Greenhouse Funds LLLP

Item 5. Fees and Compensation

A. Advisory Fees and Compensation.

Asset-Based Compensation: The Adviser is paid a management fee based on net assets. The annual
fee for the Funds, LO Funds and SMAs ranges from 0.50% to 1.50% and is paid either monthly or
quarterly. Generally, there is no management fee for the Cosmos Funds. Certain “founder class” or early
investors may pay a lower or different fee. The management fee may be waived, reduced or changed by
the Adviser.

Performance-Based Compensation: The Adviser and an affiliate of the Adviser that serves as the general
partner of the Master Fund, Cosmos Master Fund, and LO Master Fund (the “Fund General Partner”) may
receive annual performance-based compensation in amounts ranging from (i) 15% to 30% of net profits
from the Funds, Cosmos Funds, and SMAs with a similar strategy as the Funds and Cosmos Funds,
subject to a loss carryforward provision and (ii) 20% of any outperformance relative to a defined index
from the LO Funds and SMAs with a similar strategy as the LO Funds, subject to a loss carryforward
provision. Certain “founder class” or early investors may pay a lower fee. Such performance-based
compensation is charged in compliance with Rule 205-3 under the Investment Advisers Act of 1940, as
amended. Such performance-based compensation for the Funds, Cosmos Funds, and LO Funds may be
waived, reduced or changed by the Fund General Partner. The Adviser does not receive performance-
based compensation for the BEOF SMA.

Based on certain minimum investment thresholds, LO Fund investors may be able to choose to pay a
management fee or a management and performance-based fee.

B. Payment of Fees. The Adviser charges the Funds, Cosmos Funds, LO Funds and SMAs the
management fee in arrears. Performance-based compensation is charged in arrears on an annual basis
and upon investor redemptions/withdrawals from the Funds, Cosmos Funds, LO Funds and SMAs.

C. Other Fees and Expenses. In addition to paying the management fee and performance-based
compensation, the Funds, Cosmos Funds, and LO Funds bear other expenses such as custodial
charges, brokerage fees, commissions and related costs; interest expenses; taxes, duties and other
governmental charges; other portfolio expenses; legal expenses; and internal and external accounting,
audit and tax preparation expenses.

The expenses paid by the Funds, Cosmos Funds, and LO Funds are set forth in detail in their respective
offering documents and organizational agreements. Although the foregoing is a summary of expenses
the Funds, Cosmos Funds, and LO Funds will generally bear, it is not an exhaustive or complete list.
Investors and prospective investors in the Funds, Cosmos Funds, and LO Funds should therefore review
their respective offering documents and organizational agreements carefully because such documents,
and not this brochure summary, describe the exact expenses the Funds, Cosmos Funds, and LO Funds
will bear.

The SMAs bear similar expenses; however, the types and amounts of these expenses may differ from the
Funds, Cosmos Funds, and LO Funds and are governed by the specific subadvisory agreement or
prospectus for each SMA.

D. Prepayment of Fees.

The Funds, Cosmos Funds, LO Funds and SMAs do not pay fees in advance.

E. Additional Compensation and Conflicts of Interest.

The Adviser may from time to time enter into agreements with certain investors that may provide for terms
of investment that are more favorable than the terms described in the relevant offering documents. Such
terms may include the waiver, reduction or rebate of management fees, expenses and/or performance-
based allocations, the provision of additional information or reports or more favorable transfer rights or
liquidity terms. No such agreement will necessarily entitle any other investor to the same terms of
investment.

The Fund General Partner has the right to withdraw its earned incentive-related capital at the end of any
calendar month with limited notice. Periodically, the Fund General Partner may transfer a portion of its
capital balance in the Master Fund, Cosmos Master Fund, and LO Master Fund to limited partner
accounts of the Fund General Partner’s members in the Onshore Fund, Cosmos Onshore Fund, and LO
Onshore Fund. These limited partner accounts of the Fund General Partner’s members have the same
right to withdraw this earned incentive-related capital at the end of any calendar month with limited notice.

Neither the Adviser nor any of its principals, employees or supervised persons receives any transaction-
based or other compensation for the sale of securities or other investment products, including interests in
or shares of the Funds, Cosmos Funds, and LO Funds.

Item 7. Types of Clients

The Adviser provides (1) investment advisory services on a discretionary basis to clients which are
commingled private funds intended for institutional investors and other sophisticated investors and (2)
investment subadvisory services on a discretionary basis to certain private funds, registered investment
companies, and institutional clients whose primary investment advisers have delegated to the Adviser
such services pursuant to subadvisory agreements.

Generally, the minimum initial investment in the Funds is $1,000,000, subject to waiver at the discretion of
the Adviser or the Fund General Partner, as applicable.

Generally, the minimum initial investment in the LO Funds is $10,000,000, subject to waiver at the
discretion of the Adviser or the Fund General Partner, as applicable.

Generally, the minimum initial investment in the Cosmos Funds is $25,000,000, subject to waiver at the
discretion of the Adviser or the Fund General Partner, as applicable.

Minimum investments for the SMAs are negotiated on a case-by-case basis. The BEOF SMA minimums
are disclosed in the prospectus.