4D Advisors LLC

Item 5. Fees and Compensation

4D Advisors generally charges Fund investors an annual management fee of 1.5%. The management
fee is payable quarterly in advance on the first day of each quarter. All management fees are deducted
automatically by the Fund Administrator.

We also generally receive an annual performance fee of 20% of any net capital appreciation, subject
to a high water mark. The performance fee is paid at the end of each fiscal year or upon an Investor’s
distribution from the Fund.

Certain investors may invest on terms that differ from the terms generally applicable to other
investors. Such differing terms may be more favorable than the terms provided to other investors and
may include, but are not limited to: (i) the ability to withdraw or redeem capital, (ii) access to
information, and (iii) special rights concerning an investment. Further, we, in our sole discretion, may
reduce, waive, or otherwise modify the management fees or performance fees. Modification of these
terms may, in some cases, be based upon, among other things, the amount of an investor’s

investment, an agreement by an investor to maintain such investment for a specified period of time,
or other commitments by an investor. Additionally, our officers and employees may invest on terms
that are more advantageous than those of our investors.

The Fund will generally be responsible for its organizational, offering and certain of operational
expenses, including legal, accounting, regulatory, risk management, order management, portfolio
accounting and administrative expenses. In addition, the Fund may incur certain charges imposed by
custodians, brokers, and other third parties, including custodial fees, sales commissions, wire transfer
and electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.

Our management fees are generally exclusive of such brokerage commissions, custody fees, fund or
investment vehicle expenses, transaction fees, and other related costs and expenses. We typically do
not receive any portion of these commissions, fees, and costs and will not receive a brokerage
commission or any other compensation attributable to the sale of securities or other investment
products. For a detailed discussion of our brokerage practices, please see Item 12, “Brokerage
Practices.”

For a more complete discussion of the Fund’s expenses, investors should refer to the Offering
Documents.

Item 7. Types of Clients

We provide investment advisory services to the Fund which is a privately offered pooled investment
vehicle. Investment in the Fund is generally offered to high-net worth individuals, trusts and
institutional investors.

Investors must make an initial investment of at least $500,000. However, we may accept amounts less
than the minimum in certain circumstances. Investors must generally be “accredited investors” as
defined in Rule 501 of Regulation D under the Securities Act of 1933, as amended and “qualified
clients” as defined in Rule 205-3 of the Investment Advisors Act of 1940, as amended.