Farol Investment Advisers LP

Item 5. Fees and Compensation
Advisory Fees and Compensation

For certain Clients, for its investment advisory services, the Adviser generally charges a 0.5% to 1% asset-
based management fee on the amount of committed capital of each Client during the investment period and
on invested capital of each Client thereafter. In addition, certain Clients of the Adviser are generally charged
a performance-based fee of 10%-15%, which is subject to certain performance thresholds. The management
fee is generally payable quarterly in advance. While Clients are generally not eligible for partial refunds in
the case of early withdrawals or redemptions, specific details are set forth in each respective Client’s
Offering Documents.

The Adviser reserves the right to charge some Fund Investors more or less than other Fund Investors
for the same services, depending on various factors, including, for example, the timing of the investment,
the number of related investment accounts, or the total size of the Fund Investor’s investment with
the Adviser. In this regard, at times, the Adviser may waive or modify fees for Fund Investors that are,
members, employees or affiliates of the Adviser and relatives of such persons or for certain other investors.

Payment of Fees

Fees charged will either be deducted directly from the Clients’ accounts or billed to the Clients’ accounts.
Terms regarding the payment of fees applicable to any Client are set forth in such Client’s Offering
Documents.

Other Fees and Expenses

Given the Adviser’s investment strategy to invest alongside other managers, Clients may be subject to two
layers of management and performance fees. In such instance, one set of fees will be paid to the Adviser,
and another set of fees will be paid to the underlying manager leading the Client’s investment. Other fees
and expenses that will be payable by a Client will be set forth in detail in the Client’s Offering
Documents. Subject to limitations set forth in the Offering Documents, such expenses may include, but
are not limited to, all of the ordinary and necessary expenses related to the Client’s operations
including, without limitation, all costs and expenses of the Client incurred in the activities, investments
and business that are not borne or reimbursed by a portfolio company, taxes, legal, auditing, accounting,
borrowing, consulting, acquiring, structuring, managing, operating, liquidating, dissolving, disposing,
administration, custodian, insurance, depositary, finders’, appraisal and filing fees and expenses, expenses
relating to investment and disposition opportunities for a Client not consummated, expenses associated with
the preparation of a Client’s financial statements, tax returns and other similar reports, investigation,
holding, purchase, sale or exchange of investments or investment opportunities, fees charged by third
party vendors and service providers, travel expenses to the extent incurred in connection with the
investigation, making, holding or selling of Client investments, expenses incurred in connection with any
litigation involving a Client or a Client investment, interest on borrowed money, real property or personal
property taxes on investments, fees incurred in connection with the maintenance of bank or custodian
accounts, and all expenses incurred in connection with the registration of the Client’s securities if required

under applicable securities laws or regulations. Although it is not part of the Adviser’s general business
activities, the Adviser may receive origination or sourcing fees from non-Clients and the receipt of such
fees will not reduce fees otherwise payable by Clients. At times, if expenses are borne by multiple Clients,
to the extent the expense is not payable immediately by a Client(s), the Adviser will bear the expense on
behalf of a Client(s) who is unable to pay for the expense and seek reimbursement from such Client.

Additional Compensation and Conflicts of Interest

No supervised person of the Adviser will accept compensation for the sale of securities or other
investment products.

Item 7. Types of Clients
As discussed in Item 4, the Adviser will provide investment management services to its Clients (whose
investors include, for example, pension plans, trusts or other institutional investors). The Adviser limits the
investors in its Clients to “accredited investors” as defined in Regulation D under the U.S. Securities Act
of 1933 and “qualified purchasers” as defined in the Investment Company Act of 1940. Generally, the
minimum contribution for investors in the Clients is $5,000,000, but commitments less than this may be
accepted at the discretion of each Client’s general partner.