Sophron Capital Management LP

ITEM 5-FEES AND COMPENSATION

Sophron generally charges management fees, a management draw, and performance-based “performance
fees” to its Clients. The amount of these fees and reimbursements is subject to negotiation between Sophron
and its Clients and is set out in the investment advisory agreement between Sophron and the applicable
Client.

The Firm currently serves as a Sub Advisor to a single Client. Sophron receives a fixed monthly
management fee and a separately negotiated monthly management draw, paid in advance, in lieu of a
traditional asset-based fee. The compensation structure also included a one-time initial payment.

As Sophron is paid in advance of services, should advisory agreement’s end prior to completion of prepaid
services, the Firm will reimburse Clients a prorated portion of any prepaid advisory fees based on the
number of days remaining in the billing period following the effective date of termination unless the
applicable governing documents and advisory agreements specify another arrangement.

The following formula will be used to calculate any reimbursement of fees.

Refund = (Prepaid Fee) × (Remaining Days ÷ Total Days in Billing Period)

Other Fees and Expenses. Sophron’s Clients will incur other expenses in connection with Sophron’s
advisory services. Brokerage commissions and other transaction charges, fees and expenses incurred in the
borrowing and lending of securities, interest, margin expense and other financing charges charged to the
Account attributable to the acquisition of securities or other assets by the Account and the acquisition by a
Client of financing to fund the Account are debited from Clients’ Prime Brokerage (“PB”) Accounts.
Sophron does not have custody of Client funds or securities. Clients may pay custodial fees, bank service

fees, transfer taxes, withholding taxes, and other fees and expenses directly related to the purchase, sale or
other disposition of Account assets, and other out-of-pocket charges or expenses paid by any Client on
behalf of or for the benefit of the Firm depending on the applicable agreements and governing documents.

ITEM 7-TYPES OF CLIENTS

Sophron offers investment advisory services to institutional investors, including (but not limited to)
investment funds sponsored and operated by other investment advisory firms. Client Accounts are generally
limited to qualified purchasers, unless such a requirement is waived by Sophron in its sole discretion.