Ardan Equity Partners LLC

Item 5. Fees and Compensation

Item 5.A and 5.B: Description of Compensation Arrangements

Below is a discussion of how the Adviser is typically compensated in connection with providing
advisory services to its Clients. Because the Adviser may enter into different fee arrangements
on a client-by-client basis, please ensure you obtain and carefully read and study all applicable
offering documents for any Fund or Fund(s) for which the Adviser provides investment advisory
services. The information contained herein is a summary only and is qualified in its entirety by the
Client’s Governing Documents. Investors and prospective investors are advised that they should
consult with their own legal, financial, tax and other advisers when making any investment decision.

The Adviser or its affiliates generally receive Management Fees and Carried Interest (each as
defined below) or similar performance-based remuneration from a Fund. A Fund, and/or its portfolio
companies may also make other payments to the Adviser or its affiliates for services provided to the
portfolio companies which, in certain circumstances, may reduce the Management Fees payable to
the Adviser. Additionally, consistent with the Governing Documents of a Fund, the Fund typically
bears certain out-of-pocket expenses incurred by the Adviser in connection with the services
provided to the Fund and/or the portfolio companies.

Management Fee

The management fees received will be based on committed or invested capital in accordance
with the terms of the Governing Documents of the relevant Fund. Ardan may, in its sole
discretion, manage other funds with higher or lower fees, different fee structures and different
expense payment arrangements than current Funds. Generally, the Adviser’s management fees
will typically be up to 2% of capital committed per annum The management fee will be paid
quarterly, in advance, and deducted directly from the relevant Fund’s account.

Performance Allocation
The Adviser or its affiliates typically receive Carried Interests allocations from each of the
Fund(s) of up to 25% of distributable cash of each portfolio investment. Carried Interests
allocations may be subject to hurdles and/or claw-backs, depending on, among other things, the
strategy of the relevant Fund(s) and market returns. For additional information, please refer to
the specific Governing Documents for each Fund(s) which may contain different carried interest
provisions and payment structures than that described above.

Item 5.C: Other Fees and Expenses

Organizational Expenses

A Fund will bear the organizational and startup expenses of the Fund, the Managing Members
and the Management Company, and the offering of the interests, up to a maximum amount as
detailed in each Fund’s Governing Documents (collectively, the “Organizational Expenses”).
Organizational Expenses in excess, if approved by Non-Managing Members, will be borne by

Non-Managing Members. In addition, Excess Organizational Expenses, if not approved by Non-
Managing Members, shall be borne by the Managing Member.

Fund Expenses

Fund(s)’ will typically be responsible for costs, expenses and liabilities that in the good faith
judgment of the Managing Member are incurred by or arise out of the operation and activities of
the Fund (“Fund Expenses”), including but not limited to: (i) Fund administration; (ii)
Management Fees; (iii) any sales or other taxes, fees or government charges which may be
assessed against the Company; (iv) commissions or brokerage fees or similar charges incurred in
connection with the purchase or sale of securities (including any merger fees payable to third
parties and whether or not any such purchase or sale is consummated); (v) the costs and expenses
(including travel-related expenses) of annual or special meetings of the Company or otherwise
holding meetings or conferences with Non-Managing Members, whether individually or in a
group; (vi) interest expense for borrowed money; (vii) reasonable expenses attributable to normal
and extraordinary investment banking, commercial banking, accounting, auditing, appraisal, tax
advisory, legal, external consulting, custodial, reporting and registration services provided to the
Company, including in each case services with respect to the proposed purchase or sale of
securities by the Company that are not reimbursed by the issuer of such securities or others
(whether or not any such purchase or sale is consummated); (viii) travel and other expenses related
to the investment activities of the Company; (ix) reasonable premiums for liability insurance to
protect the Company, the Managing Member, the Management Company, and any of their
respective partners, members, stockholders, officers, directors, employees, agents or Affiliates in
connection with the activities of the Company; (x) the costs of dissolving the Company and
liquidating its assets; (xi) all expenses relating to litigation and threatened litigation involving the
Funds (excluding expenses relating to litigation or threatened litigation resulting from fraud,
breach of this Agreement, gross negligence or willful misconduct); (xii) indemnification
expenses; (xiii) any Organizational Expenses; (xiv) any Placement Fees; (xv) any Extraordinary
Expenses; (xvi) compliance expenses related to the Funds; (xvii) financial management expenses;
and (xviii) all other expenses relating to the Company’s investment in the securities of a target
company.
Investors are strongly encouraged to refer to each Fund’s Governing Documents for a more
detailed breakdown of the expenses born by the relevant Fund.

Consulting and Transaction Fees
The Managing Member, the Management Company, and their affiliates will be permitted to retain
management services fees paid by portfolio companies as described in greater detail in the
relevant Fund’s Governing Documents. These fees typically do not off set any of the Management
Fees.

Item 5.D: Management Fees in Advance
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Item 7. Types of Clients

The Adviser currently provides discretionary investment supervisory services to privately offered
Funds, which are pooled investment vehicles as described in Item 4.B., which is intended for
investment by private placement by qualified investors (the “Investors”). Investment advice is
provided directly to the Funds (subject to the direction and control of the managing member of each
such Fund, if applicable) and not individually to investors in such Fund.

Minimum investment commitments are generally $250 thousand dollars for Fund investors. The
Managing Member of each Fund has in the past and may in the future, in its sole discretion, permit
investments below the minimum amounts set forth in the Governing Documents of such Fund.