Baleen Capital Management LLC

Item 5.                Fees and Compensation

Baleen’s compensation is negotiable and varies, but typically, it charges an annual fee of up to
2.0% of assets under management, which amount is payable in quarterly installments at the
beginning or end (depending on the provisions of each client’s partnership, operating or account
agreement) of each calendar quarter based on the net market value of each client’s or investor’s
account on the date the fee accrues or becomes payable. Baleen also typically is allocated from
each investor in a Baleen Fund a performance allocation equal to 20% of net profits (including
both realized and unrealized gains and losses) otherwise allocable to such investor. Performance
allocations with respect to each investor are assessed in arrears on an annual basis, and are only
applied to the portion of profits that exceed the cumulative losses previously allocated to that
investor; provided that performance allocations generally will not be made with respect to an
illiquid investment until that investment is liquidated.

Baleen typically charges investors in the SPVs a management fee of up to 2.0% of each investor’s
invested capital. Baleen typically receives a carried interest distribution with respect to each
investor in an SPV equal to 20% of the amounts distributed to that investor in excess of that
investor’s aggregate capital contributions to the SPV.

Baleen may waive or reduce all or part of the management fees or performance allocations with
respect to any client or Fund investor. Baleen complies with Rule 205-3 under the Investment
Advisers Act of 1940, to the extent required by applicable law. Performance allocations may
create an incentive for Baleen to make more risky and speculative investments than it would
otherwise make.

Baleen deducts management fees and performance allocations directly from client accounts.

Accounts that invest in other private investment funds or managed accounts also pay, indirectly,
investment advisory fees to the managers of those funds or accounts.

Baleen believes that its fees are competitive with fees charged by other investment advisers for
comparable services. Comparable services may be available, however, from other sources for
lower fees.

The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan that is subject
to the Employee Retirement Income Security Act of 1974 and that invests in a Fund of which
Baleen is general partner or managing member, to use the “alternative reporting option” to report
Baleen’s compensation as “eligible indirect compensation” on the Schedule C of the plan’s Form
5500 Annual Return/Report of Employee Benefit Plan.

Relationships with each Fund are terminable on expiration of the Fund’s term, on dissolution of
the Fund or on Baleen’s withdrawal as general partner, managing member or investment adviser
of the Fund. Each investor in a Baleen Fund generally may withdraw from that Baleen Fund, on
specified prior written notice, on the last day of any calendar quarter that occurs on or after the day
preceding the first anniversary of such limited partner’s admission to the Baleen Fund, although
Baleen may waive this lock-up period or permit more frequent withdrawals in its discretion.
Baleen may allocate illiquid investments in a Baleen Fund to side pockets. Investors generally
may not withdraw from side pockets until the assets in those side pockets have been liquidated.
Investors generally may not withdraw from the SPVs,

In all cases, expenses, the pro rata portion of the management fee and the performance allocation
through the date of termination are charged to the account. All prepaid but unearned advisory fees
are refunded on termination of a client’s account. An investor who withdraws from a Fund on a
date other than the last day of a quarter or other appropriate period, however, the investor receives
a refund of a pro rata portion of the management fee previously paid for such quarter.

Each account is responsible for its own costs and expenses, including trading costs and expenses
(such as brokerage commissions, expenses related to short sales, and clearing and settlement
charges), ongoing legal, accounting and bookkeeping fees and expenses, and the fees and expenses
charged by any fund administrator for its accounting, bookkeeping and other services. Baleen
bears its own operating, general, administrative and overhead costs and expenses, other than the
expenses described above. All or part of these costs and expenses may be paid, however, by

securities brokerage firms and futures commission merchants that execute clients’ securities
trades, as discussed in Item 12 below.

Fees for consulting services offered by Baleen are negotiable and will be billed either in advance
or arrears pursuant to a written agreement.

Item 7.                Types of Clients

Baleen provides investment advice to investment funds. Investors in the Baleen Funds generally
are required to invest a minimum of $1,000,000 and investors in SPVs generally are required to
invest a minimum of $25,000, but Baleen may waive these minimums.