Enhancing Capital LLC

Item 5 – Fees and Compensation

    A. Fee Schedule

Portfolio Management Fees

       Total Assets Under Management                               Annual Fees
              $250,000–$500,000                                      0.90%
             $500,001–$1,000,000                                     0.80%
            $1,000,001–$5,000,000                                    0.65%
           $5,000,001–$10,000,000                                    0.55%
             $10,000,001 or more                                    Negotiable

EC uses the account's value as of the last business day of the billing period, as reported in our portfolio
management system, Orion, via data delivery from the custodian, Schwab Institutional, a division of
Charles Schwab & Co., Inc. (“Schwab”). EC does not prorate fees for a billing period where assets are
added or withdrawn from an account to determine the market value of the assets upon which the
advisory fee is based. Fees are based on a percentage of assets in the account(s) on the calculation
date based on the transaction date for any trades placed near the end of the billing cycle. Therefore,
there may be circumstances where the billed value does not match the end-of-statement value. When
adding or withdrawing assets from an account, EC does not prorate fees for the billing period to
determine the market value of the assets in calculating the advisory fee. These fees are generally
negotiable, and the final fee schedule will be memorialized in the client’s Investment Advisory
Agreement (“Advisory Agreement”). Clients may terminate the Advisory Agreement without penalty,
for a full refund of EC's fees, within five business days of signing the agreement. Thereafter, clients
may terminate the Advisory Agreement, generally with 30 days' written notice. EC maintains an
advisory account minimum of $250,000. Private funds sponsored by EC generally require a $250,000
initial investment commitment. The minimum or initial investment amounts may be waived by EC in
its sole discretion.

Enhancing Capital LLC Part 2A Disclosure Brochure                                                       5

EC will aggregate for fee billing purposes accounts of family members and related business as well as
arrangements for entities and their affiliates depending on the circumstances.

Performance-Based Portfolio Management Fees

Performance fees are only applicable to Class A Interests of ECP, the private fund EC sponsors.
Qualified Clients (defined below) will pay an annual fee of 0% of assets under management along
with a 20% performance fee based on capital appreciation. Retail investors of EC are not charged a
performance fee and are subject to the fee schedule disclosed above.

If the portfolio rises in value, then the client will pay 20% on that increase in value, but if the portfolio
drops in value, then the client will not incur a new performance fee until the portfolio reaches the last
highest value, adjusted for withdrawals and deposits, which is generally known as a “high-water
mark.”

In general, a “Qualified Client” is:

    (1) a natural person or company who at the time of entering into such agreement has at least
        $1,100,000 under the management of the investment adviser;

    (2) a natural person or company who the adviser reasonably believes at the time of entering into
        the contract: (A) has a net worth jointly with his or her spouse of more than $2,200,000,
        excluding the value of the client’s primary residence; or (B) is a qualified purchaser as defined
        in the Investment Company Act of 1940, §2(a)(51)(A) (15 U.S.C. 80a-2(51)(A)); or

    (3) a natural person who at the time of entering into the contract is: (A) an executive officer,
        director, trustee, general partner, or person serving in similar capacity of the investment
        adviser; or (B) an employee of the investment adviser (other than an employee performing
        solely clerical, secretarial, or administrative functions with regard to the investment adviser),
        who, in connection with his or her regular functions or duties, participates in the investment
        activities of such investment adviser, provided that such employee has been performing such
        functions and duties for or on behalf of the investment adviser, or substantially similar
        function or duties for or on behalf of another company, for at least 12 months.

    B. Payment of Fees

Payment of Portfolio Management Fees

Asset-based portfolio management fees are withdrawn directly from client accounts with the client's
written authorization on a quarterly basis or may be invoiced and billed directly to the client on a
quarterly basis. Clients may select the method by which they are billed. Fees are paid either in advance
or arrears as chosen by the client on their Fee Schedule. The Firm does not impose an annual
minimum advisory fee amount on its investors.

Payment of Performance-Based Portfolio Management Fees

Performance-based portfolio management fees are withdrawn directly from client accounts with the
client's written authorization on an annual basis in arrears.

Enhancing Capital LLC Part 2A Disclosure Brochure                                                         6

   C. Client Responsibility for Third-Party Fees

Clients are responsible for the payment of all third-party fees (e.g., custodian fees, brokerage fees,
mutual fund fees, transaction fees). Those fees are separate and distinct from the fees and expenses
charged by EC. Please see Item 12 of this brochure regarding broker-dealers/custodians.

   D. Prepayment of Fees

EC may be compensated for its services in advance of the quarter in which investment advisory
services are rendered. Either party may terminate the Advisory Agreement at any time by providing
advance written notice to the other party. The client may also terminate the Advisory Agreement
...

Item 7 – Types of Clients

EC generally provides advisory services to the following types of clients:

    •   Individuals;
    •   High-net-worth individuals;
    •   Corporations and other business entities;
    •   Insurance companies;
    •   Charitable organizations; and
    •   A private fund.

Enhancing Capital LLC Part 2A Disclosure Brochure                                                     7