Western Standard LLC

ITEM 5 - FEES AND COMPENSATION
For each of the Partnerships, Western Standard receives a “Management Fee” equal to 0.375%
(approximately 1.50% on an annual basis) of each Limited Partner’s total capital account balance as of
the first day of each quarter. The Management Fee is normally paid by deduction from a Limited
Partner’s capital account. The Management Fee is prorated for Limited Partner interests held for less
than a full quarter.
For each of the Partnerships, Western Standard also receives a “Performance Allocation” equal to 20%
of the appreciation in each Limited Partner’s capital account during the year. The Performance
Allocation is payable only if, and to the extent that, the net capital appreciation of a Limited Partner’s
capital account for the year exceeds any net capital depreciation in the capital account (reduced pro rata
for any withdrawals) accumulated in prior years (i.e., a “high water mark”).
Western Standard may receive Performance Allocations with regard to unrealized appreciation as well
as realized gains in Limited Partners’ capital accounts. If a Limited Partner withdraws all or a portion of
its capital account on a date other than December 31, a Performance Allocation will be made on the
amount withdrawn for the period from the prior January 1 to the date of withdrawal, and any unearned
Management Fee will be refunded to the Limited Partner.
In its sole discretion for any reason, Western Standard may adjust the Management Fee and
Performance Allocation to be borne by any Limited Partner, including to reflect matters such as the
amount of the Limited Partner’s investment and its commitment to maintain its investment in the
Partnership. Western Standard may also share portions of the Management Fee and Performance
Allocation, at its own expense, with persons who refer investors to the Partnerships.
The Partnerships may bear additional fees and expenses, which are outlined in each Partnership’s
offering memorandum.
For the Sub-Advised Fund, Western Standard receives negotiated fees set forth in the Sub-Management
Agreement.

Termination
A Limited Partner may generally withdraw from the Partnership at the end of any calendar quarter,
subject to the terms, conditions and limitations described in the respective offering memorandum.

ITEM 7 - TYPES OF CLIENTS
Western Standard provides investment advisory services solely to the Partnerships and the Sub-Advised
Fund, which are all private investment funds. Generally, Limited Partners must make a minimum
investment of $250,000 into either of the Partnerships. Western Standard may waive that minimum at
its discretion.