ITEM 5: FEES AND COMPENSATION
Castle Ridge Compensation
With respect to the Funds, management fees are directly deducted from, on a quarterly
basis, and performance-based compensation is directly allocated from, on an annual basis,
investors’ investments in the Funds. The quarterly management fees paid by the Funds are paid
in advance. Investors who redeem or withdraw from a Fund do not need to seek refunds of
management fees because the permitted dates for redemptions or withdrawals from the Funds are
as of quarter-end, at which time the management fee will have been earned.
Castle Ridge may, in its discretion, waive or reduce its management fees or performance-
based compensation.
Castle Ridge’s fee schedule is omitted because this Brochure is only being delivered to
qualified purchasers as defined in the Investment Company Act of 1940, as amended (the
“Company Act”).
Fund Expenses
In addition to the compensation it pays to Castle Ridge, each Fund also pays all expenses
relating to its business, including without limitation, investment expenses (e.g., expenses that, in
the General Partner’s or the Investment Manager’s determination, are related to the investment of
the Fund’s and the Master Fund’s assets, whether or not such investments are consummated, such
as brokerage commissions, expenses relating to short sales, clearing and settlement charges,
custodial fees, bank service fees and interest expenses); investment-related travel expenses (which
are travel expenses related to the purchase or sale of the Fund’s investments, whether or not such
investments are consummated, incurred by the Investment Manager or the General Partner, but
which shall not include general industry research); professional fees (including expenses of
consultants, investment bankers, attorneys, accountants and other experts) relating to investments;
fees and expenses relating to software or other technology utilized for fund accounting and risk
management (including third-party software licensing, implementation, data management and
recovery services); third-party research and market data (excluding the cost of terminals or other
computer hardware incorporated in the cost of obtaining such research and market data);
administrative expenses (including fees and expenses of the Administrator); legal expenses;
external accounting and valuation expenses; audit and tax preparation expenses; premiums for
general liability and directors’ and officers’ costs related to errors and omissions insurance that the
General Partner or the Investment Manager purchases that is necessary or appropriate for the
conduct of the Fund’s business; costs of printing and mailing reports and notices; entity-level
taxes; expenses incurred in connection with regulatory and compliance filings with respect to the
Fund and its investment activities (which may include Form PF) and professional fees incurred in
connection with the preparation and making of such filings; organizational expenses; fees of the
independent members of the Advisory Committee and the reasonable out-of-pocket expenses of
all members of the Advisory Committee; expenses incurred in connection with the offering and
sale of the Interests and other similar expenses related to the Fund; indemnification expenses; and
extraordinary expenses associated with the operations of the Fund and its investment activities that
are consistent with the foregoing.
The Funds will not pay any of Castle Ridge’s internal expenses. Please also see “Item 12:
Brokerage Practices” below.