Plum Island Partners LLC

Item 5. Fees and Compensation

Fees payable to NHT by its Clients are agreed upon in each of its trading advisory agreements. All
fees charged to Clients are subject to the approval of such Client. These fees are based on the cost
of providing the investment advisory services described under the terms of each trading advisory
agreement or other service agreement between NHT and a Client, including any overhead expense,
such as (without limitation), employee compensation (including performance-based bonuses),
rent, real estate taxes, payroll taxes, employee benefits, and costs of hardware owned or leased by
NHT. These fees are likely to be material, both in absolute terms and in terms of the assets under
management of the Firm with respect to each Client. Additionally, subject to the approval of each
Client, each Client will reimburse NHT for any and all third-party out-of-pocket expenses incurred
in connection with the provision of services under the relevant trading advisory agreement. These
third-party expenses include, but are not limited to, legal expenses, registration expenses, third
party software expenses, research expenses and costs of third-party consultants.

Item 6. Performance-Based and Side-By-Side Management

Since portfolio managers of the firm receive periodic bonuses equal to a percentage of their
respective trading profits, a portion of the fees received by the Firm from its Clients are based on
the investment performance of the portfolio managers of the Firm. Such amounts are agreed by
each Client.

Performance-based compensation may provide a possible incentive for portfolio managers to make
riskier or more speculative investments on behalf of a Client than portfolio managers otherwise
might make. NHT will evaluate investments in a manner that it considers to be in the best interest
of its Clients, given those Clients’ investment objectives and risk profile. Differences in NHT’s
trading arrangements with its Clients, particularly if a Client paid higher performance-based
compensation than another Client could create an incentive for NHT to favor the Client paying
higher performance-based compensation, as could NHT or its affiliates’ ownership interest (e.g.,
as the general partner) in a Client account. Notwithstanding these conflicts, NHT will allocate
transactions and opportunities among the various Clients in a manner it believes to be as equitable
as possible, considering each Client’s objectives, trading advisory agreement, limitations, and
capital available for investment. NHT’s trade order aggregation and allocation process is intended
to mitigate the inherent incentive to favor a Client (that is charged higher fees) over another Client
(that is charged lower fees).

Item 7. Types of Clients

Our clients are private pooled investment vehicles and, with respect to the Middle Office Services
described in Item 10, below, New Holland Capital, LLC.. We generally require a minimum of $20
million for launching or maintaining a new account, but we may reduce our requirements on a
case-by-case basis at our discretion.