Marathon Partners Equity Management LLC

Item 5. Fees and Compensation

The fees and expenses that are applicable to an investment with the Adviser are set forth and agreed to in
each Fund’s governing documents, which include a private offering memorandum, subscription and
operating agreement, and may, include other agreements (collectively, the “Offering Documents”).
Investors and prospective investors must carefully review the Offering Documents of the Fund in which
they are invested or may invest, to review the specific fees and expenses applicable to their investment.

The Adviser generally charges its Funds an asset-based investment management fee (“Management Fee”)
of 1% based on the value of each Fund’s assets under management. The Adviser is also eligible to receive
from each Fund an incentive allocation, which is compensation based on a share of capital gains on, or
capital appreciation of, each Fund’s assets. The management fees and the incentive allocations may be paid
to the Adviser or an affiliate of the Adviser. Fund investors are subject to the management fee and incentive
allocation through their investment in the Fund.

The Management Fee charged by Funds is payable quarterly in arrears, at an annual rate of 1% of the value
of each investor’s account as of the beginning of the applicable quarter. The Management Fee will be
prorated for any period that is less than a full fiscal quarter, and will be adjusted for subscriptions and
withdrawals during the quarter. Through the Fund’s administrator, the Managing Member instructs each
Fund’s custodian to deduct the management fee from the Fund’s account.

The incentive allocation charged to each Fund generally ranges from 12.5% to 17% of the Fund’s net profits
(including any realized and unrealized gains and losses) and is subject to a loss carryforward provision.

Although it does not do so presently, in connection with the Adviser’s portfolio management activities or
otherwise, the Managing Member may provide certain services to public or private companies, including
serving on the board of directors of portfolio companies. The Managing Member or the Adviser may be
deemed to have received fees or other economic benefits in connection with these services.

In addition to paying investment management fees and incurring performance-based fees, as set forth in the
relevant Offering Documents, the Funds will be subject to other investment expenses, such as commissions;

research consultants’ fees and research fees and expenses (including research-related travel and
subscription fees for services such as Bloomberg); compliance, administration, legal, audit and accounting
expenses; regulatory compliance, filings and reporting (including, but not limited to, Form PF) expenses;
interest on margin accounts and other indebtedness; borrowing charges related to short sales; custodial fees;
and any other expenses reasonably related to the purchase, sale or transmittal of Fund assets; organizational
expenses; and bank services fees.

The exact terms of these fees and expenses are set forth in the relevant Offering Documents. The fees for
advisory services can be negotiable. The Adviser, in its discretion, may waive or modify the Management
Fee and/or incentive allocation for principals, members, employees or affiliates of the Adviser, and for
certain large or strategic investors, at its discretion.

Item 7. Types of Clients

As described in Item 4, the Adviser’s clients, the Funds, are private investment funds suitable for
institutional and other sophisticated investors. Any initial and additional subscription minimums for
investors are disclosed in the Funds’ Offering Documents.