KR Capital LP

Item 5 Fees and Compensation

The fees and any applicable performance-based compensation arrangements are set forth in detail
in the client’s investment management agreement (“Agreement”). In connection with the advisory
services provided, in lieu of a management fee, and as further described in and subject to the terms
of the Agreement, KR is generally entitled to receive an annual base fee paid monthly in arrears, and
a performance fee, payable annually. Pursuant to the terms of the Agreement, the Client will
reimburse KR for certain budgeted expenses incurred on behalf of the account in accordance with
the terms of the Agreement, which may be mutually amended by the parties in writing from time to
time. Such Budgeted Expenses and annual base fee are deducted from profits when calculating the
performance fee. KR may from time to time propose changes to the budget, which the client may
agree to or reject in its discretion. The Adviser has adopted policies and procedures with respect to
the incurring and reimbursement of expenses. It should also be noted that the Advisory Client is a
qualified purchaser as defined in section 2(a)(51)(A) of the Investment Company Act of 1940.

Other Types of Fees and Expenses

The Client will bear expenses as set forth in its Agreement with the Adviser including certain
expenses related to the trading on behalf, and operation, of the account. KR’s fees are exclusive of,
and the Client may incur certain other fees and expenses, including brokerage commissions,
banking fees, interest, custodial fees, transaction fees, and other investment-related costs and
expenses, including research expenses.

Neither KR nor any of its related persons accepts or receives compensation from the sale of
securities or other investment products to its clients.

Item 7 Types of Clients

KR Capital provides investment advisory services solely to its institutional client and manages on a
Sub-Advisory basis an Account beneficially owned by a pooled investment vehicle and managed and
sponsored by an independent investment advisor.