QVR LLC

Item 5: Fees and Compensation

QVR receives a management fee for managing the private pooled investment vehicles. Each
Fund’s limited partnership agreement includes additional details regarding fees. QVR may also
be entitled to receive performance-based compensation, which is
compensation that is based on a share of capital gains on or capital appreciation of the assets.

QVR does not receive an asset-based fee for its sub-advisory services to the institutional
segregated portfolio. It does, however, receive a monthly draw against performance fees and an
annual performance fee based on net profits, which is be payable solely from the assets of the
Client. The segregated portfolio company’s private placement memorandum includes
additional detail regarding fees. All investors in the Client are either non-US investors or
qualified purchasers as defined in section 2(a)(51)(A) of the Investment Company Act of 1940.

Expenses
In addition to QVR’s investment management fees and incentive fees, the Clients also bear all
expenses incurred in connection with its investment activities. Those expenses reduce investors’
returns. Expenses include brokerage and transactional fees; custodial fees; fees of
the Client’s administrator; legal, accounting and audit fees and expenses; governmental fees
and taxes; bookkeeping and other professional fees; directors’ fees; and all other reasonable
costs related to the management and operation of the Clients.

                                                                                   4850-4821-4858.v1

QVR LLC                                                                     Form ADV Part 2A

Please see “Item 12: Brokerage Practices” in this Brochure for further information on
arrangements that may relieve QVR from certain costs and expenses.

Neither QVR nor any of its supervised persons accepts commissions or other compensation for
the sale of securities or other investment products.

Item 7: Types of Clients

QVR has discretionary authority to manage the private pooled investment vehicles on behalf of
Clients pursuant to a grant of authority in the funds limited partnership agreement or a limited
power of attorney in each client’s account agreement. Potential Client investors may read the
eligibility criteria and minimum investment requirements in each fund’s limited partnership
agreement and subscription application. There is no minimum initial investment from its
investors.

QVR also provides investment sub-advisory services on a discretionary basis to institutional
clients.