Biglari Capital LLC

Item 5: Fees and Compensation

Summaries herein are qualified in their entirety by the Funds’ governing documents.

Incentive Reallocation. For each year, the Adviser is entitled to receive a
performance allocation of 25% of the net profits allocated to each investor in the
Funds, in excess of a hurdle rate. The performance allocation is subject to a high-
water mark. The Adviser does not charge a management fee.

Expenses. Expenses incurred by the Funds are limited to legal, audit, accounting,
reporting and all transaction fees and commissions incurred from trading, including
interest charges and margin borrowing, custodial and bank service fees. All other
Fund expenses, including organizational expenses of the Fund, are borne by the
Adviser. Additional information about brokerage and other transaction costs can be
found in Item 12 below.

Item 7: Types of Clients

The Adviser provides investment advisory services to the Funds, which are private
investment partnerships relying on exemptions pursuant to Sections 3(c)(1) and
3(c)(7) under the Investment Company Act of 1940, as amended, with a diverse
underlying investor base. The investors in the Funds are all “accredited investors”
as defined under Regulation D of the Securities Act of 1933, as amended. While the
Funds typically require a minimum investment amount, such amount has been and,
in the future, could be reduced with the prior agreement of the Adviser, subject to
applicable legal requirements.