KP Management LLC

Item 5 – Fees and Compensation

A.    Adviser Compensation

KP Management’s fees are described generally below and detailed in the Fund’s offering documents.

B.    Fee Schedule

KP Management receives a quarterly management fee in arrears within 10 business days after the beginning
of the following calendar quarter from the Fund. The management fee is based upon each investor’s capital
account balance in the Fund and equals the sum of the amounts calculated with respect to all such investors.
The portion of the total management fee assessed against each such investor and allocated to such
investor’s capital account generally equals 1% per annum of such investor’s capital account balance as of
the last business day of each calendar quarter (prior to any withdrawals on such date). As described in the
Fund’s offering documents, the Fund pays its own operating expenses and organization expenses.

The Fund also pays a performance-based fee, which is discussed in Item 6 below

C.    Other Advisory Fee Arrangements

Investors in the Fund who are principals, employees, family members of principals or employees, or
accounts related to any principals, employees, or family members of principals or employees are generally
not assessed management or performance-related fees.

In addition, KP Management reserves the right, in its sole discretion, to assess a higher or lower
management fee with respect to certain investors upon their admission to the Fund.

D.    Payment of Advisory Fees

The Firm’s fees are debited from the Fund’s custodial account on a quarterly basis.

E.    Other Non-Advisory Fees

The Fund incurs certain charges imposed by custodians, brokers, and other third parties. KP Management’s
fees are exclusive of brokerage commissions, transaction fees, custodial fees, deferred sales charges, odd‐
lot differentials, transfer taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage
accounts and securities transactions that are incurred by the Fund. Neither the Firm nor its principals or
employees receive any portion of these commissions or fees. In addition, KP Management’s principals
and employees do not accept compensation for the sale of securities or other investment products.

F.    Advance Payment of Fees

Advisory fees for the Fund are billed quarterly in advance and are payable upon receipt, commencing upon
opening an investor’s capital account. Although the offering documents for the Fund provide investors
with quarterly liquidity, in the event an investor is permitted or required to withdraw his, her, or its
investment from the Fund at a time other than at the end of a quarter, the Firm will pro-rate the fees owed
by the investor based on the number of days during the quarter when the investor maintained a capital

account and then reimburse the investor for the partial period. The Fund’s offering documents provide a
detailed explanation of investors’ liquidity rights and the terms of the Fund’s advisory relationship with
KP Management.

G.    Layered Fees

KP Management may invest or recommend investments in mutual funds or exchange-traded funds. When
the Fund invests in mutual funds or exchange-traded funds, it will also bear indirectly as a fund shareholder
its proportionate share of the mutual fund’s or exchange-traded fund’s internal expenses, which include
management fees paid to the mutual fund’s or exchange-traded fund’s adviser. These internal fees and
charges are known as the fund’s expense ratio. Each fund’s expense ratio will vary over time and is
disclosed in its prospectus. Neither KP Management nor its principals or employees receives sales charges
from mutual funds or exchange-traded funds as a result of recommending such securities.

Item 7 – Types of Clients

KP Management is a discretionary investment adviser to the Fund. The Fund is organized as a limited
partnership under the laws of the State of Delaware. Interests in the Fund are only offered to persons who
meet the eligibility requirements for investment in privately offered funds, which (1) rely on an exclusion
from the definition of “investment company” under the Investment Company Act of 1940, as amended,
provided by Section 3(c)(1) thereunder; and (2) rely on an exemption from registration under the Securities
Act of 1933, as amended, provided by Section 4(a)(2) and Rule 506 of Regulation D. Investors and
prospective investors are urged to refer to the Fund’s offering documents for detailed information on the
investment requirements.
The minimum investment amount for the Fund is $500,000, which the Firm can waive provided the
prospective investor meets the Fund’s eligibility requirements. The Fund may impose additional eligibility
restrictions on prospective investors.