Prosser Creek Asset Management LLC

Item 5.         Fees and Compensation

A. Fee Schedule

As an SEC registered investment adviser which provides services to a private fund and SMAs that
exclusively accept “Qualified Purchasers,” as defined by the Investment Company Act, Prosser
Creek is not required to disclose its specific compensation terms in this Sub-Item.

The Fund pays an asset-based management fee and a performance-based fee, as described in the
applicable Fund offering and governing documents. SMAs pay an asset-based management fee and
performance-based fee fees as set forth in their applicable investment management agreement.
Clients should review those documents carefully for a complete description of the fees and
expenses associated with their investment advisory relationship with the Firm.

B. Payment of Fees

Prosser Creek receives from the Fund a monthly management fee, payable in advance, based on the
net asset value of the capital account for each limited partner on the first day of each month. Prosser
Creek receives from the SMA’s a quarterly management fee, payable in advance, based on the
account value as of the first business day of each calendar quarter.

Prosser Creek deducts management fees and performance fees or allocations directly from client
accounts.

Relationships with a Fund are terminable on expiration of the Fund’s term, dissolution of the Fund
or on Prosser Creek’s withdrawal as general partner or termination as investment adviser of the
Fund. Relationships with other clients are terminable on the termination of the investment
management agreement. Each investor may withdraw capital from a Fund on specified prior written
notice, on the last day of any calendar month, subject to certain withdrawal limitations as specified
in the applicable Fund’s governing documents. Investors should refer to the Fund’s offering
documents for specific information.

Except as may be otherwise negotiated in particular cases, the holder of a SMA may terminate the
account by giving 61 days prior written notice.

In all cases, expenses, the pro rata portion of the management fee and the performance fee or
allocation through the date of the investor’s withdrawal or termination of the client account are
charged to the investor or client. All prepaid but unearned advisory fees are refunded on termination
of a client’s account. An investor who withdraws from a Fund on a date other than the last day of a
month, however, does not receive a refund of the management fee previously paid.

Prosser Creek believes that its fees are competitive with fees charged by other investment advisers
for comparable services. Comparable services may be available, however, from other sources
for lower fees.

C. Expenses

Fund Expenses:

The Fund bears all costs and expenses of its organization and ongoing operation, including, without
limitation, (a) all trading costs and expenses, (b) all interest and commitment fees on loans and debit
balances, (c) all costs and expenses of negotiating and entering into contracts and arrangements and
making investments and similar expenses in terminating those contracts and arrangements and
disposing of the Partnership’s investments, (d) all research-related fees and expenses, including but
not limited to costs and expenses incurred in visiting companies, conducting legal and investigative

due diligence, and attending research conferences, fees for research consultants and fees and
expenses related to research-related software and related equipment for quotation services, data
feeds, publications or other information sources, (e) all costs and expenses associated with
regulatory filings of the Fund, the General Partner and their Affiliates relating to the Fund and costs
of maintaining any appropriate registrations of the Fund or the General Partner that relate to the
Fund’s activities, (f) all costs and expenses associated with registering the Fund’s restricted
securities, (g) all costs and expenses incurred in attempting to protect or enhance the value of the
Fund’s investments, (h) all income taxes, withholding taxes, transfer taxes and other governmental
charges and duties, (i) all fees and charges of custodians, clearing agencies and banks, (j) all
administration, bookkeeping, recordkeeping, legal, accounting, auditing, tax preparation and other
professional, expert and consulting fees and expenses arising in connection with the Fund’s
activities, (k) all fees, costs and expenses of offering and selling interests and communicating with
existing and prospective investors, (l) all costs and expenses of investing the Fund’s assets indirectly,
(m) all premiums and other costs and expenses of insurance policies as the General Partner considers
appropriate, insuring the Fund, the General Partner and their Affiliates against liabilities that may
arise in connection with the business or management of the Fund, (n) all costs and expenses of proxy
voting and class action services, (o) any contingencies for which the General Partner determines
reserves are required, and (p) any extraordinary expenses.

Separately Managed Account Expenses:

The client shall be responsible for the following operating expenses (and in some cases, to the extent
permitted by ERISA): (i) accounting, bookkeeping, auditing and tax preparation fees and expenses;
(ii) legal fees and expenses; (iii) all trading expenses and transaction costs, including brokerage
commissions and expenses relating to short sales, clearing and settlement charges, interest and
commitment fees on loans and debit balances, margin interest, broker service fees and other clearing
and custodial expenses; (iv) fees or assessments in connection with any regulatory registrations or
reports, qualifications and/or approvals of the a; (v) all filing and recording fees; (vi) all custodial
fees, bank service fees, and fees or expenses associated with insuring the account’s assets; and (vii)
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Item 7.        Types of Clients

Prosser Creek provides investment advice to the Fund and SMAs including an endowment and a
defined benefit retirement plan. Investors in the Fund are required to invest a minimum of $250,000,
but Prosser Creek may waive this minimum.