Alphabond LLC

Item 5 – Fees and Compensation

Fee schedule: Performance-Based Fees for Portfolio Management

Qualified clients are assessed a 50% performance fee based on capital appreciation. AlphaBond will not
charge a fee based on assets under management. AlphaBond will only charge a performance based fee. If
the client's portfolio rises in value, the client will pay 50% on that increase in value, but if the portfolio
drops in value, the client will not incur a new performance fee until the portfolio reaches the last highest
value, adjusted for withdrawals and deposits, which is generally known as a “high water mark.”

The high water mark will be the highest value of the client’s account on the last day of any previous year,
after accounting for the client’s deposits or withdrawals for each billing period.

These fees are generally negotiable and the final fee schedule will be memorialized in the client’s advisory
agreement. This service may be canceled immediately upon written notice. Clients must pay the prorated
performance-based fees for the billing period in which they terminate the Investment Advisory Contract
up to and including the day of termination.

Calculation and Deduction of Advisory Fees

Performance-based portfolio management fees are invoiced and withdrawn from client accounts on a
monthly basis in arrears (i.e. the month following the period for which service was provided). AlphaBond
does not require pre-payment of fees as it does not collect fees in advance.

A client may pay more or less fees than similar clients depending on the particular circumstances of the
client, size, additional or differing levels of servicing or as otherwise agreed with specific clients. Clients
that negotiate fees may end up paying a higher fee than that set forth above as a result of fluctuations in
the client’s account performance.

Clients may terminate their contracts without penalty, for full refund, within 5 business days of signing
the advisory contract. Advisory fees are withdrawn directly from the client’s accounts with client written
authorization.

Additional Fee Information

Adviser’s fees are exclusive of brokerage commissions, transaction fees, and other related costs and
expenses which shall be incurred directly by the client. Clients may incur certain charges imposed by
custodians, brokers, and other third parties such as fees charged by fund managers, custodial fees, deferred
sales charges, transfer taxes, wire transfer and electronic funds fees, and other fees and taxes on brokerage

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account and securities transactions. Those fees are separate and distinct from the fees and expenses
charged by AlphaBond. Please see Item 12 of this brochure regarding broker-dealer/custodian.

It is the Adviser’s policy not to accept “kick-backs” or retrocession fees from any third non-affiliated party
providing services to the Adviser’s clients.

Neither AlphaBond nor its supervised persons accept any compensation for the sale of investment
products, including asset-based sales charges or service fees from the sale of mutual funds.

Item 7 - Types of Clients

AlphaBond provides portfolio management services to pooled investment vehicles. There is no account
minimum for any of AlphaBond’s services.