as Avaron Asset Management

Item 5. Fees and Compensation
Fees paid to us by any Investor are negotiable and may include management fees and/or
performance-based fees. For Investors in respect of whom a performance fee is charged, such fee
generally equals a percentage of the outperformance compared to a pre-agreed benchmark index.
Management fees are payable on quarterly basis for an average asset under management for the
previous quarter and performance-based fees are payable on an annual basis. We generally bill
Investors for fees incurred and do not deduct the fees from clients’ assets ourselves. Each Investor
will bear the actual transaction costs associated with its investments, such as brokerage
commissions and transaction taxes. We do not provide securities’ safekeeping or fund
administration services. Therefore, securities’ safekeeping and fund administration services and
associated costs will be governed by an Investor’s separate agreement with a custodian bank.

Item 7. Types of Clients
Avaron mainly manages the assets of qualified (professional institutional) investors, such as
licensed asset management firms, investment funds and licensed family offices from Europe.
We accept only professional investors as Investors. We generally require an initial account
balance of $25 million for a managed account and charge a minimum of $150,000 annual
management fee. We may waive these minimum amounts, in whole or in part, at our discretion.