Changing Parameters LLC

Item 5 – Fees and Compensation
Investment Advisory Tactical Allocation Services

A. Types of Fees

CP charges advisory fees based on a percentage of the aggregate assets under
management (see Item 10.C.2). The specific advisory fee percentage charged to each
SMA is separately negotiated; however, total advisory fees paid to CP by a SMA will be
subject to a cap of 2.50% per annum of the SMA’s aggregate assets under management,
including any fees charged to the Fund. Please see Investment Management Services to
Registered Investment Companies, below.

B. Payment Method

Advisory fees are charged in arrears quarterly, based on the assets under management
as of the quarter-end, adjusted for additions and withdrawals during the quarter. CP
generally deducts advisory fees directly from the client’s custodial account, although CP
and some clients may alternatively agree that these fees will be paid by check.

C. Costs and Expenses

In addition to the advisory fee, each SMA is responsible for any fees, expenses or c harges
incurred by or on behalf of the SMA related to (i) custodial services provided for the
SMA; (ii) transactions effected for the SMA, including brokerage and execution charges,
markups and commissions, and (iii) any other service provided for the SMA by any person
other than CP. For additional information regarding brokerage and execution charges, see
Item 12 below.

D. Sales Compensation

CP does not directly receive any compensation for the sale of securities or other
investment products for its SMAs.

Investment Management Services to Registered Investment Companies

A. Types of Fees

CP charges a management fee to the Fund to which it provides advisory services, in an
amount equal to a percentage of the average daily net assets of the fund, to the extent

                                CHANGING PARAMETERS, LLC
                               Form ADV Part 2A – Firm Brochure

allowed by law. Specifically, CP receives from the Fund an annual management fee equal
to 1.50% of the average daily net assets of the Fund, payable monthly.

B. Payment Method

To the extent taken, management fees are deducted m o n t h ly , in arrears, from the
Fund’s custodial account.

C. Costs and Expenses

In addition to the advisory fees described above, the Fund is responsible for other fees,
expenses or charges including, but not limited to, fees incurred in connection with the
maintenance of registration with the SEC, qualification under state securities law,
preparation and printing of registration statements, certain taxes or governmental fees,
fees and expenses of the custodian and the transfer agent, expenses of legal counsel and
independent accountants, expenses of preparing, printing and mailing reports, proxy
statements and prospectuses, and expenses of trustee and shareholder meetings. For
additional information regarding brokerage and execution charges, see Item 12 below.

D. Sales Compensation

CP does not currently receive any sales compensation in respect of the Fund, although it
may do so in the future.

                               CHANGING PARAMETERS, LLC
                              Form ADV Part 2A – Firm Brochure

Item 7 – Types of Clients
Separate Account Clients

CP provides investment advisory tactical allocation services to a variety of SMAs, including
individuals, investment companies, pensions and profit-sharing plans, trusts, estates,
charitable organizations, and corporations or other business entities. CP generally requires
a minimum of $500,000 in assets under management for an SMA, although CP may waive
this minimum at its discretion.

Registered Investment Companies

CP provides investment management services to the Fund.

                                  CHANGING PARAMETERS, LLC
                                 Form ADV Part 2A – Firm Brochure