Ranger Alternative Management LP

Item 5 – Fees and Compensation
The Firm charges advisory fees or sub-advisory fees which are a fixed percentage of assets
under management (“Management Fees”). However, the Firm reserves the right to negotiate
Management Fees with clients which differ from the standard schedule, based on specific
circumstances on a case by case basis, including without limitation, the relative size of a client
account. Accordingly, Management Fees incurred by clients may vary substantially.

Additionally, although the Firm does not currently anticipate offering separate accounts, to the
extent it does so in the future, all other terms of such investment, including terms relating to
expenses and redemption terms, may also be negotiable on a case by case basis.

The Firm provides advisory services to the Ranger Equity Bear ETF pursuant to a subadvisory
agreement with the Ranger Equity Bear ETF’s Investment Advisor: AdvisorShares
Investments, LLC. Investors in the Ranger Equity Bear ETF pay uniform management fees,
at a rate determined by the Ranger Equity Bear ETF Board of Trustees, which currently stands
at one and a half percent (1.5%) per annum. Currently, the Firm receives sub-advisory fees for
sub-advisory services relating to the Ranger Equity Bear ETF equal to an annual rate of one
percent (1.00%). As such, the Management Fees charged by the Firm with respect to the
Ranger Equity Bear ETF is currently less than the Management Fees incurred by an investor
in the Ranger Equity Bear ETF. Management Fees are calculated and accrued daily and paid
to the Firm by the Client on a monthly basis.

Management Fees received by the Firm are exclusive of brokerage commissions, transaction
fees, and other related costs and expenses incurred by the Firm’s clients and/or investors in
pooled investment vehicles advised by the Firm (“Client Affiliates”). Clients and Client
Affiliates may incur certain charges imposed by custodians, brokers and other third parties such
as 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.
Mutual funds and ETFs may also charge additional fees, which are disclosed in such fund’s
prospectus and SAI. Such charges, fees and commissions are exclusive of and in addition to
the Firm’s Management Fee or sub advisory fee, and the Firm will not receive any portion of
these commissions, fees or costs.

Ranger Equity Bear ETF Expenses

The prospectus and statement of additional information of the Ranger Equity Bear ETF sets
forth the applicable expenses to which a shareholder may be subject; and any descriptions of

Ranger Alternative Management, L.P.                                                         Page 2

fees and expenses set forth above and below should be deemed examples and/or summaries of
the types of expenses an Ranger Equity Bear ETF shareholder may be subject to, are not
intended to be all inclusive, and are qualified in their entirety by the prospectuses and statement
of additional information of the Ranger Equity Bear ETF.

Generally, the Ranger Equity Bear ETF bears the cost attributable to the Ranger Equity Bear
ETF ’s investment activities and operations, which may include, without limitation, expenses
associated with a portfolio’s investment program, trading, administration, custody and/or
operations, including without limitation: (a) Management Fees payable to the Firm, (b) the fees
and expenses of Trustees (c) the fees and certain expenses of the Ranger Equity Bear ETF ’s
Custodian and Transfer Agent, (d) the charges and expenses of legal counsel and independent
registered public accounting firm for the Ranger Equity Bear ETF, (e) brokerage commissions
and any issue or transfer taxes chargeable to the Ranger Equity Bear ETF in connection with
its securities transactions, (f) all taxes and corporate fees payable by the Ranger Equity Bear
ETF to governmental agencies, (g) the cost of share certificates representing shares of the
Ranger Equity Bear ETF, (h) the cost of fidelity and liability insurance, (i) the fees and
expenses involved in registering and maintaining registration of the Ranger Equity Bear ETF
and of its shares with the Securities Exchange Commission, qualifying its shares under state
securities laws, including the preparation and printing of the Ranger Equity Bear ETF's
registration statements and prospectuses for such purposes, (j) all expenses of shareholders and
Trustees' meetings (including travel expenses of Trustees and officers of the Ranger Equity
Bear ETF who are directors, officers or employees of the adviser) and of preparing, printing
and mailing reports, proxy statements and prospectuses to shareholders in the amount necessary
for distribution to the shareholders, and (k) litigation and indemnification expenses and other
extraordinary expenses not incurred in the ordinary course of the Ranger Equity Bear ETF 's
business.

Broker–Dealers

For information describing the factors that the Firm considers in selecting or recommending
broker-dealers for Client transactions and determining the reasonableness of their
compensation, please see Item 12 – Brokerage Practices.

Compensation to Third Parties

The Firm may enter into written agreements with an affiliated or unaffiliated marketing group
or individuals that will solicit investors on behalf of the Firm or the Ranger ETF. As
compensation for their solicitation services, such marketing groups or individuals may receive
a percentage of the Firm’s Management Fee as attributable to such solicited Client. With the
exception of 12b-1 fees charged, if applicable, compensation paid by the Firm to marketing
groups or individuals are borne exclusively by the Firm and are not charged back to the Clients
who have been solicited by such groups or individuals. However, because the Firm pays such
...

Item 7 – Types of Clients
The Firm serves as sub-adviser to AdvisorShares Investments, LLC and manages the day-to-
day portfolio activities of the Ranger Equity Bear ETF (HDGE). There is no minimum to
invest in the Ranger Equity Bear ETF (HDGE).

Currently, Ranger Equity Bear ETF serves as the Firm’s sole client. However, the Firm may
provide portfolio management services for additional public funds, private funds and/or
separately managed accounts as of any future date.