FourWorld Capital Management LLC

Item 5: Fees and Compensation

Asset-Based Fees

The Adviser is paid an asset-based investment management fee of 0% to 1.75%, as further provided for in
each Account Agreement and/or Fund Documents. The asset-based investment management fees paid by
the Funds are either per annum based on the capital contributions of the investors or the value of the assets
of the Fund (as further described in the Fund Documents of each Fund) or up-front based on the amount
invested in an Account. The Funds’ investment management fees are charged each month in advance based
on the capital contributions of the investors in the Fund or the value of the assets of the Fund. Generally,
the Adviser’s management fees are not negotiable.

The Adviser generally deducts the investment management fee from the Clients on a monthly basis. For
the Funds, the Adviser requests fees by instructing a Fund’s custodian. However, in limited circumstances,
where cash reserved by the Funds are insufficient to pay the investment management fee, the Adviser may
bill investors in the Funds for the management fee, as further disclosed in each Funds’ Documents. Pre-
paid monthly investment management fees charged to the Funds will be refunded based on the number of
days remaining in the month for any period that is less than a full month.

Management fees assessed on investments in a Fund may be reduced or waived for certain principals,
employees or affiliates of the Adviser, relatives of such persons, and for certain large or strategic investors.

FourWorld Capital Management LLC                                        Form ADV Part 2A Brochure

Performance-Based Allocations

The Adviser may also be paid performance-based allocations, which is an allocation that is based on a share
of capital appreciation of the assets of a Client. These allocations may be paid to the Adviser or to a related
person of the Adviser and ranges from 8% to 20% of the Client’s profits, as further described in each such
Account Agreement or Fund Documents. In some cases, this is paid on an annual basis and in other cases
it is paid out of amounts that would otherwise be distributed to a Fund’s investors.

Generally, performance-based allocations are not negotiable. However, the Adviser and its affiliates
generally have the ability to reduce or waive performance-based allocations for certain principals,
employees or affiliates of the Adviser, relatives of such persons, and for certain large or strategic investors.

Other Fees and Expenses

In addition to paying investment management fees and, if applicable, performance-based allocations, each
Fund will also be subject to other investment expenses, in accordance with such Fund’s investment
management agreement or fund governing documents, which may include, all out-of-pocket expenses
incurred by the Funds or on their behalf that are directly related to the organization of the Funds; ongoing
expenses, including, without limitation, legal, compliance (including consultants’ fees), risk management
expenses (including software licensing), administrator, audit and accounting expenses (including third party
accounting services); organizational expenses (including the initial offer and ongoing sale of interests in
the Funds and any “feeder fund’s” pro rata share of the organizational expenses of its corresponding “master
fund”); investment expenses such as commissions and any other expenses related to the purchase, sale or
transmittal of assets of the Funds; research fees and expenses (including Bloomberg and similar
subscriptions and data services, third party consultants and research-related travel, including first and
business class fares); fees and expenses related to sourcing, evaluating, consummating, monitoring,
managing and enforcing actual or potential investments (including, but not limited to, expenses relating to:
shareholder and management communication, soliciting proxies, hiring proxy advisory consultants, hosting
shareholder forums and hiring public relations consultants); interest on margin accounts and other
indebtedness; borrowing charges on securities sold short; custodial fees; bank service fees; insurance costs
(including D&O and E&O insurance); any independent review committee members’ fees and expenses
should one be established; expenses of regulatory compliance (including compliance with AIFMD), filings
and reporting (including but not limited to Section 13, Section 16 and Form PF filings); Directors’ fees and
expenses; out-of-pocket expenses incurred in connection with the collection of amounts due to the Funds
from any individual, company, corporation, trust, limited liability company, joint stock company or other
legal entity (collectively, a “Person”); expenses incurred in connection with any action, claim, suit,
investigation, arbitration or proceeding, whether at law or in equity, and whether by or before any court,
arbitrator, governmental body or other administrative, regulatory or other agency or commission
(collectively, a “Proceeding”) involving the Funds (including the cost of any investigation and preparation)
and the amount of any judgment or settlement paid in connection therewith; any indemnification obligation
and any other indemnity contribution or reimbursement obligations of the Funds with respect to any Person,
whether payable in connection with a Proceeding involving the Funds or otherwise; and all other expenses
of Funds incurred in connection with its ongoing operations and administration. The Funds are also
responsible for fees and expenses incurred in connection with reorganization, restructuring, termination,
winding-up, or dissolution of the Funds. The fees that are attributable to each Fund are described in each
Fund’s offering documents.

FourWorld Capital Management LLC                                        Form ADV Part 2A Brochure

In addition, Clients will incur brokerage and other transaction costs. Please refer to Item 12 of this Firm
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Item 7: Types of Clients

The Adviser’s Clients are Funds, sub-advised Funds, and separate accounts for other institutional investors.
With respect to any Fund, any initial subscription minimums are disclosed in the respective Fund
Documents. The Adviser does not have any requirements for opening or maintaining an account.

The Adviser, however, is not precluded from advising types of Clients that are not listed above.