Wexford Capital LP

FEES AND COMPENSATION

Wexford, in its capacity as Manager, generally charges an asset based fee of 1-2% per year on
assets under management for the Funds (the "Management Fee”). Wexford and/or its affiliates
share in profits based on the performance of the assets under management pursuant to the terms
of the relevant agreement, generally 18-20% of profits generated (the "Incentive
Compensation"). For its Hedge Funds and certain other Funds, Wexford also charges an
administrative fee (the "Administrative Fee" and, together with Management Fee and Incentive
Compensation, collectively, the “Fees”) of 0.125-0.175% per annum of the net asset value of
each class of shares or interests. The specific fees applicable to each Fund are set forth in each
Fund's Memorandum. Certain investors may pay reduced Management Fees or Incentive
Compensation as set forth in the applicable Memorandum or as negotiated by such investors.

Fees and any other compensation paid to Wexford or its affiliates by the Funds are generally
deducted from the assets of the Funds, whereby (i) the Management Fee for the Hedge Funds is
generally paid on a monthly basis in advance and the Management Fee for the Private Equity
Funds is generally paid on a quarterly basis in advance, (ii) the Incentive Compensation for the
Hedge Funds is generally paid on an annual basis (or upon realization or deemed realization of a
"special investment" in a Hedge Fund, where such special investment comprises part of such
Fund's investment strategy) and the Incentive Compensation for the Private Equity Funds is
generally paid after the relevant investors have received a return of all of their capital
contributions to the relevant Private Equity Fund.

With respect to those Funds that permit investors to redeem or withdraw capital, such
redemptions and/or withdrawals are generally permitted on a quarterly basis.

In the event that a Fund bears any fees or expenses in connection with the operation of such Fund
(collectively, the “Fund Operating Expenses”), such Fund will generally charge its investors their
respective pro rata portion of such Fund Operating Expenses. While further detailed in the
Memoranda, Fund Operating Expenses may include, but are not limited to, the following:
Organizational costs and expenses; taxes and governmental fees; investment expenses; brokerage
and commission expenses; due diligence and consulting fees; fees and expenses of open and
closed-end funds or of unaffiliated investment advisers; margin expenses; premium and interest
expenses; expenses of any other investment vehicles; license, maintenance and other fees;
registration, transfer agents, and custodial fees and expenses; stock exchange listing fees;
portfolio pricing fees; insurance expenses; operating expenses; legal, accounting, audit and tax
preparation expenses, including but not limited to fees for (i) internal legal or tax preparation
services and/or (ii) services performed by Wexford’s or an affiliate’s management, legal,
accounting or administrative personnel for the benefit of any operating company or special
purpose entity in which the relevant Fund may have investments; investment research expenses;
director and STAR Trust expenses (for certain offshore Funds); overhead or other fees and
expenses borne by any Wexford subsidiary or affiliate in respect of services provided in
connection with any investments made by the relevant Fund(s); other out-of-pocket costs and
expenses borne by Wexford and/or its affiliates in connection with the relevant Fund(s) and/or its
underlying assets or investments; and any extraordinary expenses such as litigation and

indemnification of the general partner of the relevant Fund, Wexford and/or their respective
affiliates.

TYPES OF CLIENTS

Wexford provides investment advice to the Funds and other investment vehicles, as described in
Item 4 above. Wexford generally imposes a minimum initial investment of $1 million per
investor in each Fund, although any such Fund may accept lesser amounts.