First Light Asset Management LLC

Item 5: Fees and Compensation

Separate Account Client Fees and Expenses
The standard fee schedule for Separate Account Clients provides for a management fee
based on the following rates calculated on the value of all assets in the Client’s Separate
Account (as determined by First Light based upon its valuation policy (“Valuation Policy”):

   •   On accounts with net assets up to $1,000,000 – 2.00% per annum;

   •   On accounts with net assets in excess of $1,000,000 and up to $5,000,000 – 1.75% per
       annum; and

   •   On accounts with net assets in excess of $5,000,000 – 1.50% per annum.

Each Separate Account Client pays First Light a quarterly management fee in advance
based on the market value of the Separate Account as of the last trading day of the
preceding calendar quarter.

In any partial calendar quarter where funds are contributed to a new account, the
management fee will be paid during the next billing period based on the initial value of assets
in the Separate Account and is prorated based upon the number of days that the Separate
Account is open during the quarter. In a similar fashion, subject to a de minimis threshold for
each occurrence, additions to any existing Account will be assessed a management fee
based upon the amount added and is prorated based on the number of days remaining in
the quarter at the time of the addition to the Separate Account.

In the event a Separate Account closes or has a withdrawal during a quarter, a portion of
the prepaid management fees will be returned to the Separate Account Client at the next
billing cycle. This calculation is based upon the value of the Separate Account as of the last
trading day of the preceding calendar quarter or the amount being withdrawn (with the
withdrawal amount being subject to a de minimis threshold per occurrence) and is prorated
for the number of days remaining in the quarter at the time of the closure or withdrawal.

First Light’s fee schedule is negotiable in its sole discretion based upon certain criteria (i.e.,
historical relationship, type of assets, anticipated future earning capacity, anticipated future
additional assets, dollar amounts of assets to be managed, related accounts, account
composition, or negotiations with Clients). Fees paid by a Client vary based on the managed
account program.

First Light sends an invoice to each Separate Account Client. First Light is authorized in its
investment advisory agreement with Separate Account Clients to instruct the custodian to
pay the advisory fee from the assets of the Clients’ account.

Separate Account Clients are responsible for all brokerage commissions and other costs
associated with the purchase or sale of securities and other investment instruments, fees
charged by the custodian, interest, taxes, and other account expenses in addition to the
management fee described above. To the extent Separate Account Client assets are
invested in exchange-traded funds (ETFs) and/or other third-party mutual funds, the Separate
Account Client pays two levels of advisory fees on those assets – First Light’s management
fee and the Separate Account Client’s share of the advisory fees and other fees and
expenses assessed to all shareholders of such funds.

As noted above, Separate Account Clients incur brokerage and other transaction costs in
addition to First Light’s fees. Please see Item 12 for a discussion of First Light’s brokerage
practices.

Fund Fees and Expenses
The compensation the Funds pay First Light is set forth in the Offering Documents.

The General Partners are permitted to enter into side letters and other agreements granting
more favorable rights or terms to certain Investors. These rights or terms can include special
rights with respect to future investment capacity; special liquidity or withdrawal rights; rights
to receive additional, more frequent or specialized reports; and rights to reduced rates or
limits on Performance Allocations (as defined below), management fee, and/or expense
pass-through. These agreements can create preferences or priorities for certain Investors as
compared to other Investors.

The General Partners are permitted to enter into these separate agreements without the
consent of, or notice to, other Investors. Investors are not entitled to participate in any special
arrangement without the prior approval of the relevant Fund’s General Partner. Investors not
offered a special arrangement do not have any right or claim against the relevant Fund’s
General Partner, First Light or the Funds.

Valuation Process
First Light has significant discretion to determine the valuations of Clients’ investments in
certain circumstances. The exercise of such discretion by First Light with respect to Clients’
accounts gives rise to inherent conflicts of interest, as management fees and Performance
Allocations (as defined below and as applicable) are calculated based, in part, on these
valuations. For example, when First Light participates in valuing Clients’ investments, it has an
incentive to place higher values on investments, since this could increase the amount of fees
Clients would pay to First Light.

First Light has adopted and implemented a Valuation Policy governing the pricing of
securities and other assets held by Clients. The Valuation Policy generally provides that liquid
investments be valued at readily ascertainable market values. With respect to each Fund, on
an annual basis, First Light’s valuations are reviewed in connection with the Funds’
independent financial statement audit.

For the purpose of calculating the net asset values (“NAV”) of the Funds and the value of the
Separate Account Clients’ investment portfolios, First Light will rely on and is entitled to rely
on, and will not be responsible for the accuracy of, financial data furnished to it by broker-
dealers, market makers, or independent third-party pricing services. First Light can also use
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Item 7: Types of Clients

First Light provides discretionary investment management services to (1) Separate Account
Clients, which include individuals, high-net worth individuals, institutional clients, pension plans
or profit-sharing plans, corporations, and charitable organizations; and (2) the Funds, as
described in Item 4 “Advisory Business”.

With respect to Separate Account Clients, a minimum account value of $250,000 is typically
required; however, amounts less than the required minimum can be agreed upon in First
Light’s sole discretion. In certain instances, the minimum Separate Account size is higher or
lower at First Light’s discretion.

Investment minimums for each Fund are set forth in their Offering Documents. Interests in the
Funds are only offered to persons who meet the eligibility requirements for investment in
privately offered securities, which (1) rely on an exclusion from the definition of “investment
company” under the Investment Company Act of 1940, as amended, provided by Section
3(c)(7) thereunder; and (2) rely on an exemption from registration under the Securities Act of
1933, as amended, provided by Section 4(a)(2) and Rule 506 of Regulation D. Investors and
prospective Investors in each Fund are urged to refer to the Offering Documents of such Fund
for detailed information on the investment requirements.

Given the nature of First Light’s investments, at all times it retains the discretion to close one
or more of its strategies, as well as to open one or more of its closed strategies to new Clients
and/or to additional investments from existing Clients, to the extent First Light determines
doing so would be in the best interests of Clients.