Four Lion Capital LP

Item 5.     Fees and Compensation

General

The Firm or its affiliates receive compensation from Clients based on a percentage of assets under
management (“Management Fee”) and based on the performance of a Client’s portfolio (“Profit
Allocation”). For a complete description of specific compensation arrangements, Clients should carefully
review their Governing Documents.

All of the Firm’s Clients are expected to be “qualified purchasers” (as defined in Section 2(a)(51) of the
Investment Company Act of 1940).

Private Fund Fees and Expenses

The Firm deducts Management Fees from the Funds quarterly in advance. The Firm may waive or modify
the Management Fee payable with respect to any investor, including for employees and affiliates of the
Firm.

FLC Fund GP, LLC (the “General Partner”), an entity that is affiliated with the Firm, serves as the general
partner to the Funds. The General Partner is entitled to receive the Profit Allocation from the Funds, as
further described in Item 6 – Performance-Based Fees and Side-By-Side Management.

The Feeder Funds will bear their own expenses and their pro rata share of the Master Fund’s expenses,
including, without limitation, the Management Fee; transaction-related expenses (which include all
transaction-based expenses incurred in executing investments including brokerage commissions,

expenses related to short sales, clearing and settlement charges, expenses associated with dealer spreads,
custodial fees, bank service fees, interest expenses and legal expenses associated with any potential
transaction); reasonable investment-related travel expenses (which are travel expenses related to the
purchase, sale or transmittal of, or due diligence regarding, the Master Fund’s investments, whether or
not such investments are consummated, incurred by the Firm or the General Partner); professional fees
(including, without limitation, expenses of consultants, investment bankers, attorneys, accountants and
other experts) relating to investments; brokerage and prime brokerage fees, commissions and expenses
(including the costs of negotiating, documenting and/or amending agreements with prime brokers, ISDAs
and other agreements with trading and financing counterparties); fees and expenses of proxy research
and voting services; legal, regulatory and compliance expenses of the Firm or the General Partner related
to their activities on behalf of the Feeder Funds and/or Master Fund, as applicable (including filings to be
made with regulators in U.S. and non-U.S. jurisdictions such as compliance obligations arising from the
AIFM Directive, “blue sky” filings, fees and expenses associated with non-U.S. registered agents and paying
agents, responding to formal and informal inquiries and legal, compliance, archiving and research
services); fees and expenses relating to software tools, programs or other technology utilized in managing
the Feeder Funds and Master Fund (including, without limitation, third-party software licensing,
implementation, data management and recovery services, custom development costs and all costs and
expenses of any order management systems utilized by the Firm to manage the Feeder Funds and the
Master Fund); research, market data and other data costs incurred in connection with the investment
activities of the Master Fund (excluding any computer hardware and connectivity hardware (e.g.,
telephone and fiber optic lines) incorporated into the cost of obtaining such research and market data),
including, but not limited to, Bloomberg terminals, licenses, applications, and data, research, risk an
investment-related data; administrative expenses (including fees and expenses of the fund administrator);
external accounting and valuation expenses (including pricing services, but excluding the cost of
accounting software packages); audit and tax preparation expenses; insurance costs related to insurance
coverage including, without limitation, premiums for liability insurance (including directors and officers
liability insurance, errors and omission insurance, and liability insurance); costs of printing and mailing
reports and notices, including costs associated with reporting and providing information to Funds’ limited
partners and any costs incurred in connection with the preparation and execution of Funds’ limited
partner “most favored nations” elections; entity-level taxes, withholding, transfer or other taxes unless
such tax is treated as an investor-related tax (including any amounts payable under any BBA provision),
fees or governmental charges imposed or assessed on, or collected from the Funds (including any interest
or penalties); corporate licensing; regulatory expenses of the Feeder Funds and Master Fund and the Firm
(including, without limitation, legal fees, filing fees and costs associated with AML/Sanctions and FATCA
compliance); organizational expenses; expenses incurred in connection with the offering and sale of the
Interests (including, without limitation, legal fees, registration and other filing fees and side letter
negotiations, but excluding travel expenses) and other similar expenses related to the Feeder Funds and
the Master Fund (other than any fees payable to any placement agent, which will be paid by the Firm
either directly or indirectly by reducing Management Fees owed to the Firm); indemnification expenses;
wind up and liquidation expenses and any extraordinary expenses arising in connection with the
operations of the Funds. Generally, the Funds’ expenses, other than the Management Fee and any
expenses which the General Partner determines in its sole discretion should be allocated to a particular
partner or partners, will be charged to the capital accounts of all the partners on a pro rata basis. To the
extent that expenses to be borne by the Feeder Funds or the Master Fund are paid by the General Partner,
the Firm, the Sub-Advisor (as defined in Item 8 below) or an affiliate thereof, the Feeder Funds or the
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Item 7.     Types of Clients

The Firm manages private funds that are offered solely to qualified purchasers. Investors in the Funds are
high net worth individuals, single and multi-family offices, asset managers and institutional investors. The
minimum initial investment in the Funds is determined by the General Partner and set forth in the Funds’
Governing Documents. The General Partner may waive such minimum under certain circumstances. The
minimum initial investment for SMAs is $20 million. The Firm may, in its sole discretion, waive such
minimum.