Ballast Equity Partners Management Company LLC

Item 5: Fees and Compensation
Item 5.A. Compensation for Advisory Services

In consideration of our services, we generally receive management fees and we and/or certain of our
affiliates are entitled to receive carried interest distributions, with respect to the Funds. While such
fees and carried interest distributions are described in detail in the applicable governing documents
or agreements, a general summary of our basic fee schedule is set forth below. We have the sole
discretion to waive, reduce or alter the fee structure, and therefore, Investors’ fee structures vary. In
addition, we occasionally enter into side letter arrangements with certain Investors which provide
for different or additional terms than those described below

Management Fees

With respect to each Fund we generally are entitled to receive an annual management fee, payable
with respect to each calendar quarter in advance in the amount of 1.25% of committed capital.

Carried Interest Distributions

Carried interest charged to a Fund is generally calculated and paid as a percentage, of the net
distributions to the Client or investors in excess of their invested capital and, in some cases, in excess
of an agreed preferred return to the Client or investors as detailed in the appliable governing
documents.

Item 5.B. Payment of Fees

Depending on the Fund , our management fees are payable by investors , quarterly in advance. With
regard to the Funds, we or our affiliates have the discretion to pay management fees from capital
contributions drawn for such purpose, proceeds received in respect of any investments, or any other
funds or other assets determined by us or our affiliates to be available.

Carried interest distributions are distributed from the distributable cash and/or proceeds of the Funds
to investors and us or our affiliate at least quarterly (following a return of capital and a preferred rate
of return to investors).

Item 5.C. Other Fees & Expenses

In addition to the above-described fees and carried interest distributions, we will be reimbursed at
cost for organizational costs of each Fund. Certain Funds have organizational cost caps, above which
we will cover such costs.

In addition, each Fund generally will bear all costs and expenses reasonably incurred by or arising

out of the operation and activities of the Fund as discussed below and further detailed in each
applicable Fund’s governing documents.

Each Fund shall bear all fees, costs and expenses incurred that are related to the Fund and that are
not reimbursed by third parties including (i) organizational expenses, (ii) all fees, costs and expenses
incurred in connection with (A) identifying, investigating, evaluating, acquiring, consummating,
holding, maintaining, monitoring and disposing of Securities (including legal, accounting, auditing,
custodial, consulting, investment banking and other fees and expenses, commissions, appraisal fees,
taxes, brokerage and other finders fees, merger fees, registration fees, due diligence and similar fees
and expenses, and all reasonable out-of-pocket entertainment and travel and related expenses
(including up to commercial class (or equivalent) air travel, car services, hotel accommodations and
meals (collectively, “Travel Expenses”)) incurred by employees and/or other agents of the Firm, the
General Partner or their respective affiliates in connection with the foregoing and also investment
and disposition opportunities that are not consummated); (B) any bank account, credit facility,
guarantee, line of credit, loan commitment, letter of credit or similar credit support or other
indebtedness involving the Fund or any portfolio investment (including any fees, costs and expenses
incurred in obtaining such borrowings and indebtedness and interest arising out of such borrowings
and indebtedness); proceeding involving the Fund that are allocated to the Fund and attributable to
Fund activities; (E) indemnification subject to the limitations; (F) complying with (or facilitating
compliance with) any applicable law, rule or regulation (including legal fees, costs and expenses),
regulatory filing or other expenses of the Fund, the General Partner or the Firm, including Form PF
filings, anti-money laundering compliance and any compliance, filings or other obligations related
to or arising out of the Alternative Investment Fund Managers Directive 2011/61/EU, in each case,
involving or otherwise related to the Fund; (G) complying with tax withholding and other
information reporting regimes, including FATCA and similar laws or regulations; (H) legal,
consulting, custodial, administration, auditing, accounting, appraisal, valuation and other
professional services related to the Partnership (including (1) fees and expenses of any third-party
administrator and (2) expenses associated with the preparation the Fund’s financial statements, tax
returns and Schedules K-1); (I) developing, licensing, implementing, maintaining or upgrading any
web portal, extranet tools, computer software or other administrative or reporting tools (including
subscription-based services) for the benefit of the Fund, the Limited Partners or the Fund’s portfolio
investments; (J) meetings of the advisory committee, including the Travel Expenses of the members
of the advisory committee and representatives of the General Partner to attend such meetings; (K)
annual or other meetings of the Partners, whether individually or as a group, including Travel
Expenses of representatives of the General Partner and the portfolio entities of the Funds attending
such meetings; and (L) variable administrative expenses such as Bloomberg fees, research and
software expenses and other expenses incurred in connection with data services, and fees for
attendance of industry conferences, the primary purpose of which is sourcing investments; (iii) any
taxes or other governmental charges incurred or payable by the Fund; (iv) the portion of any
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Item 7: Types of Clients
Ballast provides investment advisory and management services to its affiliated Funds. The Funds
have a minimum investment amount, which is set forth in each Fund’s offering memorandum and
may vary at the discretion of management. The relevant General Partner also retains the right to
waive the stated minimum investment amount.

Ballast’s Fund Clients rely on certain exclusions and exceptions from the definition of “investment
company” in the Investment Company Act. Accordingly, none of Ballast’s Fund Clients are
registered as investment companies with the SEC.

Investors in the Funds generally include high-net-worth individuals, family offices, and institutional
investors such as foundations, endowments, and state retirement systems. These investors qualify
as “accredited investors,” “qualified clients,” and, where required by the applicable exemption,
“qualified purchasers” under the Securities Act of 1933, the Investment Advisers Act of 1940, and
the Investment Company Act of 1940, respectively.