Kingstown Capital Management LP

Item 5: Fees and Compensation
Management Fees

Kingstown receives fees for investment management services based on assets under management and
as disclosed in the respective fund offering documents and investment management agreements.
Management fees are generally payable quarterly in advance based on the terms of each investment
management agreement. Management fees for the funds are calculated by a third-party administrator and
deducted from each investor’s capital account.

Clients and investors have negotiated management fees that are more or less than what is disclosed in
the fund offering documents and management agreements and which are payable on different terms.
Kingstown has discretion to waive or reduce the management fee with respect to the capital accounts of
one or more investors without notifying the other investors or without reducing the management fee with
respect to the capital accounts of the other investors. Management fees are waived for employees and
affiliates.

Investors should refer to the fund offering documents of each respective private fund for specific
redemption provisions.

Other Fees

Funds, pursuant to the offering documents and management agreements, will bear operating expenses.
Typically these expenses include but are not limited to: (i) its investment expenses such as brokerage
commissions, clearing and settlement charges, custodial fees, bank service fees, interest expense, and
extraordinary expenses; (ii) administrative expenses; (iii) legal expenses; (iv) professional fees (including,
without limitation, expenses for research, consultants and experts) relating to investments; (v) travel
expenses related to investigating investment opportunities; (vi) accounting and bookkeeping expenses;
(vii) auditing and tax preparation expenses; (viii) printing and mailing expenses, (ix) and fees and out-of-
pocket expenses of any service company retained to provide accounting, investor, administrative or
custodial services for the funds. Potential investors should review the appropriate offering documents for
complete disclosure of permissible expenses.

Item 12 further describes the factors that Kingstown considers in selecting or recommending broker-
dealers for transactions and determining the reasonableness of their compensation (e.g., commissions).

Item 7: Types of Clients

Kingstown provides portfolio management services to private funds. A minimum investment of
$1,000,000 is generally required to invest in any of the Kingstown funds, with additional capital
contributions equal to at least $250,000. However, Kingstown has discretion to waive or reduce the
minimum investment for one or more investors (or prospective investors) as long as they qualify to invest
based on all other suitability and regulatory requirements.

Kingstown may decline to accept an investment even if the proposed investor satisfies such suitability
and regulatory requirements. Kingstown has discretion to accept additional capital contributions in
different amounts from one or more investors without notifying the other investors and, in certain cases,
has entered into such arrangements with certain investors.