Pura Vida Investments LLC

Item 5. Fees and Compensation

The Adviser charges certain of the Clients an investment management fee (the “Management Fee”) based
on either the value of the Client’s assets under management or, for certain investments, the lower of the
investment’s cost or market value. The Management Fee for Pura Vida Funds is generally payable to the
Adviser monthly in advance and is at an annual rate of up to 2% of the value of each investor’s account as
of the first day of the applicable month. The Management Fee will be prorated for any period that is less
than a full month and will be adjusted for subscriptions. For the Pura Vida Funds, the Adviser instructs
the Pura Vida Funds’ administrator to deduct the Management Fee from the relevant Pura Vida Fund’s
account.

In addition, the Clients are subject to carried interest or incentive allocation (collectively, the “Performance
Fee”) as set forth in each Client’s Governing Documents and is equal to a specified percentage of all
income, gains, and losses derived from portfolio investments. Either the Adviser or the general partner of
the Pura Vida Funds (and/or a designee thereof) is paid or allocated the Performance Fee.

In addition, the Clients may be subject to other expenses, such as legal, administration, accounting,
auditing, insurance, proxy voting services and other professional expenses, investment expenses such as
commissions, lobbying, research fees and expenses (including research-related travel); interest on margin
accounts and other indebtedness; borrowing charges on securities sold short; custodial fees, bank service
fees and other expenses related to the purchase, sale or transmittal of Client assets (including designated
investments). It is important that each investor who is considering an investment in a Client review the
Governing Documents applicable to that Client for a detailed description of the fees and expenses
applicable to such investment. Investors should review carefully Item 12, which discusses conflicts of
interest related to brokerage practices.

The Adviser, in its sole discretion, may waive or reduce the Management Fee and/or the Performance Fee
for investors including those that are members, employees or affiliates of the Adviser, relatives of such
persons, and/or for certain strategic investors.

Item 7. Types of Clients

As described in Item 4, the Adviser’s clients are the Pura Vida Funds and Managed Accounts. Any initial
and additional subscription minimums for investors in Pura Vida Funds are disclosed in each Pura Vida
Fund’s Governing Documents.