Shannon River Fund Management LLC

Item 5: Fees and Compensation

Private Funds:

Fees and compensation are described in the advisory contracts we enter into with each Private
Fund, as well as in the applicable offering memorandum for each Private Fund. The below is
intended as a summary, and prospective Investors should refer to the offering documents for
the Private Fund or Private Funds in which they are considering investing for a more complete
description.

Shannon River generally charges each Private Fund (without duplication for Investors in a
master-feeder structure), a quarterly management fee at an annual rate of 1.5% or 2% of the net

assets of the Private Fund. Management fees are generally deducted from client accounts each
quarter in advance based on the total market value of the assets in the applicable Private Fund’s
accounts (including net unrealized appreciation or depreciation of investments and cash, cash
equivalents and accrued interest) on the first day of the quarter. The management fee will
generally be prorated for additions to and withdrawals from a Private Fund during a particular
quarter. The management fee accrues monthly. Affiliates of the Firm also generally charge
each Private Fund (without duplication for Investors in the master-feeder structure)
performance compensation equal to 20% of the increase in net asset value of the applicable
Private Fund, subject to a high water mark. Generally, such affiliates receive performance-
based fees or allocations from client accounts on an annual basis in arrears and upon
redemptions by Investors with respect to such Investors.

Our and our affiliates’ fees and compensation with respect to the Private Funds are generally
non-negotiable but do vary amongst the Private Funds and within each Private Fund. We retain
the right to waive or reduce fees, or charge different fees, with respect to Investors.

Sub-Advisory Clients:

Shannon River’s compensation with respect to each sub-advisory client is negotiated with each
such client’s adviser and set forth in the governing agreement between us.

Expenses

Shannon River’s clients will generally be obligated to pay certain fees and expenses of, and
pertaining to, the applicable client.

Without limiting the foregoing, the Private Funds shall pay for their organizational and initial
offering expenses as well as for their management and operating expenses, may include in some
or all instances, any and all research fees, interest on margin accounts, legal, accounting and
professional fees, borrowing charges on securities sold short, custodial fees, trustee’s fees,
brokerage commissions, bank service fees, interest on loans and debit balances, any taxes
applicable to the Private Funds on account of its operations, fees paid to its custodian,
administrator and registrar and transfer agent, and any and all reasonable expenses related to
its management and operation (including research and/or due diligence related travel,
governmental fees, directors fees, consulting fee and its allocable share of liability insurance
expenses) as well as the purchase, sale or transmittal of Private Fund assets. If the Private Fund
is part of a master fund structure, it is also responsible, as an investor such master fund, for its
pro rata share of the master fund’s (and any other vehicle’s) operating and overhead expenses.
For further details on the Firm’s brokerage practices refer to Item 12 of this brochure.

Item 7: Types of Clients

Investors in the Private Funds are generally high net worth individuals and institutional
investors that qualify as “accredited investors” (as defined in Rule 501 under the Securities Act
of 1933, as amended) and, for certain of the Private Funds, “qualified purchasers” (as defined
under the 1940 Act). The initial and additional subscription minimums for each Private Fund
are disclosed in the offering documents for the Private Fund.

The qualifications for investors in funds for which Shannon River acts as a sub-adviser are as
set forth in the applicable fund’s offering documents (e.g., the UCITS Funds are generally
designed for non-U.S. investors).