Falcon Bridge Capital II LLC

Item 5 Fees and Compensation

Falcon Bridge Capital II may receive management fees, pricing and analytics fees and/or
carried interest or similar profit allocations from its clients. Clients may also indirectly

incur or generate other fees payable to Falcon Bridge Capital and its affiliates, depending
on the nature of their portfolio activities.

Clients may also bear certain out-of-pocket expenses incurred by Falcon Bridge Capital in
connection with the services provided. The following sections discuss the most common
fees and expenses, which are described in more detail in relevant Offering Materials.

Common Types of Fees

Management Fees

FBC investment advisory clients generally pay a quarterly flat rate management fee, in
advance, at a negotiated rate. General rates for Falcon Bridge advice will be set forth in
the Offering Materials. Fees paid by Clients may vary based on the type and nature of
services provided. Additionally, Falcon Bridge Capital may waive or reduce management
fees for certain Investors in its discretion. Fees may be paid either through deduction from
account assets or directly by a client upon presentation of a fee bill. When fees are paid in
advance, and the client or Investor relationship is terminated prior to the end of the period
to which such fees relate, Falcon Bridge Capital will, within a reasonable time following
such termination, refund a prorated portion of the management fee.

Performance-Based Arrangements

Falcon Bridge Capital’s compensation is individual to each particular client’s needs and
may include a performance-based component. Falcon Bridge Capital expects that
performance-based arrangements will vary as to the rate, manner of calculation and
conditions precedent to receipt (e.g., hurdles or high-water marks). Performance-based
arrangements for each account will be described in the relevant Offering Materials for that
account and may be subject to modification (e.g., higher hurdle rates), waiver or reduction.
As discussed in more detail in Item 6, below, performance-based compensation
arrangements are appropriate only for sophisticated clients and Investors as they may create
certain risks and conflicts of interest.

Performance allocations are generally accomplished through transfer to a capital account
of Falcon Bridge Capital (or an affiliate). Performance fees payable by clients may be
deducted from the account or paid by the client upon presentment of a fee bill. As described
in the relevant Offering Materials, when termination occurs on other than the end date for
a performance measurement period, performance fees will be calculated and assessed
through the date of termination.

Other Fees and Expenses

In addition to the fees described above clients may bear other costs associated with
investments or accounts including but not limited to: (1) custodial charges, brokerage fees,
commissions and related costs; (2) interest expenses; (3) taxes, duties and other
governmental charges; (4) transfer and registration fees or similar expenses; (5) costs
associated with foreign exchange transactions; (6) other portfolio expenses; and (7) costs,
expenses and fees (including investment advisory and other fees charged by the investment
advisers of funds in which the client’s account invests) associated with products or services
that may be necessary or incidental to such investments or accounts.

Soft Dollars

Falcon Bridge Capital may receive, on an unsolicited basis, research reports from broker
dealers with which it maintains certain relationships. Such reports do not have a stated
cost, nor is the receipt of such reports conditioned on a requirement to execute any amount
of transactions through the broker dealer providing the reports.

Please see Item 12 of this Brochure for further details on Falcon Bridge Capital’s brokerage
practices.

Fees and Expenses Generally Applicable to Client Accounts

Certain clients may bear the costs of their trading and investment activities. Such expenses
may include, but are not limited to, fees and expenses related to making and holding
investments (e.g., execution charges such as spreads or commissions, exchange fees,
clearing fees, regulatory fees, margin fees, option premiums, delivery fees or charges,
escrow fees and expenses and custody fees and expenses), research costs, taxes, insurance
costs, interest expenses, due diligence costs (including travel expenses) and finders’ fees.

Fees and Expenses Applicable to Funds

Falcon Bridge Capital does not currently or foresee offering SEC registered forty act or
other funds in the future.

Fees and Expenses for Non-Discretionary Accounts

When Falcon Bridge Capital provides advisory services on a non-discretionary basis, it
typically does not have authority to select broker-dealers, custodians or other service
providers. Clients may bear all costs associated with trading and maintaining their
investment accounts, as described above, including without limitation: commission and
commission equivalents; custody fees; margin costs; and taxes.

Item 7 Types of Clients

Currently Falcon Bridge Capital’s business model is to provide investment advice to
institutional investment and hedge fund entities. Falcon Bridge Capital may also provide
advice to banking institutions. Falcon Bridge may accept as clients other additional
institutional and accredited investors, additional banking entities, trusts, pension funds,
investment pools and qualified high net worth individuals.

Each institutional investment or banking entity, other than individual intuitional accredited
investors is, expected to be, a privately placed pooled investment vehicle excepted from
the definition of “investment company” under the Investment Company Act of 1940 by
Section 3(c)(1) or Section 3(c)(1) of that Act. Investors generally are limited to persons
who are: (i) accredited investors; (ii) qualified clients; and/or (iii) qualified purchasers (iv)
banking entities Clients are generally expected to include institutions such as: banks,
financial institutions, investment banks and asset management firms.

Falcon Bridge Capital may impose an initial investment minimum to establish a client
relationship or to invest with FBC, Investors or Clients may also be subject to additional
qualifications based on, among other things, legal or regulatory requirements associated
with the vehicle or investment strategy. Account opening and maintenance requirements
are described in more detail in the relevant Offering Materials.