Endowment Research Group LLC

Item 5 – Fees and Compensation

A.      Fee Schedule
The fees and compensation payable to ERG are negotiable and vary among its Clients.
However, the range of compensation is generally as follows:
        1.     Management Fee
ERG typically receives a quarterly asset-based management fee, generally between 0% and
1.0% (the “Management Fee”).
        2.     Incentive Fee
ERG generally receives an incentive fee equal to a percentage of the net profits allocated to
each Client for the year, in excess of an 8% annualized rate of return (the “Hurdle Rate” and
the fee, the “Incentive Fee”). The Incentive Fee is also subject to a “high water mark”
procedure such that the Incentive Fee is taken only to the extent net profits allocated to that
Client exceeds any cumulative losses that were allocated to that Client for earlier periods and
that have not been recovered. This Incentive Fee is generally between 3% and 15% and is
typically made at the end of each calendar year.
The Incentive Fee will only be charged to accounts of those Investors who are “qualified
clients” as defined in Rule 205-3 of the Investment Advisers Act of 1940, as amended (the
“Advisers Act”).
        3.     Fee Comparison
The expenses charged to Clients, including the Management Fee and Incentive Fee, may
constitute a higher percentage of average net assets than would be found with other
investment advisers.
B.      Payment of Fees
Management Fees, Incentive Fees, and third-party fees (discussed below) are paid by Clients
directly to ERG. Management Fees, which are paid in advance, are charged and paid at the
beginning of the quarter. Incentive Fees are charged as of the last day of the calendar year
and as of any date on which a Client makes a withdrawal or receives a distribution from such
Separately Managed Account.

                                                                             Part 2A of ADV:
                                                      Endowment Research Group, LLC Brochure

C.      Third-Party Fees
Each Client shall pay such costs and expenses as ERG shall reasonably determine to be
necessary, appropriate, advisable or convenient to carry on its business and realize its
objective, including but not limited to: (i) management fees and performance fees for private
funds, mutual funds (including money market funds) and exchange traded funds charged by
their investment advisers, mutual fund expenses of such costs associated with purchases,
exchanges and withdrawals; (ii) all general investment expenses (i.e., expenses which ERG
reasonably determines to be directly related to the investment of the Client’s assets); (iii) all
operating, administrative, legal, accounting, auditing, record-keeping, tax form preparation,
brokerage commissions, clearing fees, borrowing charges, interest on margin and other
borrowings, withholding and transfer taxes, compliance and consulting costs and expenses;
(iv) fees, costs and expenses of third-party service providers that provide such services; (v)
such other expenses as may be set forth in each Clients IMA; and, (vi) any extraordinary
expenses, among other expenses.
ERG’s fees are exclusive of brokerage commissions, transaction fees, and other related costs
and expenses which shall be incurred by the Clients. Such charges, fees and commissions are
exclusive of and in addition to ERG’s Management Fee and Incentive Fee, and ERG shall not
receive any portion of these commissions, fees, and costs.
Please see Item 12 of this Brochure regarding brokerage.
D.      Prepayment of Fees
ERG will pro-rate the Management Fee for Separately Managed Accounts held for less than a
full quarter. Prepaid but unearned fees are refunded to the Clients and/or Investors, as the
case may be.
E.      Outside Compensation for the Sale of Securities
Neither ERG nor its supervised persons accepts compensation for the sale of securities or
other investment products outside of its association with ERG.
The foregoing discussion in Items 5 represents ERG’s basic compensation
arrangements. The Management Fees and Incentive Fees described above are
structured to comply with Rule 205-3 under the Advisers Act and applicable state laws.
Fees and other compensation are negotiable in certain circumstances and
arrangements with any particular Investor may vary. Although ERG believes its fees
are competitive, lower fees for comparable services may be available from other
investment advisers.

Item 7 – Types of Clients

As stated in Item 4, ERG provides investment advisory and portfolio management services to
Separately Managed accounts, including individuals, high net worth individuals and family
offices, other investment advisers and independent wealth advisors, corporate accounts,
trusts, and charitable organizations.
ERG may in the future provide the same or similar services to other Separately Managed
Accounts, Sub-Advisory Accounts, Funds, or provide services to additional types of Clients.
Each Investor generally must be an “accredited investor” (as defined in Regulation D under
the Securities Act of 1933, as amended), and must meet other criteria as specified in the IMA.
ERG may waive any admission standard within its sole discretion.
Separately Managed Accounts. Generally, similar terms will apply to Separately Managed
Accounts, though such Separately Managed Accounts may have terms that differ or are more
favorable than those for Funds established in the future.