Prelude Capital Management LLC

Item 5            Fees and Compensation

    A. Fees Related to Advisory Services

The Opportunity Funds:

The Opportunity Onshore Fund currently has four types of limited partners who own: secured limited
partnership interests (the “Secured Investors”), preferred limited partnership interests (the “Preferred
Investors”), senior limited partnership interests (the “Senior Investors”) and subordinated limited
partnership interests (the “Subordinated Investors”). Each class of limited partner interests has a different
fee structure. The Opportunity Offshore Fund invests the majority of its assets into the Opportunity
Onshore Fund pursuant to four offered share classes corresponding to the same classes offered at the
Opportunity Onshore Fund level. However, the Opportunity Offshore Fund also offers a fifth class of
shares which makes investments in a variety of instruments and vehicles outside of the Opportunity
Onshore Fund. Such fifth share class is not charged fees by Prelude, but may be subject to fees imposed
by the external investments made. Prelude’s fees and expenses charged to the Opportunity Funds (which
are described in greater detail below) are generally paid at the Opportunity Onshore Fund level. Fees paid
by the Opportunity Onshore Fund and the Opportunity Offshore Fund are negotiable.

Prelude charges the Preferred Investors and the Subordinated Investors a management fee. The
management fee is set at a fixed amount of $1,750,000 per month, which is borne by both the Preferred
Investors and Subordinated Investors and can be waived or reduced with respect to any individual or class
of investor in Prelude’s sole discretion; a smaller percentage of this fee is borne by the Preferred Investors
compared to the Subordinated Investors.

The Opportunity Onshore Fund is a designated feeder into the Opportunity Master Fund. Within the
Opportunity Master Fund, allocations are made by Prelude to Sub-Advisors. Sub-Advisors generally
receive compensation from the Opportunity Onshore Fund for the advisory services provided. More

specifically, Special Limited Partners generally receive performance-based allocations from the
Opportunity Master Fund pursuant to the terms of each sub-advisory agreement, all of which, together
with any other applicable fees and expenses, are negotiated individually with Prelude. Generally, either
the Sub-Advisor or its related Special Limited Partner (as described more fully in the relevant offering
documents) invests in the Opportunity Master Fund for the purpose of contributing a designated amount
of subordinated risk capital to the Opportunity Master Fund with respect to the allocation it will receive
from the Opportunity Master Fund.

We do not currently charge management fees at the Opportunity Master Fund level.

The Structured Funds:

The Structured Feeder Funds currently offer two distinct classes of interests, the “Structured General
Interests” and the “Structured Secured Interests,” and together, the “Structured Interests”). Both classes
of interests offer investors exposure to equity centric investments in the Structured Master Fund.
Historically there were additional interest classes that have been redeemed and which are not presently
offered for investment. Please see “Other Funds” below, for additional information. Each class of the
Structured Interests has a different fee structure. The Structured Feeder Funds each invest the entirety of
their assets into the Structured Master Fund. Prelude’s management fees are charged at the Structured
Feeder Funds with respect to the Structured General Interests held by investors (although Prelude
reserves the right to take such management fees at the Structured Master Fund level). Fees paid by the
Structured Onshore Fund and the Structured Offshore Fund are negotiable. The Structured Feeder Funds
will generally pay to Prelude, as of the beginning of each calendar quarter in advance, a management fee
at the rate of one-quarter of two percent (2.0%) of the net asset value of each separate account or capital
account (as the case may be) held by an investor with respect to the Structured General Interests, for the
period(s) that such Structured General Interests are held. The management fee may be waived or reduced
with respect to any individual or class of Structured Interests. Certain investors’ fees vary. In some
circumstances Prelude will share a percentage of such fees with a financial counterparty that acts as a
distribution agent in foreign jurisdictions.

The Structured Feeder Funds are designated feeders into the Structured Master Fund. Within the
Structured Master Fund, allocations are made by Prelude to Sub-Advisors. Sub-Advisors generally receive
compensation from the Structured Onshore Fund and the Structured Offshore Fund for the advisory
services provided. More specifically, Special Limited Partners generally receive performance-based
allocations from the Structured Master Fund pursuant to the terms of each sub-advisory agreement, all
of which, together with any other applicable fees and expenses, are negotiated individually with Prelude.
Generally, either the Sub-Advisor or its related Special Limited Partner invests in the Structured Master
Fund for the purpose of contributing a designated amount of subordinated risk capital to the Structured
Master Fund with respect to the allocation it will receive from the Structured Master Fund.

The Asia Funds:

The Asia Feeder Fund currently offers two distinct classes of interests (the “Asia Fund General Interests”
and the “Asia Fund Secured Interests” and collectively, the “Asia Fund Interests”). The Asia Fund Interests
offer investors exposure to a variety of strategies executed in certain geographic regions with a focus on
Asia, including Greater China, in the Asia Master Fund. The Asia Feeder Fund will invest the entirety of its
assets into the Asia Master Fund; investors may also invest directly at the Asia Master Fund level, in
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Item 7           Types of Clients

We provide investment advisory services to a variety of private funds, including Delaware limited
partnerships, Cayman Islands exempted limited partnerships and Cayman Islands exempted companies,
which effect their strategies, in some cases, through special purpose vehicles and corporations.

The Opportunity Funds:

Investors in the Opportunity Funds are required to meet certain suitability thresholds including, as
applicable, being an “accredited investor” (as defined in Regulation D of the Securities Act of 1933, as
amended (the “Securities Act”)), a “qualified eligible person” (as defined in the Commodity Exchange Act,
as amended (the “Commodity Exchange Act”)) and a “qualified purchaser” (as defined under the
Investment Company Act of 1940, as amended (the “Company Act”)), and are required to meet general
sophistication requirements. All investors in the Opportunity Feeder Funds are required to invest a
minimum amount of $1,000,000, which amount may be reduced in the sole discretion of the General
Partner (or an affiliate). There is no minimum amount required to be maintained in the Opportunity Funds
other than as required by applicable law.

There is no minimum investment amount required initially with respect to the Opportunity Master Fund,
however, there are certain threshold investment amounts that Special Limited Partners must maintain in
their capital accounts at the Opportunity Master Fund level. These are negotiated on a case-by-case basis
with Prelude. In order for each Special Limited Partner to maintain its investment, its related Sub-Advisor
must remain in compliance with the risk guidelines and other terms outlined in its sub-advisory
agreement.

The Structured Funds:

Investors in the Structured Funds are required to meet certain suitability thresholds including, as
applicable, being an “accredited investor”, a “qualified eligible person” and a “qualified purchaser”, and
all investors are required to meet general sophistication requirements. All investors in the Structured
Feeder Funds are required to invest a minimum amount of $1,000,000, subject to the terms of the relevant
Structured Feeder Fund’s governing documentation, which amount may be reduced in the sole discretion
of the General Partner. There is no minimum amount required to be maintained in the Structured Feeder
Funds other than as required by applicable law.

There are certain threshold investment amounts that Special Limited Partners must maintain in their
capital accounts at the Structured Master Fund level. These are negotiated on a case-by-case basis with
Prelude. For each Special Limited Partner to maintain its investment, its related Sub-Advisor must remain
in compliance with the risk guidelines and other terms outlined in its sub-advisory agreement.

The Asia Funds:

Investors in the Asia Funds are required to meet certain suitability thresholds including, as applicable,
being an “accredited investor”, a “qualified eligible person” and a “qualified purchaser”, and all investors
are required to meet general sophistication requirements. All investors in the Asia Feeder Fund are
required to invest a minimum amount of $1,000,000, subject to the terms of the relevant Asia Feeder
Fund’s governing documentation, which amount may be reduced in the sole discretion of the Asia General
Partner. There is no minimum amount required to be maintained in the Asia Feeder Fund other than as
required by applicable law.

There are certain threshold investment amounts that Special Limited Partners must maintain in their
capital accounts at the Asia Master Fund level. These are negotiated on a case-by-case basis with Prelude.
In order for each Special Limited Partner to maintain its investment, its related Sub-Advisor must remain
in compliance with the risk guidelines and other terms outlined in its sub-advisory agreement.

The CPI Funds:

Investors in the CPI Funds are required to meet certain suitability thresholds including, as applicable, being
an “accredited investor”, a “qualified eligible person” and a “qualified purchaser”, and all investors are
required to meet general sophistication requirements. All investors in the CPI Funds are required to invest
a minimum amount of $1,000,000, subject to the terms of the relevant CPI Fund’s governing
documentation, which amount may be reduced in the sole discretion of the CPI General Partner. There is
no minimum amount required to be maintained in the CPI Funds other than as required by applicable law.

The India Fund:

Investors in the India Fund are required to meet certain suitability thresholds including, as applicable,
being an “accredited investor”, a “qualified eligible person” and a “qualified purchaser”, and all investors
are required to meet general sophistication requirements. All investors in the India Fund are required to
invest a minimum amount of $100,000, subject to the terms of the India Fund’s governing documentation,
which amount may be reduced in the sole discretion of the India Fund’s board of directors. The certain
threshold investment amount that Special Limited Partner must maintain in its capital account at the India
Fund level are negotiated on a case-by-case basis with Prelude. In order for each Special Limited Partner

to maintain its investment, its related Sub-Advisor must remain in compliance with the risk guidelines and
other terms outlined in its sub-advisory agreement.

Separately Managed Accounts:

While Prelude does not currently have any separately managed account clients, if it determines to accept
any such clients it will negotiate with them directly regarding the minimum investment amount required.