Ursula Management LLC

Item 5 – Fees and Compensation

Ursula offers for investment two private investment funds, the Capital Fund and the
Yield Fund. A management fee as described in each Fund’s confidential Private
Placement Memorandum (“PPM”) will be paid to Ursula by the Fund on a quarterly
basis. This fee covers the investment management services that Ursula provides to
each Fund, including supervising all of the other service providers to the Funds (the
“Management Fee”). Each Fund will pay the Management Fee quarterly in arrears, in
such amounts and subject to other conditions as described in each Fund’s PPM.

                                                                                  Page | 4

A pro rata Management Fee will be charged to Limited Partners on any amounts
permitted to be invested during the quarter. Any Management Fee paid in advance
would be refunded on a pro rata basis in the event that a Limited Partner withdraws all
or any of the value in the Limited Partner’s Capital Account during a quarter. The
General Partner of each Fund may waive or reduce the Management Fee with respect
to one or more Limited Partners for any period of time, or agree to apply a different
Management Fee for that Limited Partner.

Ursula utilizes a similar Management Fee structure with respect to its separate
accounts, and may agree to or apply a different Management Fee for different client.

Ursula is authorized to deduct our Management Fees from client accounts (including the
accounts of the Funds).

As set forth in the relevant Partnership Agreement, each Fund generally bears the costs
associated with its investments, in addition to the fees described above. Such
expenses may include, without limitation, the annual audit of the Fund, the preparation
of the annual and any interim financial statements of the Fund and the Federal and
state tax returns of the Fund and related K-1’s; fees, costs, and expenses related to any
Federal or state audit of the Fund; taxes, government charges and related costs
payable by the Fund; costs and expenses associated with meetings of the Limited
Partners of the Fund, communications with Limited Partners and preparation of Fund
status reports; costs and expenses associated with meetings of Limited Partners with
the General Partner and of committees and advisory boards of the Fund; the legal fees
costs and expenses for counsel of the Fund in any legal action, proceeding or
investigation, including threatened action, proceeding or investigation, and the amount
of any judgments or settlements paid in connection with such action, proceeding or
investigation; costs and expenses (not otherwise reimbursed) of potential investments
that are not consummated; all other legal fees, costs and expenses incident to the
Fund, its formation, its management and activities; interest and other expenses relating
to any Fund indebtedness; bonding expenses; premiums for insurance protecting the
Partnership and the partners and employees of Ursula and affiliates; securities filing
fees; and all extraordinary fees, costs and expenses.

Affiliated Broker-Dealer: Ursula does not have an affiliated broker-dealer and does not
receive a commission attributable to the sale of any security or other investment
products, including shares or units of the Funds. Currently Ursula does not utilize soft
dollars.

Item 7 – Types of Clients
Ursula currently provides investment management services to its private Funds, high
net worth individuals, and other corporations or business entities. Each Fund has a
stated minimum investment which may be waived by the Fund’s General Partner.
Separately managed accounts may also be subject to an account minimum.

The Investors participating in the Funds may include individuals, banks or other thrift
institutions, other investment entities, pension and profit-sharing plans, trust, estates or
charitable organizations or other corporations or business entities and may include,
directly or indirectly, principals or other employees of Ursula or its affiliates. Generally,
Investors that participate in the Funds are required to meet certain net worth
qualifications to qualify as “accredited investors” within the meaning of Rule 501 of
Regulation D under the Securities Act of 1933 or other suitability or eligibility
requirements set forth in the Fund’s PPM.

Important Notice

This Brochure may be provided to prospective Investors in a Fund, together with such
Fund’s PPM, constituent documents and other related documents (“Governing
Documents”) in connection with an Investor’s consideration of an investment in a Fund.
While this Brochure may include information about Ursula or a Fund, it does not
represent a complete discussion of the features, risks or conflicts associated with such
Fund. More complete information about the Funds is included in the PPM and other
Governing Documents for each Fund and should be reviewed carefully before deciding
whether to invest in a Fund.

In no event should this Brochure be considered an offer of interests in any Fund
or be relied upon in determining whether to invest in any Fund. It is also not an
offer of, or agreement to provide, advisory services directly to any Investor.
Rather, this Brochure is designed only to provide information about Ursula to comply
with regulatory requirements under the Advisers Act. Information in this Brochure may
differ from the information provided in the relevant PPM. If there is any conflict between
the information in this Brochure and similar information in the PPM, Investors should
rely on the information in the PPM with respect to their investment in a Fund.

                                                                                       Page | 6