Kate Capital LLC

Item 5: Fees and Compensation

With respect to the Clients, the Investment Manager will generally receive a management fee
ranging from 1% to 1.5% per annum and/or performance-based compensation (the “Incentive
Fee”), as further described under Item 6, for its investment advisory services.

Management fees vary among Clients and, in certain cases, are subject to negotiation.
Management fees are paid monthly or quarterly in advance, depending on the Client. The timing
and frequency of payment may differ based on the applicable investment advisory agreement and
Client. The amount of the management fee will generally be prorated for periods of less than a full
billing period or for any redemption by an investor that is effective other than as of the last day of
a month or quarter, as applicable. The management fee will be calculated by reference to the net
asset value before the deduction of any accrued incentive fee or investor related taxes.

The Fund bears and shall be responsible for its own expenses, including, but not limited to: (i)
accounting, fund administration, bookkeeping and auditing fees and expenses (including the

Kate Capital LLC                                                              Form ADV Part 2A

allocable share of the costs, fees and expenses relating to internal accounting and tax preparation
functions – inclusive of salaries of the Investment Manager’s personnel performing such functions
– should the Investment Manager determine not to use third party providers for such services); (ii)
legal fees and expenses, including, but not limited to, fees and expenses incurred in connection
with the Funds offering documents, organizational documents, and contracts and investments,
formation expenses of the Funds, including fees and expenses of counsel to, accountants for and
agents of the Funds, and other expenses (including, without limitation, travel and travel-related
costs and expenses), in each case, incurred in connection with the formation and marketing of the
Funds, the preparation of the Funds operative documents and the offering of interests in the
Funds; (iii) all fees and disbursements of the Investment Manager and Funds attorneys,
consultants, administrators, service providers providing outsourced personnel, functions or
services (including, without limitation, chief financial officer personnel, functions or services) and
other third parties performing work benefiting the Investment Manager and/or Funds (including
the legal and other fees, costs and expenses of the Investment Manager and/or Funds in any
threatened or actual litigation or governmental investigation or proceeding, the amount of any
judgments or settlements paid in connection with such litigation or fines or penalties levied as a
result of any such proceeding or investigation, and the legal or other fees and expenses incurred
in connection with the provision of managerial assistance to issuers and/or the disposition of
investments); (iv) insurance and bonding costs; (v) all trading expenses and transaction costs,
including brokerage commissions, exchange fees, expenses relating to short sales, markups in the
bid/offer spread on option positions, clearing and settlement charges, interest on loans and debit
balances, margin interest, broker service fees and other clearing and custodial expenses; (vi)
expenses attributable to regulatory filings which are made with respect to the assets of the Funds
(including filings required by federal and state securities laws, rules and regulations and including,
without limitation, Form PF and Investment Manager-related filings), fees or assessments in
connection with any regulatory registrations, qualifications, reports, filings and/or approvals of the
Investment Manager or Funds, and related compliance fees and expenses, deemed appropriate by
the Investment Manager; (vii) such research and portfolio management expenses as the
Investment Manager shall deem appropriate, which may include, but are not limited to, expenses
incurred in connection with due diligence investigations or research as to investments or potential
investments, including travel, lodging and other expenses incurred in connection with visits to
companies, meetings, research symposiums and communications with company management,
security holders, analysts and other third parties, costs of research reports, data feeds and
databases, news wires and quotation services, periodical subscription fees and costs of software
and software platforms (including risk control software) utilized by the Investment Manager in
connection with managing the Fund portfolio; (viii) fees of the Investment Manager and Funds
registered agents; (ix) the cost of preparation and distribution of reports and statements to
investors; (x) the costs and fees attributable to any third-party proxy voting service or consultant;
(xi) all filing and recording fees; (xii) all custodial fees, bank service fees, and fees or expenses
associated with insuring the Investment Manager and Fund’s assets, (xiii) the Management Fee;
(xiv) all applicable federal, state, local and foreign taxes payable by the Investment Manager and
Funds; (xv) extraordinary expenses, such as indemnification and litigation expenses; and (xvi) all
expenses in connection with the winding up and dissolution of the Investment Manager.

With respect to the Sub-Advisory Accounts, the treatment of expenses attributable to such
accounts are negotiated with each Client and are set forth in the applicable IMA.

Further information regarding expenses is specified in the Fund’s offering documents or a Client’s
IMA.

At the sole discretion of Kate Capital, the management fee may be waived, reduced, or calculated
differently with respect to certain investors, including, without limitation, investors who are
members, shareholders, partners, affiliates or employees of its affiliated entities, members of the
...

Item 7: Types of Clients

Kate Capital’s Clients are comprised of the Fund and Sub-Advisory Accounts.

Unless otherwise waived by Kate Capital, the minimum initial capital contribution to the Fund for
each investor is $250,000. An investor may make additional capital contributions to the Fund in
smaller amounts. The governing documents set the minimum amounts for investment by
prospective investors.

Fund interests are offered and sold generally to investors that are (i) “accredited investors” as
defined under Regulation D of the Securities Act of 1933, as amended and (ii) “qualified clients” as
defined under the Advisers Act or “qualified purchasers”, as defined under the Investment
Company Act of 1940.