Privet Fund Management LLC

Item 5 – Fees and Compensation
A detailed description of Fund fees is available in each Fund’s Confidential Private Placement
Memorandum (the “Memorandum”) or Limited Partnership Agreement (“LPA”). Privet receives a Target
Management Fee from the PCI2 Investment and pays the expenses of PCI2. Privet (or GP) receives from
PFLP an annual management fee equal to 1.5% of the balance of all Capital Accounts of the Limited
Partners (the “Management Fee”). The Management Fee is calculated quarterly and payable in quarterly
installments in arrears. The General Partner has discretionary authority to waive all or any part of the
Management Fee due to it with respect to any Limited Partner.

As an Advisor to privately held companies, the General Partner may take an active role in the management
of the portfolio company. Privet has discretion to enter into a Management Services Agreement with a
portfolio company pursuant to which the portfolio company pays to Privet a management fee in return for
certain management services provided by the General Partner. The management fee is subject to change at
the discretion of the General Partner and portfolio company.
Limited Partners in PFLP wishing to redeem shares do so on a staggered schedule outlined in detail in the
Offering Memorandum. PCI2, PCI3 and PCI4 are closed private equity vehicles that pay out distributions
once the fund investment has a liquidity event. The General Partner reserves the right to amend the
foregoing procedures in its sole discretion.
PFLP pays all costs and expenses as the GP reasonably determines in good faith to be necessary,
appropriate, advisable, incidental or convenient to promote or conduct PFLP business or achieve PFLP’s
objectives. PFLP’s direct operational costs and expenses, without limitation, includes, but not necessarily
limited to: (1) costs and expenses incurred in connection with the investment, custody and reinvestment of
the PFLP’s assets, including brokerage commissions, custody fees, dealer mark-ups, mark-downs and
spreads, and related clearing and settlement charges; (2) accounting, auditing, record-keeping and tax form
preparation (including costs and expenses associated with obtaining systems and other information
designed to facilitate PFLP accounting or record-keeping); (3) fees, costs and expenses of third-party
service providers that provide such services; (4) fees and taxes imposed by any governmental entity or self-
regulatory organization, including licensing, filing, registration and exemption fees and withholding,
transfer and franchise taxes; (5) PFLP’s indemnification obligations under the limited partnership
agreement and other agreements to which PFLP may be a party; and (6) extraordinary costs and expenses,
if any. Fees are assessed based on the date the Limited Partner joins the Partnership. The General Partner
reserves the right to amend the foregoing expense procedures in its sole discretion.
The General Partner and/or its employees are able to earn fees and other income (“Ancillary Fees”) from
services provided or related to portfolio investments of the Partnership. Employees of the General Partner
currently serve as directors of portfolio companies. Employees serving as directors of Partnership portfolio
companies will typically be entitled to receive compensation from the portfolio companies for their director
services, which may include securities and cash consideration. The General Partner may, or may permit the
employee to, retain such directors’ securities and compensation. General Partner employees that are
employed by portfolio companies will receive Ancillary Fees from the portfolio company for their services,
which will be in line with market compensation for employees with similar responsibilities and experience.
For PCI2, Privet discloses a Target Management Fee in Fund Offerings Documents. Privet and the portfolio
company may modify the Target Management Fee. This modification may result in a corresponding
adjustment to the PFLP management fee offset. Additional information is provided in the corresponding
Fund’s offering documents. Privet has adopted procedures for the ongoing monitoring of and management
oversight to assess the fair allocation of expenses to or among the Funds and related entities, to the extent
applicable, and for the determination of the reasonableness of the aforementioned Fund expenses.

Item 7 – Types of Clients
As noted in Item 4 above, Privet manages and administers the business and affairs of the Funds and
implements a continuous investment management program that includes trading decisions on behalf of the
Funds (which are limited partnerships). Conditions for investing in PFLP, including a $1,000,000
investment minimum and other investor qualification requirements, are stated in PFLP’s offering
documents. In select cases, Privet will waive or lower PFLP’s investment minimum in its discretion. PCI2,
PCI3 and PCI4 are currently closed to new investors.