Lake Hill Capital Management LLC

Item 5. Fees and Compensation

Lake Hill reserves the right to charge some Fund Investors more or less than other Fund Investors
for the same management services, depending on various factors, including, for example, the
timing of the investment, the number of related investment accounts, or the total size of the Fund
Investor’s investment with Lake Hill. Fee arrangements with any Separate Account will be
individually negotiated. In this regard, Lake Hill has, and may in the future, waive or modify fees
for Separate Accounts owned by, or Fund Investors that are, members, employees or affiliates of
Lake Hill and relatives of such people or for certain other investors.

Fees charged are deducted directly from the Client accounts. Lake Hill charges management fees
and performance fees that are generally paid quarterly or as separately negotiated in the Client’s
Offering Documents. If such fee is paid in advance, the fee will be prorated for any partial
quarters. Terms regarding the payment, prepayment, or refund of fees applicable to any Client
may be negotiated on a case-by-case basis and set forth in such Client’s Offering Documents.

For expenses, Lake Hill, at its election, can cover expenses that would otherwise be allocable to
its Fund clients. Several factors are taken into consideration when allocating an expense to the
Funds. These factors include but are not limited to: relative benefit received by the Client from
such expense, usage, and strategy complexity. In contrast, Separate Accounts are not allocated
expenses other than specifically retained services as outlined in the Client’s Offering Documents.

Other fees and expenses that will be payable by a Client will be set forth in detail in the Client’s
Offering Documents. Subject to limitations set forth in the Offering Documents, such expenses
may include, but are not limited to, all of the ordinary and necessary expenses related to the
Client’s operations including, without limitation, all costs and expenses of the Client incurred in
the investigation, holding, purchase, sale or exchange of investments or investment opportunities,
fees charged by third party vendors and service providers, travel expenses to the extent incurred
in connection with the investigation, making, holding or selling of Client investments, fees and
expenses of currency hedges and other bona fide hedging transactions in respect of a Client, and
expenses incurred in connection with any litigation involving a Client or a Client investment,
interest on borrowed money, brokerage fees, legal fees, audit and accounting fees, taxes applicable
to the Client on account of its operations, fees incurred in connection with the maintenance of
bank or custodian accounts, and all expenses incurred in connection with the registration of the
Client’s securities if required under applicable securities laws or regulations. The Client shall also
bear all out-of-pocket expenses of preparing and distributing reports and annual financial
statements to the Clients, the cost of liability and other insurance premiums, out-of-pocket costs
associated with Client meetings and other meetings with the Client’s investors. The Client shall

bear all organizational costs, fees, and expenses actually incurred by or on behalf of Lake Hill or
its affiliates in connection with the formation and organization of the Client, including legal and
accounting fees, administration fees and expenses incident thereto.

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

Item 7. Types of Clients

Lake Hill currently provides investment advice to its Funds and Separate Accounts (whose
beneficial owners may be, for example, but not limited to, institutional investors, family offices,
foundations, or pension plans). Any initial subscription or commitment minimums for investors
are disclosed in the applicable Offering Documents.