Veteri Place Corporation

Fees and Compensation (Item 5). Veteri has designed a compensation structure that seeks to align
the interests of its employees with those of its Clients. Performance-based compensation may create
an incentive for Veteri to make more speculative investments and make decisions with regard to the
timing or manner of the realization of such investments, than would be made in the absence of such
performance-based compensation. In the allocation of investment opportunities, performance-based
fee/allocation arrangements may create an incentive to favor Clients that have greater performance
fee/allocation arrangements over other Clients that have lesser or no performance fee/allocation
arrangements. In addition, performance-based compensation received by the Company is primarily
based on realized and unrealized gains and losses. As a result, performance-based compensation
earned could be based on unrealized gains that the Clients may never realize. Performance-based
compensation could create a conflict of interest.

TYPES OF CLIENTS
Veteri provides investment advisory services to Clients. Veteri’s investment advisory services are
offered, indirectly through the Clients, to high-net-worth individuals, trusts, individual retirement
accounts, and institutional investors including foundations. Although Veteri has the authority to
accept subscriptions for any lesser amount, the minimum investment size for an investment in SIP-
1 and SIP-2 is generally $100,000.

Depending on the Private Fund, investors must be “qualified purchasers” within the meaning of the
Investment Company Act of 1940, as amended, or “accredited investors” within the meaning of
Regulation D under the Securities Act of 1933, as amended. In addition, each U.S. investor in any
of the Private Funds that is charged the performance-based fee described in Performance-Based
Fees and Side-by-Side Management (Item 6) above, must also satisfy the eligibility requirements
of a “qualified client” as set forth in Rule 205-3 under the Advisers Act except for any existing
account at the time of Veteri’s registration.