Palatine Fund Advisors LLC

Item 5: Fees and Compensation

Palatine’s fee and compensation arrangements vary depending on the particular Fund.
The specific terms of such arrangements are set forth in each Fund’s governing
documents.

Generally, the Funds pay Palatine an asset-based management fee (the “Management
Fee”), calculated and charged, based on a percentage of the committed capital of the
admitted investors (stepped down to invested capital after the expiration of the fund’s
investment period). Typically, the Management Fee will range from 1.5% to 2.0% per

Palatine Fund Advisors, LLC                                           Form ADV Part 2A
annum of the aggregate capital commitments of the admitted investors. The Management
Fee shall be payable in advance upon the consummation of each Fund closing and
quarterly in arears thereafter, paid by the fund. Investors who are admitted as of a date
other than the initial closing date will pay a pro-rated management fee plus a return for
the time period between the date of the initial closing through the date that the
management fee has been paid as if the new investor had been admitted to the Fund or
the initial close date.

Any fees (net of any related expenses) (other than Additional Fees defined below)
received by the Fund, the Firm, the General Partner, or any of their respective Affiliates
from the Fund’s Permitted Investments or prospective Permitted Investments in
consideration of Fund capital, Fund commitments, due diligence and other services
relating to usage of the Fund’s capital, or the Fund’s exercise of its management rights,
including, without limitation, commitment fees, stalking-horse fees, transaction fees, and
net break-up fees, if any, from broken deals (collectively, “Transaction Fees”), shall be
paid to or retained by the General Partner, the Management Company or any of their
respective Affiliates and One Hundred Percent (100%) of the Fund’s share of such
Transaction Fees shall be applied to reduce the amount of future Management Fees. The
Manager or its Affiliates are entitled to receive various operational fees, including
property management, construction oversight, development, leasing, or senior care
management fees (the “Additional Fees”) in connection with additional services
performed for the Fund or with respect to Portfolio Investments that would otherwise be
performed by third parties, which fees shall not, without the consent of the Fund’s
advisory committee, exceed market rates for such services. Any Additional Fees shall be
solely for the benefit of the Manager or its Affiliates and will not be shared with the Fund.

The Firm contracts certain services from certain qualified employees of Palatine for which
the Firm is able to seek reimbursement from the Fund for such employees’ time. Pursuant
to the terms of the Operative Documents, the Firm maintains the right for certain
employees to charge back legal time and construction oversight and due diligence time.
The Firm details the rates (as a formula) in which they charge for legal and construction
due diligence and oversight time within applicable Fund limited partnership agreements.
The formula utilizes employee compensation (salary and benefit costs to the Firm), and
the Firm compares the hourly rates derived from such formula for each applicable
employee to general market rates for such services in order to ensure that the hourly rates
charged do not exceed market rates for such services if performed by third parties.

Palatine generally exercises its discretion to recommend to a Fund thereof that it
contracts for services with certain service providers, and from time to time such service
providers are expected to include: (i) Palatine or a related person of, (ii) an entity with
which Palatine or its affiliates or current or former members of their personnel has a
relationship or from which Palatine or its affiliates or their personnel otherwise derives
financial or other benefit, including or relationships where Palatine personnel are
seconded, or from which Palatine receives secondees, or (iii) certain limited partners or
their affiliates.

For example, the Firm expects to be presented with opportunities to receive financing
and/or other services in connection with a Fund’s investments from certain limited
partners or their affiliates that are engaged in lending or related business. This subjects
Palatine to conflicts of interest, because although Palatine selects service providers that it
believes are aligned with its operational strategies and will enhance portfolio company
performance and, relatedly, returns of the relevant Fund, Palatine has a potential
incentive to recommend the related or other person (including a limited partner) because
of its financial or other business interest. There is a possibility that Palatine, because of
such belief or for other reasons (including whether the use of such persons could
establish, recognize, strengthen and/or cultivate relationships that have the potential to

Palatine Fund Advisors, LLC                                                Form ADV Part 2A
provide longer-term benefits to the relevant Funds or Palatine), would favor such
retention or continuation even if a better price and/or quality of service could be obtained
from another person. Palatine will not necessarily seek out the lowest cost options when
incurring (or causing a Fund or its portfolio companies to incur) such expenses. Although
Palatine generally seeks appropriate rates for services, it reserves the right to prioritize
prior usage, perceived sector competence or expertise, familiarity, onboarding speed or
other factors in retaining or recommending service providers. In certain circumstances
where Palatine commits or has committed to seek “market” or “arms-length” rates or
terms, Palatine will do so in its sole discretion, seeking rates that it has determined in its
sole discretion to be reflective of the range of rates in the applicable or related markets.
...

Item 7: Types of Clients

As previously discussed in Item 4, Palatine provides discretionary investment advice to
the Funds, which are private investment vehicles that are exempt from registration under
the Investment Company Act. Investors in the Funds are limited to individuals and entities
that meet certain suitability criteria designations including “accredited investors,”
“qualified clients” and “qualified purchasers.” As such, the Funds are marketed exclusively
to institutional investors and high net worth individuals that meet these criteria. From
time to time, Palatine may have non-advisory clients, which include special purpose
vehicles that can be clients of the Firm.