Formula Growth Management Corp

Item 5: Fees and Compensation

Management Fee

We will be entitled to a “Management Fee” paid by our affiliate, Formula Growth Limited, for
investment advice and research services provided to the Funds. The Firm’s affiliate, FGL, will
charge Clients a management fee ranging from 1/12th of 1% to 1/12th of 2.5% of the net assets of
the Funds, calculated and payable monthly in arrears, and a portion paid to us. We, with our
affiliate FGL, may in our sole discretion, waive or modify the Management Fee for any Investor.
Management Fees related to any current, or future, SMAs will be negotiated by the Firm on an
individual basis.

Sales and Trailing Commissions

Sales Commissions
A sales commission of up to 2% may be deducted from the purchase order for Shares (“Shares”)
of some of the Funds, to be paid by the Investor to the “Registered Dealer” through which the
Shares are purchased. The sales commission may be negotiated between the Investor and the
Registered Dealer.

Formula Growth Management Corporation                                        Form ADV Part 2A

Trailing Commissions
The Firm may be required to pay quarterly trailing commissions to Registered Dealers whose
Investors have purchased Shares and remain invested in a Fund during the relevant month. The
trailing commission rates are accrued monthly and are a rate of 1/12 of 1% of the NAV of each
applicable Share “Series”, and will be charged by the Firm’s affiliate, Formula Growth Limited.

Other Types of Fees or Expenses

The Funds are responsible for the payment of the ongoing fees and expenses relating to their
operation as set out in each Fund’s “Declaration of Trust, “or other contesting documents, which
includes but are not limited to: trustee fees (if any); custody and safekeeping charges; all taxes
(including GST, PST and HST, if any); assessments or other regulatory and governmental charges
levied against the Fund; interest; all brokerage fees; any legal, accounting and audit fees; and
other expenses which are incurred in respect of matters in the normal course of the Fund’s
activities, and all reasonable extraordinary or non-recurring expenses. The payment of all fees will
be made to the Firm’s affiliate, Formula Growth Limited, which will reimburse the Firm for
relevant expenses incurred as a result of our research and advice to the Funds.

Each Series is responsible for the expenses specifically related to that Series and a proportionate
share of expenses that are common to all Series. The costs of any Foreign Exchange hedging are
charged to the “Hedged Series.” FGL shall allocate expenses to each Series in our sole discretion
as we deem fair and reasonable in the circumstances. In addition, we, with our Affiliate, may, in
our sole discretion, pay directly or reimburse the Funds for some or all of the above-noted
expenses from time to time.

Item 7: Types of Clients

Our clients will be referred to as the Funds. Any initial and additional investment minimums are
disclosed in the Confidential Offering Memorandum (“COM”) for the relevant Fund. In certain
circumstances, minimum investment amounts may be waived.