Taverik Capital LLC

Item 5           Fees and Compensation

A.       Advisory Fees and Compensation
Separately Managed Accounts

Asset-Based Compensation

The Adviser charges each client an investment management fee (the “Management Fee”) based on the
value of the client’s assets under management, in accordance with the following schedule:

                                                                 Annual Management
                    Account Value                                Fee Rate

                    Up to $4,999,999.99                          2.00%

                    $5 million to $9,999,999.99                  1.50%

                    $10 million to $19,999,999.99                1.25%

                    $20 million or more                          1.00%

Notwithstanding the foregoing, clients of the Adviser who moved their accounts to the Adviser following
the dissolution of another advisory firm unaffiliated with the Adviser bear management fees at an annual
rate of 1.14% of the client’s assets under management.

Management Fees are generally charged each quarter, in advance, based on the total market value of the
assets in the client’s account (including net unrealized appreciation or depreciation of investments and cash,
cash equivalents, and accrued interest) on the first day of the quarter. If a new client account is established
during a quarter, or a client makes an addition to its account during a quarter, the Management Fee will be
charged as of the effective date of the investment management agreement or the date of the additional
contribution based on the value of the assets as of the applicable date and will be prorated for the number
of days remaining in the quarter. Management Fees are negotiable in only the sole and absolute discretion
of the Adviser.

Performance-Based Compensation

The Adviser may also be paid a performance-based fee (each, a “Performance Fee”), which is compensation
that is based on a share of capital gains on, or capital appreciation of, the assets of a client. Performance Fees
are charged to clients who either (i) demonstrate a net worth of $2.2 million (excluding the value of such
client’s primary residence) or have at least $1,100,000 under management with the Adviser or (ii) meet the
requirements imposed by the relevant governmental authority. The Performance Fee is generally 20% but is
negotiable only in the sole and absolute discretion of the Adviser.

Pooled Investment Vehicles

Asset-Based Compensation
With respect to a pooled investment vehicle for which the Adviser serves as the investment manager, the
Adviser will receive an annual Management Fee that is either (i) calculated at an annual rate of 2.0% (or some
other rate) of the sum of all capital account balances, capital contributions, or capital commitments, as the

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 case may be, and the outstanding principal of all leverage, if any, incurred by such pooled investment vehicle
directly and/or through related companies and/or partnering entities; (ii) a fixed fee, or (iii) a combination of
the foregoing. Generally, the foregoing Management Fee will be paid to the Adviser monthly or quarterly in
advance, as the case may be, and, unless otherwise provided in the governing documents of the relevant
pooled investment vehicle, will not be prorated for periods of less than a calendar month or quarter, as the
case may be. Generally, if the Management Fee is a fixed-fee, a pro rata amount of such Management Fee
will be paid to the Adviser monthly or quarterly, as the case may be, in advance over a specified period.

The Adviser, in its discretion, may waive all or a portion of the Management Fee as to an investor (such as,
among others, principals, employees, or affiliates of the Adviser and/or its affiliates), or may agree with an
investor to other changes in the Management Fee with respect to such investor.

Performance-Based Compensation

With respect to private fund clients, the Adviser or an affiliate may receive 20% (or some other percentage)
of (i) each fund’s net cash flow, if any, relating to a disposition of each portfolio investment of such fund
or (ii) the increase in the fund’s net asset value for a particular period (each, a “Carried Interest”).
Depending on the terms of a fund, the Carried Interest may be paid to the Adviser or an affiliate either only
after investors have received all of their capital contributions with respect to a portfolio investment or only
after investors have received all of their capital contributions with respect to such fund. In some funds, the
Adviser or its affiliate is entitled to receive the Carried Interest based on unrealized appreciation of assets.

B.      Payment of Fees

The Adviser deducts the Management Fee, Performance Fee/Carried Interest (if applicable), and other
compensation from client accounts by instructing the client’s custodian. The Adviser deducts client
accounts for Management Fees, Performance Fees/Carried Interest, and other compensation at such times
as may be agreed upon between the Adviser and a client.

C.      Other Fees and Expenses

In addition to paying Management Fees and, if applicable, Performance Fees/Carried Interest, or other
compensation, client accounts will also be subject to other investment expenses such as custodial charges,
brokerage fees, commissions and related costs; interest expenses; taxes, duties and other governmental
charges; transfer and registration fees or similar expenses; costs associated with foreign exchange
transactions; other portfolio expenses; and costs, expenses and fees (including, investment advisory and
other fees charged by investment advisers with, or funds in, which the client’s account invests) associated
with products or services that may be necessary or incidental to such investments or accounts. Client assets
...

Item 7          Types of Clients

The Adviser’s clients consist primarily of individuals, including high net worth individuals, pooled
investment vehicles, charitable organizations and pension and profit sharing plans.

The Adviser generally requires a minimum of $250,000 of assets under management for a separately
managed account but may waive this minimum in its sole and absolute discretion. 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. The Adviser provides clients with
the option to use Charles Schwab or Interactive Brokers to serve as the custodian for the Adviser’s
separately managed client accounts. With respect to advisory client accounts maintained at Charles
Schwab or Interactive Brokers, the Adviser will direct all securities transactions, effected for such
accounts, through Charles Schwab or Interactive Brokers, as the case may be.

With respect to any client that is a pooled investment vehicle, any initial and additional subscription
minimums are disclosed in the offering memorandum for the pooled investment vehicle.

The Adviser may request clients to provide proof of authority, directed trading letters, qualified client or
qualified purchaser status, accredited investor letters/certifications, and/or or other information to allow the
Adviser to manage client assets.

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