Item 5 Fees and Compensation
A. & B. Method of Compensation and Fee Schedule and Client Payment of Fees
General Partner Management Fee
As a General Partner and for the services Korr provides to the Funds, Korr receives a Management fee
based on a percentage of the assets of each Fund. The Management Fee is 1.00%. This fee is negotiable
by Korr, at the sole discretion of the Advisor.
In addition to the Management Fee, the Limited Partnership will pay any and all research fees and
expenses, interest on margin accounts, legal, accounting and other professional fees, charges on securities
sold short, custodial fees, trustee’s fees, brokerage commissions, bank service fees, interest on loans and
debit balances, any taxes applicable to the Limited Partnership on account of its operations and shall also
pay any and all other reasonable expenses related to the management and operation of the Limited
Partnership as well as the purchase, sale or transmittal of Limited Partnership assets, as Korr shall
determine in its sole discretion.
General Partner Performance-Based Compensation
Kenneth A. Orr, a related person of Korr is paid a performance-based fee, which is compensation that is
based on a share of capital gains on or capital appreciation of the assets of a hedge fund investment
vehicle. This compensation may only be paid to a related person of Korr and ranges from 25%-50%
depending upon the Fund. Under certain circumstances, receipt of performance-based compensation may
be subject to hurdle rates of 6%-15% depending upon the Fund. Detailed information on how these fees
are calculated is provided within each Fund Subscription Agreement.
Consulting and Advisory Services
On occasion, Korr will provide consulting or advisor services to certain entities. The compensation paid
to Korr under these arrangements [please add description here].
Advisory Fees to Registered Investment Advisor Clients
Upon acceptance by the Client of the recommended investment identified and recommended by Korr,
Korr will receive a one-time advisory fee of 1.00% based on the assets under management of the Client,
at the time of the investment. For the ongoing monitoring services that Korr provides on the accepted
investment, Korr will receive 10% of the profits on the investment, after all the principle has been
returned per investment. Payment of this 10% fee will be dependent upon the type of public or private
investment. These fees are negotiable in the sole discretion of Korr.
Additionally, the Client or Fund will reimburse any costs associated with Korr performing due diligence
on the selected investments.
C. Additional Client Fees Charged
Korr Acquisitions Page 5
For investors who invest in any of the Funds, they will bear its pro rata share of the investment
management fee and other fees of the Funds, which are in addition to the Management fee and
performance fee paid to Korr. See Item 12 Brokerage Practices, for further information of brokerage and
transaction costs.
D. Prepayment of Client Fees
The Client may obtain a refund of a pre-paid fee in the following manner if the advisory contract is
terminated. Korr will determine the amount of the relevant refund in the following manner: A refund of
fees paid in advance will be pro-rated for the number of days in the quarter from the effective date of
termination of Korr’s services until the end of the month or quarter for which fees were paid.
E. External Compensation for the Sale of Securities to Clients
Not applicable to Korr or its supervised persons.