Asymmetry Capital Management LP

FEES AND COMPENSATION

   A. Fee Schedule

The Firm generally charges the Master Fund and the Onshore Fund a management fee on a monthly
basis. The management fee for Class I investors equals 0.125% (1.50% annually) of assets under
management of each of the Master Fund and the Onshore Fund. The management fee for Class II
investors equals 0.01% (1.25% annually) of assets under management of each of the Master Fund
and the Onshore Fund. Lower management fees have been (and, in the future, may be) negotiated
at the Firm’s discretion.

The general partner of the Master Fund and the Onshore Fund generally receives performance-
based compensation on an annual basis equal to 20% for the Class I and 15% for the Class II of
the performance of the Master Fund and the Onshore Fund.

For Separate Accounts, the Firm receives management and/or performance fees that are subject to
negotiation and may vary from those paid by the Funds.

All management fees and performance-based compensation are calculated pursuant to the
governing documents of the relevant Client. The expenses of the Funds and Separate Accounts,
including the management fee and any performance-based compensation, may constitute a higher
percentage of average net assets than would be found in other investment vehicles. Although the
Firm believes its fees are competitive, lower fees for comparable services may be available from
other investment advisers.

   B. Payment of Fees

For the Funds, management fees, performance-based compensation, and third-party fees
(discussed below) are deducted from the Funds’ assets. Management fees are withdrawn at the
end of the month. Performance based allocations are allocated as of the last business day of the
calendar year and as of any date on which an Investor makes a withdrawal. Arrangements with
Separate Accounts may vary.

    C. Third-Party Fees

The Firm bears its own operating, administrative and overhead expenses, including salaries, wages,
rent, equipment and other overhead expenses.

Each of the Onshore Fund, Onshore Feeder Fund and Offshore Feeder Fund pays, or reimburses
the Firm for the following expenses:

    •   Ongoing costs and expenses of administering the Fund’s business, including, without
        limitation, custodial fees, auditing, accounting and tax preparation fees, governmental fees
        and taxes, ongoing legal expenses, costs of reporting to investors, costs of governance
        activities, and fees paid to any third-party administrator and bookkeeper;
    •   Expenses and costs of investment and trading, including brokerage commissions, interest
        on borrowings, and charges on securities sold short; and
    •   Expenses of offering and selling the Fund’s interests.

Each of the Offshore and Onshore Feeder Funds also bears indirectly its pro rata share of the
expenses of the Master Fund as an investor in the Master Fund.

The Firm’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the Clients. Such charges, fees and commissions are
exclusive of and in addition to the Firm’s management fee, and the Firm shall not receive any
portion of these commissions, fees, and costs. Investors should refer to the relevant Fund Operative
Documents and Separate Accounts shall refer to the relevant investment management agreement
for a full disclosure of costs and expenses that may be borne by the Funds and Separate Accounts,
respectively.

In all cases, details concerning applicable fees and expenses are set forth in each respective
client’s limited partnership agreement, limited liability company operating agreement, and/or
investment management agreement. The information contained herein is a summary only and
is qualified in its entirety by such documents.

PERFORMANCE-BASED FEES AND SIDE-BY-SIDE MANAGEMENT

A performance-based compensation arrangement may create an incentive for the Firm to make
investments that are riskier or more speculative than would be the case in the absence of such
performance compensation. Notwithstanding this potential incentive, the Firm will evaluate
investments in a manner that it considers to be in the best interest of its Clients, given those Clients’
investment objectives, investment strategies, suitability of the investment, and risk profile.

To the extent that there may be differences in the Firm’s compensation arrangements, such
circumstances could create an incentive for the Firm to manage client portfolios so as to favor a
Client portfolio that pays performance-based compensation, including higher performance-based
compensation, over one that does not. Notwithstanding this conflict, the Firm will allocate

transactions and opportunities among the Clients in a manner it believes to be as equitable as
possible, considering each Client’s objectives, programs, limitations and capital available for
investment.

To the extent the Firm values any securities or instruments held by a Client, it has a conflict of
interest as the Firm will receive higher management and performance fees if it gives such securities
and instruments a higher valuation. The Firm may receive increased compensation with regard to
unrealized appreciation as well as realized gains in the relevant Client, depending on the specific
time periods and the nature of any preferred returns. Where any part of the Firm’s compensation
is based in part on the unrealized appreciation of securities or instruments for which market
quotations are not readily available, the Firm shall disclose how such securities or instruments will
be valued and the extent to which the valuation will be determined independently.

The Firm does not represent that the amount of the performance fees or the manner of calculating
the performance fees is consistent with other performance-related fees charged by other investment
advisers under the same or similar circumstances. The performance compensation charged by the
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TYPES OF CLIENTS

As discussed in the Advisory Business section above, the Firm currently provides investment
management services primarily to private investment funds, which in turn are offered exclusively
to sophisticated investors. The Firm also provides investment management services to other private
funds or sophisticated investors on a discretionary basis through separately managed accounts.
Although the Firm generally seeks minimum account commitments from its Investors of
US$ 1,000,000, it has, and can in the future, waive such minimums in its discretion. Minimums
for Separate Accounts will be negotiated.

METHODS OF ANALYSIS, INVESTMENT STRATEGIES AND RISK OF LOSS

   A. Method of Analysis and Investment Strategies

Each strategy employed by the Firm has its own set of risks, but in all cases, the Firm’s strategies
involve a risk of loss that Clients should understand and be prepared to bear.

The Firm provides investment management services to funds, separately managed accounts and
may also manage other accounts and/or establish other private investment funds in the future.

The Firm attempts to achieve positive absolute returns in all market conditions through investment
and trade in a diversified portfolio of global healthcare and healthcare related companies across
multiple healthcare sectors and market capitalizations. The Firm primarily buys, sells (long or
short), holds and trades in equity securities that are traded in U.S. and non-U.S. public markets

based upon fundamental analysis. The Firm invests globally in companies of all market
capitalizations primarily through investments in equity securities, American Depository Receipts
(ADRs), U.S and non-U.S. listed options, total return and equity swaps (including basket), and
exchange-traded funds (ETFs). While it is not the primary focus of the Firm’s investment strategy,
it may also invest in long or short positions in equity futures, swaps, notes, bills, warrants, futures,
rights, derivatives, fixed income assets, privately held securities and other securities or assets. The
Firm may trade non-U.S. currencies for the purpose of hedging foreign exchange exposures. At
this time, the Firm does not intend to utilize leverage to achieve its investment objective. In the
future, the Firm may use its experience and knowledge in healthcare to broaden its investment
opportunities.

The Firm implements its investment objective through deep-dive fundamental research
capitalizing on the experience and expertise of the research team led by Scott C. Kay. The Firm
seeks to identify individual asymmetric investments representing out of consensus, high conviction,
fundamental long and short positions. An asymmetric investment is one that the Firm considers to
have a greater potential for positive return than the risk of loss. Short selling is an important
component of the Firm’s investment strategy.

The Firm’s investment strategy also includes foreign securities, options and making private
investments in public entities, as further set forth in the relevant Fund’s private placement
memorandum or the investment management agreement for Separate Accounts.

   B. Risks of Investments and Strategies Utilized

Investing in securities involves risk of loss that Clients and Investors should be prepared to bear.

Relevant risk factors include:

General Investment and Market Risks. There can be no guarantee of the success of the Firm’s
investment strategy and the Clients’ activities may be significantly and adversely affected by
general economic and market conditions, such as interest rates, availability of credit, inflation rates,
economic uncertainty, changes in laws, national and international political circumstances and
pandemics. These factors may affect the level and volatility of securities prices and the liquidity
of the Clients’ investments. Unexpected volatility or illiquidity could impair the Clients’
profitability or result in losses.

Some of the Client’s investments may have limited liquidity. In addition, the Clients may invest
in a limited number of securities and instruments, and as a consequence, the aggregate returns
realized by the investors may be substantially adversely affected by the unfavorable performance
of a small number of such investments. If the Firm elects to concentrate a Client’s investments in
a particular area or region, the Client’s portfolio then will become more susceptible to fluctuations
in value resulting from adverse economic conditions affecting that particular area or region.

Healthcare Industry Risks. The Clients will focus investments in the publicly traded securities of
healthcare companies. Healthcare related stocks can be volatile. In addition, the healthcare industry
is subject to extensive government regulation and may therefore be affected by government
regulatory requirements, regulatory approval for new drugs and medical products, patent
protection considerations, product liability concerns, reimbursement risk, changes in the

regulatory environment and similar significant matters. As these factors impact the industry, the
value of the Clients’ investments may fluctuate significantly over relatively short periods of time.

Reliance on the Portfolio Manager. The success of the Clients’ investment strategy will depend
on the management, skill and acumen of the Investment Manager, and in particular Scott C. Kay,
the Clients’ portfolio manager. The Clients’ performance could be materially and adversely
affected if Mr. Kay were to die, become ill or disabled, or otherwise cease to be actively involved
in managing the Clients’ portfolios.

Equity Securities. Publicly traded equity securities are subject to equity market risk. This is the
risk that stock prices will fluctuate and can decline and reduce the value of a Client’s portfolio.
Equity securities fluctuate in value, often based on factors unrelated to the value of the issuer of
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