Fulcrum Equity Partners Inc

Item 5 – Fees and Compensation
The Firm typically charges each of its Clients a Management Fee (defined below) and a carried interest in
connection with the provision of investment advisory services to each Client. Investors in a Fund and
other Clients also bear certain expenses. The applicable Governing Documents set forth in detail the
Management Fee and, as applicable, carried interest structure, relevant to each Client. The terms of the
Governing Documents are generally established at or around the time of the formation of the applicable
Fund or the commencement of the advisory relationship with a Client, subject to amendment in
accordance with the terms of the applicable Governing Documents. All Investors and prospective
Investors in a Fund should review the Governing Documents of each Fund in which they have invested or
intend to invest in conjunction with this Brochure for complete information on the fees and
compensation payable with respect to a particular Fund. All other Clients should review the Governing
Documents in conjunction with this Brochure for complete information on the fees and compensation
payable with respect to the advisory relationship with the Firm. The Firm reserves the right to reduce,
waive, or modify any fees payable by any Client or Investor in its sole discretion.

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Management Fees

The Firm receives a management fee (the “Management Fee”) from each Client as set forth in each
Client’s Governing Documents. The Management Fee is typically based on a percentage of committed
capital or actively invested capital, charged quarterly in advance and paid directly from the applicable
Client’s assets, current income and disposition proceeds received by the Client and, to the extent
necessary, from drawdowns. As a general matter, in accordance with applicable Governing Documents,
Management Fees will be payable during term extensions unless otherwise agreed with Investors.

The Governing Documents of a Client set forth the list of terms under which Management Fees will be
reduced, offset or otherwise be limited, and consequently Investors should expect to bear the full
specified Management Fee rate in the Governing Documents until they are reduced in the circumstances
specified therein.

Performance-Based Allocation and Fees

A portion of each Client’s net investment profit is expected to be allocated to the Firm as “Carried
Interest” as further described in Item 6. The manner of calculation of such Carried Interest is disclosed in
the applicable Governing Documents and is expected to vary by Client.

Additional Fees

The Fund Manager or its affiliates may receive certain fees with respect to actual or prospective portfolio
companies; provided, that the Management Fee will typically be reduced by the amount of such fees
(after expenses) in accordance with the applicable Governing Documents. Such fees may include
specified closing fees, investment banking fees, management fees, placement fees, commitment fees,
breakup fees, litigation proceeds from transactions not consummated, monitoring fees, consulting fees,
origination fees, directors’ fees and other similar fees received from any actual or prospective portfolio
company.

The compensation described above is Fulcrum’s typical compensation. However, Management Fee and
Carried Interest rates may be negotiable. Fulcrum has the right to enter into agreements with one or more
Investors to waive or modify certain terms of the offering of interests in the Funds, or certain rights and
obligations of the Investors, including compensation, otherwise applicable to such interest(s), in each
case without notice to the other Investors.

Lower fees for comparable services may be available from other sources.

Other Advisory Client Fees and Expenses

Expense Allocation

Each Fund will generally bear all expenses of its organization and operation. The expenses of Fulcrum
and the Fund Managers related to office space, equipment, certain administrative functions,
compensation of personnel and marketing the Funds shall be borne by Fulcrum and the Fund Managers,

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and not the Funds. Other than such expenses borne by Fulcrum and the Fund Manager, each Fund shall
pay all expenses incurred in connection with the administration and operation of the Fund.

It is critical that Investors refer to the relevant Governing Documents for a complete understanding of
fees and expenses they will bear through participation in a Fund. The information contained herein is a
summary only.

Fee Adjustments

The Fund’s payment of the Management Fee for each period can be reduced (but not below zero) by an
amount (the “Offset Amount”) equal to the Fund’s share (based on the Fund’s and the QP Fund’s
respective aggregate capital commitment) of the excess, if any, of (i) any Portfolio Company Fees
received since the preceding Management Fee Payment Date or Determination Date (as applicable) over
(ii) the amount of any costs, expenses or liabilities incurred by the Fund Manager, Management Company
or any of their Affiliates in connection with the receipt of such Portfolio Company Fees and not
reimbursed pursuant to the applicable fund’s governing documents.

Advance Payment of Fees

Fulcrum collects Management Fee quarterly and in advance. The Management Fee obligation of a Fund
may only be terminated or modified as provided by its Governing Documents. The Management Fee is
calculated on an annual basis and is pro-rated for partial periods. In addition, Carried Interest allocations
may be subject to clawback obligations as described in the applicable Governing Documents.

Additional Compensation

Fulcrum’s principals and other employees generally receive salaries and other compensation derived
from, and in certain cases including a portion of the Management Fee or other compensation received by
the Firm or its affiliates. In addition, certain third parties, including senior and strategic advisors and
...

Item 7 – Types of Clients
As described in Item 4, Fulcrum provides investment advisory services to private funds that are exempt
from registration under the Investment Company Act. The offered interests in the Funds are not registered
under the Securities Act or the securities laws of any U.S. state or any other jurisdiction. The offering of
interests in the Funds is made to U.S. persons in accordance with Regulation D promulgated under the
Securities Act by the SEC and to non-U.S. persons in accordance with Regulation S promulgated under
the Securities Act by the SEC.

Generally, each Fund requires a minimum commitment of $500,000, but such amount may be waived by
the Fund Manager, subject to applicable legal requirements.

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