Ionic Capital Management LLC

Item 5.           Fees and Compensation

We do not currently have a fee schedule as the fees and expenses of our Clients vary and are specified in
the Fund Documentation applicable to each Client. Each Client pays Ionic a management fee generally
ranging from an annual rate of 1.00% to 1.5% of the Client’s assets. Management fees generally are paid
in arrears as of the end of each month and are deducted directly from the accounts of the Ionic Funds (the
Liquid Alternatives Funds are invoiced for management fees).

In addition to Management Fees, the Ionic Funds are subject to performance allocations, which generally
are determined as a percentage of a fund’s appreciation, subject to a “high water mark” provision. The
specific terms relating to the structure and calculation of performance allocations and any related high
water mark provisions, which vary among the Ionic Funds, are described in the Fund Documentation
applicable to each Ionic Fund.

Investors in certain of the Ionic Funds are subject to early withdrawal or redemption charges under certain
circumstances, as described further in the Fund Documentation relating to such funds.

In addition, to the extent applicable pursuant to the Fund Documentation, the Ionic Funds pay all operating
and administrative costs and expenses they incur which include, without limitation: (i) brokerage
commissions and other costs of executing transactions; (ii) investment expenses and all other expenses
(including all commissions, clearing fees, interest and financing charges) related to the purchase, sale,
transmittal or custody of investments and related items; (iii) legal, accounting, auditing and other
professional fees and expenses, as well as the costs of negotiating trade-related and account-specific
counter-party documentation; (iv) any taxes and similar amounts (including withholding and other taxes)
and duties payable in any jurisdiction in connection with the Clients’ operations; (v) fees and expenses in
connection with the custody of Client assets; (vi) administrative expenses (including the fees and out-of-
pocket expenses of the administrator), paying agency, transfer agency, shareholder registrar services costs,
costs and fees associated with the roles of tax matters partner and partnership representative, if applicable;
(vii) certain software licensing fees (including, but not limited to, software licensing fees related to risk
management, accounting, and risk analytics data included in Form PF), external programming or software
development, purchasing and operating costs, and costs of cyber insurance; (viii) any other operating or
administrative costs or expenses related to accounting, research, due diligence and reporting; (ix) costs
and expenses relating to regulatory compliance, including the costs of regulatory filings (including,
without limitation, filings the preparation and submission of which currently or in the future may be
required of the Ionic Funds or Ionic under applicable law) and inquiries; (x) costs associated with fulfilling

    Assets under management referenced herein are inclusive of notionally funded mandates.

bonding requirements under ERISA; (xi) directors’ fees and expenses; (xii) portions of premiums paid for
errors and omissions insurance and any indemnification payments; and (xiii) organizational expenses.

For certain Ionic Funds, we may agree to pay a portion of such operating and administrative costs to the
extent such costs exceed a specific amount.

Item 7.        Types of Clients

Ionic currently serves as: (i) investment advisor to private investment funds (both commingled funds and
funds-of-one) offered exclusively to sophisticated investors; and (ii) investment sub-advisor to European
UCITs funds and a registered investment company.