Sole Source Capital LLC

Item 5 – Fees and Compensation
General
SSC and/or its affiliates provide discretionary investment advisory services to each of the Funds
pursuant to the Governing Documents and/or separate investment advisory agreements (the
“Agreements”). The Governing Documents and/or Agreements for each Fund set forth in detail
the fee structure relevant to each such Fund. The terms of the Agreements are generally established
at the time of the initial closing of the applicable Fund.

SSC and/or its affiliates typically receive compensation from fees based on a percentage of
committed capital or investment contributions, as applicable, carried interest allocations and
certain other compensation in connection with management and other services performed for
Portfolio Companies of Funds and such additional compensation will offset in whole or in part the
management fees otherwise payable to SSC. In addition, in certain circumstances SSC may
receive compensation for management and other services performed in connection with co-
investments made in Portfolio Companies of the Funds. Investors in a Fund also bear certain
expenses.

Current and potential Investors in a Fund should refer to the detailed information found in each
Fund’s Governing Documents for specific information about the compensation earned by SSC,
including the fees and expenses charged to such Fund.

Management Fees
For SSC Partners I LP and SSC Partners I-A LP, SSC typically receives an investment
management fee of 0.875 – 1.50% per annum based on investment contributions. For SSC Partners
II-A LP, SSC Partners II-B LP, and SSC Partners Cantium LP, SSC typically receives an
investment management fee of 1.00% - 2.00% per annum based on capital commitments. For SSC
Partners III-A LP and SSC Partners III-B LP, SSC typically receives an investment management
fee of 1.80% - 2.00% per annum based on capital commitments. Management fees are payable
quarterly in advance and subject to certain reductions for dispositions and write-offs outlined in
the Governing Documents. Management fees are negotiable. Management fees assessed for each
Fund are described in further detail in each Fund’s Governing Documents and/or Agreements.

Certain Partnership Agreements permit SSC, in its sole discretion, to waive or agree to reduce, in
whole or in part, the management fees for certain Investors (including employees, strategic
partners, or affiliates of SSC). Certain waived portions of the management fees are treated by the
Partnership Agreement as a deemed capital contribution by the relevant General Partner, which is
effectively invested in the relevant Fund on such General Partner’s behalf, and operates to reduce

the amount of capital such General Partner would otherwise be required to contribute to a Fund.
The Investors of a Fund may be required to make a pro rata contribution according to their
respective capital commitments to fund any contribution that would otherwise be required of SSC
in connection with any such waiver or reduction as described above and, as a result, the exercise
of such waiver may result in an acceleration (or delay) of Investor capital contributions. Waived
or reduced management fees are not subject to the management fee offsets described above, and
the amount of such waived or reduced management fees have the potential to be significant. At
the time of a Fund’s dissolution, if there is a remaining offset balance for each investor, SSC will
return the remaining offset balance to the investor.

Management fees for a Fund typically are also reduced by the amount of excess Organizational
Expenses and Transaction Fees paid by Investors in the Fund, as well as by other amounts relating
to certain fees received by SSC, as described below. Management fees for any management fee
period of a Fund is generally pro-rated for the number of days in such period, and in the case of
the last management fee period, SSC will refund to each electing Investor the amount of the
management fee paid by such Investor allocable to that portion of such period which is subsequent
to the date of the final distribution of such Fund.

Carried Interest Allocations
Carried interest is a share of the net profits (typically 20%) realized on the disposition of
investments that is paid to each Fund’s General Partner. The General Partner’s carried interest
allocation is in addition to any profits allocation the General Partner receives in connection with
any investment it has in the Fund.

In order to receive its carried interest allocation, SSC and its affiliates must first return all capital
contributed by the Investors with respect to realized investments, plus an additional preferred
return, in accordance with applicable Governing Documents and Side Letters, calculated and
distributed in accordance with the specific provisions outlined in each Fund’s Governing
Documents. The carried interest allocation is subject to a General Partner catch-up as well as a
General Partner clawback detailed in the Governing Documents of each Fund.

SSC, in its sole discretion, has the authority to waive or agree to reduce, in whole or in part the
carried interest allocation with respect to certain Investors (including employees, strategic partners
or affiliates of SSC).

SSC is permitted to exempt certain “affiliated partner” investors in the Funds from payment of all
or a portion of management fees and/or carried interest, including SSC and any other person
designated by SSC. Any such exemption from fees and/or carried interest may be made by a direct
exemption, a rebate by SSC and/or its affiliates, or through other Funds which co-invest with a
Fund. For example, in instances where an SSC professional (or an affiliated entity thereof) invests
in a Fund, such professional (or such affiliated entity) generally will be exempt from payment of
the management fee and carried interest with respect to such Fund. Additionally, to the extent
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Item 7 – Types of Clients
SSC’s clients are pooled investment vehicles that are privately offered to qualified investors and
exempt from registration under the Investment Company Act. SSC provides discretionary
investment advisory services to the Funds directly, subject to the direction and control of the
General Partner of each Fund. Investors in the Funds may include, but are not limited to, high net
worth individuals, pension and profit-sharing plans (corporate, state and foreign), sovereign wealth
funds, university endowments, foundations, banks or thrift institutions, family offices, pooled
investment vehicles (e.g., funds-of-funds), trusts, estates or charitable organizations, and corporate
or business entities and may include, directly or indirectly, principals or other employees of SSC
and its affiliates and members of their families, operating partners or other service providers
retained by SSC.

Subject to certain limitations and as set forth more fully in the applicable Governing Documents,
if it is determined by any Fund’s General Partner to be in the best interests of one or more Investors,
the General Partner may direct the capital contributions of such Investors through one or more
alternative investment vehicles in order to facilitate such Investor’s participation in a particular
investment. Any such vehicles are expected to contain terms and conditions substantially identical
in all material respects to those of the corresponding Funds and will be managed by SSC or an
affiliate thereof.

Under certain circumstances and as set forth more fully in the applicable Governing Documents,
one or more parallel funds (the “Parallel Funds”) to a Fund may be organized by SSC for legal,
regulatory or tax reasons. SSC anticipates that Parallel Funds will be organized in the future.
Parallel Funds generally invest on a side-by-side basis with the applicable Fund pro rata in all of
the investments of such Fund. Parallel Funds are expected to contain terms and conditions
substantially identical in all material respects to those of the corresponding Funds and will be
managed by SSC or an affiliate thereof.

SSC may also create one or more investment entities to invest alongside a Fund for certain
Investors associated with SSC, including certain employees of SSC and/or its affiliates, executives
of companies in which an employee of SSC has previously invested, been employed or otherwise
been associated, family members, etc. The terms of these entities may be more or less favorable
to the Investors therein than the terms offered to the Limited Partners in the Fund to which the
executive fund relates. Additionally, the capital commitments to these entities (and their level of
participation in Fund investments) may be increased or decreased from time to time to the extent
permitted by the Governing Documents, including in connection with an investor’s or it’s
associated individual’s disassociation from SSC or its affiliates.

Generally, the minimum commitment for an Investor of a Fund can range between $1 – $5 million
for third-party investors. Notwithstanding, it is outlined in each Fund’s Governing Documents
that SSC (or the applicable General Partner) maintains discretion to accept less than the minimum
investment threshold (subject to any limitations imposed by applicable law).