HITE Hedge Asset Management LLC

Fees and Compensation

This section contains a summary of the fees received by HITE for management of the Funds as well as a
summary of expenses payable by the Funds. The Adviser or its affiliates, as applicable, may waive, modify
or reduce the management fee or performance fee (Incentive Allocation) for investors that are principals,
employees or affiliates of the Adviser, relatives of such persons and for certain large or strategic investors
at its sole discretion. For more detailed information and a complete description regarding each Fund’s fees
and expenses refer to each Fund’s offering memorandum. The principals and other qualified employees
of HITE may from time to time invest their personal funds in Private Funds managed by HITE.

Management Fees

As compensation for its services rendered to a Fund, a Fund will pay the Adviser, with respect to each
investor, each quarter, a management fee which is a percentage of the investor’s capital account balance
at the end of each quarter. The general partner may, however, in its discretion, waive the payment of all or
part of the management fee payable with respect to any investor for any quarter the General Partner
determines is appropriate. The following summarizes the management fee for each Fund and SMA:

HITE Hedge LP – 2.0% annually, payable quarterly.
HITE Hedge Offshore Ltd. – 2.0% annually, payable quarterly.
HITE Hedge II LP – 2.0% annually, payable quarterly.
HITE Hedge Horizon LP – Fund commenced operations in 2024 with affiliated partners only with no fees
being charged at this time.

Separately Managed Accounts – 2.0% annually, payable monthly or quarterly.

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Performance Fees

As of the end of each fiscal year, a percentage of the excess of (i) the net capital appreciation
otherwise allocable for such year to each Fund investor’s capital account over (ii) any balance remaining
in such investor’s loss recovery account as of the beginning of such fiscal year, will be allocated to the general
partner’s capital account as an “Incentive Allocation” or deducted and paid in cash to the Adviser, which is
a performance fee. If all or part of an investor’s interest is redeemed at any time other than the last business
day of a fiscal year, the date of such redemption will be treated as the last business day of a fiscal year, and
any applicable Incentive Allocation or fee will be made to the general partner’s capital account (and from
the investor’s capital account) or to the Adviser in the proportion that the redeemed interest bears to such
investor’s total Interest immediately before the redemption. To calculate the Incentive Allocation or incentive
fee, a “loss recovery account” will be established for each investor, the opening balanceof which will be zero.
As of the end of each fiscal year, the balance in each investor’s loss recovery account will be increased by
any net capital depreciation or reduced by any net capital appreciation allocated to such investor’s capital
account for such year. The balance in a loss recovery account will never be reduced below zero. The below
summarizes the Incentive Allocation/Fee for each Fund and SMA:

HITE Hedge LP, HITE Hedge Offshore Ltd., and HITE Hedge II LP -- 20% of profits, payable annually.

HITE Hedge Horizon LP – Fund commenced operations in 2024 with affiliated partners only with no fees
being charged at this time.

Separately Managed Accounts – 20% of profits, payable annually.

Expenses

Each Fund pays all costs and expenses related to its investments and operations, which may include,
without limitation, trading, due diligence, financing, insurance, legal, accounting, auditing, tax preparation,
reporting and filing costs, as well as the fees of the administrator. Each investor in a Fund bears its share
of these costs in addition to the management fees and Incentive Allocation/Fee disclosed above.

Each SMA investor bears its own direct expenses associated with their account in addition to the
management fee and incentive fee disclosed above.

Side Letters

The Adviser may enter into agreements (sometimes referred to as “side letters”) with certain prospective or
existing investors whereby such investors may be subject to terms and conditions that are more
advantageous than those set forth in a Fund’s private placement memorandum (“PPM”). For example, such
terms and conditions may provide for special rights to make future investments in a Fund, other investment
vehicles or managed accounts; special withdrawal rights relating to frequency, notice, a reduction or rebate
in fees or withdrawal penalties to be paid by the investor and/or other terms; rights to receive reports from
the Adviser on a more frequent basis or that include information not provided to other investors (including,
without limitation, more detailed information regarding portfolio positions) and such other rights as may be
negotiated by the Adviser and such investors. The modifications are solelyat the discretion of the Adviser
and may, among other things, be based on the size of the investor’s investment in a Fund, with an affiliated
investment entity or a managed account, an agreement by an investor to maintain such investment in a
Fund for a significant period of time, or other similar commitment by an investor to a Fund. As of this date,
the Private Funds or the Adviser have entered into an agreement or a side letter with four investors, each
of which amends the terms of an LPA or PPM or provides special terms to an investor in a Private Fund.

         Performance-Based Fees and Side-By-Side Management

HITE has entered into performance fee arrangements with the Funds it manages. Performance-based fee
arrangements may create an incentive for the Adviser to recommend investments that may be riskier or

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more speculative than those which would be recommended under a different fee arrangement. Such fee
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Types of Clients

HITE offers its services to private investment funds and SMAs. The minimum initial investment in the
Funds is $1,000,000, subject to waiver in the sole discretion of the Fund or Adviser.

         Methods of Analysis, Investment Strategies and Risk of Loss

HITE focuses on an investing strategy that seeks to profit from relative value trading within the U.S. and
global energy sector while generally attempting to generate returns uncorrelated with any asset class. In
our market neutral portfolios (HITE Hedge LP, HITE Hedge Offshore Ltd., and HITE Hedge II LP), we will
put on long and short equity and debt positions primarily within the major subsectors of energy: upstream
(exploration and production), midstream, downstream (refining, petrochemicals, and fuels distribution), and
related services. We also execute similar strategies in the utilities, mobility and renewable energy sectors.
HITE hopes to generate alpha through a variety of trade types, including exploiting technical moves, relative
value discrepancies, dislocations between equities and commodities, and activist opportunities.

Our market neutral portfolios are managed in “near-neutral” fashion, meaning that net exposure will typically
range between -35% to +35%. We expect that gross exposure will be less than 500% of a Fund’s Net
Asset Value. Under most circumstances, we will seek to maintain only limited, if any, beta to major energy
and commodity indices. We may also invest in other pooled investment vehicles (such as money market
funds) for hedging or investment purposes. Notwithstanding the foregoing, we reserve the right to trade in
any securities or derivatives that we believe, in our sole discretion, may help the Funds meet their
investment objectives.

Our market neutral portfolios are designed for those desiring an absolute return strategy within the energy
sector, but with lower volatility than more directional energy funds. We may employ leverage, both for
speculative and hedging purposes, in a wide variety of ways, including purchasing instruments with
borrowed funds and investing and trading in futures contracts, options on futures, options on securities,
forward contracts, swaps and other derivative instruments. There generally is no formal limitation on the
amount of leverage that we may use.

HITE is also in the incubation stage for HITE Hedge Horizon LP. This investment strategy is focused on
investing in underappreciated long-term winners in building the modern energy and transportation systems
of the future. The strategy differs from HITE’s other funds previously mentioned as it is not market neutral
and may have more volatility than our other funds’ strategies.

Risks

It is possible that some of the investment vehicles and direct investments selected by HITE will not meet
all of the above criteria, and that some or all of the investments selected by HITE will not perform as
anticipated. Depending on conditions and trends in the financial and securities markets and the economy
in general, HITE may pursue any objective, employ any investment technique or purchase any type of
security that it considers appropriate and in the best interests of the Funds or the SMAs, that may not be
described above. The summary above is based upon numerous assumptions and opinions of HITE
concerning world financial markets and other matters, the accuracy of which cannot be assured. There can
be no assurance that the Funds’ or the SMAs’ investment strategy will achieve profitable results, and results
may vary substantially over time. Past performance of a Fund or SMA or that of HITE or its affiliates is not
indicative of future results of a Fund or SMA. Investors risk the loss of their entire investment.

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The risks below are summaries of the material risks of HITE’s primary investment strategies. For more
detailed information regarding each Fund’s risks, refer to its PPM.

Lack of Diversification; Investment Concentration. The Funds’ portfolios will not be diversified among a
wide range of securities and will therefore be subject to sector risk geared primarily to energy related
securities. Energy related securities are concentrated in the oil, gas, propane and coal industries. As such,
the securities’ financial performance is subject to demand for these commodities, and to a lesser degree,
their price. Among other things, economic activity, weather, conservation and technological advances will
play critical roles in the overall demand for these commodities and for related companies. Energy related
securities also may be subject to regulatory risk, terrorist attacks, or forces of nature (e.g., earthquakes and
hurricanes) beyond their control. Many energy related companies employ significant leverage and may
have limited cash reserves. Therefore, their ability to weather significant downturns is dependent upon
their ability to access the capital markets, an access that cannot be ensured. HITE is also invested in utilities,
mobility and renewable energy securities, which may be subject to many of the same factors.

General Economic and Market Conditions. Markets can be volatile in response to a number of factors,
as well as broader economic, political and regulatory conditions, which may prevent HITE from executing
a particular strategy successfully. Deteriorating economic fundamentals may in turn increase the risk of
default or insolvency of particular companies, negatively impact market value, increase market volatility,
cause credit spreads to widen, and reduce liquidity.

Actual events involving limited liquidity, defaults, non-performance or other adverse developments that
affect financial institutions, transactional counterparties or other companies in the financial services industry
or the financial services industry generally, or concerns or rumors about any events of these kinds or other
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