KAVI Asset Management LP

Item 5 - Fees and Compensation

Management Fees

As the investment adviser to the Hedge Fund, we receive management fees at an annual rate
of 1.5%-1.75%, depending upon the value of the net assets of each particular share class of the
Domestic Feeder Fund, the Offshore Feeder Fund and the Master Fund. These management
fees are deducted from the Master Fund quarterly, in advance, and are prorated for any
investment period that is less than a full calendar quarter. The management fees are refundable
if the advisory contract is cancelled prior to the end of a payment period.

While the management fee is generally not negotiable, we may waive or modify the fee for
certain Investors that are members, employees or affiliates of Kavi, relatives of such persons,
or for certain large or strategic Investors, with the Firm’s consent.

Other Expenses

The Domestic and Offshore Feeder Funds invest in the Master Fund on substantially the same
terms and conditions and therefore are generally allocated a proportionate share of the Master
Fund’s gains, losses and expenses based on their interest in the Master Fund.

The Funds will bear their own expenses relating to their organization and the offering of
shares, as well as investment and operational expenses. These expenses may include, among
other things: legal, administration, audit and accounting expenses (including third party
accounting services); proxy voting services; investment expenses such as commissions,
research fees, market data and similar expenses; interest on margin accounts and other
indebtedness; borrowing charges on securities sold short; custodial fees; bank service fees;
Fund-related insurance costs (including D&O and E&O insurance for Kavi and the general
partner); and any other expenses related to the purchase, sale, or transmittal of the Funds’
assets and expenses incurred in developing, negotiating, structuring, holding and disposing of
the investment.

Kavi Asset Management, LP                                                   Form ADV Part 2A

If Kavi incurs any of the expenses mentioned above on behalf of the Funds, then the Firm will
allocate such expenses among the Funds in proportion to the size of the investment made by
each in the activity or entity to which the expense relates, or in such other manner as Kavi
considers fair and reasonable.

The Firm shall bear its own overhead costs or expenses, including, without limitation, the
salaries and benefits of the Firm’s employees performing the services described in the Fund
Documents.

For a more detailed discussion of brokerage and transaction costs, Investors are directed to

Item 7 - Types of Clients

The Firm’s clients are the Funds. The Fund Documents provide the eligibility criteria and
minimum investment requirements.

In general, each Investor in the Funds must be an “accredited investor” as defined in Regulation
D under the Securities Act of 1933, as amended (the “Securities Act”), and a “qualified
purchaser” as defined in Section 2(a)(51) of the Investment Company Act of 1940, as amended.
Although Kavi has the authority to accept subscriptions of a lesser amount, the required
minimum initial investment is generally US$5,000,000 for the Hedge Fund.