Birch Run Capital Advisors LP

FEES AND COMPENSATION

A. Advisory Fees and Compensation

This brochure will only be delivered to qualified purchasers as defined in section 2(a)(51)(A) of the
Investment Company Act of 1940 and therefore the fee schedule is not included. The fees applicable
to each of the clients are set forth in detail in each Private Fund partnership agreement or in the
investment management agreement with the Adviser, as applicable.

B. Payment of Fees

Management fees for investment advisory services provided to Birch Run Capital and Walnut are
deducted quarterly in advance from the capital accounts of the limited partners of each Private Fund.
Performance compensation for Birch Run Capital, Walnut and Torch is deducted from the capital
accounts of the limited partners on an annual basis.

The Adviser bills the Managed Accounts for performance compensation, which is paid only when there
is a realization event on the investments that generates cash for the account (i.e., sale or redemption,
maturity of the security, receipt of interest coupons or dividends, etc.).

C. Other Fees and Expenses

Each client bears its own expenses, including, without limitation, brokerage commissions and other
transaction costs, expenses related to proxies, underwriting and private placements, investment-related
expenses (including research), withholding and transfer taxes, accounting, auditing, legal fees and
costs, professional fees and expenses, governmental and regulatory fees and expenses, custodial fees,
bank service fees, and corporate filing fees and expenses. See Item 12 for additional information on
the Adviser’s brokerage practices.

D. Fees in Advance

As noted above, management fees are deducted quarterly in advance. Accordingly, if an underlying
investor in a Private Fund elected to redeem or withdraw from the Private Fund during a quarter in
which a fee is charged in advance, generally, such circumstance will result in the refund of a pro rata
portion of the fees to the investor for the remaining portion of the quarterly period.

E. Additional Compensation

Daniel Beltzman serves on the board of directors of Regis Corporation and receives compensation in
the form of both cash and restricted stock units in connection with his role on the board. We discuss

any potential conflicts of interest that may arise due to his role on the board and the compensation he
receives in Item 11 of this brochure.

Neither the Adviser nor any of its supervised persons accepts compensation for the sale of securities or
other investment portfolios.

TYPES OF CLIENTS

As set forth above, the Adviser provides portfolio management services to its clients. Investors in the
Private Funds and the Managed Accounts may include high net worth individuals, trusts, retirement
plans, corporations, or other business entities. A minimum investment of $5,000,000 is generally
required to invest in any of the Private Funds. However, each of the Private Funds’ General Partners
have discretion to waive or reduce the minimum investment for one or more investors (or prospective
investors) as long as they qualify to invest based on all other suitability and regulatory requirements.