York Capital Management Global Advisors LLC

Item 5.         Fees and Compensation

The Adviser provides investment management services on a fee basis, which includes fees based
upon the net asset value of the assets under management by the Adviser, as well as fees based on
performance of the Funds and accounts. Applicable fees are set forth in detail in each Fund’s
offering documents. A brief summary of the Adviser’s fees is provided below. Investors should
refer to the relevant offering documents for a complete understanding of how the Adviser is
compensated for its advisory services.

The Adviser generally receives an annual management fee of between 1% and 2% for each Fund’s
assets under management, paid either monthly or quarterly, in advance based on the net asset value
of the Fund at the beginning of the applicable month or quarter. Other accounts are charged fees
that are negotiated with the client and range from .50% to 2% per annum. The Adviser reduced or
waived management fees for certain Funds that entered into an orderly liquidation. The percentage

advisory compensation rate generally varies from Fund to Fund, and from share class to share class
within a Fund, and is based on a variety of factors that includes the types and mix of assets involved;
the nature and complexity of the assets; the nature and complexity of the particular Fund; the nature
of the services provided; the liquidity of the particular share class; the size of the Fund; and the
types and size of investors in the particular Fund. With respect to certain closed end funds with
private equity-like terms, management fees may be based on capital commitments or funded
commitments to such funds. Certain strategic clients may be charged management fees and
incentive allocations at lower rates than those set forth in a Fund’s offering documents. In addition,
the Adviser at times grants certain investors preferential rights with respect to various matters,
including, without limitation, the right to most favorable economic terms for their investments.
Any such fee reductions or other preferential rights are determined by the Adviser on a case by case
basis. Due to the strategic shift detailed above many of the Funds are no longer charging the
investors a management fee.

The Adviser or one of its affiliates also will generally receive an incentive fee or incentive
allocation of up to 20% of the aggregate profits or certain distributions, as applicable, to investors,
which is in addition to advisory and administrative fees and expenses, as described more fully in
the offering documents of the particular Fund, as permitted by 17 C.F.R. 275.205-3 and/or section
205 of the Investment Advisers Act of 1940, as amended (the “Investment Advisers Act”). Due to
the strategic shift detailed above, several of the Funds are also charging a modified incentive fee.

In some cases, Adviser or its affiliates receive reimbursement of certain expenses from the Funds,
as described in the offering documents and periodic reports of those Funds. These reimbursements
are for expenses deemed by the Firm in its discretion to be beneficial services to the Funds.

Adviser and/or other York Group entities, or the Funds are permitted to pay placement fees, certain
expenses, and servicing fees to broker-dealers acting as placement agent that place investors for
the Funds, as described in the offering documents of the relevant Funds, that may be based on a
percentage of the assets initially invested, or assets remaining invested over time, from the investor,
or based upon fees received by Adviser, in respect of the investors placed by that placement agent.

Each Fund bears all its organizational, offering and ordinary operating expenses and other fees and
expenses incurred in relation to such Fund, other than the operating expenses of the Adviser, all as
further described in such Fund’s offering documents.

Organizational and initial offering fees and expenses borne by a Fund typically include all those
incurred in connection with (i) the offering and sale of the interests in the Fund, including placement
agent costs, (ii) the formation and organization of the Fund and (iii) the preparation, negotiation,
execution and delivery of the Fund’s governing and offering documents, including any related legal
and accounting fees and expenses, travel expenses including airfare (including, where appropriate
as reasonably determined by the Adviser, the cost of first class commercial airfare) and filing fees.

Other fees and expenses borne by a Fund typically include, without limitation, (i) expenses incurred
in buying, structuring, restructuring, negotiating, holding and selling or otherwise disposing of
securities and other investments, including, without limitation, brokerage commissions,
transactional fees and expenses, (including fees and expenses related to potential purchases and
sales of securities and other investments, even if not consummated), interest and other borrowing
and financing costs, dividends and interest payable with respect to securities sold short, trade
execution expenses (e.g., costs associated with trading communication hardware, software and
private lines), external research expenses, soft dollar expenses, custody and transfer fees, currency
conversion expenses, expenses of currency and other hedging transactions, investment-related

travel and entertainment expenses, the costs of preparing and filing reports to regulatory authorities
relating to such Fund’s investments (e.g., filings under Section 13 of the Securities Exchange Act
of 1934, as amended, notifications under the EU Transparency Directive and the EU Regulation on
Short Selling and similar filings), Form PF filings under the Investment Advisers Act and similar
filings),the costs of proxy or corporate control contests, fees and other costs associated with any
joint venture or similar investments (including management fees, expense reimbursements and
...

Item 7.          Types of Clients

The Adviser generally provides investment advice to the Funds which are organized as domestic or foreign
partnerships, incorporated or unincorporated entities, or other similar entities. The Funds are comprised of
various types of investors, including high net worth individuals, pension and profit sharing plans, trusts,
estates, charitable organizations, corporations, business entities, endowments, and foreign sovereign wealth
funds. Certain Funds require a minimum initial investment which may be waived at Adviser’s discretion.
In addition, each investor in the Funds must meet the eligibility requirements outlined in each respective
Fund’s offering documents.

As noted above, Adviser also advises separately managed accounts, which generally receive more
information including portfolio transparency and have more favorable fee and/or liquidity rights than
investors in the Funds. The opportunity to open a separately managed account with Adviser is not available
to all prospective investors and is generally subject to minimum asset levels determined by the Adviser in
its sole discretion.