Duration Asset Management LLC

Item 5. Fees and Compensation

SMA Advisory Fees
In exchange for the advisory services provided to SMA Clients, the Firm is entitled to a
Management Fee and a Performance Fee as set out below.

             Investment Amount          Management Fee Rate        Performance Fee Rate
             Less than $4,999,999             1.00%                        20%
           $5,000,000 to $9,999,999           0.75%                       17.50%
               Over $10,000,000               0.50%                        15%

Management Fee
An asset-based fee (the “SMA Management Fee”) shall be paid and calculated quarterly in
advance, by multiplying the Investment Amount as of the first business day of each quarter by
one-fourth of the Fixed Management Fee Rate.

“Investment Amount” means the Initial Investment Amount plus any additional contributions to
the Account, excluding any contributions made with respect to margin calls, less any withdrawals
from the Initial Investment Amount. At the time of contributions and withdrawals, the SMA
Management Fee will be adjusted pro rata based on the new Investment Amount. For the
avoidance of doubt, the Investment Amount will not include any appreciation or depreciation
thereon.

Performance Fee
A performance-based fee (the “SMA Performance Fee”) shall be paid and calculated in arrears,
by multiplying the net realized and unrealized gains (“Appreciation”) with respect to the Account
during the relevant Performance Fee Period by the Performance Fee Rate, subject to a “high water
mark” such that no SMA Performance Fee will be charged unless all cumulative unrecovered net
losses carried forward from prior Performance Fee Periods have been recouped; provided that
withdrawals made from the Account will reduce any unrecovered losses in the amount withdrawn
from the Account.

“Performance Fee Period” means the period beginning on January 1 and ending on December 31
of each calendar year; provided that (i) if the Account is opened on any date other than January 1,
the period begins on the date that the Account is opened and ends on December 31 of such calendar
year and; (ii) if the Account is terminated on any date other than December 31 of a given year, the
Performance Fee Period shall commence on January 1 of such calendar year and end on the date
that the Account is terminated.

For purposes of calculating Appreciation, the securities in the Account will be valued at the prices
provided by the Custodian for the Account to the extent available. If the Adviser in good faith
believes that any of such prices is incorrect or unavailable, the security will be valued at the price
provided by a third-party pricing service.

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Disclosure Brochure                                     Duration Asset Management, LLC

Fund Advisory Fees
In exchange for the advisory services provided to the Fund, the Firm is entitled to a Management
Fee and a Performance Allocation as set out below. The Fund’s general partner has discretion to
waive or reduce such fees as its sole discretion.

Management Fee
The Firm is entitled to an asset-based fee (the “Fund Management Fee”) calculated at a quarterly
rate of 25 basis points per quarter. The Fund Management Fee is calculated and payable in arrears
and will be prorated or refunded for any partial quarters.

Performance Allocation
The Firm is generally entitled to an annual percentage of the net profits (subject to a high water
mark) of each capital account of a limited partner. Performance allocations are determined
separately with respect to each capital account of a limited partner.

Additional Fees and Expenses
In addition to the advisory fees paid to Duration, clients also incur certain charges imposed by
other third parties, such as broker-dealers, custodians, trust companies, banks and other financial
institutions (collectively “Financial Institutions”). These additional charges include securities
brokerage commissions, mark-ups and mark-downs on fixed-income transactions, other
transaction costs, custodial fees, reporting charges, margin costs, charges imposed directly by a
money market fund in a client’s account, as disclosed in the fund’s prospectus (e.g., fund
management fees and other fund expenses), deferred sales charges, oddlot differentials, transfer
taxes, wire transfer and electronic fund fees, and other fees and taxes on brokerage accounts and
securities transactions. The Firm’s brokerage practices are described at length in Item 12, below.

The Firm may grant waivers of the Management Fees and Performance Fees at its discretion.

Direct Fee Debit
For its SMA Clients, such Clients provide Duration with the authority to directly debit their
accounts for payment of the investment advisory fees. The Financial Institutions that act as the
qualified custodian for client accounts, from which the Firm retains the authority to directly deduct
fees, have agreed to send statements to clients not less than quarterly detailing all account
transactions, including any amounts paid to Duration.

Account Additions and Withdrawals
SMA Clients can make additions to and withdrawals from their account at any time, subject to
Advisors’ right to terminate an account. Additions can be in cash or securities provided that the
Firm reserves the right to liquidate any transferred securities or declines to accept particular
securities into a client’s account. Clients can withdraw account assets on notice to Duration,
subject to the usual and customary securities settlement procedures. However, the Firm designs
its portfolios as long-term investments, and the withdrawal of assets may impair the achievement
of a client’s investment objectives. Duration may consult with its clients about the options and
implications of transferring securities. Clients are advised that when transferred securities are
liquidated, they may be subject to transaction costs and/or tax ramifications.

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Item 7. Types of Clients

Duration offers services to individuals, trusts, estates, charitable organizations, corporations and
business entities, and private funds.

Minimum Account Requirements
Duration does not impose a stated minimum fee or minimum portfolio value for starting and
maintaining an investment management relationship.

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Disclosure Brochure                                      Duration Asset Management, LLC