Ancor Holdings LP

Item 5. Fees and Compensation
There are three types of revenue that are earned by Ancor as it relates to our portfolio management
operations. These include 1) Transaction Fees earned at the acquisition of a portfolio company and,
in some cases, “add on” or “tuck in” transaction fees for future acquisitions made for existing portfolio
companies, 2) Related Fees earned for providing ongoing managerial and operational support to the
portfolio companies during their hold period, and 3) Carried Interest Distributions at the sale of a
portfolio company.

Transaction Fees: On the successful closing of acquisition transactions, Ancor earns a transaction
fee paid by the newly formed portfolio company. These fees are paid for Ancor’s efforts in pursuing,
evaluating, and closing specific transactions in which the LLC member investors, through the Funds,
have chosen to participate. There are no fees or expenses paid by any of the Funds or their
members/investors for unsuccessful deal efforts – those which do not culminate in closed transactions.
These transaction fees are also defined in each Management Services Agreements (“MSA”) between

Ancor and its portfolio companies and are generally approximately 2.0% of the transaction value.

Related Fee: In most instances, Ancor provides management services to the portfolio companies in
which the Funds are invested. Each unique MSA spells out the terms of Ancor’s engagement with
each specific portfolio company and includes the calculation for Ancor’s fees. The fees earned by
Ancor under the MSAs (where applicable) can vary, but are usually set at 5.0% of each individual
portfolio Company’s annual Normalized EBITDA as determined by the portfolio company’s board of
directors and is reviewed and confirmed annually by each portfolio company’s auditors. Additional
terms to each unique MSA may include fee floors, fee caps, rate step downs and fee payment
restrictions.

The MSA provides for Ancor to receive payment for providing ongoing strategic planning, financial
analysis, and other management support services to the portfolio companies. Where an MSA is in
effect, Ancor is deeply involved in the portfolio company operational and strategic initiatives. At
minimum, this generally includes engagement in monthly management meetings with each portfolio
company’s management team, engaging with board members to evaluate and acquire senior
management talent and C-Suite leadership, and, when necessary, leading efforts to acquire additional
equity investment and/or debt in support of the various portfolio company operations, when necessary,
among other unique initiatives.

These related fees are calculated by the appropriate accounting personnel within such portfolio
company – typically, a Controller with oversight by the CFO. The calculations are then reviewed as
part of each portfolio company’s annual audit and are approved by each portfolio company’s Board
of Directors. Ancor participates in the review to ensure that the amounts earned under the MSAs are
accurately calculated.

Carried Interest Distributions: Ancor also earns a carried interest, or promote, that is paid upon a
portfolio company sale when specific return performance metrics are met. The payment calculations
are defined within the various LLC agreements and memorialized by illustrative exhibits in these
agreements. Typically, the promote is equal to 20.0% of the increase in equity value to the LLC. It
is generally subject to preference payments to the money investors including distributions and
preferred return hurdle rate on their invested capital. At the time of a portfolio company sale, a senior
member of the Ancor team who is closely connected to the transaction in question calculates and
confirms the promote payment earned. These payments are also subject to review in the audit process
both by the Fund’s auditor as well as by Ancor’s independent auditor.

Adviser and Fund Expenses: Each Fund is responsible for and pays all expenses related to the
organization of such Fund and such Fund’s acquisition, ownership and operation of the applicable
portfolio company. In addition, each Fund reimburses Ancor for all reasonable out-of-pocket
expenses incurred by Ancor on behalf of such Fund relating to the Fund’s acquisition, ownership and
management of the applicable portfolio company and the operation of the Fund, all in accordance with
the Funds Governing Documents.

Ancor is liable for its normal operating overhead and administrative expenses, including salaries,
bonuses, and employee benefits, office facilities, back-office support, accounting,
management/finance functions.

Item 7. Types of Clients
Ancor provides advisory services to the Funds, which operate as exempt investment pools under the
Investment Company Act of 1940. The minimum capital commitment for an Investor to subscribe
to a Fund typically ranges from $5,000 to $100,000 and is outlined in the respective Governing
Documents. Ancor maintains discretion to accept less than the minimum investment threshold. In
addition, the Funds may enter into separate agreements, commonly referred to as “side letters”, with
certain Investors, to waive certain terms, or allow such Investors to invest on different terms than
those specifically described in the Governing Documents. Under certain circumstances, these
agreements could create preferences or priorities for such Investors with respect to others.

Investors in the Funds may include but are not limited to high-net-worth individuals, family offices,
trusts, investment funds, and institutional investors.