Litespeed Management LLC

Item 5.     Fees and Compensation

Asset-Based Compensation

Litespeed charges each Investor an investment management fee ranging from 1.0% to 1.8% per annum.
Investment management fees are charged each quarter in advance based on the total market value of the
assets in the Investor account (including net unrealized appreciation or depreciation of investments and
cash, cash equivalents and accrued interest) on the first day of the quarter. If a new Investor account is
established during a quarter or an Investor makes an addition to its account during a quarter the
investment management fee will be charged as of the effective date of the investment management
agreement or the date of the additional contribution based on the value of the assets as of the applicable
date and will be prorated for the number of days remaining in the quarter.

Investment management fees may be waived or reduced for certain Investors of a Client Account.
Litespeed deducts the investment management fee from Investor accounts by instructing the Clients'
custodian to deduct the investment management fee. Pre-paid fees will be refunded pro rata based on
the number of days remaining in the quarter if the advisory contract is terminated before the end of a
quarter.

Performance-Based Compensation

Litespeed receives an annual performance-based allocation, which is compensation that is based on a
share of capital appreciation of the assets of the Clients. This compensation may be allocated to Litespeed
or to a related person of Litespeed and generally ranges from 16% - 20%, subject to a loss carryforward
provision.

The performance-based allocation may be waived or reduced for certain Investors in a Client.
In addition to paying investment management fees and performance-based compensation, Client
Accounts will also be subject to other investment expenses such as commissions and related costs,
research fees and expenses, travel expenses for research, interest on margin accounts and other

indebtedness, borrowing charges on securities sold short, custodial fees, bank service fees; other
reasonable expenses related to the purchase, sale or transmittal of Client assets and legal, internal and
external accounting (including technology), audit and other professional fees and expenses. Client assets
are invested in a master-feeder structure. Feeder funds bear a pro rata share of the expenses associated
with the related master fund. In addition, Clients will incur brokerage and other transaction costs. Please
refer to Item 12 of this Firm Brochure for a discussion of Litespeed’s brokerage practices.

Item 7.    Types of Clients

Litespeed’s Clients are private pooled investment vehicles. The Clients’ initial subscription minimum is
$5,000,000. This amount can be reduced or waived at Litespeed’s discretion. There is no required
minimum on additional subscriptions.