Prescott General Partners LLC

Item 5.         Fees and Compensation Asset-Based Compensation

The Adviser charges an investment management fee of 1% per annum based on the value of a Fund’s
assets.

Investment management fees are charged at the end of each quarter in arrears based on net assets of
the Fund (based on an average of the month-end fair market value of such assets) for the quarter.
Investment management fees are prorated for periods less than a full quarter and deducted from client
accounts.

These fees are not negotiable. However, the Adviser reserves the right to require different fees, or to waive
fees, for employees, their family members or other investors, and to provide terms to such investors that are
more favorable to the terms provided to other investors in the Funds. The Adviser has, and may continue
to waive or reduce the asset-based compensation payable by investors in the Funds managed by the Adviser
who are members or employees of the Adviser.

Performance-Based Compensation

The Adviser will also be paid performance-based compensation, which is compensation that is based on a
change in Net Asset Value of a client. This compensation is allocated to the Adviser and is equal to 10%
of the change in Net Asset Value of a client.

The Adviser deducts from client accounts the performance-based compensation at year-end or at the
time of a full withdrawal.

These fees are not negotiable. However, the Adviser reserves the right to require different fees, or to waive
fees, for employees, their family members or other investors, and to provide terms to such investors that are
more favorable to the terms provided to other investors in the Funds. The Adviser has, and may continue
to waive or reduce the performance-based compensation payable by investors in the Funds managed by
the Adviser who are members or employees of the Adviser.

In addition to paying investment management fees and performance-based compensation, client accounts
will also be subject to other expenses such as custodial charges, brokerage fees, commissions and related
costs; interest expenses; taxes, duties and other governmental charges; transfer and registration fees or
similar expenses; costs associated with foreign exchange transactions; other portfolio expenses; and costs,

expenses and fees (including, investment advisory and other fees charged by investment advisers with,
or funds in, which the client’s account invests) associated with products or services that may be
necessary or incidental to such investments or accounts. While it is not a material part of the Adviser’s
strategy, client assets have, and may continue to be invested in pooled investment vehicles and will bear
the expenses of such entities. As noted above, the Funds incur brokerage and other transaction costs.
Please refer to Item 12 of this Brochure for a discussion of the Adviser’s brokerage practices.

Investors in the Funds should refer to the applicable fund documents for a complete description of fees and
expenses paid to the Adviser. The information contained herein is a summary only.

Item 7.         Types of Clients

The Adviser’s clients consist of pooled investment vehicles.

The Adviser requires that an investor in a pooled investment vehicle invest a minimum of $1,000,000 to
subscribe for interests, although the Adviser has, and may continue to waive the minimum investment
amount for certain investors.