HL Capital Inc

Item 5 – Fees and Compensation

Compensation and Fee Schedule1

All investors should review the Governing Documents of the Partnership in conjunction with this
brochure for complete information on the fees and compensation payable with respect to the
Partnership. All clients are “qualified purchasers” as defined in Section 2(a)(51) of the
Investment Company Act of 1940, as amended, and therefore disclosure of this information
herein is not required.

HL Capital, in its sole discretion, may negotiate, waive or modify the management or
performance fees for the investors, including employees and affiliates of HL Capital, without
entitling any other Investors to a waiver or modification.

Other Fees and Expenses

In addition to the advisory fees payable to HL Capital, the Partnership will bear all expenses
related to its operations, including fees, costs and expenses of the Partnership incurred in
connection with potential investments and the evaluation, acquisition, ownership, sale, hedging
or financing of any potential investment, taxes, fees of auditors, counsel and tax advisors,
insurance, travel, litigation and indemnification expenses, administrative expenses, and
extraordinary expenses. These expenses shall include certain charges imposed by third parties,
including (but not limited to): fees, costs and expenses of any custodians, attorneys, accountants,
auditors, valuation experts or other professionals and brokerage commissions, registration fees
and expenses, custodial expenses, other bank service fees and other investment costs, fees and
expenses actually incurred in connection with actual portfolio investments.

Item 12 further describes the factors HL Capital considers in selecting or recommending broker-
dealers and determining the reasonableness of their compensation.

Item 7 – Types of Clients

Types of Clients and Investment Vehicles

HL Capital provides advice to a pooled investment vehicles (the “Partnership”). The limited
Partnership is privately offered to institutional investors and high net worth individuals. Interest
in the Partnership may be purchased only by certain eligible investors who are “qualified
purchasers” for purposes of Section 3(c)(7) of the Investment Company Act of 1940, as
amended, and “accredited investors” as defined in Regulation D under the Securities Act of
1933, as amended (the “Securities Act”). The Partnership is not required to register as an
investment company under the Company Act in reliance upon certain exemptions available to
the Partnership whose securities are not publicly offered.

HL Capital or its related persons may establish certain additional funds (“Feeder Funds”) to
address certain tax or regulatory requirements. Each Feeder Fund, if formed, would be a limited
partner of the Partnership and interests in such Feeder Fund would be held by the investors who
elect to participate in the Partnership through such Feeder Fund. In addition, HL Capital may
form other alternative investment vehicles or special purpose vehicles (collectively, “AIVs”)
formed for the purpose of facilitating certain investments by one or more Partnerships and/or
investors. Prospective investors are requested to refer to the Governing Documents of the
applicable Partnership for complete details on any Feeder Fund established by such Partnership
and the Partnership’s ability to make investments through AIVs.

Minimum Investment Requirements

There are no minimum investment commitment requirements of the Partnership. Investors are
requested to refer to the Governing Documents of the Partnership for complete information on
advisory fees of the Partnership.