Sandglass Capital Advisors LLC

Item 5. Fees and Compensation

The fees applicable to each Client are set forth in detail in each Client’s Governing Documents. It is critical
that Clients, Fund Investors and prospective investors refer to the applicable Governing Documents for a
complete understanding of how SCML and the Investment Adviser are compensated for their services. A
brief summary of such fees is provided below.

Management Fees and Performance-Based Compensation

The Funds

Management Fee (also referred to as “Fixed Fee”)

Generally, the Funds pay SCML a monthly or quarterly management fee (“Fixed Fee”) in arrears. With
respect to the SOF, the Fixed Fee annual rate is generally between 1.5% and 2.00% of the SOF net assets
and is paid monthly in arrears. The Fixed Fee annual rate for the Petrus Fund is 1.5% of the Petrus Fund
net assets and is paid monthly in arrears. With respect to the Select Fund, the Fixed Fee is equal to 1.5% of
the sum of (a) such limited partner’s interest in the assets of the Select Fund valued at historical cost and
(b) such limited partner’s unfunded Commitment (as those terms are defined in the Governing Document)
and is paid quarterly in arrears. With respect to Select Fund II, the Fixed Fee is equal to 1.5% of the limited
partner’s Commitment during the Investment Period (as those terms are defined in the Governing
Documents) and thereafter 1.5% of such limited partner’s share of the aggregate cost basis of all
investments held by Select Fund II, and is paid quarterly in arrears. The Governing Documents allow SCML
or the respective general partner of each Fund (each individually, a “General Partner” and, collectively the
“General Partners”) to waive or agree to reduce the Fixed Fee for one or more investors without waiving
or reducing it for all investors.

Performance Fees and Allocations

SCML and/or the General Partners are generally entitled to receive an annual performance fee (the
“Performance Fee”) or performance allocation (the “Performance Allocation”) of up to 20.0% of the SOF
net profits subject to a high-water mark, as outlined in the Governing Documents, calculated and paid
annually following the SOF’s fiscal year-end and 17.5% of the Petrus Fund’s net profits subject to a high-
water mark as outlined in the Petrus Fund’s Governing Documents, calculated, and paid annually following
the Petrus Fund’s fiscal year-end. The Select Fund and Select Fund II’s General Partners are generally
entitled to receive carried interest of 18% subject to preferred returns and waterfall calculations as outlined
in their respective Governing Documents. For the SOF and Petrus Fund, the Performance Fees and
Allocations are also crystallized as of the Redemption Date (as defined in the Governing Documents) upon
an investor redemption or withdrawal. The Governing Documents allow SCML or the respective General
Partner to waive or reduce the Performance Fee or Performance Allocation for one or more investors
without waiving or reducing it for all investors.

Certain Fund Investors currently have, or may in the future have, different fee arrangements. Fees and
compensation paid by the Funds are generally deducted from the assets of such Funds.

The Adviser is paid a portion of the fees paid to SCML in accordance with agreements between the SCML
and the Adviser.

Separately Managed Accounts

Compensation arrangements for services provided to separately managed accounts, if any, are negotiated
individually. Any management fee and performance-based fee will be payable as set forth in the applicable
Governing Documents.

Expenses

The Funds

Each Fund will bear its own expenses in connection with the Fund’s operations, including but not limited
to, legal, accounting (including external accounting and valuation expenses), auditing and other
professional expenses; tax preparation and other tax related expenses (including preparation costs of tax
returns and reports to investors), and any taxes, fees and other governmental charges incurred directly or
indirectly levied against of the Fund and all expenses incurred in connection with any tax audit,
investigation settlement or review of the Fund; expenses related to the negotiation of prime brokerage
contracts and counterparty assessment; administrator and other service provider fees and expenses,
including costs of preparing financial statements, and with respect to any calculations of the net asset value
of the Fund; directors’ fees; insurance expenses (including directors’ and officers’ insurance, errors and
omissions insurance, fidelity bonding and insurance and other similar policies); expenses related to
maintenance of the Fund’s registered office and corporate licensing including the registered office expense,
CIMA-related regulatory filings and corporate licensing of the applicable General Partner; organizational
and offering expenses; expenses associated with certain reporting to existing and prospective investors;
expenses in connection with responding to formal and informal inquiries, indemnification filings and other
expenses to the extent they are in connection with, relate to or derive from the Fund or its investment
activities; fees paid to third-party proxy services advisory firms; fees and expenses related to the negotiation
of agreements with investors, including side letters; expenses incurred in connection with investments and
prospective investments (including, without limitation, the evaluation, acquisition and/or disposing of such
investments) whether or not consummated, including, without limitation, research products and services
(including, without limitation, expert consultants and third party consultants/advisors), risk analytic
services, expenses related to internally generated data analytics, which may include proprietary software
and research, research travel-related costs and expenses, retainers to third party consultants/advisors,
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Item 7. Types of Clients

The Adviser currently provides investment advisory services to the Funds (including, without limitation,
the Adviser’s sub-advisory relationship) and may in the future provide investment advisory services to
other clients including, but not limited to, other pooled investment vehicles or separately managed
accounts.

Interests in the Funds are offered pursuant to applicable exemptions from registration under the U.S.
Securities Act of 1933, as amended (the “Securities Act”), and the U.S. Investment Company Act of 1940,
as amended (the “1940 Act”). Fund Investors are required to be “accredited investors” and “qualified
clients” as defined in the Securities Act and the 1940 Act, respectively. The Fund Investors may include,
but are not limited to high net worth individuals, banks, insurance companies, pension and profit-sharing
plans, trusts, estates or charitable organizations, educational and research institutions, foundations,
corporations or other business or investment entities, and, directly or indirectly, the Adviser, the General
Partners, and their Supervised Persons and other affiliates. The Funds generally have a stated minimum
investment amount as described in the relevant Governing Documents. SCML or the General Partners have
the discretion to waive minimum investment requirements for investment in the Funds, subject to
regulatory minimums, if any.