True Arrow Capital Management LLC

Item 5          Fees and Compensation

   A. True Arrow may offer investment advisory services to a number of different types of clients. Fees
      charged to these advisory clients may vary from client to client. Below is a summary of the types
      of fee arrangements in use or contemplated by True Arrow with respect to its advisory services.

            a. Fixed Management Fees: Clients may pay a fixed management fee that is based upon
               either an investment management agreement between the parties or the private
               placement memorandum of a private fund managed by True Arrow. These fees range
               from 1.5% of assets under management to 2.0% of assets under management. Fixed
               management fees are calculated quarterly and are charged in advance.
            b. Expense Reimbursements: Some clients may not pay a fixed management fee but instead
               will reimburse True Arrow for expenses incurred in connection with the management of
               their investment. These expense reimbursements are agreed upon between the parties
               in the form of an expense reimbursement agreement.
            c. Performance Fees: Eligible clients will also pay a performance fee in connection with the
               management of their accounts. Performance fees will represent a fixed percentage of
               investment gains. Performance fees charged by True Arrow may range from 15% to 30%
               of investment gains.

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    B. Depending upon the nature of a client’s arrangement with True Arrow, client fees may be
       deducted automatically from client accounts or invoiced to clients for payment. Typically, fixed
       management fees are charged quarterly in advance.
    C. Clients will also pay their own brokerage commissions and may pay other expenses including but
       not limited to fund administration costs incurred by private funds, legal expenses, compliance and
       or audit expenses. These costs may vary among clients but will be specifically outlined in the
       private placement memorandums for private fund clients or the investment management
       agreements for managed accounts.
    D. Management fees paid in advance will be refunded for any unexpired time at the point of
       redemption.
    E. N/A

Item 7           Types of Clients

True Arrow provides investment advice to pooled investment vehicles, private funds and other qualified
clients, including overseas foreign regulated pooled investment vehicles. True Arrow limits its private
fund client base to qualified clients who meet the eligibility requirements of 3(c)1 or 3(c) 7 funds.