Polar Asset Management Partners Inc

Item 5.         Fees and Compensation

Polar and/or the general partner of the Funds have the authority to (1) deduct management and
performance-based fees from the assets of the Funds, and (2) authorize the payment or
reimbursement of other fees or expenses to third parties from the assets of the Funds.

Fees, expenses and/or allocations associated with an investment in a Fund vary, depending on the
                                                                       Polar Asset Management Partners Inc.
                                                                               Part 2A of Form ADV - Page 5

Fund, and are set forth in such Fund’s Offering Memorandum or Prospectus. Any applicable fees,
expenses and/or allocations are deducted from a Fund investor’s assets as described below.

Management Fees

Polar Funds, and consequently the underlying investors, incur an annual management fee of up to
2.5% based on the investor’s capital account balance as of the end of the specified fee period. The
management fee is charged monthly or quarterly, in arrears, as disclosed in each fund’s Offering
Memorandum or Prospectus.

Polar reserves the right to charge reduced or no management fees to certain investors, including
investors that are affiliates of Polar or the general partner. Polar has no obligation to disclose the
specific details of such arrangements or to offer such additional rights, terms, or conditions to all
investors.

Item 7.         Types of Clients

Polar provides investment advisory services to private funds, which are generally organized as
limited partnerships under the laws of the State of Delaware or another appropriate jurisdiction or,
in the case of offshore private funds, as exempted companies incorporated under the laws of the
Cayman Islands or limited partnerships organized under the laws of the Cayman Islands. Polar
expects each private fund to qualify for an exclusion from having to register as an investment
company under the IC Act pursuant to Section 3(c)(1) or Section 3(c)(7) thereunder, and to offer
interests to investors pursuant to Regulation D or Regulation S under the Securities Act. In
addition, Polar provides investment advisory services to a public investment fund, which is
organized as a trust under the law of Ontario, Canada. The public investment fund qualifies for
distribution under a simplified prospectus to investors in the applicable jurisdictions in Canada.
Thus, this Brochure may discuss information relevant to such investors, as necessary or
appropriate. Nonetheless, this Brochure is designed solely to provide information about Polar
and should not be considered as an offer of interests in any Polar Fund. Any such offer may
be made only by delivery to the prospective investor of the Offering Memorandum or
Prospectus for the Fund under consideration.

Private fund investors may include high net worth individuals and a variety of institutional
investors (e.g., trusts, employee benefit plans, endowments, foundations, public pension plans,
sovereign wealth funds, private funds of funds, family offices, and other types of entities). Polar
also provides investment advisory services to private or public investment funds organized as
limited partnerships or mutual fund trusts in Canada which are marketed to eligible investors in
Canada, and separately managed accounts which are owned by institutional investors.

Certain investors in the Funds may expose Polar to potential conflicts of interest. For example,
officers and directors of companies in which the Funds invest may have invested in the Funds.
Investments in the Funds by such parties may expose Polar to potential conflicts of interest with
respect to proxy voting decisions and investment decisions and could expose Polar to risks relating
to the receipt of material non-public information or other confidential information relating to the
company in question. In addition, Polar employees have made, or may make, contributions to

                                                                        Polar Asset Management Partners Inc.
                                                                                Part 2A of Form ADV - Page 8

charitable organizations that have invested in the private funds. Polar may have a conflict between
acting in the best interest of the Funds and making decisions that build goodwill with the
aforementioned types of investors so they will maintain or increase their investments in the Funds.

The Funds may impose minimum initial and subsequent investment amounts on the investors, as
disclosed in the Offering Memorandum or Prospectus. The separately managed accounts may
require minimum investment amounts as negotiated with Polar.