Rush Island Management LP

Item 5 – Fees and Compensation

A. RIM typically charges fees that are based upon a set percentage of assets under management
   and performance. In consideration for investment management services provided to the
   Funds, RIM generally receives a management fee and the respective general partner is
   generally eligible to receive an incentive allocation. The fee rates are dependent upon which
   Fund and which series of interest an investor is invested. Fees applicable to the SMA are
   individually negotiated with the underlying investor and are documented in the terms of the
   IMA.

B. RIM typically receives from investors in the Primary Fund a management fee calculated at an
   annual rate dependent upon which series of interest an Investor is invested. The management
   fee is calculated and payable quarterly in advance based on the value of each Investor’s
   account as of the first day of each calendar quarter, or on the date of a contribution if other
   than the beginning of a quarter. RIM deducts the management fee directly from each
   Investor’s account. The management fees for different series of interest in the Funds ranges
   from 0% - 1.5% per annum. In the case of a withdrawal or redemption by an Investor other
   than as of the last day of a fiscal quarter, a pro rata portion of the management fee shall be
   distributed to the withdrawing or redeeming Investor.

   In addition, the Primary Fund GP is eligible to receive an annual incentive allocation
   reallocated from the capital accounts of each Primary Fund Investor in an amount specific to
   the series of interest to which the Investor is subscribed. The incentive allocation is calculated
   based on an Investor’s realized and unrealized return subject to a loss carryforward provision
   as described in the respective Fund’s Offering Documents. If an Investor withdraws capital,
   the incentive allocation would be “crystallized,” meaning that it will be deducted from the
   Investor’s account and reallocated to the Primary Fund GP as if the withdrawal date were the
   last day of the fiscal year or, in the case of a loss carryforward, the loss carryforward will be
   subject to reduction on a pro rata basis. The incentive allocation for different series of interest
   of the Primary Fund ranges from 0% - 20% per annum.

   With respect to the SPV, RIM does not charge Investors a management fee, however, the
   SPV GP is eligible to receive an incentive allocation reallocated from the capital accounts of
   each SPV Investor in an amount of up to 10% of net profits in excess of a hurdle rate.
   Generally, the incentive allocation accrues monthly and is “crystallized”, meaning it is
   calculated and allocated to the SPV GP, when an Investor makes a partial or full redemption.

   The management fee and incentive allocation are negotiable in that RIM, in its sole discretion,
   can waive, modify or calculate different such fees for certain Investors including those who

Rush Island Management, LP Form ADV: Part 2A                                                  Page 6

   are members, principals, employees, or affiliates of RIM or the general partners, relatives of
   such persons, and for certain large or strategic Investors.

   Other clients, such as the SMA, are typically also charged a management fee and an incentive
   allocation at individually negotiated rates as described in the respective IMAs. Management
   fees for other clients are generally collected quarterly in arrears while the incentive allocation
   is typically collected annually in arrears. However, fees may be charged in arrears or in
   advance depending upon the terms of the specific governing documents. In the event that
   fees are charged in advance, RIM will ensure that at the point of redemption no client is
   charged a fee for a time period in which they were not invested.

C. The Funds generally bear their own operating expenses as more fully described in each
   Fund’s Offering Documents. These expenses may include but are not limited to Fund
   administration, research, audit, tax, fund organizational expenses, and others. Please see the
   relevant Offering Documents for a more complete listing of a Fund’s potential expenses.

   Investors will also indirectly incur brokerage and other transaction costs related to their
   investments that are in addition to the advisory fees payable to RIM. Please see Item 12 of
   this brochure for a more detailed discussion of RIM’s brokerage practices.

   Subject to the terms of the applicable IMA, SMAs are typically responsible for all operating
   expenses in connection with the management of their respective accounts.

   RIM renders its services to Clients at its own expense and will be responsible for overhead
   expenses including office rent; utilities; furniture and fixtures; stationery; secretarial/internal
   administrative services; salaries and bonuses; entertainment expenses; employee insurance
   and payroll taxes.

D. As discussed above, if for some reason an investment in a Fund is withdrawn or redeemed
   prior to the expiration of a period in which the Investor has pre-paid fees, RIM would typically
   rebate the fees for the period of time during which the Investor was not invested.

E. At this time neither RIM nor any of its supervised persons accept compensation for the sale
   of securities or other investment products.

   It is very important that Investors refer to their respective Fund’s Offering Documents
   for a complete understanding of how RIM is compensated for its advisory services. The
   information contained herein is a summary only and is qualified in its entirety by the
   relevant Offering Documents.

Item 7 – Types of Clients

RIM provides investment advisory services to pooled investment vehicles operating as private
investment funds. When deemed appropriate for a large or strategic investor, RIM may elect to
establish additional separately managed accounts, which may (i) tailor their investment objectives
to specific financial instruments and/or (ii) be subject to different terms and fees than those of
other Clients. Such investment objectives, fee arrangements and terms will be individually
negotiated, and it should be noted that any such separately managed account relationships would
generally be subject to significant account minimums.

Investors in the Funds must meet certain eligibility provisions: interests in the Funds are generally
offered to (A) U.S. investors who are (i) accredited investors within the meaning of Regulation D
of the Securities Act of 1933, as amended (“Accredited Investors”) and (ii) “qualified clients” under
Rule 205-3 of the Advisers Act, and (B) non-U.S. investors (as applicable). Additionally, the
minimum initial investment is $2 million subject to reduction at the discretion of the respective
general partner or board of directors, as applicable.