Derby Lane Partners LP

Item 5 – Fees and Compensation

Detailed information regarding the fees and expenses charged to each Client will be set forth in
such Client’s Governing Documents. The amount, structure and type of fees paid by a Client are
negotiable and can vary. Clients could pay fees that are different from, more, or less than the fees
(or types of fees) set forth in this Brochure, or more or less than similar Clients or Clients
invested in similar strategies with other investment advisers. Derby Lane has discretion to reduce
management fees and performance-based compensation in certain situations for certain
Investors, as disclosed in the Governing Documents of each Client.

Management Fee; Carried Interest

Derby Lane or an affiliate thereof generally receives from a Fund an annual management fee (the
“Management Fee”) with respect to each Investor, calculated and payable quarterly in advance.
The Management Fee shall be calculated and charged based on a formula tied to Investor’s net
invested capital. Additionally, Derby Lane or an affiliate thereof generally also receives carried
interest from a Fund based on net capital appreciation from a Fund’s investments (the “Carried
Interest”).

The Management Fee is subject to certain offsets, as further described in a Fund’s Governing
Documents. An affiliate of Derby Lane can, in its sole discretion, reduce, waive, impose
condition on receipt or otherwise modify the Management Fee and/or Carried Interest payable or

distributable in respect of any Investor, and expects to do so for Investors that are affiliates
and/or employees of Derby Lane.

Derby Lane deducts the Management Fee and any Carried Interest directly from a Fund. In the
event the investment management agreement(s) between a Fund and Derby Lane are terminated,
including in the case of a dissolution or liquidation of a Fund, any prepaid Management Fees will
be reimbursed to a Fund pro-rata based on the portion of the period for which such fees were
paid but for which services were not rendered.

The payment of the Management Fee could give rise to certain conflicts of interest. Management
Fees are payable without regard to the overall success or income earned by the Clients and
therefore creates an incentive for Derby Lane to raise or otherwise increase assets under
management, including through leverage, to a higher level than would be the case if Derby Lane
was not receiving a Management Fee.

In addition, to the extent the Management Fee is charged on the amount of capital invested by a
Client, the Management Fee amounts will be higher if the advisory account has more capital
invested. As a result, the Management Fee could create an incentive for Derby Lane to seek to
draw down and deploy more capital more quickly and/or to retain investments longer than it
would if the Management Fee were calculated based on capital commitments. This creates an
incentive for Derby Lane to select and hold investments that could prove to be less profitable
than might be the case absent the incentive to deploy more capital more quickly and hold
investments for longer.

Other Fees and Compensation

In consideration for the Management Fee, Derby Lane provides certain managerial and
administrative services to the Fund and bears certain expenses of the Fund. Derby Lane and/or
its affiliates provide office space, utilities and secretarial, clerical and other personnel. The
Management Fee may exceed the expenses borne by Derby Lane on behalf of the Fund.

The Fund bears its own expenses, including, without limitation, (i) investment expenses (e.g.,
expenses that, in Derby Lane’s discretion, are related to the investment of the Fund’s assets
(including costs, fees and other out-of-pocket expenses directly related to (a) the investigation
and diligence of investment opportunities and research-related expenses, including, without
limitation, attending and sponsoring industry conferences and events (including any applicable
registration costs and exhibition, sponsorship or other presentation costs), meeting with
consultants, finders, broker-dealers, investment banks and other sources of investments and
developing and maintaining an investment pipeline, news and quotation equipment and services
and trading related computer hardware and software expenses, market data services, fees to
third-party providers of research and/or portfolio risk management services and software
(including, without limitation, developing, licensing, implementing, maintaining or upgrading
any web portal, website, extranet tools, computer software (including accounting, investor
tracking, investor reporting, customer relationship management, ledger systems, financial
management and cybersecurity) or other administrative or reporting tools (including
subscription-based services), dealer, finder, underwriting local paying agent, trustee, record
keeping, account, registered office and similar services (including any depositary appointed

pursuant to the AIFMD or any similar law, rule or regulation and any Swiss representative or
paying agent appointed pursuant to the Swiss Collective Investment Schemes Act (as amended),
including any law, rule or regulation relating to the implementation thereof), sales, custodial,
depositary and brokerage costs (including commissions and discounts) and fees, (b) the
origination, identification, sourcing, negotiation, structuring, acquisition, syndication settlement,
ownership, trading, monitoring, financing (including all amounts borrowed pursuant to an
Subscription Facility), refinancing, hedging or sale of investments and other transaction costs,
transaction fees, broken-deal expenses, private placement, sales, investment banker, loan
administration and loan servicing expenses, special servicing, loan agency services, credit
support and similar services, expenses incurred in collection of monies owed to the Fund, costs
or expenses related to currency conversion in the case of investments denominated in currency
...

Item 7 – Types of Clients

Derby Lane offers advisory services to the Fund and will in the future provide advisory or other
services to other Derby Lane Vehicles, which could include other private funds, high net worth
individuals, charitable organizations, independent wealth advisors, family offices or institutions.
Interests in a Fund and any future Clients will only be sold to Investors who meet qualification
requirements under applicable securities and other laws.

The Governing Documents for each Client will describe any criteria that must be met in order to
invest, including minimum investment amounts and net worth, net assets or other sophisticated
investor qualifications.