Seiga Asset Management Limited

FEES AND COMPENSATION

A.   Fees and Compensation

Seiga Funds
The fees and compensation paid to Seiga in respect of each Seiga Fund are found in their respective
current offering documents. The Seiga Funds are “qualified purchasers” (as defined in Section 2(a)(51)
of the Investment Company Act).
In addition to the management fees and incentive allocation generated from the Seiga Funds and
described in Item 6, the additional expenses referenced below are payable by the Seiga Funds.
The precise expenses payable by the Seiga Funds are found in their offering materials, however such
fees and expenses include the following categories: transactional expenses; directors fees; investment
related fees including commissions and interest on borrowing, market data, order management,
portfolio management and execution systems, software and developers; taxes, organizational and
operating costs; and fees and expenses on which Seiga and the board of directors for the Seiga Funds
agree.

RIC Fund
As a sub-adviser to the RIC fund, Seiga receives management and incentive fees, where applicable,
from the RIC fund adviser.

Other Clients
Seiga receives management and incentive fees as agreed in the investment management agreements,
or similar agreements, with other clients. Payment of expenses is also set forth in such agreements.

B.   Additional Compensation and Conflicts of Interest

See Item 12 for further discussion with respect to fees associated with brokerage practices. Neither
Seiga nor any of its supervised persons accepts compensation (e.g., brokerage commissions) for the
sale of securities or other investment products.

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SEIGA ASSET MANAGEMENT LIMITED

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

Seiga receives both performance-based compensation and asset-based compensation from its various
clients. In addition, the following is a description of some of the inherent and potential conflicts of
interest Seiga has in managing its assets under management. For specific additional risk, please see
specific offering documents.

A.   Conflicts Generally

Prospective investors must recognize that each Seiga Fund has been formed specifically as an
investment product to be managed by Seiga, and as a result, a Seiga Fund may not be inclined to
appoint any other investment adviser or sub-adviser even if doing so might be in the Seiga Fund’s best
interests.
In general, Seiga’s investment management agreements give broad discretion as to the determination
or resolution of a wide variety of matters, including economic allocations, distributions and other
issues, any of which could significantly and adversely affect any given account.
Seiga, which provides investment management, fund raising and certain administrative services to the
Seiga Funds, may carry on investment activities for other clients including, without limitation, the RIC
fund, other investment funds, client accounts and proprietary accounts (any of whom may be
shareholders in such Seiga Funds), in which the Seiga Fund will have no interest and whose respective
investment programs may or may not be substantially similar. Such activities may be in competition
with the Seiga Fund and/or may involve substantial time and resources of Seiga.

The portfolio strategies employed for such other investment programs could conflict with the
transactions and strategies employed in managing the Seiga Fund's portfolio and affect the prices and
availability of the securities and instruments in which the Seiga Fund invests. Conversely, participation
in specific investment opportunities may be appropriate, at times, for both the Seiga Fund and the
other investment programs. In such case, Seiga will allocate participation in such opportunities on a
fair and equitable basis, consistent with the investment objectives and guidelines of the Seiga Fund
and the other investment programs and taking into account such factors as the relative amounts of
capital available for new investments, relative exposure to short-term market trends, and the respective
investment programs and portfolio positions of the Seiga Fund and the other investment programs.
While Seiga will in general allocate participation in investment opportunities among the Seiga Funds
and the other investment programs on a pro rata basis in proportion to the target exposure level of

SEIGA ASSET MANAGEMENT LIMITED

each participating Seiga Fund or investment program and relative net asset value, the above
considerations may result in allocations of certain investments other than on a pro rata basis.

Seiga will endeavour to ensure that any conflict of interest is resolved fairly. Actual or potential
conflicts of interest, including for example with respect to related party transactions may be referred
to the relevant Seiga Fund Board of Directors and in consultation with Seiga, the Board will approve
or disapprove such transaction.

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SEIGA ASSET MANAGEMENT LIMITED

TYPES OF CLIENTS

Seiga currently provides provide investment advice to the following types of clients:

   •   Pooled investment funds structured as limited partnerships or exempted companies
   •   Registered investment companies

The underlying investors in Seiga Funds may include some or all of the following types of investors:
high net worth individuals, endowments, foundations, charitable organizations, sovereign wealth
funds and other sophisticated investors.

Seiga may in the future provide investment advice to separately managed accounts structured either
as partnerships or exempted entities. The underlying investors in separately managed accounts may
include some or all of the following types of investors: public or private pension funds, endowments,
foundations, charitable organizations, sovereign wealth funds or other sophisticated groups.

The constituent documents for each Seiga Fund or other investment product may set minimum
amounts for investment by prospective investors and reserve to Seiga the right to modify or waive,
any minimum new investment commitments from time to time. Minimum investment amounts for
managed accounts will be determined on a case by case basis.

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SEIGA ASSET MANAGEMENT LIMITED

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS CHANGES

Seiga seeks to generate superior risk-adjusted returns using rigorous fundamental analysis in an equity
strategy that focuses primarily, but not exclusively, on the Japanese markets. Seiga will invest in other
markets depending on the opportunity set. Seiga will primarily make equity and equity-related investments
in a concentrated portfolio of high conviction long and short ideas.

To support its thesis, Seiga conducts fundamental bottom up research focusing on market inefficiencies
and idiosyncratic ideas, placing an equal emphasis on long ideas and short ideas. Investment ideas are
generated through ongoing screening of stocks and other internal research. The selected investment ideas
are subjected to rigorous fundamental analysis, involving financial modelling, on-site visits and competitor
analysis, among other methods. The investment ideas are evaluated against a consistent set of metrics and
the consideration of opposing views on the investment thesis, drivers of return, and expected returns. Stocks
are selected and position sizing determined based on an objective numerical assessment across an identified
set of criteria.

Seiga invests primarily in equities and equity-related securities, including without limitation publicly listed
equity securities, and over-the-counter or "OTC" derivatives such as swaps and contracts for differences
over stocks and indexes, futures and options.

Depending on opportunities identified by the research process and subject to market conditions, Seiga
will evaluate a broad range of assets suitable for investment, including, without limitation, shares
(including but not limited to, preference shares or securities convertible into shares), stock, bonds,
notes, commercial paper, debentures, certificates of deposit, debt, debt securities and obligations of
all kinds, warrants, depository receipts (in each case, whether in registered or bearer form and whether
or not registered with or regulated by any competent regulatory authority), collective investment
schemes, commodities, synthetic access products, futures, swaps, derivatives, exchange traded funds,
participatory notes, foreign exchange products, interest rate products, fixed income products, credit
default swaps, foreign exchange derivatives, any warrant or option in respect of any of the foregoing,
any contract for differences, any rights or interests in such assets or money, benefits or property arising
from such assets and any other type of asset which Seiga reasonably determines may be made in
compliance with the client’s investment objective and strategy.

SEIGA ASSET MANAGEMENT LIMITED

A.   Material Risks

The Seiga Funds are not available generally for investment other than for certain institutional and high
net worth investors. Risks specific to the Seiga Funds and their structures are found in the offering
documents for the Seiga Funds. Material risks associated with Seiga’s investment strategy and the
financial instruments it trades appear below.

Investments in Asia generally

Seiga invests in the Japanese markets as well as other global markets depending on the opportunity
set. Many of the laws that govern private and foreign investment, equity securities transactions and
other contractual relationships in certain Asian countries in which Seiga may invest are new and largely
untested. As a result, the investments may be subject to a number of unusual risks, including
inadequate investor protection, contradictory legislation, incomplete, unclear and changing laws,
ignorance or breaches of regulations on the part of other market participants, lack of established or
effective avenues for legal redress, lack of standard practices and confidentiality customs characteristic
of developed markets and lack of enforcement of existing regulations. Furthermore, it may be difficult
to obtain and enforce a judgment in certain countries in which Seiga-advised entities may be invested.
There can be no assurance that this difficulty in protecting and enforcing rights will not have a material
adverse effect on the investments. In addition, the income and gains from these investments may be
subject to withholding taxes imposed by foreign governments.

Regulatory controls and corporate governance of companies in developing countries confer little
protection on minority shareholders. Anti-fraud and anti-insider trading legislation is often
rudimentary or is largely unenforced. The concept of fiduciary duty to shareholders by officers and
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