Permit Capital LLC

Item 5:         Fees and Compensation

          A.    Advisory Fees and Compensation

        As compensation for our investment advisory services, each Permit Fund pays Permit Capital a
management fee. All management fees are payable in arrears on a monthly or quarterly basis, depending
on the terms of the Governing Documents of the Permit Fund. We do not require the Permit Funds to pay
our management fee in advance. The method of management fee calculation varies by Permit Fund and
is described in the fee schedules listed under Item 6 (Performance-Based Fees and Side-by-Side
Management).

        We submit an invoice for our management fees to the third-party administrator of the Permit
Funds (other than the Telecom Fund and the Enterprise Fund). The third-party administrator, on behalf of
the Permit Funds, will then pay us the management fee. In the case of the Telecom Fund and the
Enterprise Fund, we submit our management fee invoices for those funds to their prime broker who will
then pay us the management fees owed by those two funds.

       The management fee is not negotiable. However, Permit Capital, in its sole discretion, may waive
the management fee with respect to any Permit Fund or any investor of a Permit Fund, in whole or in part.

          B.    Additional Fees and Expenses

         Generally, each Permit Fund bears all of its expenses (including, but not limited to, fees and
expenses relating to organizational, offering, operating, fund administration, custody, audit, tax return
preparation and legal counsel) other than management expenses such as salaries, benefits, and costs of
office space and facilities. Investors in each Permit Fund are allocated their pro rata share of the “fund”
expenses incurred by such Permit Fund. Each Permit Fund may also incur brokerage and other transaction
costs. See Item 12 below (Brokerage Practices) for additional information about these costs. Investors
should carefully review the Governing Documents of a Permit Fund for a complete description of fees and
expenses which are, or may, be paid or allocated to a Permit Fund.

        A Permit Fund which has fund-of-fund investments (a “Permit Fund-of-Funds”) incurs two levels
of fees. Such Permit Fund will incur expenses at the Permit Fund level and any expenses that the
Underlying Investment Fund may charge. An Underlying Investment Fund may charge a Permit Fund
management fees, performance fees, and other fees and expenses relating to the operation of the
Underlying Investment Fund.

         Neither Permit Capital nor any of our supervised persons accepts compensation for the sale of
securities.

Item 7:          Types of Clients

       Our only clients are the Permit Funds. Each of the Permit Funds has a minimum investment
amount that is listed below. Permit Capital GP, in its sole discretion, may waive the minimum investment
amount.

          •   Capital Fund: $2,000,000
          •   Telecom Fund: $500,000
          •   Enterprise Fund: $500,000

         Prospective investors of the Permit Funds must meet certain qualification requirements that are
set forth in the Governing Documents and subscription agreements for the Permit Funds. These
qualifications include income and net worth minimums along with prior investment experience and
financial sophistication.