Salus LP

FEES AND COMPENSATION

For its services in managing and supervising the Partnership's investment portfolio and for administrative
activities on behalf of the Partnership, the General Partner will receive a Management Fee calculated at a
rate of approximately 2% per annum (or 0.5% per calendar quarter) of each Limited Partner's Capital
Account balances. The Management Fee will be calculated and paid quarterly in advance based on the
value of the Limited Partners' Capital Account balances as of the beginning of each quarter (after taking
into account capital contributions made as of the beginning of the quarter). In calculating the Management
Fee, the assets and liabilities of the Partnership are valued by the General Partner in good faith in
accordance with the Partnership Agreement. Limited Partners who are permitted to contribute capital on a
date other than the first day of a quarter will be charged a prorated Management Fee for the quarter as to
the amount contributed at the time of their contributions. Limited Partners who are permitted to withdraw
capital on a date other than the last day of a quarter will not receive a refund of any Management Fee paid
in advance. The General Partner may vary the Management Fee as to particular Limited Partners by
separate written agreement. The General Partner may assess special charges to Limited Partners who
effect early redemptions or redemptions at times other than the end of a quarter

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                                                                               Confidential Offering Memorandum

                       PERFORMANCE-BASED FEES AND SIDE-BY-SIDE
                                   MANAGEMENT