Marchant MC Limited

Item 5. Fees and Compensation

In return for investment advisory services performed, Marchant charges a management fee (the
“Management Fee”) and a performance-based fee. The fees and expenses applicable to the
Private Funds are set forth in detail in the offering documents. The fees and expenses applicable
to each Managed Account and Sub-Advised Account are set forth in detail in the respective
investment management agreement. The terms of the agreements are generally established at
the beginning of each Client relationship. Clients and investors should review all fees charged
by Marchant as set forth in their governing documents and investment management agreement
to understand the amount of fees and expenses borne by the Client / investor. A summary of
such fees and expenses is provided below.

Marchant may, in its sole discretion, negotiate, waive, reduce or calculate differently the
Management Fees or incentive fees applicable to certain Clients or investors in the Private
Funds, including employees, affiliates, strategic investors and other investors. In addition,
certain Clients or fund investors may receive different liquidity, reporting or other terms. As a
result, similarly situated Clients or investors may pay different fees or receive different terms.

Management Fees
Marchant’s Management Fee for Managed Accounts, Sub-Advised Accounts, and the Fund of
One are generally determined pursuant to negotiated fee arrangements, which include tiered
schedules based on aggregate assets under management or other agreed measures of exposure,
including target investment capital or notional exposure, as applicable. Applicable annual fee
rates decline at specified total asset thresholds across the Managed Accounts, Sub-Advised
Accounts and Fund of One, with lower rates applied progressively to higher asset levels.
Management fees typically range from 1.50% on lower asset tiers to 0.25% on higher asset
tiers.

With respect to the Funds, Marchant charges a Management Fee of 1% per annum, payable
quarterly in advance.

As disclosed in the pre-launch Managed Account and Sub-advised Account agreements and
the Fund of One’s offering documents, certain Managed Accounts, Sub-Advised Accounts,
and the Fund of One pay Management Fees in advance during the first year to assist the Adviser
in funding its initial operations. For Managed Accounts and Sub-Advised Accounts subject to
these arrangements, six months of Management Fees are generally payable upon the Client's
initial investment, with an additional six months of Management Fees payable six months
thereafter. For the Fund of One, the Management Fee attributable to the first four calendar
quarters following the investor's initial subscription is payable in two equal installments, with
the first installment due on the initial subscription date and the second installment due at the
beginning of the second calendar quarter following the initial subscription date. Thereafter, and
for any Managed Account or Sub-Advised Account that is not subject to a first-year advance
payment arrangement, Management Fees are generally payable quarterly in arrears.

The Management Fee is prorated for any subscription, redemption or withdrawal by a Client
(or underlying investor in the Private Funds) that is effective other than as of the first day or
last day (depending on fee payment terms being in arrears or advance) of a quarter.

Item 7. Types of Clients

Marchant provides investment advisory services to various Managed Accounts, Sub-Advised
Accounts, and Private Funds, as described above in “Item 4. Advisory Business.” Beneficial
owners of the Clients include sophisticated endowment foundations, pension schemes and
institutional alternative equity investors.

The minimum initial investment for Managed Accounts or Sub-Advised Accounts varies but
is generally not less than $50 million. As noted in “Item 5. Fees and Compensation,” Clients
may be subject to an early redemption penalty for redemptions effectuated within the first 12
months of its advisory engagement with Marchant.

Each Managed Account and Sub-Advised Account can negotiate their own investment
management agreement to establish certain rights or restrictions on the investment advisory
services of their account.

The minimum initial investment in the Fund of One is $25 million. However, the Fund of One’s
board of directors, in its sole discretion, can accept smaller initial investments from time to
time.

Generally, the minimum initial investment in the Funds is $1 million. However, the Fund’s
board of directors, in its sole discretion, can accept smaller initial investments from time to
time.

Marchant, on its own behalf and/or on behalf of the Funds, without the approval of any Fund
shareholder, investor or any other person, may, in its sole discretion, enter into side letters or
similar agreements, with one or more shareholders, including any shareholders to be admitted
to the Fund, to make exceptions or modifications to, or departures from, the provisions of the
Fund offering documents at the request of such shareholder. Such side letters or similar
agreements may provide such shareholders with more favorable economic and non-economic
terms than apply to other shareholders in the Fund.