Sweater Industries LLC

5. Fees and Compensation

Cashmere Fund (the “Fund”)

Pursuant to the Advisory Agreement, and in consideration of the advisory services provided by the
Adviser to the Cashmere Fund, the Adviser is entitled to a Management Fee, which is calculated
and payable monthly in arrears at the annual rate of 2% of the average daily calculated net asset
value (“NAV”) of the Cashmere Fund. The Management Fee is based on the Fund’s total assets
minus its liabilities. Additional information regarding the Cashmere Fund expenses and fee
structure can be found in the Cashmere Fund prospectus in the “Fund Expenses” section.

Pooled Investment Vehicles

Sweater’s fees for providing management and advisory services to pooled investment vehicles,
which may include performance-based fees, are described in the offering documents for such
vehicles.

Pooled investment vehicles, Sub-Advised Funds, and Other Registered Investment Companies
(such as mutual funds and unit investment trusts) accrue asset-based management, advisory, or
sub-advisory fees daily and pay such fees to Sweater monthly, quarterly, or periodically in arrears,
as described in the prospectus, offering document, or other disclosure document for the respective
vehicle, fund, or investment company. Private Funds also accrue asset-based management fees
either monthly or quarterly, depending on the Private Fund. Sweater has the ability to deduct these
fees either monthly or quarterly in arrears, as further described in the offering documents. Once
the Private Fund starts accepting outside investors, the aforementioned fees will be passed onto
outside investors, but will continue to be waived for Sweater employees. Please see Item 6
Performance-Based Fees and Side-by-Side Management for additional information about

7. Types of Clients

Sweater currently provides investment advisory services to (i) a special purpose vehicle, and
(ii) the Fund, a registered investment company, subject to the discretion and control of the
registered investment company’s board of trustees.

Conditions for investing in the Fund, including minimum investment amounts and investor
qualification requirements, are stated in the registered investment company’s prospectus, which is
available upon request. The special purpose vehicle managed by Sweater is closed to investors.