Blue Moon Capital Management LLC

Item 5.         Fees and Compensation

Pooled Investment Vehicles

Compensation for investment management services provided by Blue Moon and its affiliates for its pooled
investment vehicle clients is comprised of (i) a fixed annual asset-based management fee (the
“Management Fee”), and (ii) performance or incentive-based compensation (the “Performance Fee”).
The Management Fee generally is payable quarterly in advance in amounts equal to 1/4 of the
Management Fee.

In addition and as previously described in Item 4 above, Blue Moon and/or its affiliates may occasionally
enter into a side letter arrangement with certain investors of the pooled investment vehicle, in which the
Blue Moon and/or its affiliates may grant such investors with preferential terms, which may include fee
reductions or waivers.

The specific amounts and manner in which Blue Moon and its affiliates charge fees to the pooled
investment vehicles is established and described in greater detail in the Governing Documents of the
relevant pooled investment vehicle. Investors in such pooled investment vehicles should refer to these
Governing Documents for a complete understanding of how Blue Moon and its affiliates are compensated
for its advisory services. The information contained herein is a summary only and is qualified in its entirety
by such documents.

Pension Plan Account

Pursuant to the advisory and asset management agreement with the state pension plan, Blue Moon is
compensated in the form of a fee based on net operating income that is paid in arrears for services provided
to the Pension Plan Account under that agreement.

Other Expenses

The expenses paid by the Blue Moon’s pooled investment vehicle clients are set forth in detail in the
Governing Documents of the relevant client. Investors and prospective investors in such pooled
investment vehicles should therefore review the applicable advisory agreement or Governing Documents
carefully because such documents, and not the summary in this brochure, describe more specifically the
expenses such investor will bear. As a general matter and in addition to the Management Fee, the pooled
investment vehicle will pay, or reimburse the General Partner for, all other fees, costs, expenses, liabilities
and obligations relating to the pooled investment vehicle’s activities, business or actual or potential
investments, all as more fully described in the Governing Documents.

In addition to paying the above advisory fees to the Firm, the Pension Plan Account is also subject to other
expenses that are not paid to the Firm. They may include (but are not limited to) fees charged by the
client’s custodian, interest expenses; taxes, duties and other governmental charges; transfer and
registration fees or similar expenses; costs associated with foreign exchange transactions (if any); other
portfolio expenses; and, costs, expenses and fees associated with products or services that may be
necessary or incidental to such investments or accounts.

Please also see Item 12 for additional information relating to Blue Moon’s brokerage practices.

Item 7.          Types of Clients

As noted previously, the Firm’s clients include pooled investment vehicles and a state pension plan.