503 Capital Partners LLC

Item 5 – Fees and Compensation

Separately Managed Accounts
For SMA Clients, investment management fees are paid at the end of each calendar quarter pursuant to the terms of
the investment management agreement. Investment management fees are typically calculated quarterly in arrears. The
management fees are typically based on the prior quarter’s market value of assets under management and valued each
quarter at the closing price of the securities on the last business day of such quarter. Investment management fees
may also be valued based on the prior quarter’s average market value of assets under management. Investment
management fees typically range up to 1.25% annually based on several factors, including: the scope and complexity
of the services to be provided; the level of assets to be managed; and the overall relationship with 503 Capital Partners.
Relationships with multiple objectives, specific reporting requirements, portfolio restrictions and other complexities may
be charged a higher fee.

Management fees are negotiable and vary by client based on a number of factors, such as account asset size, specific
requirements of the mandate or restrictions, accounts that include performance fee components, or servicing needs. All
securities held in accounts managed by 503 Capital Partners will be valued in accordance with 503 Capital Partners’
fair valuation policy and procedures.

503 Capital Partners’ fee is exclusive of, and in addition to any applicable securities transaction and custody fees, and
other related costs and expenses described below, which may be incurred by the Client. However, 503 Capital Partners
shall not receive any portion of such commissions, fees, and costs.

The management fee amount due is typically prorated for accounts initiated or terminated during the applicable period.
SMA Clients are provided a statement, at least quarterly, from 503 Capital Partners reflecting the invoice for the
management fee. Clients may also receive a statement from their custodian reflecting deduction of the investment
management fee. Clients are urged to review the statement provided by the custodian, as the custodian does not
perform a verification of fees.

503 Capital Partners is generally compensated for its investment management services at the end of the quarter after
services are rendered. Either party may terminate the investment management agreement, at any time, by providing
advance written notice to the other party. Except as otherwise provided in a SMA Client agreement, upon termination
of any account, any earned, unpaid fees will be due and payable, and any pre-paid unearned fees will be refunded
to the SMA Client in a timely manner. The SMA Client’s investment management agreement with 503 Capital Partners
is non-transferable without the Client’s prior consent.

Private Funds

The fees and expenses associated with an investment in private funds for which 503 Capital Partners serves as
investment adviser vary, depending on the fund, and are described in detail in the fund’s offering documents. 503
Capital Partners may, in its discretion, manage other private funds with higher or lower fees, different fee structures,
different expense payment arrangements and different withdrawal or redemption rights, than existing funds. 503
Capital Partners may waive or reduce the management fee to be borne by an Investor in any fund for any reason.

Additional information regarding fees and compensation received by 503 Capital Partners and its affiliates,
as well as the terms for termination, are outlined in the respective Private Fund’s Offering Documents.

Incentive Fees

503 Capital Partners is also entitled to receive performance fees (carried interest) for certain clients, as described in
Item 6 below. The performance fee may be calculated in a variety of ways, depending on multiple factors, including,
but not limited to, the nature of the investment strategy, relevant performance benchmarks and performance hurdles.

PERFORMANCE BASED FEES WILL ONLY BE CHARGED IN ACCORDANCE WITH THE PROVISIONS OF RULE
205-3 PROMULGATED UNDER THE INVESTMENT ADVISER ACT OF 1940, AS AMENDED (“ADVISERS ACT”),
APPLICABLE SEC GUIDANCE, AND/OR APPLICABLE STATE REGULATIONS.

                                                 503 Capital Partners, LLC
                                                   Phone: 913-279-0177

Other Expenses

As described in the offering documents and/or the investment management agreement, as applicable, with each
Client, 503 Capital Partners is authorized to incur and pay in the name and on behalf of each Client all expenses
which it deems necessary or advisable. 503 Capital Partners generally is responsible for its own overhead
expenses of an ordinarily recurring nature such as rent, utilities, supplies, secretarial expenses, stationery,
charges for furniture, fixtures and equipment, employee benefits including insurance, payroll and other taxes and
compensation (and related costs) of all personnel.

Except as otherwise set forth in the offering documents and/or the investment management agreement, as
applicable, Clients incur brokerage costs, third-party execution costs (if any) and other transaction costs
associated with 503 Capital Partners’ management of the accounts’ portfolio securities. Please refer to the
discussion of brokerage practices in Item 12, below.

In addition, Private Fund expenses, including expenses associated with any private investments, include but are not
limited to: (a) fees related to accounting, trading, portfolio management and risk management systems and
services, (b) research subscriptions and expenses, (c) legal and consulting fees related to investment research and
due diligence, (d) broken deal fees, (e) expenses relating to marketing to prospective investors (including travel
costs), (f) expenses to register securities and transfer taxes, (g) costs and expenses incurred for the purposes of
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Item 7 – Types of Clients

503 Capital Partners offers investment management services to high net worth individuals, foundations and other
institutions.. The minimum account size for a separately managed account is $15,000,000. This minimum may be
waived at 503 Capital Partners’ sole discretion.

503 Capital Partners also offers portfolio management services to Private Funds. The Private Funds are not
registered under the Investment Company Act of 1940 (the “Company Act”), as amended, in reliance on the
exemptions provided in Sections 3(c)(7) thereunder, as applicable. Additionally, the interests, shares or units (as
applicable) are not registered under the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder (the “Securities Act”) pursuant to an exemption from registration under Regulation D of the
Securities Act. Generally, the Investors in the Private Funds meet the definition of “qualified purchasers” which
includes institutional investors, investment managers and high net worth individuals.

The various requirements for investing in a Private Fund, including the minimum investment size, are set
forth in each Private Fund’s Offering Documents. 503 Capital Partners has the ability, in its sole discretion,
to permit commitments below the minimum amounts set forth in the Offering Documents.

                                              503 Capital Partners, LLC
                                                Phone: 913-279-0177