Avathon Capital Management LP

Item 5.        Fees and Compensation

 Fees with respect to the Funds

 In general, the Adviser earns management fees, and the affiliated general partners have the
 potential to earn performance-based compensation, from the Funds. The Adviser or its affiliates
 or employees may also receive Supplemental Fees (as defined below).

 Avathon reserves the right to waive or reduce the management fee in its sole discretion, and there
 may be variances in fees, including management fees, charged to certain Clients and/or Investors.

Item 7.        Types of Clients

 Avathon is organized and serves as the discretionary investment adviser to the Avathon Funds.
 The Adviser does not provide investment advisory services individually to the Investors in the
 Funds. Avathon may decide in the future to provide advice to SMAs and to other private funds.

 The Adviser may impose a minimum investment commitment requirement for each Client it
 advises. Avathon generally requires Investors in the Funds to make a minimum initial investment
 of at least $2,000,000.

 The minimum contribution and investor requirements can be waived by Avathon or its affiliates at
 its                                      sole                                      discretion.

 Investors generally must be “accredited investors” who are also “qualified clients,” or “qualified
 purchasers” as that term is defined under the U.S. Investment Advisers Act of 1940. Avathon
 generally requires investors to make representations concerning their financial sophistication and
 ability to bear the risk of loss of their entire investment in the Fund.

Avathon Capital Management, LP – ADV Part 2A                                            Page 12