HST Ventures LLC

Item 5 - Fees and Compensation

Below is a discussion of how the Adviser is compensated in connection with providing
advisory services to its Client. The Adviser may enter into different fee arrangements on a
Client by Client basis.

Management Fees. The fees and expenses associated with each Client account will be
negotiated with each Client and are described in detail in each Clients’ Offering Documents.
Generally, the Adviser will not be entitled to a management fee, but an Expense Payment
Amount will be allocated as provided by the Client in the respective investment management
agreement.

Performance Allocation. The Adviser is entitled to a performance-based profit allocation at
the end of each performance calculation period, equal a percentage of net profits (the
“Performance Allocation”).

Direct Client Expenses. Client(s) is responsible for all direct expenses related to its operations
and activities, including all of its expenses associated with its investment portfolio, including
brokerage commissions and other transaction costs. Client(s) bears the full cost of expenses
related to proxies, underwriting and private placements, brokerage commissions, interest on
debit balances or borrowings, custody fees and any withholding or transfer taxes imposed on
the Managed Account(s).

Performance Allocations from the Managed Account are calculated and delivered by the Client
to the Adviser at the end of each performance calculation period.

Client(s) will incur brokerage and other transaction costs. Item 12 of this brochure discusses
how the Adviser selects brokers and determines the reasonableness of their compensation.
The direct expenses borne by each Client are described in more full detail in each Client’s
Offering Documents.

As stated above, expense payments paid monthly in advance based on the Managed Account
percentage of the Adviser’s assets under management. Upon termination of an advisory
contract, a Managed Account shall pay a draw prorated through the end of the foregoing notice
period.

Other than as described above, neither the Adviser nor any of its supervised persons receives
any compensation from the sale of securities or other investment products.

Item 7 - Types of Clients

As mentioned in Item 4, the Adviser provides investment advisory services and sub-advisory
services to one sub-advised account.

Acceptance of Client(s) and sub-advisory account relationships is determined on a case-by-case
basis.