Spark Investment Management LLC

Item 5: Fees and Compensation

Spark receives an asset-based fee at the end of each profitable quarter of up to 1/2 of 1% of the
net assets of certain clients. The asset-based fee for any partial quarter is prorated.

Spark also receives an annual incentive allocation of 20% or more of each client’s profits.

Although fee terms are not negotiable, Spark may waive or reduce fees or allocations due from
any client or any investor in its clients.

In addition to the foregoing fees, clients typically bear or pay additional costs. This includes the
standard costs of buying, holding, selling, or trading investments, including brokerage costs.
This further includes personnel and compensation costs of all kinds, including employee salaries,
bonuses, and benefits. Finally, this includes many other types of expenses of all kinds. Spark
shares a portion of such costs pursuant to the agreements it has with its clients.

Investors that participate in certain investments may bear certain expenses associated with those
investments that are not borne by other investors that do not participate in such investments.
Spark allocates expenses among its clients on a basis that Spark considers fair and reasonable.

See Item 12 for more details on Spark’s brokerage practices.

The fees and allocations described under this Item 5 are typically deducted from each client’s
assets at the payment date.