Luxor Capital Group LP

Item 5           Fees and Compensation

         Luxor’s fees and compensation are described in the advisory contracts it enters into with its clients.
         Management fees are generally paid by Open-End Clients to Luxor quarterly in advance, and are
         generally deducted from client accounts by Luxor at an annual rate, generally of up to 2%; however,
         to the extent certain private fund investors and/or clients are responsible for specifically negotiated
         management fees (which may be higher or lower), such fees are set forth in each such investor
         and/or client’s applicable written agreement with us.

         Normally, Luxor or its affiliates receives performance-based fees or allocations from client
         accounts on an annual basis in arrears and/or upon withdrawals/redemptions by investors in the

Open-End Clients at an annual rate, generally, of up to 20% on aggregate net capital appreciations,
typically subject to a high-water mark; however, to the extent certain private fund investors and/or
clients are responsible for specifically negotiated performance-based fee or allocation arrangements
(which may be higher or lower), such arrangements are set forth in each such investor’s and/or
client’s applicable written agreement with us. (See Item 6 – “Performance-Based Fees and Side-
By-Side Management” below.)

Underlying investors in certain of Luxor’s Open-End Clients, which provide the right to withdraw
capital or redeem interests, may be subject to a withdrawal charge in certain circumstances
depending on the classification of interests held and the amounts withdrawn.

Management fees are generally paid by the Closed-End Clients to Luxor quarterly in advance at an
annual rate, generally, of up to 1%, and may be deducted from the Closed-End Clients’ account by
Luxor or by drawdowns of capital committed to the client accounts; however, to the extent certain
private fund investors and/or clients are responsible for specifically negotiated management fees
(which may be higher or lower), such fees are set forth in each such investor and/or client’s
applicable written agreement with us.

In addition, Luxor or its affiliates receives a carried interest allocation at a rate, generally, of up to
20% of profits from cash available for distribution upon realization of investments for the Closed-
End Clients; however, to the extent certain private fund investors and/or clients are responsible for
specifically negotiated carried interest allocation arrangements (which may be higher or lower),
such arrangements are set forth in each such investor’s and/or client’s applicable written agreement
with us. With respect to the carried interest that may be payable by the Closed-End Clients, such
fees are generally subject to a “clawback” (meaning that amounts distributed to Luxor may be
repayable to such client in certain circumstances) depending on the final overall performance of
such client. Further, for certain Closed-End Clients, 100% of the aggregate fees received by Luxor,
and its affiliates in connection with investments or potential investments with respect to such
Closed-End Clients derived from third parties will be applied to reduce the management fee (but
not below zero) subsequently payable by such clients.

Generally, the management fees are not refundable in the event that the advisory contract is
cancelled prior to the end of a quarter.

In addition to those fees and charges described above, clients may bear and pay all or a portion of
additional fees and expenses such as the following non-exhaustive list of items (which may vary
from client to client): (i) all fees and expenses associated with the organization and ongoing
administration of such private investment funds, including legal and accounting fees, preparation
and distribution (including printing and mailing) expenses, government filing fees (such as “world
sky” matters and private placement regimes, including Form D and blue sky and similar fees and
expenses) and the cost of drafting, updating or amending governing documents and/or subscription
materials and other offering materials; (ii) all expenses incurred in connection with
communications with, and reporting and notices to, investors (including the development,
implementation and maintenance of an investor electronic delivery site and/or system) and the
ongoing offer and sale of interests in the private investment funds; (iii) all third party
administration, accounting, tax preparation, audit, bookkeeping, governmental fees and taxes
(including governmental charges and expenses in connection with governmental inquiries), tax
audit, investigations or proceedings, settlement or review (including the amount of any judgments,
settlements or fines paid in connection therewith), and legal (including, without limitation, the costs
of prosecuting or defending any legal action for or against the private investment funds, Luxor or
its affiliates, and all costs related to the private investment fund’s indemnification of Luxor, its

principals and their affiliates, and members of any governance committee), compliance and other
professional fees (including, without limitation, directors’ or governance committee members’
fees) and expenses of, or relating to, the private investment funds (including expenses associated
with meetings of directors, governance committee members or investors (including, without
limitation, travel, lodging and meal expenses)); (iv) all expenses incurred for the benefit of the
private investment funds (e.g., to research investments, evaluate and manage risk, facilitate
valuations, facilitate accounting functions, facilitate marketing, facilitate compliance with the rules
of any self-regulatory organization or applicable law in connection with the activities of the private
investment funds, and facilitate and manage the execution of securities or otherwise manage the
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Item 7           Types of Clients

         Luxor primarily provides investment advice to clients who are private investment funds (either
         through a fund-vehicle or a separately managed account). Investors in such private investment
         funds are generally pension plans, endowments, charitable organizations, funds-of-funds, insurance
         companies, high net worth individuals and families, and Luxor insiders. There are minimum
         investment requirements for investors in private investment fund clients. In all cases, the minimum
         investment required for a private investment fund is subject to waiver by Luxor to the extent
         permitted by applicable law. Details can be found in the private investment fund confidential
         private offering documents and subscription agreements. Luxor also provides investment advice to
         other corporate clients through separately managed accounts. The minimum investment for any
         separately managed account will be determined on a case by case basis.