Sabby Management LLC

ITEM 5 – FEES AND COMPENSATION

Sabby does not have a standardized fee schedule for its discretionary investment management
services. Sabby generally receives a management fee of 2% per annum of assets under
management, which is charged quarterly in advance. Sabby Capital also may receive
performance-based compensation of up to 20% of the increase (or 27.5% of the increase over a
“hurdle” rate) in net asset value of an investment in a Private Fund above a “high water mark”
(i.e., the previous highest net asset value at which performance-based compensation was paid).
Performance-based compensation generally is charged annually in arrears and upon an intra-year
redemption by an investor in a Private Fund (where permitted). This performance-based
compensation is calculated taking into account both realized and unrealized gains for certain of
the Private Funds and for solely realized gains for the balance of the Private Funds. Sabby
Capital holds a membership interest in, and class of shares of, certain of the Private Funds
managed by Sabby and receives the performance-based compensation described above through
an allocation of net profits from such Private Funds in respect of such interest and shares. Fees
and other material terms regarding an investment in a particular Private Fund are set forth in such
Private Fund’s Memorandum.

Fees may be reduced or waived in certain circumstances or with respect to certain investors (e.g.,
principals and employees of Sabby). Fees charged with respect to an investment in a Private
Fund advised by Sabby are set forth in such Private Fund’s Memorandum.

While investors in certain Private Funds may terminate Sabby’s advisory services at the end of
any calendar quarter without penalty generally upon forty-five days’ prior written notice,
withdrawals and redemptions by investors in such Private Funds have been suspended as it has

been determined to dissolve those Private Fund in an orderly manner, and investors have
received a mandatory withdrawal or redemption on a quarterly basis as assets of those Private
Funds have been liquidated. Investors in other Private Funds commit their capital for a specific
period of time, generally a period of approximately five years, and are not permitted to withdraw
or redeem their investments. Investors in such Private Funds instead generally receive
distributions at the end of the second, third and fourth years of their investment, with the balance
distributed upon the end of the the fifth year. Upon termination of any investment in a Private
Fund, any prepaid, unearned fees will be promptly refunded and any earned, unpaid fees will be
due and payable.

Sabby’s fees do not include brokerage and transaction fees, costs and charges, and other related
costs and expenses that will be incurred regarding the trading and maintenance of the Private
Funds. Private Funds may incur certain charges imposed by custodians, brokers and other third
parties such as commissions, custodial fees, and other fees and taxes on brokerage accounts and
securities transactions. Such charges, fees and commissions are exclusive of and in addition to
Sabby’s fees, and Sabby does not receive any portion of these commissions, fees, and costs.

Item 12 describes the factors that Sabby considers in selecting broker-dealers for Private Fund
transactions and determining the reasonableness of their compensation (e.g., commissions).

ITEM 7 – TYPES OF CLIENTS

Sabby provides investment advice to U.S. and non-U.S. institutional clients consisting solely of
Private Funds. While Sabby does not have a standard minimum account size, each of the Private
Funds has a $500,000 minimum investment, which minimum has been waived from time to time.