Heirloom Investment Management LLC

Item 5 – Fees and Compensation

A. Compensation for Advisory Services

   I.    AUM Services

AUM Advisory Clients pay HIM a Management Fee, with such fee typically being 0.5-1.5% of assets under
management and typically paid quarterly in advance.

In addition, AUM Advisory Clients typically pay HIM a Performance Fee, with such fee typically being 5-15%
of the profit of the client for the year, in some cases contingent upon exceeding a pre-determined return
level.

One AUM Advisory Client pays such fees on only part of its assets under management, with certain share
classes being exempt from such fees. In this client’s case, the share classes that are exempt from such fees
have a capped return, with any excess return earned above the capped level accruing to another share

class owned by an affiliate of HIM, with such share class also intended to absorb any monthly losses on
behalf of the capped share classes.

Unless specifically agreed with a client in writing, if HIM earns a fee related to an investment made by an
AUM Advisory Client, such fee, net of any costs, will be rebated to the client via a Management Fee Rebate
or similar.

   II.   AUA Services

AUA Advisory Clients typically pay HIM a quarterly fee, based on the type of work conducted and the
seniority of the HIM employee involved, with such fee typically billed monthly in arrears. One AUA
Advisory Client pays HIM a quarterly fee, regardless of the number of hours worked, with such fee payable
in advance.

B. Method of Fee Payment

All fees payable to HIM are invoiced to clients. HIM does not custody any client assets and does not have
the ability to deduct fees from client assets. Clients are typically billed quarterly, though some clients are
billed monthly and some clients are billed on an ad hoc basis once the amount owing reaches certain
thresholds.

C. Other Fees and Expenses

HIM does not charge any other fees to its clients, though it does pass on to the client any direct, third-
party costs incurred for the evaluation, diligence, negotiation and execution of investments. Such costs
include, but are not limited to, service providers such as legal counsel, tax advisors, accountants, diligence
experts, etc. in particular related to direct investments in companies.

In addition, clients are likely to incur a number of expenses directly, including management and
performance fees, custodial fees, brokerage fees, legal, accounting, tax preparation and other transaction
costs which are not included in HIM’s fees.

D. Payment in Arrears or Advance

AUM Advisory Clients and retainer based AUA Advisory Clients typically pay for services rendered in
advance on a calendar quarterly basis, except for Performance Fees which are usually charged annually in
arrears.

In the event that HIM has received payment in advance and a contract is terminated, HIM will refund to
the client a pro-rata (based on number of days remaining in the period versus the number of days that
have elapsed) amount of the fee received for such period.

E. Compensation for Sale of Securities and Other Investment Products

HIM does not accept compensation for the sale of securities or other investment products. In the event that
HIM were to receive compensation related to an investment made by one of its clients, unless agreed
explicitly in writing with the client, it would rebate to such client the amount received, net of any costs.

Item 7 – Types of Clients

HIM’s AUM Advisory Clients are funds and co-mingled pools. The investors into such entities are primarily
ultra-high net worth individuals or entities of which they are ultimate beneficiaries, however it may also
include, pension plans, endowments, foundations, and other institutional investors. Any investor into such
clients must be Accredited Investors, and most clients require that investors be Qualified Purchasers. AUM
Advisory Clients typically must have a minimum of $10,000,000 in investment assets.

HIM's AUA Advisory Clients are primarily ultra-high net worth individuals or entities to which they are
ultimate beneficiaries. HIM’s typical minimum account size is $20,000,000 in investment assets for each

AUA Advisory Client relationship.