EBH Capital Management LLC

5. Fees and Compensation
Management Fees

Separately Managed Account Fees
For SMA clients, QuantStreet is generally compensated through an annual management fee
based on a percentage of the assets under management in the client’s account. QuantStreet
typically offers management fees that range from 0.30% to 0.80% of AUM, although actual fees
may be higher or lower depending on factors such as the services provided, the complexity of the
relationship, and the size of the account.

QuantStreet’s management fees may be negotiated based on the size of an account, the nature of
the investments involved, the complexity of client objectives, and other client-specific
considerations. Higher fees may apply when a client has atypical objectives or requires a
customized investing solution, and lower fees may be offered for larger accounts or under other
circumstances. QuantStreet may enter into other fee arrangements and adjust its approach to fees
for various other reasons, as agreed upon with each client. QuantStreet occasionally waives fees
for accounts such as those belonging to family members.

QuantStreet typically charges SMA management fees quarterly in advance and typically deducts
its fees directly from client accounts. However, a client may choose to be billed for fees rather
than to have fees directly deducted, and QuantStreet may allow clients to pay in arrears.

QuantStreet’s Investment Management Agreement for SMA clients generally permits either the
client or QuantStreet to terminate the investment advisory relationship at any time. Upon
termination, QuantStreet will typically maintain the client’s existing positions, but may move the
client’s positions into cash upon the client’s request. If a relationship terminates, QuantStreet
refunds any unearned fees previously paid on a prorated basis for the number of calendar days
remaining after the termination date in the period on which fees have been prepaid.

Management fees are calculated and billed by Charles Schwab and Interactive Brokers using
their standard fee calculation methodologies based on custodial account records. QuantStreet
ensures that fee rates are entered correctly and then relies on the custodians’ calculations and
billing systems.

Model Portfolio Fees
QuantStreet offers model portfolio subscriptions to asset managers, financial advisers, and other
sophisticated clients based on a fee scale ranging from $1,200 for a subscriber with no or
negligible assets under management (such as a new advisory firm) to $31,000 for a subscriber
with an overall AUM of $1 billion. Intermediate AUM levels are charged intermediate-level fees,
and fees are negotiated on an individualized basis with subscribers that manage over $1 billion in
AUM.

However, actual subscription fees may be higher or lower than the fees set forth in the fee
schedule depending on the nature of the services provided and other considerations. For
example, if a particular subscriber requests custom analysis in addition to model portfolios, then
QuantStreet may charge a higher fee. On the other hand, if a particular subscriber was an early
adopter of QuantStreet’s models, or is just launching their business, then QuantStreet may charge

a lower fee. QuantStreet’s fees are negotiable, and QuantStreet may choose to increase these fees
over time, as agreed upon with each client.

QuantStreet typically bills model portfolio subscribers quarterly in advance, but may enter into
other billing arrangements on a case-by-case basis. Subscribers receive an invoice near the start
of each quarter. If a subscription relationship terminates, QuantStreet refunds any unearned fees
previously paid on a prorated basis for the number of calendar days remaining after the
termination date in the period on which fees have been prepaid.

Other Services
QuantStreet may provide consulting services and paid speaking engagements. The fees and
billing arrangements for these services will be determined and negotiated on a case-by-case basis
and may include flat fees or hourly fees, depending on each potential client’s needs and goals
and the details of the engagement. While QuantStreet offers these services, as of the date of this
brochure, we are not providing either of these services to any clients.

In addition, if we have any non-owner affiliated advisers in the future, they may be required to
pay QuantStreet a minimum annual fee and/or percentage of advisory revenue, in each case
pursuant to a written agreement with QuantStreet. The specific terms of any such arrangements
will be negotiated on a case-by-case basis. As previously noted, we do not currently have any
non-owner affiliated advisers.

Brokerage Fees, Security Fees, and Other Fees

Brokerage firms typically charge transaction fees on purchases or sales of securities, and certain
account custodians may charge custodial fees. Also, the ETFs, ETNs, mutual funds, and other
securities in which QuantStreet invests may charge fees, which are in addition to the fees that
clients pay to QuantStreet for its services. Additional information about transaction expenses is
available in the section of this firm brochure and brochure supplement entitled “Brokerage
Practices.”

Compensation for Sale of Securities
QuantStreet does not receive any commissions, compensation, or other financial incentive for
selecting one particular type of security over another. QuantStreet does not have any financial
relationships with the issuers of the securities that it selects for client accounts.

7. Types of Clients
Description

QuantStreet Capital offers investment management, financial planning, and consulting services
to individuals, trusts, retirement plans, businesses, and charitable organizations. QuantStreet
offers model portfolio subscriptions and consulting to clients including other financial advisory

firms and asset managers. Several QuantStreet clients are, or are controlled or influenced by,
QuantStreet personnel or members of their families.

Minimum Account Size

For its SMA clients, QuantStreet requires a minimum account size of $300,000. QuantStreet may
increase or decrease this minimum in the future, and it makes exceptions for individual clients
who have smaller accounts.