Garnet Equity Capital Holdings Inc

ITEM 5 - FEES AND COMPENSATION

Fee Schedules; Calculation and Deduction of Fees

The Adviser receives a management fee that is calculated monthly and payable by the Funds
quarterly in arrears in an amount generally equal to 1.75% per annum of the net asset value of the
Funds.

The Adviser or its affiliate receives annual performance-based compensation of 17.5% of the net
capital appreciation of Trefoil, subject to a prior high watermark and loss carryforward. The
performance-based compensation is calculated and allocated after the end of each fiscal year. The
Adviser deducts fees directly from the Fund.

The Adviser or its affiliate also receive an annual performance-based compensation from Linmar
of generally 17.5% of net capital appreciation, subject to a prior high watermark and loss
carryforward. These fees are directly deducted from the Fund.

Other Fees and Expenses

Additional expenses incurred by the Funds may include commissions; clearing fees; research fees;
fees, interest and other costs on margin accounts or other financings or re-financings; accounting,
tax, audit, administrator, corporate and legal fees and disbursements; borrowing charges on
securities sold short; custodial fees; bank service fees; expenses incurred in connection with the
admission of investors or the acceptance of additional subscriptions; expenses in connection with
transactions directed to broker-dealers in part in recognition of investment research and
information furnished or expenses for services rendered by broker-dealers in the execution of such
orders and the use of such research and other services provided by such broker-dealers;
performance-based compensation, fees and expenses charged by an underlying fund in which the
Fund may invest; and any other reasonable expenses related to the purchase, sale, holding or
transmittal of the Fund’s assets or liabilities. Please see Item 12 herein for more information with
respect to brokerage arrangements.

It is important that each investor who is considering an investment review the private placement
memorandum, limited partnership agreement, management agreement, and/or subscription
agreement (individually and collectively, the “Offering Documents”) applicable to the Client for
a complete and detailed description of the fees and expenses applicable to such investment.

While generally not negotiable, the Adviser, in its sole discretion, has and may, from time to time,
waive or modify the management fee and the performance-based compensation for principals,
members, employees or affiliates of the Adviser or any general partner to a Client, relatives of
such persons, and for certain large or strategic investors, via, side letters or similar written
agreements with one or more investors in a Client.

ITEM 7 - TYPES OF CLIENTS

As described in Item 4, the Adviser’s Clients are two pooled investment vehicles. The Funds are
both Delaware limited partnerships. The Funds’ investors are generally required to make a
minimum initial investment of $1 million, subject to waiver at the Adviser’s discretion. In
addition, the Funds’ investors must meet certain net worth, net assets and other sophisticated
investor criteria as set forth in applicable securities laws and regulations.