Keenan Capital LLC

Item 5: Fees and Compensation

Item 5.A.

Management Fee

The Fund pays a quarterly management fee (the “Management Fee”) to Keenan, in its capacity as
investment manager. The Management Fee is generally equal to 1.00% annualized and is paid in advance at

the beginning of each quarter. With respect to any capital contribution, the Management Fee will be payable
on the amount of such capital contribution as of the date such capital contribution was made.

Details regarding Keenan’s management fees are set forth in the Fund’s offering memorandum and
governing documents. With the consent of the Firm, the General Partner may, in its sole discretion, elect to
reduce or waive the Management Fee with respect to any investor.

Incentive Allocation

The General Partner is generally entitled to a performance allocation equal to 20% of the annual increase, if
any, in the net asset value of each investor’s capital account in the Fund. The performance allocation is
calculated based on both realized gains and losses and unrealized appreciation and depreciation of securities
held in the Fund’s portfolio. Generally, any decrease in the net asset value in a fiscal year allocated to any
investor’s capital account is carried forward in a “loss carryforward provision” so that no performance
allocation is charged to that capital account unless the losses have been recouped. The performance
allocation, if any, is determined at the end of each fiscal year and at the time of each withdrawal from the
Fund. The General Partner may, in its sole discretion, elect to reduce or waive the performance allocation
with respect to the capital accounts of any investor.

Item 5.B.

Keenan instructs the custodian to deduct Management Fees from the Fund’s account. Fees are collected at
the frequency described in Item 5.A.

Item 5.C.

The Firm is responsible for its own operational expenses (“Operational Expenses”) incurred in connection
with the provision by it of investment management services to the Fund including rent, utilities, supplies,
secretarial expenses, stationery, charges for furniture, fixtures and equipment, employee benefits including
insurance, payroll and other taxes and compensation (and related costs) of all personnel.

All expenses of the Fund other than Operational Expenses will be borne by the Fund. These expenses
include the Fund’s ongoing transaction (e.g., brokerage commissions), administrative, custody, legal
(including blue sky compliance), tax preparation, investor reporting, valuation agent and appraisal fees and
expenses, insurance, accounting and audit expenses, and any expenses for services that the investors require
the General Partner to obtain, as well as expenses related to the offering and sale of interests in the Fund and
any other fees or expenses of the Fund that, in the determination of the General Partner, are reasonably
incurred in connection with the business or maintenance of the Fund, including without limitation any fees
and expenses payable to any third party advising on the acquisition, maintenance, disposition or valuation of
any special investment or special situation investment, as defined in the Fund’s offering memorandum or
governing documents, or portion thereof. To the extent permitted by applicable law, the General Partner
may cause the Fund to bear all or a portion of the costs of any trading errors arising out of or resulting from
the Fund’s investment activities. The Fund will also pay the fees and expenses of its introducing brokers,
prime brokers, futures commission merchants and administrators, if any.

The above is a general description of fees and other expenses, and the expenses may vary. Investors are
encouraged to refer to the Fund’s applicable governing documents.

Brokerage is specifically discussed in Item 12 below.

Item 5.D.

As discussed in Item 5.A., the Management Fee is generally payable quarterly. The Management Fee will be
prorated for any period that is less than a full calendar quarter, with any necessary amounts rebated as
appropriate.

Item 5.E.

Not applicable. Neither Keenan, nor any of its supervised persons, are compensated for the sale of securities
or other investment products.

Item 7: Types of Clients

Keenan provides investment advisory services to a pooled investment vehicle operating as a private
investment fund. Investors in the Fund must be qualified as (i) an “accredited investor,” as defined in
Regulation D under the 1933 Act, (ii) a “United States person” under the Internal Revenue Code of
1986, as amended, and (iii) a “qualified purchaser” within the meaning of the Company Act, and the
regulations thereunder. Non-U.S. investors may not invest in the Fund, unless otherwise agreed by the
General Partner in its discretion. Generally, the minimum subscription is $1,000,000 for initial investments
in the Fund and $100,000 for additional investments in the Fund. The General Partner may reduce or
waive the minimum amount at its discretion.