Two Sigma Advisers LP

Item 5.        Fees & Compensation
Asset-Based Compensation

A substantial majority of Clients pay the Adviser management fees (the “Management Fees”) that
are deducted by the Client’s custodian from the Client’s account under the Adviser’s instructions.
Further, in its capacity as a sub-adviser to an investment company and as an investment manager
or sub-adviser to UCITS, the Adviser receives management fees from the primary investment
adviser (or in the case of certain UCITS, the management company) of each such entity, and the
Adviser also receives management fees from certain Clients, or a deduction by a Client’s
administrator, in the course of providing advisory services to separately managed accounts
(collectively, the “Advisory Fees”). The Management Fees and Advisory Fees are typically based
on the Client’s assets under management and are determined based on an annualized rate.
Currently, such fees have annualized rates of up to 3%, as described in each such Client’s
applicable offering memorandum, investment management agreement, sub-advisory agreement,
prospectus and supplemental disclosure document or other governing document (though, as noted
below, such rates are higher or lower for certain investors in Clients). The Management Fees and
the Advisory Fees are generally payable monthly or quarterly in advance or in arrears, depending
on the Client.

The Adviser has waived, reduced and/or modified the Management Fees for certain investors in
Clients, including for proprietary capital, and may do so in the future. Similarly, the Adviser
(and/or its affiliate, as applicable) has substituted the Management Fees in whole or in part with
incentive allocations or incentive fees as agreed with investors in Clients and may do so in the
future.

Performance-Based Compensation

The Adviser is entitled to receive performance-based compensation from certain Clients based on
a share of capital gains or capital appreciation of the assets of a Client, in some cases as measured
above the applicable benchmark in the form of incentive fees (“Incentive Fees”). Incentive fees
generally range from 20% to 35% of the net profits (in certain cases, above an applicable
benchmark) for each calendar quarter or year. Incentive Fees are generally subject to adjustment
for unrecovered net losses (or underperformance relative to an applicable benchmark), subject to
certain other adjustments and provisions. Where applicable, the Incentive Fees are paid to the
Adviser from such Client, or deducted from the Client’s account by the Client’s custodian,
generally as of the close of each such calendar quarter or year.

Additionally, the Adviser’s affiliate, Two Sigma Institutional Partners, LLC (“TSIP”), as the
general partner, member, allocation shareholder (or similar entity), as applicable, of many Clients,
is entitled to receive performance-based compensation based on a share of capital gains or capital
appreciation of the assets of Clients in the form of an incentive allocation (the “Incentive
Allocation”). The Incentive Allocations currently range generally from 20% to 38% of the net
profits (in certain cases, above an applicable benchmark), if any, allocated to each investor in such
Clients for each calendar or fiscal quarter or year, as applicable (and in certain cases, greater
amounts depending on Client performance; though, as noted below, certain Clients have Incentive

Allocations taken at higher or lower rates for certain investors in such Clients). In addition, the
Incentive Allocations are generally subject to adjustment for unrecovered net losses (or
underperformance relative to an applicable benchmark) allocated to each investor in prior periods,
subject to certain other adjustments and provisions. The Incentive Allocations are allocated from
investor accounts at Clients to the account of TSP following instructions by the Adviser.

The Adviser or TSIP, as applicable, has waived, reduced and/or modified the performance-based
compensation for certain investors in Clients, including for proprietary capital, and may do so in
the future.

Other Fees and Expenses

In addition to paying investment management fees and/or performance-based compensation to the
Adviser (or an affiliate of the Adviser), Clients typically are responsible for their own operating
and investment expenses, including: fees, costs and out-of-pocket expenses incurred in connection
with the formation of a Client that is a private investment fund; fees and expenses of any advisers
and consultants to the Client; external legal, auditing, accounting, administration, registered office,
trustee, tax return preparation and other professional fees and expenses; fees and expenses of the
Client’s directors, where applicable, including the costs associated with meetings; fees and
expenses of the Client’s administrator; out-of-pocket costs of the Client’s reporting to regulatory
authorities; taxes, fees and governmental charges or filing fees (including foreign marketing
registration and filing fees and expenses); fees and expenses of prime brokers, futures commission
merchants, dealers, custodians, sub-custodians, transfer agents and registrars; expenses of
registering or qualifying securities and other investments; brokerage commissions and dealer
collateral and other fees, charges, payments, expenses and other costs of trading, acquiring,
monitoring or disposing of any investments of the Client (including, for the avoidance of doubt,
exchange membership fees and expenses related to trading, acquiring, monitoring or disposing of
any investments in preparation for an inflow or outflow of capital); research expenses, including
fees and expenses of any third-party research, data, recommendations and/or services used by the
Adviser in its investment decision-making process (e.g., in connection with the use,
implementation and support of alpha capture systems and/or any other contributor platforms,
...

Item 7.           Types of Clients
The Adviser provides advisory services to Clients that are private investment funds, consisting of
commingled vehicles and funds of one, as well as sub-advisory or investment management
services, as applicable, to an investment company and UCITS. Clients are typically organized as
Delaware limited partnerships, Delaware limited liability companies, Massachusetts business
trusts or Delaware statutory trusts, Cayman Islands exempted companies or other similar structures
in the same or other jurisdictions. The Adviser also provides advisory services to separately
managed accounts, including such accounts owned by financial institutions, non-U.S
governmental entities, limited liability companies and other business and similar entities.

Clients organized as private investment funds are generally set up as either stand-alone structures
or as master-feeder structures, wherein each feeder fund invests portions of its assets (directly or
indirectly) into a master fund. The master fund then, in certain cases, invests a significant majority
(if not all) of its assets into certain trading vehicles managed by the Adviser. Further, certain stand-
alone funds and master funds invest, directly or indirectly, in commingled funds, trading vehicles
and/or cash management vehicles managed by TSI. The Adviser’s Clients organized as private
investment funds rely on the exemption set forth in Section 3(c)(7) of the U.S. Investment
Company Act of 1940, as amended. The structure of any given Client is described in further detail
in its offering memorandum, investment management agreement, prospectus and supplemental
disclosure document or other governing document, as applicable.

With respect to Clients, initial and additional subscription minimums, if any, are disclosed in such
Client’s applicable offering memorandum, investment management agreement, prospectus and
supplemental disclosure document and/or other governing document. The Adviser is typically
authorized to waive, reduce or modify such subscription minimums, subject to certain limitations
in accordance with applicable law or regulation.