Merion Investment Management LP

Item 5: Fees and Compensation

Item 5.A.

The Firm receives management fees from the Funds as a separate fee collected during every capital
call made for the purpose of purchasing securities for an investment, which is equal to one percent
(1%) multiplied by the total contributions received by Merion with respect to each capital call. The
General Partner, in its sole discretion, may waive, reduce or calculate differently with respect to
certain Partners.

In addition to the management fee for Merion described above, the General Partner receives a
performance-based fee from four of the Funds (Merion Capital LP, Merion Capital Offshore LP,
Merion Capital ERISA LP, and Merion Capital II LP), which is equal to thirty percent (30%) of all
proceeds available for distribution from an investment after the return of the Limited Partners’
capital contributions with respect to such investment and the general expenses of Merion allocated
to such investment subject to the restoration of a Limited Partner’s loss carry forward amount.

Item 5.B.

Merion deducts the management, commitment and annual fees from client accounts by instructing
the client’s custodian. Management fees for the Funds are a separate fee collected during every
capital call made for the purpose of purchasing securities for an investment.

Item 5.C.

The Funds will be responsible for organizational expenses, general and administrative expenses,
and any taxes or fees levied against the Funds. All such fees and expenses shall be billed directly
to and paid by the Funds, or the Funds shall reimburse the General Partner for such expenses. The
Funds will be responsible for expenses such as brokerage commissions, incurred in connection with
the acquisition of investments, and for the reimbursements described within The Funds’ offering
memorandum.

Item 5.D.

As investors in the Funds are not able to redeem intra month, Merion does not anticipate there being
an instance in which a refund of a management fee would be necessary.

Item 5.E., Item 5.E.1, Item 5.E.2, and Item 5.E.3

Please see responses to Item 10 and Item 11 below.

Item 5.E.4.

Not Applicable. Merion does not charge advisory fees in addition to commissions or markups.

Item 7: Types of Clients

The Firm’s clients are privately offered pooled investment vehicles, which are intended for
investment by certain investors that are both accredited investors and qualified purchasers as
defined by the Investment Company Act of 1940. The respective minimum initial and subsequent
subscription amounts required of the investors in any of the Funds is detailed within each offering
memorandum of the relevant Fund.