Pricap Advisors LLC

Item 5. Fees and Compensation

The Adviser charges each client an investment management fee based on the value of the client’s assets
under management.

Investment management fees are charged each quarter in advance based on the total market value of the
assets in the client account (including net unrealized appreciation or depreciation of investments and cash,
cash equivalents and accrued interest) on the first day of the quarter. If a new client account is established
during a quarter or an additional contribution is made to an Account during a quarter, the investment
management fee will be charged as of the effective date of the investment management agreement or the
date of the additional contribution based on the value of the assets as of the applicable date and will be
prorated for the number of days remaining in the quarter. In the event a withdrawal is made from an Account
during a quarter, the investment management fee will be refunded based on the number of days remaining
in the quarter. The Adviser prepares invoices for the investment management fees with respect to the
Accounts. The Adviser receives the investment management fees each quarter by instructing the custodian
of the Accounts to deduct the investment management fee from each investor’s account.

The Adviser (or a related person of the Adviser) may in the future also charge a performance-based fee,
which is compensation that is based on a share of capital gains on or capital appreciation of the assets of
a client. This compensation may be paid to the Adviser (or to a related person of the Adviser). Under
certain circumstances, receipt of performance-based compensation may be subject to a hurdle rate.

The Adviser may offer different investment management fee and performance-based compensation
schedules to clients based on a variety of factors, including, among other things, the nature of investments
and length of relationship with the Adviser or its related persons.

In addition to paying investment management fees and, if applicable, performance-based fees or other
compensation, clients bear investment expenses such as brokerage commissions, custodial fees, bank
service fees and other expenses related to the purchase, sale or transmittal of client assets.

                                                                     Item 6. Side-by-Side Management

The Adviser has adopted and implemented policies and procedures intended to address conflicts of interest
relating to the management of multiple accounts, including accounts with multiple fee arrangements, and
the allocation of investment opportunities. The Adviser reviews investment decisions for the purpose of
ensuring that all accounts with substantially similar investment objectives are treated equitably. The
performance of similarly managed accounts is also regularly compared to determine whether there are any
unexplained significant discrepancies. In addition, the Adviser’s procedures relating to the allocation of
investment opportunities require that similarly managed accounts participate in investment opportunities
pro rata based on asset size and require that, to the extent orders are aggregated, the client orders are
price-averaged. Finally, the Adviser’s procedures also require the objective allocation for limited
opportunities to ensure fair and equitable allocation among accounts. These areas are monitored by the
Adviser’s Chief Compliance Officer.

Item 7. Types of Clients

The Adviser’s clients consist of the Accounts.

The Adviser generally requires that a client invest a minimum of $1,000,000 to open an account and
maintain a minimum account size of $1,000,000. If the account size falls below the minimum requirement
due to market fluctuations only, a client will not be required to invest additional funds with the Adviser to
meet the minimum account size.

The Adviser reserves the right to offer lower minimum amounts to clients on a case-by-case basis.