Teng Yue Partners LP

Item 5: Fees and Compensation

The Hedge Funds

The management fees paid to Teng Yue for advising the Hedge Funds are generally as follows:

   i.       if the aggregate net asset value of the Hedge Funds is less than or equal to $200 million,
            2.0% (annually, paid quarterly in advance);

  ii.       if the aggregate net asset value of the Hedge Funds is greater than $200 million but
            less than $500 million, 1.75% (annually, paid quarterly in advance); and

 iii.       if the aggregate net asset value of the Hedge Funds is equal to or greater than $500
            million, 1.5% (annually, paid quarterly in advance).

Teng Yue Partners, L.P.                                                      Form ADV Part 2A

Fees are deducted from the Hedge Funds by submitting a detailed invoice to their
administrator (the “Administrator”). The invoice is then processed and approved by the
Administrator before being paid to the Firm at the discretion of the Administrator. Any
management fees paid in advance by the Hedge Funds are refundable on a prorated basis if the
relevant advisory contract is cancelled prior to the end of a payment period.

In our sole discretion, we have waived in the past, and expect to waive in the future, all or any
portion of the management fees or performance-based compensation (as described in Item 6)
with respect to certain investors in the Hedge Funds.

The PE Funds

The management fees paid to Teng Yue for advising the PE Funds are generally as follows:

    i.      During a PE Fund’s investment period, 1.5% of aggregate capital commitments
            (annually, paid quarterly in advance); and

    ii.     After a PE Fund’s investment period, 1.5% of the aggregate cost basis of such PE
            Fund’s investments (annually, paid quarterly in advance), less any permanent write-
            down to zero value.

Fees are deducted from the PE Funds by submitting a detailed invoice to their Administrator.
The invoice is then processed and approved by the Administrator before being paid to the
Firm at the discretion of the Administrator. Any management fees paid in advance by a PE
Fund are refundable on a prorated basis if the relevant advisory contract is cancelled prior to
the end of a payment period.

In our sole discretion, we have waived in the past, and expect to waive in the future, all or any
portion of the management fees or carried interest (as described in Item 6) with respect to
certain investors in the PE Funds.

Expenses

Teng Yue and the General Partners will be responsible for their own general operating and
overhead costs.

Each Client will bear its own organizational and operating expenses including, as applicable,
legal, accounting (including third party accounting services), audit, and other professional fees
and expenses, costs of processing transfers and withdrawals to the extent not borne by the
applicable investor(s), research expenses, expenses of third-party valuation agents (if any), fees
and expenses related to portfolio investments or prospective investments (whether or not
consummated) such as commissions, custodial fees, bank service fees, expenses of third-party
trading services, fees and expenses of the Administrator, travel expenses in connection with
investment activity, legal fees and expenses incurred in connection with investment activity,
asset verification, appraisal and valuation fees and expenses, investment banking expenses and
professional investigatory services, fees due to unaffiliated advisors, sub-advisors and
consultants, specific expenses incurred in obtaining or maintaining technology and systems,
finders and service companies, any individual computer or software product utilized with
respect to a particular investment, information and information service subscriptions
(including periodicals and similar research news or data subscriptions) utilized with respect
to the Client’s investment program and other expenses related to the purchase, sale,
preservation or transmittal of the Client’s assets. Expenses that are paid or payable by the
Master Fund generally are borne pro rata by the Feeder Funds. For a complete enumeration

Teng Yue Partners, L.P.                                                   Form ADV Part 2A

of the treatment of expenses, please refer to the operating fees and expenses section of each
Feeder Fund’s Confidential Private Placement Memorandum and each PE Fund’s Confidential
Private Placement Memorandum. For further details on the Firm’s brokerage practices, please
refer to Item 12 of this Brochure.

If any of the expenses listed above are incurred on behalf of more than one Client, such
expenses will generally be allocated among such Clients either in proportion to the size of the
investment made by each Client to which such expense relates (in respect of trading and
investment-related expenses), based upon the capital in each respective Client (in respect of
non-trading and investment related expenses), or in such other manner as the General
Partners consider fair and equitable.

From time to time, the Firm may permit certain investors to co-invest in investments alongside
one or more of the Clients, subject to the relevant governing documents, as well as the
considerations described in Item 8 below. Where a co-invest vehicle is formed, such entity
generally will bear expenses related to its formation and operation, many of which are similar
in nature to those borne by the Clients. For co-investments, the expense allocation may differ
from pro rata but will be in line with disclosures in the governing documents for the relevant
Clients.

Item 7: Types of Clients

The Firm’s Clients are the Hedge Funds and the PE Funds. To invest in the Hedge Funds and
the PE Funds, we generally require a minimum investment of $25,000,000 and $5,000,000,
respectively, although we reserve the discretion to accept less. We may in the future advise
additional private funds or separately managed accounts for institutional, non-retail investors.