Sky Creek Capital Management LLC

5.   Fees and Compensation

     Portfolio Management

     Discretionary Managed Account Fees

     The Firm charges an investment advisory fee that is based on the size of the portfolio of the
     institutional client. Sky Creek charges the following fees for discretionary managed accounts:

                Management Fee                                        Performance Fee
                   Up to 2%                                              Up to 20%

In general, fees are billed quarterly in arrears, according to the fee schedule established in an
Investment Advisory Agreement, where appropriate. However, the amount and frequency of fees
may be negotiated between the Firm and a client. The Firm reserves the right to negotiate its fees up
or down, based on the size of the client account and other factors.

Lower fees for comparable services may be available from other sources. The Firm gives a client thirty
(30) days prior written notice of any increase in fees unless otherwise specified in Investment
Advisory Agreement.

Advisory agreements with Sky Creek are also terminable upon thirty (30) days prior written notice.
Upon termination, a client will receive a pro rata invoice for advisory fees outstanding from the
beginning of the billing period up to the date of termination. The client will also incur brokerage
commissions and other transaction costs as part of regular portfolio trading, which commissions and
costs are separate from Sky Creek’s investment advisory fee. Brokerage practices are discussed in
Item 12 of this brochure.

Private Investment Fund Fees

The Firm offers investment management services for a percentage of assets under management. The
Firm also charges performance-based fees for qualified clients.

Management fees are negotiated with each fund and may vary by investment class. Management fees
are based upon a percentage of a fund’s assets under management. Generally speaking, we charge
fund clients a management fee of up to 2%. The Firm reserves the right to negotiate higher or lower
management fees and the fees or to waive such fees entirely. There is no refund provision for the
management fee.

Management fees are paid monthly and are based on the assets in the relevant client’s portfolio(s) at
the end of every month. Specific management fee and related expense and billing information are
outlined in a fund’s Offering Memorandum.

Negotiable performance-based fees are also charged depending on a respective client’s requirements
and qualifications (referred to in Item 6). Generally speaking, we charge fund clients a performance
allocation of up to 20% of the Net Profit, if any, allocated to the capital account or portfolio of each
member of the respective fund. Performance-based fees and the conflict associated with such types of
fees are discussed in Item 6 below.

Other Costs Involved

Other types of costs may include transaction costs comprised of security trading costs, brokerage fees
as well as margin costs.

In addition to our fees explained above, the Sky Creek Fund pays certain expenses associated with its
investments. These fees include day-to-day administrative and operating expenses of the fund,
including audit and legal fees; accounting and tax preparation costs; reporting, filing and custody fees;
computer services and software expense; insurance, etc. Other types of costs include transaction costs
comprised of security trading costs, brokerage fees (see Item 12 specifying Sky Creek Fund’s prime

       broker) as well as margin costs. Additional details related to these costs are provided in the fund’s
       Offering Memorandum.

7. Types of Clients

       The Firm provides advisory services to institutional clients and private investment funds.

       For managed accounts, the Firm generally imposes a minimum account size requirement of $1,000,000.

       An investor in the Sky Creek Fund and any other private fund sponsored or managed by the Firm is
       generally be required to be at least an “accredited investor,” as defined by SEC Regulation D under the
       Securities Act of 1933, as amended. Any client for whom a performance fee and/or allocation is
       charged must be a “qualified client” as such term is defined in Rule 205-3 of the Investment Advisers
       Act, as amended. The President of the Firm must approve any client that does not meet the
       “accredited investor” standard.

       The minimum investment in private fund operated by Sky Creek is $250,000, subject to increase,
       reduction or waiver but in compliance with all applicable rules and regulations. Minimum
       requirements for initial and subsequent investments are also described in the fund’s Offering
       Memorandum.

       Prior to providing management services, clients will be required to enter into one or more written
       agreements, which set forth the services we provide, the fees to be charged, and other terms and
       conditions regarding the relationship.

       Prior to providing such services, clients will generally enter into one or more written agreements,
       which set forth the services Sky Creek provides, the fees to be charged, and other terms and conditions
       regarding the relationship.

       Client relationships vary in scope and length of service.