Lion Point Capital LP

Item 5    Fees and Compensation
The applicable fees and expenses for the Funds are set forth in the offering and governing documents of
such Fund. All our Clients and all Investors are “qualified purchasers” (as defined in Section 2(a)(51)
of the Investment Company Act of 1940, as amended).

Payment of Fees / Incentive Allocations

The Funds pay both management fees and incentive compensation, except as otherwise stated below.
The Funds also bear their own organizational and operating expenses as further described below. A
description of fees and expenses is provided in the private placement memorandum, Investment
Management Agreement, Limited Partnership Agreement and/or the governing documents for the Funds,
as applicable.

Management fees are generally paid by the Funds quarterly in advance, and are not refundable. All fees
and incentive compensation we receive are deducted directly from the Funds.

We have the authority to waive all or a portion of the fees and allocations we receive from the Funds
with respect to any particular Investor and we do so for our principals and employees and their respective
family members, employee benefit plans and estate planning vehicles that are not subject to management
fees and incentive compensation. Because we (or our principals or employees) invest in certain of the
Funds, we participate alongside other Investors in the investments of those Funds pro rata in accordance
with our capital accounts in the Fund although our principals and employees do not pay management
fees or incentive compensation.

The SPVs are subject to a carried interest, but do not pay management fees and, therefore, the disclosures
above regarding management fees do not apply to the SPVs.

Expenses

In addition to our fees and incentive compensation, unless, and to the extent, otherwise specified in the
relevant Fund’s private placement memorandum and governing agreements (as applicable), Investors
indirectly bear their allocable share of expenses related to the Fund’s operations and the investment of
its assets.

As more fully set forth in the private placement memorandum and governing agreements for such Fund
(as applicable), such fees and expenses may include (but are not limited to) the following: the Fund’s
organizational and operating expenses, including brokerage fees, commissions and expenses; bank
service fees; interest on loans and debit balances; borrowing charges and expenses for securities sold
short; fees for research, analytics and market data (including on-line news and quotation services such
as Bloomberg and FactSet and related technology); clearing and settlement costs; custodial fees and
expenses; broken deal expenses; research materials; due diligence, research and due diligence related
travel; outsourced trading provider fees; order management systems; risk management systems;
expenses related to the offering of the shares/interests (including fees and expenses of Lion Point and/or
Lion Point Capital GP, LLC incurred in preparing the Fund’s private placement memorandum and in
connection with the European Alternative Investment Fund Managers Directive or any similar laws);
administration, audit and tax preparation expenses; blue sky filing fees; investor reporting costs; legal,
regulatory, accounting, tax and professional fees (including related to the Fund’s compliance with the
Foreign Account Tax Compliance Act provisions of the United States Hiring Incentives to Restore
Employment Act of 2010); consulting fees, fees of outside appraisers and independent pricing services
and other valuation costs; fees of the Fund’s independent Directors; insurance costs; trustees’ fees; proxy
solicitation firm fees and public relations firm fees related to the Fund’s investment activities; costs of
establishing “blocker” entities and other special purpose vehicles, fees and expenses of Lion Point and/or
the General Partner incurred in connection with preparing and filing reports relating to the Fund’s
investment activities (including under investment advisory or commodity pool operator laws); any taxes
applicable to the Fund on account of its operations and/or investments; and any and all expenses related
to the management and operation of the Fund, as well as the purchase, sale or transmittal of assets, as
Lion Point will determine in its discretion. In addition, the Offshore Fund will bear the Mini Master
Fund’s expenses, and each of the Offshore Fund and the Onshore Fund will bear its pro rata share of the
Master Fund’s expenses. For a summary of our brokerage practices, please see Item 12 below.

Lion Point and/or the General Partner may, in their discretion, waive their right to be reimbursed for any
of the foregoing expenses for any period of time.

Except as provided above, Lion Point and the General Partner will bear their own operating, rent and
similar overhead expenses, in addition to the salaries and benefits of their employees. The Fund, the
Mini Master Fund, the Master Fund and/or the SPVs purchase and maintain (or reimburse Lion Point
and/or the General Partner for purchasing or maintaining) insurance on behalf of the Fund, the Mini
Master Fund, the Master Fund, the SPVs, the General Partner, Lion Point and the principals, officers,
directors, employees, partners, members, affiliates and agents of the foregoing.

Lion Point and its personnel generally can be expected to receive certain intangible and/or other benefits
and/or perquisites arising or resulting from their activities on behalf of Clients and Client portfolio
investments, including benefits and other discounts provided from service providers. For example,
airline travel or hotel stays incurred as a Client expense typically result in cash rebates, “miles,” “points”
or credit in loyalty/status programs, and such benefits and/or amounts will exclusively benefit Lion Point
and/or such personnel even though the cost of the underlying service is borne by Clients. The value of
...

Item 7       Types of Clients

Currently, our Clients are exclusively private investment funds. In particular, we provide discretionary
investment management services to private investment funds in a master-feeder structure and to co-
investment vehicles. Our investment advice is provided directly to the Master Fund and the Funds and
not individually to the Funds’ investors.

Investors in the Funds may include, but are not limited to, high net worth individuals, trusts, estates,
charitable organizations, endowments, foundations, family offices, pension plans, our principals and
employees, and corporate or other business entities.

All our Clients and all Investors are “qualified purchasers” (as defined in Section 2(a)(51) of the
Investment Company Act of 1940, as amended).

Our principals and employees and their respective family members, employee benefit plans and estate
planning vehicles may also invest in the Funds, to the extent permitted by applicable laws and
regulations.