Smithwood Advisers LP

Item 5.        Fees and Compensation

Smithwood intends to deliver this brochure only to qualified purchasers as defined in section
2(a)(51)(A) of the Investment Company Act of 1940, as amended. Therefore, information on
how Smithwood is compensated for its advisory services and its fee schedule are not included
here. Investors should refer to the JMB Funds’ Governing Documents for complete information
on the associated fees and expenses.

Smithwood 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 than those charged by Smithwood.

For the JMB Funds, Smithwood is authorized by the Governing Documents to charge and deduct
advisory fees and any performance allocation directly from the JMB Funds. Annual base
management fees are paid quarterly in advance, and any performance allocation is assessed and
payable annually in arrears. The Governing Documents of the JMB Funds do not provide for any
rebate of advisory fees paid in advance upon termination of the advisory relationship or the
withdrawal of an investor from a fund.

Each fund is responsible for (a) subscription fees for investment-related journals and other
publications, (b) all costs and expenses incurred by or on its behalf or for its benefit, including in
most cases, among others, trading costs and expenses (such as brokerage commissions, expenses
related to short sales, and clearing settlement charges, and option premiums), custodian fees,
legal, accounting, bookkeeping, professional, expert, research consultant and other consulting
fees and expenses incurred in connection with the fund’s business (including the expenses of
service contracts related to on-line research, portfolio management and quotation services and
equipment related thereto), costs and expenses incurred for the purpose of protecting or
enhancing the value of the fund’s assets (including the costs of instituting or defending lawsuits),
all selling costs and expenses, costs of communication with fund investors and prospective fund
investors, all interest on fund borrowings, premiums and other costs and expenses of insurance
policies as the fund’s general partner or manager considers appropriate, insuring the fund, the
general partner or manager and its affiliates against liabilities that may arise in connection with
the business or management of the fund, any contingencies for which the fund’s general partner
or manager determines reserves are required, and any extraordinary expenses (such as litigation
expenses), and (c) if permitted under a fund’s Governing Documents, fees and expenses related
to preparing and filing Form PF, which is the case for the JMB Funds. Funds that invest in other
funds also pay, indirectly, investment advisory fees to the managers of those funds. See Item 12
below for a discussion of brokerage practices.

Smithwood has the ultimate responsibility to determine the net asset value of the JMB Funds.
This creates a potential conflict because if the determination of the net asset value is inaccurate,
Smithwood might receive management fees and performance allocations that are greater (or less)

than the fees and allocations to which it otherwise would be entitled. In the event of errors in
valuation, redeeming investors could potentially receive less (or more) than they would
otherwise be entitled to or, alternatively, new investors could receive a greater (or smaller)
percentage of fund interests than they would otherwise be entitled, both of which affect all other
investors. Smithwood has instituted valuation policies and procedures, which include the use of
an internal valuation committee as well as third party pricing services, that it believes reduces the
risk of errors in valuation.

The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan that is subject
to the Employee Retirement Income Security Act of 1974 and that invests in a fund for which
Smithwood is general partner to use the “alternative reporting option” to report Smithwood’s
compensation as “eligible indirect compensation” on Schedule C of the plan’s Form 5500
Annual Return/Report of Employee Benefit Plan.

Item 7.        Types of Clients

Smithwood provides investment advice to pooled investment vehicles, or funds. Investors in the
funds may include, among others, funds of funds, pension funds, endowments, foundations,
insurance companies and other financial institutions, family offices and high net worth
individuals. Smithwood requires that each investor in a fund be an “accredited investor” as
defined in Regulation D under the Securities Act of 1933 and a “qualified purchaser” as defined
under the Investment Company Act of 1940. Investors in the funds are generally required to
invest a minimum of $5,000,000, subject to waiver by Smithwood at its discretion.