Freeport Financial Partners LLC

Item 5.       Fees and Compensation

A. Advisory Fees and Compensation

Management fees, performance fees and other fees we earn may be negotiated. The fees we charge
are described in detail in the limited partnership agreement (or analogous organizational
document) of each Fund, separate investment and advisory, investment management or portfolio
management documents, or side letters with an investor in a Fund (together “Governing
Documents”) and investor offering documents. We generally charge an annual management fee
of between one (1) and two (2) percent and “carried interest” or a performance fee of between ten
(10) and twenty (20) percent. Please refer to each Fund’s Governing Documents and investor
offering documents for a complete description of our fees and charges for your specific investment.

B. Payment of Fees

Management fees are payable quarterly in advance by each Freeport Fund, and quarterly in arrears
by the SC Funds and the USDL Fund. Management fees are paid by capital contributions from
investors to the particular Freeport Fund made pursuant to capital call notices delivered by the
particular Freeport Fund’s general partner or are paid out of cash otherwise distributable to the
investors. Management fees paid for the SC Funds are paid to the Manager and management fees
for the USDL Fund are paid to the USDL Manager.

“Carried interest” or performance fees are assessed periodically according to the particular
Freeport Fund’s governing documents and are typically paid out of cash otherwise distributable to
investors. There are no performance fees assessed in the SC Funds and the USDL Fund.

C. Other Fees and Expenses

Other fees, if applicable to an investment, will be paid to us or to a Fund’s general partner,
managing member, or affiliates. These fees, which may include financing, finders, advisory,
management services, directors, transaction or loan amendment fees from portfolio companies
may be substantial and will be paid directly over to the applicable Fund if received by us, the
particular Fund’s general partner, managing member, or affiliates.

Each Fund will pay all costs and expenses relating to that Fund’s activities, as set forth in the
Governing Documents, including management fees, all interest and expenses on any indebtedness
incurred by the particular Fund, and all amounts payable in connection with any leverage
commitment and any outstanding leverage, legal, auditing, consulting and accounting expenses
(including expenses associated with the preparation of each Fund’s financial statements, tax
returns and Schedules K-1), expenses of meetings with Limited Partners and meetings of each of
the Fund’s Advisory Committees, insurance and other expenses of the type associated with the
actual or proposed acquisition, holding and disposition of investments (including, without
limitation, due diligence costs, travel expenses, accounting fees, brokerage fees, legal fees, broken-
deal expenses, transfer taxes and costs related to registration or qualification for sale of
investments), entity-level taxes, all third-party expenses in connection with transactions not
consummated (including those expenses described in the previous parenthetical), all expenses in
connection with the commitments for or issuance of leverage, fees or dues in connection with
membership of each of the Funds in any trade association for small business investment companies
or related enterprises and extraordinary expenses (such as litigation or indemnification expenses).
Expenses related to investments commonly held by multiple Funds are allocated on a pro rata basis
to each Fund according to the amount of the investment held at each Fund. Expenses related to
activities commonly undertaken by multiple Funds are allocated on a pro rata basis to each Fund
according to the amount of committed capital at each Fund. Expenses related to specifically
identified activities of a particular Fund are allocated to that Fund alone.

Freeport and its personnel can be expected to receive certain intangible and/or other benefits and/or
perquisites arising or resulting from their activities on behalf of the Funds that will neither be
subject to an offset against any Management Fees payable to the Funds nor will otherwise be
shared with the Funds, investors and/or portfolio companies. For example, airline travel or hotel
stays incurred as Fund or account expenses typically result in cash rebates, “miles,” credit card
“points” or credit in loyalty/status programs, and such benefits and/or amounts will, whether or
not de minimis or difficult to value, inure exclusively to Freeport and/or such personnel (and not
the Funds, investors and/or portfolio companies) even though the cost of the underlying service is
borne by the Funds, investors and/or portfolio companies.

D. Refunds for Fees Charged in Advance

Investors in each of the Freeport Funds agree to pay fees in advance as described in Item 5.B.
Upon a termination of an investment advisory agreement with a Freeport Fund, we will return to
that Freeport Fund any paid but unearned portion of the management fee.

If following the liquidation of a Freeport Fund, the “carried interest” or performance fees paid to
the General Partner of the Fund exceed the agreed upon percent owed to the General Partner or
the limited partners have not received back all of their capital contributions plus an agreed upon
preferred return, such General Partner will pay over to the limited partners sufficient cash such
that neither condition continues to exist, subject to the limitations and provisions set forth in each
Freeport Funds’ governing documents.

Management fees paid for the SC Funds and the USDL Fund are paid in arrears.

E. Compensation for Sales of Securities

Neither we nor our supervised persons accept compensation for the sale of securities or other
investment products.

Item 7.       Types of Clients

We provide investment advice solely to the Funds. We offer interests in Funds only to qualified
investors, typically institutional investors and eligible high-net worth individuals, and certain
knowledgeable employees. We typically impose a minimum investment in each Freeport Fund of
$500,000 although this minimum may be waived at our discretion. We may also at our discretion
offer co-investment opportunities to certain investors. Please refer to each Freeport Fund’s
Governing Documents and investor offering documents for a complete description of our terms of
investment including, but not limited to, co-investment opportunities.