Birinyi Associates Inc

Item 5 – Fees and Compensation
Fees

We are generally entitled to one type of compensation from our asset management clients: an asset-based
management fee. While we do not presently receive any incentive compensation from any of our clients, in
the future, we may enter into arrangements pursuant to which we would be entitled to receive incentive
compensation based upon the performance of a separate account. Such incentive compensation would take
the form of an incentive fee. The management fee is generally in the range of 1% to 2% per year of the net
assets of each separate account. The management fees we receive are determined and payable either
monthly, quarterly or semi-annually in advance.

Should we enter into an arrangement pursuant to which we receive an incentive fee, such incentive fee will
be paid at such time(s) as agreed with the relevant client(s) and will be calculated as a percentage of the net
increase in the value of the assets in the relevant separate account(s) during the relevant period. Any such
fee may, but need not be, subject to a “loss carryforward” provision (also referred to as a “high-water mark”)
that generally requires that any losses suffered by an account (adjusted to reflect withdrawals) be offset by
subsequent net gains before the firm is entitled to any incentive fee from that account. Incentive fees, if
any such arrangements are entered into, will be charged at a rate negotiated with the applicable client
accounts.

The details of how the fees are calculated for each separate account are included in the investment advisory
agreement between Birinyi and such separate account client.

The fees described above are our typical fee rates. However, under certain circumstances we may agree to
different fee terms than those described above for particular separate accounts.

Our fees from separate accounts are typically paid directly from the assets of the separate accounts. In
certain instances, separate accounts are billed directly and the fees are not debited from the account. As
noted above, management fees payable by the separate accounts are typically payable in advance. Separate
accounts will typically be subject to a pro rated management fee with respect to partial periods based upon
the portion of the period for which the firm provided investment advisory services to the client.

A subscription to our newsletter costs $22.99 per month or $225 per year. Subscribers to our Mini-
Institutional service pay either $150 per month, $750 for six months or $1,500 for one year. The
institutional service is offered at various prices depending on the level of interaction. We may at times
offer discounts to the subscription services that are not made available to all subscribers.

Expenses

Separate accounts will generally be responsible for all custodial fees, brokerage commissions, clearing fees,
interest and withholding or transfer taxes incurred in connection with trading for the separate account, and
our fees as described above.

As we consider appropriate, we may invest a portion of a client’s assets in one or more money market funds,
mutual funds or exchange-traded funds. When any such investments are made, the client will be paying,

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in addition to the compensation payable to us, the client’s proportionate share of any management fees
charged by the manager of such money market fund or mutual fund.

The brokerage and other transaction costs that will be borne by the separate accounts are described in more
detail in the section entitled “Brokerage Practices” in this brochure.

Item 7 – Types of Clients
We generally provide investment advice to the holders of the separate accounts. Each separate account is
a contractual arrangement between Birinyi and each of its clients whereby we undertake to monitor a
client’s portfolio and direct a custodian selected by the client to purchase or sell securities on behalf of the
client in particular amounts. In a separate account, the client’s funds and/or securities remain in the
possession and/or under the control of the custodian, and our authority to instruct the custodian to buy and
sell is (pursuant to our contract with the client) terminable at will by the client.

The owners of the separate accounts could include banks or thrift institutions; investment companies;
pension and profit sharing plans; trusts, estates and charitable organizations; funds of hedge funds (whether

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organized as partnerships, corporations or other entity types), high net worth individuals, individuals and
family offices.

The firm generally requires a prospective client interested in opening and maintaining a separate account
to grant the firm discretionary investment advisory authority over at least $2,000,000 of the client’s assets,
although exceptions are made in certain circumstances.

We provide impersonalized investment advice through the newsletter, the Mini-Institutional service and
the institutional research service to subscribers whose only qualifications are their ability to pay the
subscription costs.