SQN Capital Management LLC

Item 5 – Fees and Compensation

All fees are subject to negotiation. Among other things, certain factors we consider are the size of the
account, the type of assets managed and the nature of the services provided. Fees and
compensation may be comprised of investment advisory fees, management fees, and performance
fees. The manner in which fees are charged by SQN are set forth in each of the Fund’s or separate
accounts respective Investment Management Agreement. SQN’s fees are payable in advance for
fund management for US-based funds and in arrears for non-US funds and institutional separate
accounts, each generally on a monthly basis. Performance and/or incentive fee payment schedules
vary in accordance with the respective Investment Management Agreements.

For Fund Management, SQN charges a fee for investment advice and portfolio management.
Generally, fees on an annual basis range from 0.625% to 3.00% per year depending on various
factors.

                        Form ADV Part 2A: SQN Capital Management, LLC

Management fees compensate for management activities, including:

•   acquiring portfolios;
•   originating and servicing leases and other assets;
•   collecting receivables;
•   monitoring compliance with the terms of the investments;
•   arranging for necessary maintenance and repair of assets;
•   monitoring tax compliance;
•   remarketing assets;
•   preparing financial data from operations; and
•   regulatory reporting and filing.

For Separate Institutional Accounts, all investment management fees charged by SQN are
negotiated and specified in a client’s Investment Management Agreement. These fees are
generally charged directly to the client on a monthly basis. Fees are payable quarterly or monthly
in arrears upon receipt of an invoice based on the average principal amount of the assets through
the billing cycle. Management fees are prorated for each capital contribution and withdrawal
made during the applicable billing period (with the exception of contributions and withdrawals
made in the ordinary course of business, such as fees and expenses). Accounts initiated or
terminated during a billing period will be charged a prorated fee.

The fees charged for separately managed accounts are subject to negotiation and are based on the
average principal amount of the assets and on the size of the account and strategy selected.

Currently, SQN does not have any separate accounts under management.

Fixed Income Services and Fees:

Annual fees are based on fee schedules, the components of, which are generally within the range
of 25 basis points to 100 basis points for institutional clients. SQN may seek a minimum dollar
fee or a minimum mandate size.

Incentive-Based Fees:

For certain types of clients and mandates, fees may be calculated based on the income and capital
appreciation of the account. Such an incentive-based fee will not be calculated on less than a
quarterly basis. Fees are generally a negotiated combination of fixed-income services fees and
incentive fees and are billed periodically in arrears. Accounts of this type are accepted only if all
conditions of Rule 205-3 of the Investment Advisors Act of 1940 are met. Incentive-based fees
will only be offered to clients who have a least $1,000,000 of assets under management or who
have a minimum net worth of $2,000,000.

                        Form ADV Part 2A: SQN Capital Management, LLC

Consulting Services Fees:

Custom strategic plans and similar work product are produced on a negotiated contracted fee basis
and are typically quoted on a flat-fee per project basis. Fees for these projects are negotiated on an
individual basis and payable either in installments or upon completion of the project.

Unrelated to the fees paid to SQN with respect to the investment advisory services to clients that
are funds, the Funds may pay other fees to SQN or other third parties for services rendered in
connection with each Fund’s respective offering and operation, without limitation, attorney’s fees,
organizational and offering expenses allowances, lease and/or asset finance structuring fees,
distribution expenses, reimbursement of operating and acquisition expenses, servicing fees, asset
management fees, remarketing fees, appraisal fees, disposition fees, accounting and auditing fees,
recording fees and registration fees. A more detailed description of such fees may be found in
each Fund’s respective private offering memorandum or prospectus.

Item 7 – Types of Clients

SQN provides investment advisory and management services to alternative investment funds as
well as to separate managed accounts for institutions.

Although SQN reserves the right to waive a minimum investment amount based on certain
criteria, for fund management, SQN requires a minimum initial investment of $1,000,000 for fund
management services.

For separate account management, SQN also provides fixed income investment services for
institutional third party clients. Our client base has included various insurance companies, either
directly or as a sub-advisor to other investment advisors. Regardless of client type, SQN may seek
a minimum dollar fee or a minimum mandate size.

SQN’s Flat Fee-based Consulting clients tend to be smaller entities with between $2.5-25 million
in total assets.