Light Capital LLC

ITEM 5. FEES AND COMPENSATION

The Adviser charges each separately managed account client an investment advisory fee of up to
1.50% of the market value of the account’s assets under management. In addition the advisor
may charge fixed fees for Family Office services.

The fee is charged each quarter based upon a percentage of the market value of the account’s
assets under management as of the last day of each quarter. Fees are billed in advance based on
prior quarter-end value. Alternatively, the fee will be calculated on a pro-rata basis in
the event that the first or last quarter during which the agreement is in effect is less than a
complete calendar quarter or in those instances where there is a significant principal addition or
withdrawal during the quarter. Market values for Private Funds and other private investment
vehicles are determined by the most recent valuation customarily determined by third parties.

The Adviser reserves the right to determine the annual advisory fee rate and/or the manner of
payment with any managed account client or prospective managed account client. As a result,
fees may be negotiable under certain circumstances or for certain managed accounts. The
Adviser bills managed account clients and deducts the fee automatically from their accounts
when agreed upon with the clients. The Adviser may raise funds via the sale of securities for the
purpose of deducting fees.

Advisory contracts typically provide for termination effective 30 days after written notice by the
client or the Adviser. In the event of termination, the Adviser is entitled to fees earned through
the effective date of termination.

It should be noted that the Adviser’s fees are exclusive of brokerage
commissions, transaction fees and/or other related costs and expenses which may be incurred
by the Client. Clients may also incur charges imposed by custodians, brokers and/or other
third parties, such as: custodial fees, transfer taxes, wire transfer and electronic fund fees.

ITEM 7. TYPES OF CLIENTS

The Adviser’s clients consist of ultra-high net worth, high net worth, individuals, family
offices, private funds, pension and profit-sharing plans, trusts, estates, charitable organizations,
corporations and other business entities. There are no minimum investment requirements for

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opening or maintaining a managed account.