LOON Lake Capital Management LP

Item 5: Fees and Compensation

Loon Lake bases its fees and performance compensation upon a percentage of assets under management
and upon performance. Clients pay Loon Lake quarterly management fees no greater than 1.5% per annum
of the balance in such Client’s account or the net asset value of each investor’s investment in a Client
organized as a pooled investment vehicle.

Loon Lake Capital Management LP                                                                          4

If applicable, Clients pay Loon Lake a performance fee between fifteen and twenty percent (15-20%) of
the excess net capital appreciation attributable to such Client’s investors’ capital accounts or shares (as
applicable), subject to a high watermark. Performance fees are generally paid to Loon Lake in arrears at the
end of each fiscal year (or at the time of withdrawal if such withdrawal occurs prior to the end of a fiscal
year). All of Loon Lake’s Clients (or the investors in a Client organized as a pooled investment vehicle
other than affiliates of Loon Lake) are charged both management fees and performance fees.
Management fees are deducted quarterly from each investor’s ' assets in advance. Any performance fee is
paid annually in arrears (or at the time of withdrawal if such withdrawal occurs prior to the end of a fiscal
year) from Clients' assets.

Each Client managed by Loon Lake pay or reimburses Loon Lake, as the case may be, for all costs and
expenses related to its investments and its operations, including, without limitation, brokerage and other
transaction costs, clearing and settlement charges, interest and commitment fees on debit balances or
borrowings, borrowing charges on securities sold short, costs of any liability insurance obtained on behalf
of such Client, custody fees, costs of any litigation or investigation involving Client activities,
indemnification expenses, the management fees, the performance fee, consulting expenses, the fees and
expenses of professionals providing services to such Client, including legal, audit, accounting, tax and
administration services for Loon Lake’s pooled investment vehicles as well as director services for Loon
Lake 's non-U.S. pooled investment vehicles that are organized as limited companies, any issue or transfer
taxes chargeable in connection with any securities transactions, any entity level taxes, regulatory costs,
filing and license fees, the costs of reporting and providing information and any extraordinary expenses.
Loon Lake or one of its affiliates may elect from time to time to pay certain of a Client’s expenses in
addition to the organizational expenses, including, but not limited to, other operating expenses. Please refer
to Item 12 for more information about brokerage.

Clients pay management fees quarterly and in advance. Management fees are calculated based on the
balance in each Client's account or net asset value of an investor’s investment in a Client organized as a
pooled investment vehicle as of the beginning of each calendar quarter.

Item 7: Types of Clients

Our clients are the Funds, as described in Item 4 above. The Clients have a minimum investment of
$1,000,000.