Candelo Capital Management LP

Item 5: Fees and Compensation

The fees applicable to each of the Funds are set forth in detail in the corresponding Offering
Documents. A brief summary of such fees is provided below.

Management Fee

Candelo is paid an investment management fee, (“Management Fee”) per annum of the net
asset value of the Funds. The Management Fee will range from 1% to 2%.

The Investment Manager, in its sole discretion, may waive or modify the Management Fee for
any Investor.

Candelo Capital Management, LP                                   Form ADV Part 2A Brochure

Fund Expenses

The Feeder Funds will bear their own expenses and its pro rata share of the Master Fund’s
expenses and any trading vehicle’s expenses, including the following:(i) the Management Fee;
(ii)expenses related to the research, due diligence and monitoring of actual and prospective
investments (whether or not consummated) and the consummation of investments, including
the following: third-party investment sourcing fees; fees and expenses related to obtaining
research and market data (including any information technology hardware, software or other
technology incorporated into the cost of obtaining such research and market data, and expenses
related to obtaining, processing and analyzing “big data” or “alternative data”); due diligence
expenses including consulting and appraisal fees; travel expenses; brokerage and prime
brokerage and futures commission merchant fees, commissions and expenses (including fees,
commissions and expenses paid or reimbursed to an outsourced trader); expenses relating to
short sales; clearing and settlement charges; custodial fees and expenses; bank service fees;
interest expenses and fees related to financings or refinancings; fees and expenses of proxy
research and voting services; and fees and expenses of third-party professionals, including
consultants, investment bankers, attorneys and accountants; (iii) organizational and
reorganizational expenses; and(iv) operational expenses, including the following: fees and
expenses relating to information technology hardware, software or other technology (including
costs of software licensing, implementation, data management and recovery services and
custom development) used to research investments, evaluate and manage risk, facilitate
valuations, facilitate accounting functions, facilitate compliance with the rules of any self-
regulatory organization or applicable law (including reporting obligations), facilitate and
manage the order execution of Securities by the Master Fund or any trading vehicle or otherwise
manage the Funds or any trading vehicle, such as Bloomberg terminals, portfolio management
systems, risk management systems and order management systems; fees and expenses of third-
party risk management products, models and services; third-party administrative fees and
expenses; fees and expenses of third-party professionals, including consultants, valuation
service providers, attorneys and accountants; the costs of any litigation or investigation
involving activities of the Funds, or any trading vehicle; third-party audit and tax preparation
expenses; insurance expenses, including premiums for cybersecurity insurance and liability
insurance covering the Fund general partner (the “General Partner”), the Investment Manager
and the members, partners, officers, employees and agents of any of them, each member of the
Master Fund Board of Directors; fees and expenses (including director registration fees) of the
Master Fund’s and any trading vehicle’s directors and officers (including any AML Officers);
costs of preparing and distributing reports and notices; taxes; expenses incurred in connection
with negotiating and complying with provisions of any Side Letter Agreement; fees and
expenses related to compliance with the rules of any self-regulatory organization or applicable
law in connection with the activities of the Funds, or any trading vehicle, including any
governmental, regulatory, licensing, filing or registration fees or taxes (including fees and
expenses incurred in connection with the preparation and filing of Form PF, Section 13 filings,
Section 16 filings and other similar regulatory filings); expenses incurred in connection with
the offering and sale of the Interests and other similar expenses related to the Fund (excluding
fees payable to any placement agent); extraordinary expenses, including the following:
indemnification expenses; fees and expenses incurred in connection with any tax audit by any
taxing authority, including any related administrative settlement and judicial review; and fees
and expenses incurred in connection with the reorganization, dissolution, winding up or
termination of the Funds, or any trading vehicle.

Notwithstanding the foregoing, to the extent the provisions of the U.S. Investment Advisers
Act of 1940, as amended (the “Advisers Act”) known collectively as the “private fund advisers
rule” (the “PFAR”) prohibit the Funds from bearing costs and expenses associated with an
investigation of the Investment Manager or its related persons by any governmental or
regulatory authority then, unless the Investment Manager requests and obtains the requisite

Candelo Capital Management, LP                                     Form ADV Part 2A Brochure

consent of the Investor, the Investment Manager (and not the Fund) will bear all such costs and
expenses.

Generally, all expenses borne by the Fund, other than the Management Fee and any expenses
that the General Partner determines should be allocated to a particular Investor or Investors
(e.g., Investor-Related Taxes), will be debited to all of the investor Accounts on a pro rata basis
in accordance with their investor Percentages. To the extent that expenses to be borne by the
Fund are paid by the General Partner or the Investment Manager, the Fund will reimburse such
party for such expenses.

The Fund does not have a pre-determined limit on its ordinary or extraordinary
...

Item 7: Types of Clients

Our clients are the Funds, as described in Item 4 above, and the Funds are generally open to,
among others, institutions, pension plans, endowments, high net-worth individuals, financially
sophisticated individuals, and other sophisticated investors.