Ancient Art LP

Item 5              Fees and Compensation

A. Compensation for Advisory Services

Ancient Art is entitled to a management fee from Teton’s Limited Partners, calculated and
payable quarterly in advance equal to 0.375% (1.5% per annum) of the net asset value
attributable to each Limited Partner determined as of the beginning of each calendar quarter.

Teton’s General Partner, Whitney L.P. (hereinafter “Whitney”), has the discretion to reduce or
eliminate the management fee with respect to any Limited Partner. Certain Limited Partners of
Teton are subject to lower management fees.

Ancient Art, L.P.

Ancient Art does not charge performance fees. However, Limited Partners of Teton are
assessed performance allocations by Whitney at the rate of 20% of net profits and are subject
to a “high water mark.” The performance allocation is generally charged to each Limited
Partner at the end of each fiscal year. However, in the case of a complete or partial withdrawal,
the performance allocation is charged as of the date of the withdrawal on the basis of net
profits allocated to such Limited Partner through the withdrawal date (but only with respect to
the amount withdrawn on a pro rata basis in the event of a partial withdrawal). Whitney has
the discretion to reduce or eliminate the performance allocation with respect to any Limited
Partner. Certain Limited Partners of the Fund are subject to lower performance allocations.

Due to the ownership structure, performance allocation arrangements may create an incentive
for Ancient Art to make investments that are riskier or more speculative than would be the case
in the absence of a performance allocation. Please see Item 10 for more information about the
ownership structure. A copy of our ownership structure chart is available upon request.

B. Fees Deducted vs. Billed

Management fees are deducted quarterly in advance from the capital accounts of Teton’s
Limited Partners.

C. Other fees

Teton bears all costs and expenses directly related to its investment program, including
expenses related to proxies, private placements, brokerage commissions, interest on debit
balances or borrowings, custody fees and any withholding or transfer taxes imposed on Teton.

Teton also bears all out-of-pocket costs of its administration, including accounting, audit and
legal expenses, costs of any litigation or investigation involving Teton’s activities, and costs
associated with reporting and providing information to existing and prospective Limited
Partners. However, Whitney and/or Ancient Art may, in its sole discretion, choose to absorb
any such expenses incurred on behalf of Teton.

D. Prepayment of Fees

Due to the ownership structure, it is highly unlikely Teton will terminate the advisory services of
Ancient Art. Please see Item 10 for more information regarding the ownership structure. In the
event of the withdrawal or bankruptcy of Ancient Art, generally Teton will be liquidated.

Teton’s Limited Partners who make a complete or partial withdrawal from their capital
accounts prior to the close of business on the last day of the fiscal quarter are not entitled to a
refund for the pre-paid portion of the quarterly management fee.

Ancient Art, L.P.

E. Outside Compensation for the Sale of Securities to Clients

Neither Ancient Art nor its representatives accept any compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
mutual funds to Teton.

Item 7              Types of Clients

Ancient Art has only one client, Teton.

Teton, a section 3(c)(1) exempt fund under the Investment Company Act, is a Partnership
comprised of individuals and entities. Generally speaking, the Limited Partners of Teton qualify
as accredited investors or qualified clients. A subscription for limited partner interests in Teton
should be considered only by persons financially able to maintain their investment and who can
accept a loss of their investment.