Galapagos Global Capital Management LLC

Item 5: Fees and Compensation
The Investors of the Funds generally pay an amount equal to 1.5% of invested capital. The
management fee will usually accrue quarterly and is paid quarterly in arrears.
Management fees are generally pro-rated for partial periods (i.e., less than one month).
Galapagos Global, the Directors, or their affiliates may reduce, waive, or calculate the
management fee differently for certain Fund investors, including, but not limited to,
members, employees, and affiliates of Galapagos Global. In the event of a withdrawal by an
Investor in a Fund other than as of the last day of a calendar month, a pro rata portion of the
management fee, based upon the actual number of days remaining in such month, will be
repaid by Galapagos Global to such Fund for the benefit of such withdrawing Investor to the
extent such management fee was taken in advance.
The Investment Manager will generally receive a structuring fee (“Structuring Fee”), generally
based on the acquisition price (debt and equity) at the time of purchase of any asset by the
Fund, as described in the supplement documents. The Structuring Fee will be paid in full
immediately upon purchase and will include the asset’s cost basis.
The fees applicable to the Funds are set forth in detail in the Fund’s Offering Documents,
which usually include the Portfolio Supplement documents for each specific deal. A brief
summary of such fees, expenses, and compensation (all of which are qualified by and subject
to the language of the Fund’s Offering Document) is provided below.
Other Fees and Expenses
The Master Fund will bear, or reimburse Galapagos Global and/or the General Partners for
advancing its own expenses and those of the Offshore Fund and/or Domestic Fund, consistent

with the offering or fund documents, as permitted by applicable law, including, without
limitation, the following:
   (i)     expenses related to the research, execution and monitoring of actual and
           prospective investments (whether or not consummated) and the consummation
           of investments, including, without limitation, the following: consulting fees;
           expert fees; fees and expenses of and related to obtaining research, analytics and
           market data (including, without limitation, third-party data sources and any
           information technology hardware; due diligence expenses including, without
           limitation, consulting and appraisal fees; investment- and research-related travel
           expenses; commissions and expenses; borrowing expenses; custodial fees and
           expenses; bank service fees; interest expenses and other borrowing costs; broken
           deal expenses; fees and expenses of third-party professionals, including, without
           limitation, consultants, investment bankers, attorneys, accountants and service
           providers who, in each case, provide services to the Funds or provide services to
           Galapagos Global, the General Partners or their respective principals (on matters
           that would not have arisen but for their respective advisory relationships with the
           Funds);
   (ii)    organizational fees and expenses and fees and expenses incurred in connection
           with the offering and sale of the Shares, including, without limitation, the
           following: the preparation and amendment of various Offering Documents, the
           Investment Management Agreement of each Fund and the Funds’ subscription
           agreements; fees and expenses of Galapagos Global incurred in connection with
           “world sky” matters and private placement regimes, including the European
           Alternative Investment Fund Managers Directive, and Form D and blue sky and
           similar fees and expenses; and expenses incurred in connection with negotiating,
           documenting and complying with provisions of any side letter agreement with
           Investors;
   (iii)   operational expenses, including, without limitation, the following: fees and
           expenses relating to information technology hardware, software or other
           technology used to research investments, evaluate and manage risk, facilitate
           valuations, facilitate accounting functions, facilitate compliance with the rules of
           any self-regulatory organization or applicable law (including, without limitation,
           reporting obligations) in connection with the activities of the Funds, third-party
           administrative fees and expenses, including fees and expenses of a fund
           administrator, and any middle and/or back office service provider; fees and
           expenses of third-party professionals, including, without limitation, consultants,
           valuation service providers, attorneys, accountants and tax preparers; third-party
           audit and tax preparation expenses; fees and expenses associated with Director
           and Governance Committee meetings and meetings of the Investors as a whole,
           including, without limitation, expenses related to the organization and conduct of
           such meetings (including, without limitation, travel, lodging and meal expenses),
           and Director fees (including registration fees) and Governance Committee
           member fees; entity-level taxes; fees and expenses related to compliance with
           applicable law and regulations in connection with the activities of the Funds,
           including, without limitation, any governmental, regulatory, licensing, filing,
           reporting or registration expenses, fees or taxes (including, without limitation,
           fees and expenses incurred in connection with the preparation and filing of

           regulatory filings such as Form PF, regulatory filings for the Funds or Galapagos
           Global, the General Partners (or similar) or their respective principals on matters
...

Item 7: Types of Clients
Currently, Galapagos Global provides investment advice to the Funds. The Funds’ Offering
Documents set forth the eligibility criteria and minimum investment requirements for
Investors. Generally, Investors in the Funds are required to invest a minimum amount, as set
forth in the Offering Documents for each class of Shares, unless otherwise waived or reduced
in the discretion of Galapagos Global or the General Partners (as the case may be).
Offshore Funds
Each investor in the Offshore Funds must be either (i) a non-U.S. Person, or (ii) a Permitted
U.S. Person that qualifies as an “accredited investor,” as defined in Regulation D under the
Securities Act, and either a “qualified purchaser,” as defined in the Company Act, or a
“knowledgeable employee,” as defined under Rule 3c-5 of the Company Act and must meet
other suitability requirements. The subscription agreement contains representations and
questionnaires relating to these qualifications.
Domestic Funds
Each investor in the Domestic Funds must be either (i) a U.S. Person, or (ii) a Permitted U.S.
Person that qualifies as an “accredited investor,” as defined in Rule 501(a) of Regulation D
under the Securities Act of 1933, and who have sufficient knowledge and experience in
financial and business matters to make them capable of evaluating the merits and risks
associated with the funds, and qualify as “qualified clients” as defined in rule 205-3 under
the Investment Advisers Act of 1940.