Pope Asset Management LLC

Item 5 – Fees and Compensation

Fees for assets managed in the separately managed accounts generally adhere to the
following schedule:
Annual Fee
- Less than $1 million = 1.25%
- Greater than $1 million = 1.00%

The fee set forth above is an annual fee, but it is payable quarterly in arrears. Quarterly
payments will be due on the first business day of each calendar quarter based on the
market value of the client’s account as of the close of business on the last day of the
immediately preceding quarter. That fee will be paid directly from the client’s custodial
account without the necessity of the client’s prior approval. Notice of the amount of the fee
will be provided to the client in a billing statement. No payments are due from the client
before services are rendered. Our agreement with the client may be terminated by either
party upon written notification as required in the advisory agreement. Upon termination,
our fee will be pro-rated on the date of termination. In the event that a mutual fund is
selected for a client’s account, the client will pay an advisory fee to the mutual fund’s
investment advisor that is separate from and in addition to our fee. Clients will also incur
brokerage and other transaction costs (see section 12 Brokerage Practices).

Pope Asset Management has agreed to act as a sub-advisor to certain clients of Brookline
Investments, Inc., a registered investment advisor, in exchange for a percentage of the fee
charged by Brookline Investments to these clients. Brookline Investments has agreed to
pay Pope Asset Management an annual fee of 75 basis points payable quarterly in arrears
based on market value as of close of business on last day of the preceding quarter from the
clients to whom Pope Asset Management provides investment management services.

Clients of Brookline Investments should refer to Brookline Investments’ form ADV Part II
for a discussion of the fees Brookline Partners may charge. Our Sub-advisory agreement
with Brookline Investments may be terminated by either party upon 30 days prior written
notice.
In addition, we may contract with other registered investment advisors to act as a sub-
advisor rendering general investment advice for a fee.

In 2011 Pope Asset Management entered into a joint venture agreement with Annuity and
Life Reassurance LTD. The agreement was entered into for the purpose of creating a joint
venture for the management of investable assets and to share in the profits and losses.
Pope Asset Management receives a fee of .08333% per month (1% annually) on the assets
managed and receives 10% of the profits.

Item 7 – Types of Clients
Pope provides portfolio management services to individuals, high net worth individuals,
corporate pension and profit-sharing plans, charitable institutions, foundations,
endowments, private investment funds, trust programs, and other U.S. and international
institutions. For separate managed accounts the minimum investment amount is generally
$2 million.