Cladrius Partners LLC

Item 5: Fees and Compensation

Management Fee

Cladrius Funds
Cladrius receives fees for investment advisory services based on assets under management
as disclosed in the respective Fund offering documents. The management fee is calculated
and payable quarterly in advance. The Management Fee will be prorated for partial quarters.
Clients will be issued a fee refund of any pre-paid and unearned fees upon withdrawal from
the Fund. Cladrius has entered into arrangements (side-letters) that reduce or waive the
management fee for certain investors. Cladrius reserves the right to waive, reduce or
calculate differently, the Management Fee in respect of certain Limited Partners in its sole
discretion, without notice to or the consent of other Limited Partners. Management fees for
the funds are calculated by a third-party administrator and deducted from each investor’s
capital account.

SS1 Fund
Cladrius receives fees for investment advisory services based on assets under management
as disclosed in the SS1 Agreement. The Management Fee is calculated and payable
quarterly in advance. The Management Fee will be prorated for partial quarters and unearned
fees will be refunded. Management fees are deducted from each investor’s capital account.

Other Fees
The Funds pay pro rata share of the organizational and initial costs of the Partnership, Master
Fund and Offshore Fund. The Funds pay operating expenses to include: brokerage
commissions and other costs of executing transactions, installation and implementation and
maintenance of order management and execution management systems and software, all
investment expenses, investment research, the cost of trading, research and or data screens
and risk management and data services, tax preparation fees and expenses, tax imposed on
the Funds, custody fees and expenses, insurance premiums, the Fund’s bookkeeping,

accounting, audit and other professional fees and expenses; tax preparation fees; legal fees;
expenses the incurred for investment research and due diligence; travel and travel-related
expenses incurred in connection with investment activities (including attending professional
investment and industry specific conferences); and costs of compliance including securities
filings.

Item 7 Types of Clients

Cladrius’ provides investment management services to private funds.            The minimum
subscription amount for investors in the Funds is generally $1 million, but this amount may
vary and is set out in the relevant Fund Documentation. With respect to the Funds, any initial
and additional subscription minimums are disclosed in the relevant Fund Documentation. The
General Partner of the Fund may waive the applicable minimum in its sole discretion.