Imperial Capital Asset Management LLC

ITEM 5: FEES AND COMPENSATION

A-B. Types of Fees and Payment Methods; Expenses

Under the Fund Documents for Long Ball, ICAM is entitled to receive an annual management fee from
Long Ball equal to approximately 1.50% (0.125% on a monthly basis) of the capital account balance of
each Fund investor. ICAM, in its discretion, may waive or reduce the management fees as to all or any of
the investors in the Fund or agree with an investor to waive or alter the management fee as to that
investor. The management fee is paid by the Fund monthly in arrears by deduction from each investor’s
capital account in such Fund on the last business day of each calendar month. If an investor withdraws all
or a portion of its account in the Fund on a date other than the end of a calendar month, a prorated
management fee will be deducted from the amount withdrawn for the period from the preceding month-
end to the date of withdrawal.

ICAM also receives from Long Ball an annual performance-based allocation in arrears equal to a
percentage of the net capital appreciation (i.e., capital appreciation less capital depreciation) of each
investor’s account in such Fund. The performance-based allocation is made only if, and to the extent that,
the net capital appreciation of the investor’s account exceeds any net capital depreciation accumulated in
prior years (as adjusted for withdrawals of capital). ICAM, in its discretion, may waive or reduce the
performance-based allocation as to all or any of the investors in the Fund. The performance-based
allocation from the Fund is made to ICAM by deduction from each investor’s capital account in the Fund
on December 31 (or the closest business day prior to December 31) for the 12-month performance period
ending on the prior calendar year for each year in which performance-based allocation is earned. If an
investor withdraws all or a portion of its account in the Fund on a date other than December 31, the
performance-based allocation will be made on the amount withdrawn for the period from the January 1 in
the year of the withdrawal to the date of withdrawal.

As the managing member of Imperial Infrastructure, ICAM receives a management fee with respect to
each investor of Imperial Infrastructure (including Long Ball) equal to 0.5% per annum of the company’s
net invested capital. The management fee is paid monthly in arrears by deduction from each investor’s
capital account in Imperial Infrastructure on the last business day of each calendar month. Any payment
of the management fee for a period of less than a month will be adjusted on a pro rata basis according to
the actual number of days elapsed during the period.

On occasion, certain clients of IC may make payments to ICAM for the generic, impersonal investment
advice contained in such debt and equity investment reports. Fees paid to ICAM by IC clients are
negotiable and vary. A portion of the fees received by ICAM may be paid over to IC to offset the cost
associated with providing the debt and equity investment reports.

C. Costs and Expenses

Long Ball bears all expenses of its organization and operation, expenses incurred in the purchase and sale
of investments, and accounting fees, as determined by ICAM. Such expenses include but are not limited
to: (i) investment-related expenses, including brokerage and execution charges, commissions, custodial
charges, and fees for quotation and other data services; (ii) fees related to accounting, trading, portfolio

management and risk management systems; (iii) research subscriptions and expenses; (iv) broken trade
and broken deal fees; (v) expenses relating to marketing the Fund to prospective investors (including
travel and software costs); (vi) expenses to register securities and transfer taxes; (vii) costs and expenses
incurred for the purpose of protecting and enhancing the value of the Fund’s investments (including the
costs of instituting and defending litigation); (viii) taxes, filing and registration fees and other regulatory
expenses of the Fund; (ix) all costs, fees and expenses relating to investor communications, relations,
accounting and the preparation and mailing of financial, tax and performance information to investors;
(x) fees, costs and expenses incurred in connection with borrowings; (xi) administration fees, costs and
expenses; and (xii) fees for attorneys, accountants, consultants and other professionals or experts. ICAM
may, at its discretion, choose to pay or reimburse the Fund for all or any portion of such expenses. In such
event, ICAM may be reimbursed at a later date by such Fund for the expenses borne by ICAM. For
additional information regarding brokerage and execution fees, see Item 12 below.

Investors in the Fund also indirectly bear a portion of any fees or expenses charged by Imperial
Infrastructure (described below), any investment funds (including mutual funds or other hedge funds) in
which the Fund invests or other investment managers to which ICAM allocates a portion of the Fund’s
assets. Long Ball invests in other private investment vehicles that are sponsored or managed by ICAM or
an affiliate (the “Related Funds”), and companies or business associations in which ICAM or an affiliate
has an equity or other participation interest (the “Related Companies”). In connection with these affiliated
investments, the Fund bears its proportionate share of the operating fees and expenses incurred by any
Related Fund or Related Company in which the Fund invests, which are separate from and in addition to
the fees and expenses incurred directly by the Fund. To the extent that Long Ball invests in any Related
Fund, ICAM or an affiliate will receive a management fee and/or a performance allocation in its capacity
as the investment manager of such Related Fund. Any Related Fund or Related Company fees and
expenses borne by Long Ball will be allocated solely to the capital accounts of the investors in such Fund.
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ITEM 7: TYPES OF CLIENTS

As described in Item 4 above, ICAM organized and serves as investment manager to the Imperial Clients
and may decide in the future to sponsor or manage additional Funds, accounts and joint ventures.

ICAM generally requires investors in Long Ball to make a minimum initial investment in the Fund of at
least $1,000,000, however, ICAM may, in its sole discretion, waive the minimum subscription
requirement for any investor. Investors in Long Ball generally must be “accredited investors” under
Regulation D who are eligible to enter into a performance-based compensation arrangement under the
Advisers Act. ICAM generally requires Fund investors to make representations concerning their financial
sophistication and ability to bear the risk of loss of their entire investment in the Fund.