QVT Financial LP

FEES AND COMPENSATION

A. Advisory Services and Fees.

   Management Fees

   With respect to the Family Office Funds, investors are charged a monthly management
   fee, in arrears, based on the net asset value of the assets under management, typically at a
   rate of 1.75% per annum.

   With respect to the Fourth Avenue Funds, investors are not charged any management fee,
   unless specifically agreed.

   Incentive Allocation/Incentive Fees/Carried Interest

   Further, Clients structured as hedge funds also may be charged an annual incentive
   allocation/fee depending upon the investment mandate. Investors in the Private Funds
   (“Fund Investors”) that are withdrawing or redeeming other than at a fiscal year end will
   bear any incentive allocation/fee accrued at a date earlier than the year-end (i.e., through
   such withdrawal or redemption date).

   The incentive allocation for the Family Office Funds is (i) 17.5% for the master fund or
   intermediate fund, as the case may be; and (ii) 15% for side pockets, determined only on
   the basis of realized or partially realized side pocket investments.

   The respective offering documents and/or organizational documents will generally permit
   the Adviser or the Private Fund the ability to waive, rebate or reduce all or part of the
   management fee and/or performance compensation with respect to investments made by
   certain investors without waiving, rebating or reducing the management fee and/or
   performance compensation charged/payable to other investors (such as the case of, but
   not limited to, investments made by the Adviser, its Affiliates, its partners/employees and
   their family members in a Private Fund).

B. Payment of Fees.

   Fees and compensation paid to the Adviser or its Affiliates by the Private Funds are
   generally deducted from the assets of such Private Funds. As discussed above,
   management fees are generally deducted on a monthly or quarterly basis and performance
   compensation is generally deducted on an annual basis.

C. Additional Expenses and Fees.

   A Private Fund may bear operating and other expenses including, but not limited to, the
   following:

•   investment expenses, including without limitation, expenses that are related to the
    investment of the Private Fund’s assets, such as:

       o brokerage commissions and other costs of executing transactions,

       o investment-related travel expenses (which are travel expenses incurred by the
         Advisers related to the purchase, sale, transmittal or ongoing monitoring of
         the Private Fund’s investments),

       o interest expenses,

       o finance charges and clearing fees,

       o applicable withholding and other taxes,

       o consulting and other professional fees related to particular investments, and

       o legal, accounting, due diligence and other similar expenses attributable to
         investments (even if such investments are not consummated).

•   fees and expenses relating to software tools, programs or other technology utilized in
    managing the Private Funds, including, without limitation, technology to measure
    risk,

•   research and market data (including, without limitation, any computer hardware and
    telephone and data lines incorporated into the cost of obtaining such research and
    market data),

•   administrative expenses, including, without limitation,

       o the monthly service fees and expenses of an administrator,

       o paying agency, transfer agency, local representative, accounting verification
         (if any) and/or investor registrar services,

       o costs and expenses relating to the Private Fund’s regulatory compliance,
         including, without limitation, the costs of regulatory inquiries and regulatory
         filings, registrations and memberships,

•   legal expenses, such as

       o legal fees charged in negotiating prime brokerage, ISDA master agreements
         and related custody and segregation agreements, repurchase agreements or
         other trading or financing agreements,

       o the costs of revising the Private Fund’s offering and operative documents,

•   internal and external accounting and valuation expenses,

   •   audit and tax preparation and filing expenses, such as

           o tax advisory fees,

           o the costs of FATCA, OECD Common Reporting Standard and other tax-
             related compliance,

   •   insurance premiums (including, without limitation, Director and Officer liability
       and/or Errors & Omissions insurance, including for indemnified parties),

   •   custodial fees,

   •   entity-level taxes,

   •   organizational expenses,

   •   offering expenses (including, without limitation, costs associated with compliance
       with AIFMD and other local offering requirements),

   •   other expenses associated with the operation of such Private Fund, and

   •   extraordinary expenses.

D. Prepayment of Fees.

   Please see responses to 5A above.

E. Compensation for Sale of Securities or Other Investment Products.

   Neither the Adviser, its Affiliates, nor any of their supervised persons accept
   compensation for the sale of securities or other investment products.

TYPES OF CLIENTS

The clients to whom the Adviser and its Affiliates provide investment management services and
advice are the Private Funds.

The offering documents of each Private Fund may set minimum amounts for investment by
prospective investors in such Private Funds. These minimum amounts may be waived by the
Adviser or an Affiliate, except to the extent prohibited by law.