Cable Car Capital LP

Item 5. Fees and Compensation

Cable Car is compensated for services provided to the Funds as more fully set forth in their offering
documents and may, in its sole discretion, waive or vary the management fee and performance allocation with
respect to any limited partner.

The Funds pay a quarterly management fee to Cable Car, which is calculated and payable as to each limited
partner in arrears as of the end of each fiscal quarter based on the limited partner’s capital account at the end
of the quarter. The management fee is 0.375% per quarter (approximately 1.5% per annum) of the balance in
each limited partner’s capital account.

At the end of each fiscal year (or a shorter period in certain circumstances), net profits and net losses for the
year are allocated among the partners, and Cable Car is entitled to receive a performance allocation as to each
limited partner equal to a percentage of the net profits allocated to that limited partner, but only to the extent
those net profits exceed net losses previously allocated to the limited partner that have not been recovered.

   Cable Car Capital        , LP | Concentrated   , hedged value investing                                       4

The performance allocation is equal to twenty percent (20%) of the net profits allocated to each limited
partner.

Performance-based compensation is charged only in accordance with Rule 205-3 of the Investment Advisers
Act of 1940 and California Code of Regulations §260.234 to those limited partners who meet the definition
of “qualified client” (generally, non-US persons or US persons with net worth, excluding primary residence,
greater than $2.2 million or assets under management with Cable Car of greater than $1.1 million).

The Funds pay or reimburse Cable Car for certain costs and expenses incurred by or on behalf of the Funds,
or for their benefit, as set forth in their offering documents. These costs and expenses include investment-
related expenses, such as commissions, interest on margin borrowing, costs relating to short sales, transfer
taxes, custodial charges, legal and professional fees associated with protecting and preserving the value of any
investment, and other usual transaction costs, without limitation. The Funds also bear operating expenses,
including the management fee, which are capped at two (2.0) percent of the average net asset value of the
partnership as of the close of trading on the last business day of each month during the year. Operating
expenses include, without limitation, the ongoing accounting, audit, administration, legal, tax, and other
professional fees of the Funds. Cable Car reimburses the Funds for operating expenses, if any, in excess of
the two percent cap.

Cable Car may be compensated for co-investment opportunities by limited partners who are qualified clients
on a case-by-case basis.

Lower fees for investment advisory services may be available from other advisers.

Separate account clients may incur brokerage and other investment expenses in addition to Cable Car’s fees.
As discussed in “Item 12. Brokerage Practices,” Cable Car and the Funds do not utilize “soft dollar”
arrangements, although the Funds are permitted to do so under their offering documents. Brokerage
commissions do not include mark-ups and are not utilized for research costs; Cable Car bears all research-
related expenses directly. In addition to brokerage costs, clients may incur fees and costs related to operating
and maintaining an investment account. These commissions and fees are charged or passed through by the
custodian and not by Cable Car.

Cable Car does not collect fees in advance of providing its services.

Neither Cable Car nor any of its employees accepts compensation for the sale of securities or other
investment products.

Item 7. Types of Clients

Cable Car provides investment advice only to the Funds and certain of their limited partners.

Each investor in the Funds must meet certain eligibility requirements. Each of the offerings of The Funicular
Qualified Fund, LP, The Funicular Fund, LP, and The Funicular Fund (BVI), Ltd. is designed to be exempt
from registration under the Securities Act of 1933, as amended, pursuant to Section 506(c) of Regulation D
thereunder. In addition, The Funicular Fund, LP and The Funicular Fund (BVI), Ltd. rely on an exemption
from registration as an investment company under the Investment Company Act of 1940, as amended,
pursuant to Section 3(c)(1). Funicular Funds, LP and The Funicular Qualified Fund, LP rely on an exemption
from registration as an investment company under the Investment Company Act of 1940, as amended,
pursuant to Section 3(c)(7). Investors in the Funds must be “accredited investors” as defined in Regulation D.

The minimum initial investment amount for the Funds is $200,000, subject to waiver at the sole discretion of
Cable Car.