Cerrano Capital Management LP

Item 5 - Fees and Compensation

Cerrano or its affiliates receive a management fee and performance-based compensation from
Clients. Such compensation arrangements are set forth in the relevant Offering Document
with each Client.

The management fees paid by the Fund is generally equal to an annual rate of 1.25%, based on
the respective values of the net assets of each particular share class. The Firm or its affiliates
may reduce, waive or calculate differently the management fee for certain investors or Clients,
including members, employees and affiliates of the Firm.

Cerrano expects that the Fund will be responsible for investment-related expenses (including
brokerage (see Item 12 below)), as well as for their organizational and offering expenses.

Item 6 - Performance Fees and Side-by-Side Management

Cerrano or its affiliates receive performance-based compensation from Clients, generally equal
to 12.5% - 18% of the net profits, depending on the net asset value of each particular share
class of each Client. Additional information regarding such compensation arrangements are
set forth in the relevant Offering Document with each Client. The Firm or its affiliates may

reduce, waive or calculate differently the performance-based compensation for certain
investors or Clients, including members, employees and affiliates of the Firm.

The terms of the performance-based compensation may differ among the Clients. This may
result in a conflict of interest when allocating opportunities among Clients, as Cerrano may
have an incentive to favor Clients that have higher performance-based compensation. To avoid
such a conflict of interest, Cerrano has developed documented procedures for allocating
opportunities among Clients in a fair and equitable manner.

As management fees and performance-based compensation are based directly on Clients’ net
asset values, Cerrano may have a conflict of interest in valuing the assets held in Client
accounts. Cerrano follows documented valuation policies and consults with each Client’s
third-party administrator, as applicable, in order to mitigate this risk.