Bluestone Capital Management LLC

Item 5 – Fees and Compensation

Our fees for asset management services are generally based on the level of assets under
management (asset-based fees). Asset-based fees generally range from 1 percent to 2 percent of
assets under management. Our model portfolio service fees range from 35 basis points up to 1
percent of the value of the assets in the under management.

For certain accounts, we may charge fees on a share of the capital appreciation of the assets or
securities in a client’s account, in the manner indicated in the respective client investment
management agreements (performance fees). Performance fees range up to 20 percent.
Performance-based fees are only charged to clients who meet the definition of a “qualified
client” under Rule 205-3 of the Investment Advisers Act.
For more details regarding fees, contact info@bluestonecm.com.

Please review each Private Fund’s PPM for details regarding the fund’s fee schedule. No fee
adjustments will be made for additional deposits, partial withdrawals, account appreciation or
depreciation. Fee adjustments will be made if accounts are added or closed. We aggregate all of
a client’s managed accounts together to determine the quarterly fee due. Depending on a client’s
account balance, fees may be higher than those charged by other investment advisers. Similar
advisory services may be obtained elsewhere at a lower cost.

Advisory fees will be charged in advance of each calendar quarter, or on a daily basis if supported
by the custodian. Our Private Funds charge advisory fees on a monthly basis in arrears.

The quarterly advisory fee will be based on the value of the portfolio on the last business day of
the just completed calendar quarter. Fees for partial periods will be pro-rated. The initial
advisory fees will be calculated based on the value of the account when it is opened. Fees may
be billed to the client, or, pursuant to a pre-arrangement and as indicated in the advisory
agreement, may be deducted from the client’s account. Clients will be able to see all fees
deducted from their accounts by reviewing their account statements and should there be any
questions they should contact us.
Advisory fees payable to us do not include all the fees you will pay when we purchase or sell
securities for your account(s). For example, clients will pay brokerage commissions, custody fees,
exchange fees, and fees charged by other advisers managing their accounts. See also, “Third Party
Asset Management Services” below.
Clients may terminate their investment management agreements with us, without penalty, upon
written notice as indicated in their respective advisory agreements. Upon termination, for
management fees paid in advance will be prorated to the date of termination and any unearned
portion of the prepaid fees will be refunded to the client.
Bluestone does not pay the costs of custodians, commissions, or other fees charged to clients by
third-party service providers unless agreed in the relevant investment management agreement
with clients.

Item 7 – Types of Clients
Bluestone focuses on the management of institutional client accounts, e.g. private funds,
registered funds, and other types of pooled investment vehicles. We also provide advisory
services for individuals, high-net-worth individuals, and third-party model delivery programs.
Bluestone provides advisory services to a very limited number of individual legacy accounts.
We are not accepting new clients for this service and have not for a number of years.

 The Bluestone Private Funds are investment limited partnerships formed under domestic or
foreign laws and operated as investment pools exempt from registration under the U.S.
Investment Company Act of 1940, as amended (the “Investment Company Act”). The investors
participating in Private Funds generally include high net worth individuals, corporations,
foundations and other business entities and from time to time include, directly or indirectly,
principals or other employees of Bluestone and its affiliates and members of their families or
other service providers retained by Bluestone.

Generally, the minimum Fund investment that Bluestone accepts is $250,000 or $1 million
depending on the Private Fund. Certain Funds permit lower minimum investments, as set forth
in each such Fund’s Governing Documents. In addition, in certain cases and in its sole discretion,
Bluestone accepts a Fund investment in a lesser amount, or alternatively, increases the minimum
investment amount. Prior to investing in a Fund, an investor is typically required to complete a
subscription agreement and investor qualification statement containing representations needed
to establish the investor’s eligibility to invest in the Fund.

In order to establish a Separate Account, an investor must enter into a written investment
management agreement with Bluestone. Where a Separate Account has certain investment
objectives, such as investing in a diversified portfolio of private equity partnerships, the client is
typically required to complete a subscription agreement and an investor qualification
statement upon which Bluestone can rely in completing documentation for private equity
partnership investments on the Separate Account’s behalf pursuant to a limited power of
attorney. The minimum amount of investment required to establish a Separate Account is
considered on a case- by-case basis taking into account a variety of factors including fee
structure, investment restrictions, and duration of commitment.

In most circumstances, investors in the Private Funds and Separate Accounts must meet certain
suitability and net worth qualifications prior to making an investment in such Fund or Separate
Account. Generally, investors must be (i) “accredited investors” as defined under Regulation D of
the U.S. Securities Act of 1933, as amended, and (ii) either “qualified purchasers” or
“knowledgeable employees” as defined under the Company Act. Bluestone reserves the right to
waive these qualification requirements under certain circumstances.