary in a range up to 2% per annum and may
be deducted or invoiced monthly or quarterly in advance or arrears, depending on the Pinnacle
Fund, the date of an investor’s initial investment and the class of interests or shares purchased.
Pinnacle has the discretion to vary, waive or rebate the management fees for particular investors.
In addition to the management fees received by Pinnacle, the portfolio managers, management and
sub-advisers of the underlying funds, investment entities, holding companies that own commodity
merchant businesses and managed accounts in which the Funds invest also generally charge a
management fee. The management fees of Pinnacle do not include the fees associated with the
underlying funds, investment entities, holding companies that own commodity merchant
businesses or managed accounts invested in by a Fund. The Funds directly, and the investors
indirectly, will bear the management fees and other fees and expenses of the portfolio managers
and sub-advisers. Additionally, the fees of Pinnacle do not include the expenses incidental to the
Funds’ operations and business or the expenses of any service providers (e.g., administrators,
attorneys and auditors) and do not include expenses indirectly borne through investments in the
underlying funds, investment entities, holding companies that own commodity merchant
businesses or managed accounts. Pinnacle also receives compensation from certain underlying
portfolio managers of the Funds for advisory and consulting services to and may enter into revenue

sharing arrangements with portfolio managers of the Funds, which fees do not offset any
management fees Pinnacle receives from the Funds.

PAGP, a Delaware limited liability company, is an affiliate of Pinnacle and serves as the general
partner of PNR Fund, PPF Fund, PPF Tax-Exempt, OPP Fund, Pinnacle Fund, PACP Master,
PACP I, PSOC Onshore, PVA Onshore, PGMLP (as the sole owner of the general partner of
PGMLP) and PPET Master and as the managing member of PACP II, PACP III, PSOC Master,
and PVA Master. PAGP II, a Delaware limited liability company, is wholly-owned by PAGP, is
also an affiliate of Pinnacle and serves as the general partner for the PPG Funds. PAGP SARL, a
Luxembourg société à responsabilité limitée, is also wholly-owned by PAGP, is also an affiliate
of Pinnacle and serves as the general partner of PGMLP. PAGP and PAGP II typically receive
performance-based compensation consisting of an allocation generally equal to a percentage of the
net realized and unrealized appreciation in the value of an investor’s investment through the end
of the year or full or partial redemption with respect to PNR Fund, OPP Fund, PACP Master,
PSOC Master and PVA Master for PAGP, and with respect to PPG Master for PAGP II. PAGP
also receives such performance-based compensation with respect to the net realized and unrealized
appreciation in the value of the investment in PNR Fund made by an investor in each of PNR
Offshore and PNR ERISA (through its investment, indirectly, in PNR Fund), in the value of the
investment in PACP Master made by an investor in each of PACP I, PACP II and PACP III, in the
value of the investment in PSOC Master made by an investor in each of PSOC Onshore and PSOC
Offshore, in the value of the investment in PVA Master made by an investor in each of PVA
Onshore and PVA Offshore. PAGP II also receives such performance-based compensation with
respect to net realized and unrealized appreciation in the value of the investment in PPG Master
made by the investor in PPG Offshore. In addition, PAGP serves as the allocation shareholder of
PPF Master and as a special limited partner in PGMLP. As the allocation shareholder in PPF
Master, it may receive performance-based compensation from PPF Master generally equal to a
percentage of the net realized and unrealized appreciation in the value of the investment in PPF
Master made by an investor in each of PPF Fund, PPF Tax-Exempt and PPF Offshore,
respectively. As the special limited partner of PGMLP, PAGP may receive performance-based
compensation from PGMLP generally equal to a percentage of the net realized and unrealized
appreciation in the value of the investment in PGMLP over a hurdle. Performance-based
compensation for the Funds varies in a range up to 20% of the net realized and unrealized
appreciation of an investor’s investment through the end of the calendar quarter or year or
redemption, as applicable, or earlier in the event of a distribution, liquidity event or exit strategy
in the PACP Funds, the PSOC Funds, the PPET Funds and the PVA Funds as discussed in the
offering documents of the applicable Funds. PAGP and PAGP II have the discretion to vary, waive
or rebate the performance-based compensation for particular investors. In addition, the manner in
which the performance allocation is calculated and/or applied may be changed or restructured in
the sole discretion of PAGP and PAGP II. Performance-based compensation will only be paid to
PAGP and PAGP II if all prior losses have first been recouped. Performance-based compensation,
if any, and a pro rata portion of the management fee to Pinnacle will be paid by an investor in the
event of a withdrawal or redemption prior to the end of the period upon which such fee is based.
In addition to the performance-based compensation that may be received by PAGP and PAGP II,
the portfolio managers, management and sub-advisers of the underlying funds, investment entities,
holding companies that own commodity merchant businesses and managed accounts in which the
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Types of Clients

Pinnacle provides investment management services to the Funds. Details concerning applicable
suitability criteria of investors in the Funds are set forth in the respective Funds’ offering and/or
operational documents. The Funds generally have a minimum initial investment requirement and
a minimum additional investment requirement. These thresholds may be waived in the sole
discretion of Pinnacle, PAGP, PAGP II or the board of directors of the applicable Fund.

Methods of Analysis, Investment Strategies and Risk of Loss

As discussed previously, Pinnacle provides discretionary investment management services to the
Funds. The Funds seek to achieve their respective investment objective(s) by allocating assets to
a variety of portfolio managers and management through direct investments in underlying funds
(partnerships, limited liability companies, corporations and other pooled investment vehicles),
managed accounts, special purpose vehicles and other investment structures or investments in
holding companies that own commodity merchant businesses.

Pinnacle believes that the risks described below reflect some of the material risks of an investment
in one or more of the Funds. Investors should review the risk disclosures in each applicable Fund’s
offering documents for additional information about the risks of an investment in one or more
Funds. Additional unknown risks and uncertainties (including those that Pinnacle deems to be
immaterial), may have a materially adverse effect on the performance of one or more Funds. The
order in which the risks are presented below is not intended to provide an indication of the
likelihood of their occurrence or of their magnitude or significance. In addition, the magnitude of
likely risk indicated (e.g., “a material risk” and/or “an adverse impact”) is not intended to quantify
such risks, and in fact, all the risks described below (or in the applicable offering documents) could
have a material and adverse effect on any of the Funds.

With respect to the underlying investments of the Funds, Pinnacle researches and identifies
portfolio managers, management and commodity merchant businesses using both qualitative and
quantitative factors, including, but not limited to: (1) management team reputation and integrity,
(2) decision-making process, (3) ability to implement investment strategy, (4) past performance
record, (5) level of personal investment, and (6) risk control and leverage.

Pinnacle directs Fund investments to underlying funds (including Funds managed by Pinnacle),
investment entities, holding companies that own commodity merchant businesses and managed
accounts that may pursue a variety of different strategies and techniques.

An investment in a Fund involves a high degree of risk, including the risk that the entire amount
invested may be lost. The Funds allocate assets to underlying portfolio managers and invest in
portfolio investments that invest in and actively traded securities, commodities, physical
commodities, exchange-traded and over-the-counter (“OTC”) derivatives, and other instruments
and commodities using a variety of strategies and investment techniques with significant risk
characteristics, including, but not limited to, the risks arising from the volatility of U.S. and foreign
equity, fixed-income, physical and financial commodity and currency markets, the risks of
borrowings, significant margin calls and short sales, the risks arising from leverage associated with
trading in the equities, currencies, futures and OTC physicals and derivatives markets, the
illiquidity of investments in physicals and derivative instruments, and the risk of loss from
counterparty defaults, among other risks. In addition to historic market risks, Fund performance
may be adversely affected by market fluctuations resulting from certain risks which are
unprecedented in nature or magnitude and therefore not amenable to existing risk management
techniques which are based on modeling past events and assigning probabilities to the recurrence
of those events. Such events include, without limitation, natural catastrophes and catastrophic acts
of terror resulting in mass casualties and associated destruction and subsequent abandonment of
large areas in urban locales; breakdowns of operating facilities; governmental intervention;
imposition or declaration of martial law in jurisdictions with a long history of civil rule of law;
mass disruption of communications facilities or other electronic facilities due to terrorist acts;
pandemics resulting from bio-terror attacks or outbreaks of pests, infections or fatal disease for
which there is no available cure or treatment; urban terror using nerve gas or other toxins; terrorist
use of nuclear weapons, radiation dispersal weapons or other weapons of mass destruction; cyber-
terror and terrorist attacks on financial markets, exchanges and payments systems; hacking, data
breaches and other cyber-security attacks on a Fund, Pinnacle, the commodity merchant
businesses, the underlying portfolio managers or management or any of the service providers,
services, supply chains, modes of transportation or other key system of an underlying Fund
investment and acts of God. No guarantee or representation is made that a Fund’s investment
program will be successful. Leverage inherent in the types of underlying investments made by,
and otherwise utilized by, the underlying managers and management can, in certain circumstances,
substantially increase the adverse impact to which the Funds’ investment portfolios may be
subject. The Funds invest in natural resources, in particular, the PACP Funds, the PSOC Funds,
PPF Master, the PPET Funds, and the PVA Funds invest in commodity merchant businesses that
may be subject to substantial price fluctuations due to changes in economic conditions,
environmental damage, labor issues, governmental regulations, climate change, political events,
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