Paw Capital Partners LP

ITEM 7 –TYPES OF CLIENTS

P.A.W. provides advisory services to the Fund, which is intended for sophisticated investors and
institutional investors.

In addition, Mr. Wright has trading authority over managed accounts owned by certain of his friends and
family members (the “Managed Accounts”).

Investors in the Fund are generally subject to a minimum investment requirement, which is disclosed in
the Fund’s offering memorandum.

ITEM 8 –METHOD OF ANALYSIS, INVESTMENT STRATEGIES AND
RISK OF LOSS
As mentioned in Item 4, P.A.W.’s investment objective is capital appreciation, investing primarily in
publicly-traded securities including: (i) common stocks; (ii) preferred stocks; (iii) stock warrants and rights;
(iv) bonds; (v) debentures; (vi) convertible securities; and (vii) other debt obligations. In addition, P.A.W.
may invest in options to purchase and/or sell securities, options on stock market indices, and in futures,
contracts and options. P.A.W. may also engage in short sales of securities.

P.A.W. analyzes a company's industry dynamics and company fundamentals and identifies generally
accepted expectations regarding the company. P.A.W. then reviews the company's projected financial
expectations against its current stock price to establish valuation criteria. Using these criteria, P.A.W.
seeks to buy stocks with inexpensive valuations where its expectations are higher than average and short
stocks with expensive valuations where its expectations are lower than average. This process is laden
with assumptions and will be as strong as the validity of the assumptions.

Since the amount of capital to be managed by P.A.W. will be relatively small, P.A.W. believes that its
clients will have investment opportunities in the less liquid parts of the markets since larger funds cannot
make meaningful investments in such areas. P.A.W. believes that the advantage of these small
capitalization stocks (under $1 billion) is that their potential may not be reflected in their stock prices as
a consequence of limited research coverage or institutional ownership. P.A.W. believes that an additional
advantage of P.A.W. managing a relatively small amount of capital is improved liquidity with respect to
buying and selling stock, particularly the smaller capitalization stocks.

Small-Cap Securities. Investments in equity securities are inherently risky and the stock price volatility
and general economic risks experienced by the small and medium-sized companies in which the fund
typically invests are usually greater than those experienced by larger companies.

Equity Securities. The value of equity securities fluctuates in response to issuer, political, market, and
economic developments. Fluctuations can be dramatic over the short as well as long term, and different
parts of the market and different types of equity securities can react differently to these developments.
For example, large cap stocks can react differently from small cap stocks, and "growth" stocks can react
differently from "value" stocks. Issuer, political, or economic developments can affect a single issuer,
issuers within an industry or economic sector or geographic region, or the market as a whole. Changes

P.A.W. Capital Partners, LP                     ADV Part 2A                    IARD/CRD Number: 161094

in the financial condition of a single issuer can impact the market as a whole. Terrorism and related geo-
political risks have led, and may in the future lead, to increased short-term market volatility and may have
adverse long-term effects on world economies and markets generally.

Issuer-Specific Changes. Changes in the financial condition of an issuer or counterparty, changes in specific
economic or political conditions that affect a particular type of security or issuer, and changes in general
economic or political conditions can increase the risk of default by an issuer or counterparty, which can
affect a security's or instrument's value. The value of securities of smaller, less well-known issuers can be
more volatile than that of larger issuers. Smaller issuers can have more limited product lines, markets, or
financial resources.

Lack of Diversification. Client accounts will not be diversified among a wide range of types of securities,
countries or industry sectors. Accordingly, client portfolios are subject to more rapid change in value than
would be the case if P.A.W. were required to maintain a wider diversification among types of securities
and other instruments. Notwithstanding the foregoing, P.A.W. will not invest more than 20% of a client
account's net assets (computed at the time the investment is made) in any one position.

Relative Value Risk. In the event that the perceived mispricings underlying P.A.W.’s relative value trading
positions were to fail to converge toward, or were to diverge further from, relationships expected by
P.A.W., client accounts may incur a loss.

Short Selling Risk. P.A.W.’s investment program includes short selling. Short selling transactions expose
P.A.W. to the risk of loss in an amount greater than the initial investment, and such losses can increase
rapidly and without effective limit. There is the risk that the securities borrowed by P.A.W. in connection
with a short sale would need to be returned to the securities lender on short notice. If such request for
return of securities occurs at a time when other short sellers of the subject security are receiving similar
requests, a “short squeeze” can occur, wherein P.A.W. might be compelled, at the most disadvantageous
time, to replace the borrowed securities previously sold short with purchases on the open market,
possibly at prices significantly in excess of the proceeds received earlier. However, by being on both the
long and short sides of the market, it is P.A.W.'s belief that risks relative to the market will be reduced.

Hedging. There can be no assurances that a particular hedge is appropriate, or that certain risk is
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