Dalal Street LLC

Item 5: Fees and Compensation

A.     Advisory Allocations

For the Pabrai Funds, the Adviser is generally entitled to receive an advisory allocation of 25%
of the increase in a Client’s net assets over an annual rate of 6%, subject to a “high water mark”.
Such fees are not negotiable.

In addition to the fee described above, the Adviser is entitled to an annual management fee set
by the Adviser of up to 1% of the capital contributions for Dhandho Holdings. The management
fee is intended to cover the costs and expenses of the general partner incurred in connection
with the management of Dhandho Holdings. The management fee will be offset by any directors’
fees, consulting and/or advisory fees received by the Adviser or its affiliates from Dhandho
Holdings. Such fees are not negotiable.

B.     Timing of Advisory Allocation

With respect to the Pabrai Funds, the advisory allocation due to the Adviser (if any) from each
Client is allocated to the Adviser as follows. Advisory allocations are paid by Clients in arrears,
cannot be paid in advance and are deducted from Client’s assets, if applicable.

The Pabrai Investment Fund II, L.P.: Annually on June 30 and on the day immediately preceding
(i) a new or existing investment by an underlying investor in The Pabrai Investment Fund II,
L.P., and (ii) any withdrawal by a Pabrai Investment Fund II, L.P. investor of all or any portion
of such Pabrai Investment Fund II, L.P. investor’s investment in excess of $25,000.

Pabrai Investment Fund 3, Ltd.: On the day immediately preceding (i) a new or existing
investment by an underlying investor in Pabrai Investment Fund 3, Ltd. and (ii) any withdrawal
by a Pabrai Investment Fund 3, Ltd. investor of all or any portion of such Pabrai Investment
Fund 3, Ltd. investor’s investment in excess of $25,000.

The Pabrai Investment Fund IV, L.P.: On the last day of each fiscal quarter and on the day
immediately preceding (i) a new or existing investment by an underlying investor in The Pabrai
Investment Fund IV, L.P., and (ii) any withdrawal by a Pabrai Investment Fund IV, L.P. investor
of all or any portion of such Pabrai Investment Fund IV, L.P. investor’s investment in excess of
$25,000.

For Dhandho Holdings, the management fees (if any) are calculated quarterly but paid annually
and deducted from the Client’s assets.

C.     Additional Fees and Expenses

Each Client may pay the costs and operating expenses incurred in the operation and
administration of its account, including fees of third-party administrators, accounting, legal,
auditing and all investment expenses, such as brokerage commissions, custodial fees, bank
service fees, interest on margin accounts and other indebtedness, if any, and other reasonable
expenses related to the purchase, sale or transmittal of Client assets. Clients also bear the costs
and expenses associated with their organization. For further information regarding additional
expenses incurred, please refer to the relevant Client’s private placement memorandum and/or
organizational documents.

D.     Prepayment of Fees

See Item 5.B.

E.     Additional Compensation and Conflicts of Interest

Neither the Adviser nor any of its supervised persons accept compensation for the sale of
securities or other investment products. Through its subsidiary Dhandho Funds LLC (“Dhandho
Funds”), Dhandho Holdings has extended interest-bearing loans to employees of Dhandho
Funds. This creates a conflict of interest due to a risk of Dhandho Holdings not being paid back
and the ramifications to investors of Dhandho Holdings. To mitigate these risks, a note has been
established with clear and concise terms, the loan has been made a recourse loan collateralized
by units of Dhandho Holdings owned by the employees, and the amounts are not excessive by
which to create a financial burden on Dhandho Holdings.

Item 7: Types of Clients

The Adviser provides investment management services to private pooled investment vehicles. The
offering documents and/or advisory agreement of each Client may set minimum amounts for
investment by prospective investors in such Clients. These minimum amounts may be waived by the
Adviser.