Aether Investment Partners LLC

Item 5         Fees & Compensation

A. Describe how you are compensated for your advisory services. Provide your fee schedule.
Disclose whether the fees are negotiable.

AIP is compensated for its advisory services generally through a management fee charged to Investment
Fund Clients. The management fee is typically in the range of 0.60% to 1.25% per year of the aggregate
commitments of an Investment Fund Client’s limited partners (the “Investment Fund Client Limited
Partners”) during an initial period for the relevant Investment Fund Client and thereafter the fee percentage
is typically based on the remaining cost basis of the Underlying Vehicles (as defined below) then held by
the Investment Fund Client or scaled down by a certain percentage. Please see Item 6 for a description of
the performance-based allocations the Investment Fund Client General Partners receive from Investment
Fund Clients.

Investment Fund Client General Partners and/or AIP has in the past and may again in the future elect to
waive all or any portion of the management fee. Please see Item 4.C for a description of Side Letters that
have been entered into with certain investors related to fees.

The management fees are payable without regard to the overall success or income earned by Investment
Fund Clients and therefore may create an incentive on the part of AIP to raise or otherwise increase assets
under management to a higher level than would be the case if AIP were receiving a lower or no management
fee.

AIP’s fees are generally not negotiable.

Investors in Investment Fund Clients should refer to the private placement memorandum or other offering
documents of the respective Investment Fund Client for additional information regarding fees and
restrictions. The information contained herein is a summary only and is qualified in its entirety by such
documents.

B. Describe whether you deduct fees from clients’ assets or bill clients for fees incurred. If clients
may select either method, disclose this fact. Explain how often you bill clients or deduct your fees.

AIP (or an affiliate) typically deducts fees from Investment Fund Clients’ assets. The management fees of
Investment Fund Clients typically are payable twice a year, in advance, by calling capital from the Investment
Fund Client Limited Partners for payment of such fees or by utilizing available cash on-hand. The payment
of management fees to AIP by Investment Fund Clients is subject to the provisions of the respective
governing documents of Investment Fund Clients.

Performance compensation typically is deducted from Investment Fund Clients’ assets and allocated to the
respective Investment Fund Client General Partner pursuant to the governing documents of the Investment
Fund Client.

Investors in Investment Fund Clients should refer to the private placement memorandum or other offering
documents of the respective Investment Fund Client for detailed information with respect to how fees are
paid with respect to their assets. The information contained herein is a summary only and is qualified in its
entirety by such documents.

C. Describe any other types of fees or expenses clients may pay in connection with your advisory
services, such as custodian fees or mutual fund expenses. Disclose that clients will incur brokerage
and other transaction costs, and direct clients to the section(s) of your brochure that discuss
brokerage.

Investment Fund Clients incur brokerage and other transaction costs, as applicable. Please see Item 12 of
the Brochure for further discussion of brokerage practices.

AIP’s fees are exclusive of Investment Fund Clients’ own operating and other expenses generally including,
without limitation: organizational expenses, placement fees (subject to the offset detailed in the offering
documents), management fees, transaction expenses, any fund administration, accounting, audit, or legal
expenses, bank fees and interest expense (including fees and expenses related to an Investment Fund
Client’s line of credit), investment-related travel, shipping and postage expenses of the Investment Fund
Client, filing fees, indemnification expenses of the Investment Fund Client, investor communication
expenses, advisory committee and/or limited partner annual meeting expenses, all unreimbursed out-of-
pocket expenses of the Investment Fund Client relating to unconsummated transactions (including legal,
tax, accounting, background check, and consulting expenses and broken-deal expenses that would have
been borne by co-investors if the transaction were consummated), fees relating to the preparation of
financial and tax reports, portfolio valuations, and tax returns of the Investment Fund Client, Investment
Fund Client-specific regulatory filing expenses (e.g., Commodity Futures Trading Commission and National
Futures Association exemption filings, Form D and blue sky filings), the costs of prosecuting any legal action
for or on behalf of (or defending any legal action against) the Investment Fund Client or its subsidiaries, the
costs of any litigation, director or officer liability insurance, cyber insurance, or other insurance and
indemnification or extraordinary expense or liability relating to the affairs of the Investment Fund Client,
liquidating expenses, any taxes, fees, or other governmental charges levied against the Investment Fund
Client and all expenses incurred in connection with any tax audit, investigation, settlement, or review of the
Investment Fund Client (other than taxes allocated to one or more partners pursuant to the offering
documents) and all other expenses of the Investment Fund Client.

Execution of Investment Fund Client transactions does not typically, but in some circumstances may, require
payment of brokerage commissions by the Investment Fund Client. Item 12 below describes the factors
that, when applicable, AIP typically considers in selecting or recommending broker/dealers for the execution
...

Item 7         Types of Clients

Describe the types of clients to whom you generally provide investment advice, such as individuals,
trusts, investment companies, or pension plans. If you have any requirements for opening or
maintaining an account, such as a minimum account size, disclose the requirements.

AIP generally provides advice to pooled investment vehicles whose interests are offered in reliance upon
various exemptions available under the securities laws for privately offered securities. Currently, AIP’s clients
are ARA II, ARA III, ARA III Surplus, and ARA SP I, each a closed-end fund of funds, ARA IV, ARA SONJ,
and ARA V, each a closed-end fund of funds that also makes certain direct investments, and ARA Co-Invest
I, a closed-end fund making direct co-investments.

Interests in Investment Fund Clients are offered only to qualified investors that meet certain financial criteria
and suitability requirements. Investment Fund Clients typically require an initial minimum investment of
$1,000,000, which requirement has and may again in the future be lowered in the sole discretion of the
respective Investment Fund Client General Partner.