Iguana Healthcare Management LLC

Item 5 – Fees and Compensation

Management Fee
Iguana Healthcare Management generally charges a management fee (the “Management Fee”)
equal to (i) 1.5% of the Net Asset Value of the Class A Limited Partnership Interests, (ii) 2% of
the Net Asset Value of the Class B Limited Partnership Interests, (iii) 1.5% of the Net Asset
Value of the Class C Limited Partnership Interests, (iv) 1.5% of the Net Asset Value of the Class
D Limited Partnership Interests, and (v) 2% of the Net Asset Value of the Class E Limited
Partnership Interests. The Management Fee will be calculated and payable, in advance, on the
first Business Day of each quarter. The Management Fee with respect to any capital contribution
received on a date that is not the first Business Day of a month will be payable on the date on
which such capital contribution is accepted and will be pro-rated on the basis of the number of
days remaining in the month during which such capital contribution is accepted.		The Investment
Manager reserves the right to elect to reduce or waive its Management Fee with respect to any
Limited Partner without notice to, or the consent of, any other Limited Partner.

Incentive Allocation
With respect to pooled investment vehicles for which Iguana Healthcare Partners is the general
partner, Iguana Healthcare Partners generally will be entitled to an annual incentive or
performance allocation (the “Incentive Allocation”) at the end of each fiscal year (or the date on
which an investor withdraws from the vehicle) an amount equal to (1) 20% of net realized and
unrealized appreciation in the Net Asset Value per Class A Limited Partnership Interest, (ii) 20%
of the net realized and unrealized appreciation in the Net Asset Value per Class B Limited
Partnership Interest, (iii) 17.5% of the net realized and unrealized appreciation in the Net Asset
Value per Class C Limited Partnership Interest, (iv) 20% of the net realized and unrealized
appreciation in the Net Asset Value per Class D Limited Partnership Interest, and (v) 20% of the
net realized and unrealized appreciation in the Net Asset Value per Class E Limited Partnership
Interest (in each case, prior to accruals with respect to the Incentive Allocation). If an investment
has a loss chargeable to it during any fiscal year, and during a subsequent fiscal year there is a
profit allocable to such investment, there will be no Incentive Allocation made with respect to
such investment until the amount of the loss previously allocated to such investment has been
recouped. This is referred to as a “High Water Mark.”

Expenses
Clients are responsible for investment-related expenses, including custodial fees, brokerage
commissions, interest, and other transactional costs. For information about brokerage practices,
see Item 12 below.

Item 7 – Types of Clients
Iguana Healthcare’s clients include pooled investment vehicles (e.g. hedge funds) that it sponsors,
high net worth individuals who are “accredited investors,” and non-US persons. Iguana
Healthcare Management generally requires that clients have a minimum account size of
$1,000,000 to open or maintain an account.