Kinderhook Partners LLC

Fees	
  and	
  Compensation

       Management	
  Fees
            Kinderhook's	
   fees	
   are	
  fixed	
   and	
   based	
   on	
   a	
   percentage	
   of	
   assets	
   under	
   management.
            Management	
  fees	
  are	
  not	
  negotiable,	
  charged	
  quarterly	
  in	
  advance	
  at	
  the	
  beginning
            of	
  each	
  quarter,	
  and	
  deducted	
  directly	
  from	
  client	
  assets.	
  Management	
  fees	
  are	
  pro-­‐
            rated	
   for	
   each	
   capital	
   contribution	
   and	
   withdrawal	
   made	
   during	
   the	
   applicable
            calendar	
   quarter.	
   If	
   a	
   client	
   account	
   is	
   initiated	
   or	
   terminated	
   during	
   a	
   calendar
            quarter	
  it	
  will	
  be	
  charged	
  a	
  prorated	
  fee.	
   The	
  amount	
  of	
  any	
  refund	
  will	
  be	
  calculated
            by	
  dividing	
  the	
  most	
  recent	
  management	
  fee	
  by	
  the	
  number	
  of	
  days	
  in	
  the	
  quarter	
  and
            multiplying	
  that	
  figure	
  by	
  the	
  number	
  of	
  days	
  left	
  in	
  the	
  quarter	
  following	
  the	
  date	
  of
            termination.	
   The	
  management	
  fee	
  is	
  charged	
  as	
  follows:

                                      Client	
  Account	
  Value	
                                     Annual	
  Fee
                                    From	
                             To	
                       (charged	
  and	
  payable
                                                                                                       quarterly)
                         $0	
                                $150,000,000	
                                    2.0%
                         $150,000,001	
                      $250,000,000	
                                    1.5%
                         Greater	
  than	
                   $250,000,000	
                                    1.0%

       Other	
  Fees
                Management	
   fees	
   are	
   exclusive	
   of	
   brokerage	
   commissions	
   and	
   transaction	
   fees.
                Clients	
   may	
   incur	
   other	
   charges	
   imposed	
   by	
   custodians,	
   brokers,	
   and	
   other	
   third
                parties	
   such	
   as	
   custodial	
   fees,	
   deferred	
   sales	
   charges,	
   odd-­‐lot	
   differential	
   fees,
                transfer	
   taxes,	
   wire	
   transfer	
   and	
   electronic	
   fund	
   transfer	
   fees,	
   and	
   other	
   fees	
   and
                taxes	
  on	
  brokerage	
  accounts	
  and	
  securities	
  transactions.	
   Mutual	
  funds	
  and	
  exchange
                traded	
  funds	
  also	
  charge	
  internal	
  management	
  fees,	
  which	
  are	
  disclosed	
  in	
  a	
  fund’s
                prospectus.	
   Such	
  charges,	
   fees	
  and	
  commissions	
   are	
   exclusive	
   of	
   and	
  in	
   addition	
   to
                Kinderhook's	
  management	
  fee.

                  Kinderhook	
   and	
   its	
   partners,	
   officers,	
   and	
   employees	
   sometimes	
   become	
   board
                  members	
  of	
  portfolio	
  companies	
  and	
  for	
  their	
  participation	
  generally	
  receive	
  director
                  fees	
   in	
   the	
   form	
   of	
   cash	
   and	
   equity-­‐based	
   compensation.	
   Kinderhook,	
   in	
   its	
   sole
                  discretion,	
   may	
   offset	
   its	
   management	
   fee	
   in	
   an	
   amount	
   equal	
   to	
   the	
   value	
   of	
   any
                  compensation	
  received	
  from	
  such	
  activity.

                  The	
  “Selecting	
  Brokerage	
  Firms”	
  section	
  below	
  describes	
  circumstances	
  under	
  which
                  Kinderhook	
   receives	
   research	
   and	
   other	
   benefits	
   from	
   brokers	
   with	
   whom
                  Kinderhook	
  executes	
  trades.

Types	
  of	
  Clients

       Description
             Kinderhook	
  provides	
  investment	
  advice	
  to	
  pooled	
  investment	
  vehicles.

       Account	
  Minimums
            Kinderhook	
  does	
  not	
  impose	
  minimum	
  account	
  size	
  requirements	
  on	
  clients.

       Methods	
  of	
  Analysis,	
  Investment	
  Strategies	
  and	
  Risk	
  of	
  Loss

       Description
             Kinderhook	
  believes	
  that	
  there	
  are	
  opportunities	
  to	
  purchase	
  ownership	
  positions	
  in
             businesses	
   at	
   the	
   small	
   end	
   of	
   the	
   publicly	
   traded	
   company	
   spectrum.	
   These
             companies	
   have	
   values	
   that	
   are	
   likely	
   to	
   grow	
   rapidly,	
   but	
   which	
   are	
   priced	
   low
             enough	
   that	
   the	
   risk	
   of	
   substantial	
   loss	
   of	
   capital	
   is	
   modest.	
   Consequently,
             Kinderhook	
  primarily	
  makes	
  long-­‐term	
  equity	
  investments	
   in	
  domestic	
  and	
  foreign
             small	
   and	
   micro	
   capitalization	
   public	
   companies	
   and	
   to	
   a	
   lesser	
   extent	
   private
             companies,	
   but	
   may	
   also	
   invest	
   in	
   other	
   types	
   of	
   securities.	
   When	
   making
             investments,	
   Kinderhook	
   seeks	
   to	
   take	
   positions	
   in	
   companies	
   that	
   will	
   generate	
   a
             target	
   return	
   of	
  three	
   to	
   five	
   times	
   the	
   cost	
   of	
  investment	
   over	
  a	
   three	
   to	
   five	
   year
             period.