Racon Capital Partners LLC

Item 5 Fees and Compensation

A. Describe how you are compensated for your advisory services. Provide your fee schedule. Disclose
whether the fees are negotiable.

Asset-Based Compensation

         The Adviser may charge clients an investment management fee based on the value of the
client’s assets under management. The Adviser does not have a formal fee schedule and fee
structures may vary based on the share class or the nature of the account into which each client
invests. Applicable management fees are set forth in detail in each Fund’s respective offering
documents (including supplements thereto) or in an applicable investment management
agreement. Typically, investment management fees range from 1.00% - 2.00% per annum,
although management fees may differ depending on the nature of the arrangement.

       Investment management fees are typically 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). Investment management fees are prorated for any
period that is less than a full quarter and adjusted for subscriptions and redemptions occurring
during the quarter.

Performance-Based Compensation

         The Adviser or a related person may also be paid a performance-based fee, which is
compensation that is based on a share of capital gains on or capital appreciation of the assets
in a client account. This compensation may be paid to the Adviser or to a related person of the
Adviser and range from 17.5 - 30% (the “Incentive Allocation”). The Incentive Allocation
calculation will typically be subject to a loss carry-forward (often referred to as a high-water
mark).

B. Describe whether you deduct fees from clients’ assets or bill clients for fees incurred. If clients may
select either method, disclose this fact. Explain how often you bill clients or deduct your fees.

        The Adviser (or a related person as may be applicable in the case of performance-based
fees) deducts the fees from client accounts through coordination with the client’s administrator.

C. Describe any other types of fees or expenses clients may pay in connection with your advisory
services, such as custodian fees or mutual fund expenses. Disclose that clients will incur brokerage
and other transaction costs, and direct clients to the section(s) of your brochure that discuss
brokerage.

       As more fully disclosed in each Fund’s offering documents (or agreed upon in an
applicable investment management agreement), client accounts may also be subject to other
investment and operational expenses such as legal expenses; organizational expenses;
administrator expenses; audit and accounting expenses; compliance expenses; shareholder
proxy voting services; organizational expenses; investment expenses such as commissions,
research fees and expenses; interest on margin accounts and other indebtedness; borrowing
charges on securities sold short; custodial fees; bank service fees; insurance costs; directors'
fees and expenses; and other expenses reasonably related to the purchase, sale or transmittal
of Fund or account assets.

D. If your clients either may or must pay your fees in advance, disclose this fact. Explain how a client
may obtain a refund of a pre-paid fee if the advisory contract is terminated before the end of the
billing period. Explain how you will determine the amount of the refund.

       Clients generally pay investment management fees quarterly in advance. However,
Investment management fees may be prorated for any period that is less than a full quarter and
adjusted for subscriptions and redemptions occurring during the quarter.

E. If you or any of your supervised persons accepts compensation for the sale of securities or other
investment products, including asset-based sales charges or service fees from the sale of mutual
Fund(s), disclose this fact and respond to Items 5.E.1, 5.E.2, 5.E.3 and 5.E.4.

       Not Applicable.

Item 7 Types of Clients

Describe the types of clients to whom you generally provide investment advice, such as individuals,
trusts, investment companies, or pension plans. If you have any requirements for opening or
maintaining an account, such as a minimum account size, disclose the requirements.

         The Adviser’s clients may consist of individuals, banks, thrift institutions, investment
companies, private funds, pensions, profit sharing plans, trusts, estates, charitable
organizations, corporations or other business entities. Each of the Funds is exempt from the
definition of an investment company under the Investment Company Act and therefore not
required to be registered under the Investment Company Act. Interests in the Funds are offered
on a private placement basis pursuant to Regulation D under the Securities Act of 1933 (the
“1933 Act”) to persons who are (i) “accredited investors” as defined under the 1933 Act and,
except in certain cases, only to “qualified purchasers” as defined in Section 2(a)(51)(A) of the
Investment Company Act of 1940 (the “Investment Company Act”), and subject to certain other
conditions which are set forth in the offering documents for the Funds. Pursuant to Sections
3(c)(1) and/or 3(c)(7) of the Investment Company Act, the Funds are exempt from the definition
of an “investment company” and therefore need not register as investment companies under
the Investment Company Act.

As is more fully disclosed in each Fund’s relevant offering documents, the Adviser typically
requires that a client invests a minimum of $ 1,000,000 to open an account unless a lesser
amount is approved by the General Partner or Investment Manager with such authority. 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.