Clearline Capital LP

FEES AND COMPENSATION

The fees and compensation from the Funds are set forth in each Fund’s offering memorandum.

The Funds pay a management fee generally in an amount equal to 1.50% per annum of net assets,
payable in advance as of the beginning of each month. The Funds may also pay an annual
performance-based incentive generally in an amount equal to 20% of the aggregate increase of the
Fund’s net worth allocated to the individual capital accounts. For our initial investors (and
therefore no longer offered), Clearline offered a 10% discounted fee class on both management
and performance-based incentive fees.

Clearline does not accept any other compensation in connection with the sale of securities or other
investment products.

In addition to the management fee and incentive allocation described above, the Funds’ investors
will also be subject to additional fees and expenses such as legal, compliance, administrator, audit
and accounting expenses, organizational expenses, investment expenses such as commissions,
research fees and expenses (including research related travel), interest on margin accounts and
other indebtedness, borrowing charges on securities sold short (if any), custodial fees, bank
services fees, Fund-related insurance costs (including portion of D&O and E&O insurance for
Clearline, Clearline Capital LLC (the “General Partner of Clearline”), Clearline Capital GP LLC
(the “General Partner”) and outside directorship liability, as applicable), directors’ fees and
expenses (if any), portfolio risk and performance analysis software, and other fees described in
each Fund’s offering memorandum.

TYPES OF CLIENTS

The Funds are private investment funds that have a minimum initial capital contribution of $1
million. Thereafter, the minimum additional capital contribution required is $250,000. The
General Partner, from time to time in its sole and absolute discretion, can accept a lesser initial or
additional capital contribution amount. Investors of the funds may include high net worth
individuals, pension funds, trusts, endowments, fund of hedge funds, family offices and other
entities.