Brightline Capital Management LLC

Fees and Compensation
Brightline is compensated for providing services to the Funds as set forth in the respective
governing documents of the Funds. The compensation includes both management fees, which are
payable quarterly in advance, and performance-based fees, which are generally paid/allocated on
an annual basis. Management fees payable by an Investor in any particular fiscal year are generally
calculated based on the value of such Investor’s capital account at the beginning of each quarter;
management fees will be prorated for any period that is less than a full quarter and will be adjusted
for contributions made during the quarter. Brightline GP, LLC, the general partner of the Funds
(the “General Partner”), may waive or modify the management fees and performance-based fees

for Investors that are members, employees or affiliates of the General Partner or Brightline,
relatives of such persons, and for certain large or strategic Investors.

The performance-based fees are subject to a loss carryforward provision and are only paid when
an Investor’s interest in the Funds has recouped applicable net losses. Investors are required to
pay the management and performance-based fees specified in the particular Fund’s governing
agreement until an Investor redeems in full.

In addition to Brightline’s management and performance-based fees, Investors will also bear their
pro-rata share of operating expenses for the particular Funds, including for legal, auditing,
accounting and tax services; investment expenses such as commissions, research fees and expenses
(including research-related travel expenses); expenses incurred with respect to furnishing Investors
with reports and other financial information; interest on margin accounts and other indebtedness;
borrowing charges on securities sold short; custodial fees; and any other expenses related to the
purchase, sale or transmittal of Fund assets (collectively, the “Other Fund Expenses”).

Prospective and existing Investors in the Funds are encouraged to review the Fund’s governing
agreement and confidential private placement memorandum for a more extensive description of
the fees and expenses associated with an investment in the Funds.

Fees may be reduced or waived at Brightline’s sole discretion.

Types of Clients
As stated in the Advisory Business section above, Brightline’s client is a limited partnership
formed in the State of Delaware. The Investors in the Funds are generally comprised of ultra-high-
net-worth individuals and family offices, but also include a fund of funds. Although the Funds’
minimum subscription amount is $1 million, the minimum may be waived at the General Partner’s
discretion in accordance with any applicable provisions in the Fund’s governing agreements.

Methods of Analysis, Investment Strategies, and Risk of Loss
Investment Strategy. Brightline’s overall investment philosophy is value-driven and based on
disciplined, rigorous fundamental analysis and research. Brightline generally looks for companies
with strong fundamentals that are selling at prices that represent a discount to our conservative
estimate of the company’s long-run cash flows. Brightline primarily invests with a bottom-up
perspective, focusing on the individual company business model. Most investments have
historically been made through U.S. financial markets in U.S.-based companies.

Brightline’s investment strategy is focused on generating superior absolute returns. We believe
that superior alpha generation is based upon prudent, fundamental stock selection coupled with
appropriate position sizing and risk management. Moreover, constant evaluation of existing
holdings relative to potential new portfolio entries maximizes the risk/reward of the portfolio.

Investment Process. Brightline performs a thorough bottom-up analysis of investment
opportunities and evaluates each potential investment on its own merits. Our investment process
consists of four main steps: (i) idea generation, (ii) prioritization; (iii) analysis and research and
(iv) execution and risk management. Our ideas are generated from our greater than 19 years of
experience identifying value creating change at companies. We look for change at the hundreds of
companies that we’ve researched throughout the Funds’ lifetime as well as new businesses. Once
an idea has been identified, we prioritize the idea using a variety of proprietary parameters which
include the ability to quickly evaluate (i) the upside, (ii) the downside, and (iii) the timing of
catalysts. If an idea is sufficiently attractive to spend more time on it, we advance the idea to the
analysis and research stage. At this point, we will build a detailed proprietary financial model,
further develop the investment thesis, and talk to company management, customers, suppliers and
competitors along the supply chain. Finally, we evaluate the idea to determine the potential
investment’s attractiveness for the Funds. Based upon this assessment, we then decide whether or
not to make an investment. The exact sizing of the investment will be determined by the overall
strength of the investment relative to current holdings with valuation being a key factor. If we do
not decide to make an investment, we will then continue to monitor the stock so that if the
fundamentals or price changes then we can re-evaluate it quickly for potential portfolio inclusion.

Mr. Khera is responsible for all aspects of portfolio management, including sourcing ideas,
execution and risk management. Mr. Khera has the final decision on all investments. Brightline’s
Research Team creates detailed cash flow models, holds discussions and meetings with
management teams and develops proprietary quantitative and qualitative analyses. Following the
initial investment, Brightline continues to analyze, review, and monitor the investment as part of
its ongoing due diligence and risk-management process.

Investment and Fund Risks. An investment in the Funds entails a significant degree of risk and
therefore should be undertaken only by Investors capable of evaluating the risks of the Funds and
bearing the risk they represent. Set forth below is a non-exhaustive list of such risks, however,
prospective and existing Investors are encouraged to review the Fund’s confidential private
placement memorandum for a more extensive description of the risks of investing in the Fund:

   •   Reliance on Brightline for portfolio management, execution and trading
   •   Portfolio company or sector specific risk
   •   Limited withdrawal and transfer rights for Investors
   •   Concentration of a limited number of investments held by the Fund
   •   Potential inability to cover a short position
   •   Potentially negative impact of substantial Investor withdrawals from the Fund
   •   The occurrence of adverse legal, tax, and regulatory changes
   •   A mismatch between Brightline’s and Investor’s investment horizons and tolerance for
       concentration and volatility levels

Risk of Loss. Investments in privately offered investment funds and the underlying securities in
which they invest can be highly speculative. Investors should not subscribe to the Funds unless
they can bear the risk of a complete loss of their invested capital. There is no assurance that the
Funds will be able to generate returns or that the returns will be commensurate with the risks
inherent in Brightline’s investment strategy. The past investment performance of Brightline cannot
be taken to guarantee future results of the Funds or any investment in the Funds.

Cybersecurity. Brightline and its service providers are subject to risks associated with a breach in
cybersecurity. Cybersecurity is a generic term used to describe the technology, processes and
practices designed to protect networks, systems, computers, programs and data from both
intentional cyber-attacks and hacking by other computer users as well as unintentional damage or
interruption that, in either case, can result in damage or interruption from computer viruses,
network failures, computer and telecommunications failures, infiltration by unauthorized persons
and security breaches, usage errors by their respective professionals, power outages and
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