Baker Bros Advisors LP

Item 5 – Fees and Compensation

A. The Funds offer interests only to “qualified purchasers” within the meaning of Section 2(a)(51)
   of the Investment Company Act of 1940, as amended. Admission to the Funds is not open to
   the general public. Investors and prospective Investors should refer to the limited partnership
   agreement or other governing document of the appropriate Fund for a detailed description of
   the fees.

   The Funds generally compensate BBA with a management fee (the “Management Fee”) based
   on either (1) committed capital and profits or (2) net assets, with the limited partnership
   agreement or other governing document of the appropriate Fund setting forth which approach
   is utilized. Where a Management Fee is based on committed capital and profits, the
   Management Fee is calculated with distributions deducted first from profits. In addition,
   performance-based compensation, based on the net profits allocated to each Investor and
   calculated on a high watermark basis (the “Incentive Allocation”), calculation described in
   more detail in the Fund documents, is allocated to the general partners (which are affiliates of
   BBA) of the respective Funds (the “General Partners”). The amounts of the Management Fee
   and the Incentive Allocation vary among the Funds. BBA from time to time makes
   discretionary downward adjustments to the Management Fee for all similarly situated limited
   partners but may discontinue such practice at any time.

   Fee arrangements for certain Funds were determined at inception of those Funds or pursuant
   to their Limited Partnership Agreements, and such arrangements apply to all Investors in each
   such Fund, other than BBA related persons. The General Partner waives the Management Fee
   and Incentive Allocations for Investors that are partners, employees, relatives or affiliates of
   the General Partner or the Investment Manager. Otherwise, the Management Fee and Incentive
   Allocation are generally not negotiable.

   Investors and prospective Investors should refer to the Funds’ limited partnership agreements
   and other governing documents for more detailed information regarding how BBA is
   compensated for its advisory services. The information contained herein is a summary only
   and is qualified in its entirety by such documents.

B. BBA deducts fees directly from the Funds’ assets. Investors do not have the ability to choose
   to be billed directly for fees. Management Fees are generally calculated monthly or quarterly
   in advance as specified in the relevant governing document for each Fund. The Incentive
   Allocation (if applicable) is generally made on the last business day of each calendar year, or
   at the time of withdrawal by an Investor subject to certain exceptions detailed in the limited
   partnership agreement of each Fund.

   Investors and prospective Investors should refer to the Funds’ limited partnership agreements
   and other governing documents for more detailed information regarding how BBA is
   compensated for its advisory services. The information contained herein is a summary only
   and is qualified in its entirety by such documents.

C. In addition to the compensation described above, each Fund generally bears certain expenses,
   which include, but are not limited to: (i) investment-related expenses (whether or not any such
   investment is consummated), (including the costs of consultants and experts sourced both
   directly and through expert networks; costs of all research, including primary research, such
   as direct surveys; attendance at industry conferences and events (including admission fees);
   travel, including but not limited to airfare at various rates which will include fully refundable
   airline tickets for first-class, business class, coach and charter (which will in some cases,
   include all of BBA’s investing professionals) as well as higher-end hotels and restaurants and
   inflight internet expenses; brokerage and prime brokerage fees; stock loan fees; and fees
   embedded in money market funds held by the Funds); (ii) fees and other expenses related to
   all regulatory filings, including legal, filing, and other costs related to regulatory filings,
   including but not limited to Form 13F and Form 13H filings, Form 3 and Form 4 filings,
   Schedule 13D and 13G filings, Form N-PX filings and filings under the Hart-Scott-Rodino
   Antitrust Improvements Act of 1976; (iii) third-party legal, governance, accounting, audit and
   tax preparation, appraisal, custodial and registration expenses, including third-party fund
   administration fees; (iv) fees related to proxy voting services; (v) fees related to class action
   services; (vi) offering expenses; (vii) liquidation expenses; (viii) sales or other taxes, fees or
   government charges; (ix) expenses of members of the advisory boards (with respect to certain
   Funds); (x) expenses relating to litigation and threatened litigation involving the applicable
   Fund, including permitted indemnification expenses; (xi) premiums for liability or other
   insurance for the benefit of the Fund, its General Partner, BBA, certain of BBA’s affiliates,
   members of the Fund’s advisory board (if applicable) and any of their respective partners,
   members, stockholders, officers, directors, employees, agents or affiliates in connection with
   the activities of the Fund1; (xii) profits disgorged by a Fund under Section 16 of the Securities
   Exchange Act of 1934; and (xiii) other similar expenses related to such Fund and any
   extraordinary expenses. For a Fund that is part of a master-feeder structure, each feeder fund
   will indirectly bear the administrative and other expenses of the master fund pro rata based on
   its interest in the master fund.

   Each Fund also generally bears all costs and expenses incurred in connection with its formation
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Item 7 – Types of Clients

BBA provides investment advisory services to pooled investment vehicles operating as private
investment funds.

Investment in these Funds is limited to investors that meet the eligibility qualifications of both (i)
“accredited investors” within the meaning of Regulation D of the Securities Act of 1933, as
amended (“Accredited Investors”) and (ii) “qualified purchasers” within the meaning of Section
2(a)(51) of the Investment Company Act of 1940, as amended. The majority of the Investors in
the Funds are institutional investors, primarily foundations and endowments.

In general, the minimum initial investment amount in Baker Brothers Life Sciences, L.P. or its
feeder, HCIF Offshore LP is $20,000,000 (aggregated by relationship); however, this is subject to
the discretion of the General Partner of each Fund, and this discretion has been delegated to BBA.
667. L.P. is not open to new investors.