Granite Group Advisors LLC

Item 5.         Fees and Compensation
Fees for Investment Management Services for Granite Group’s Private Clients
Our standard annual asset-based advisory fees are set forth in the table below and are applicable to both
discretionary and non-discretionary advisory services.

                                                             Fees on all
   Assets Under Management:                                  assets.
   Less than $10 million
                                                             Up to 1%
   Greater than $10 million and up to $20 million            0.60%
   Greater than $20 million and up to $50 million            0.50%
   Greater than $50 million and up to $100 million           0.40%
   Greater than $100 million                                 0.30%

* Note that we may charge more than 1% for clients that request personalized services that require additional
and extraordinary services such as specialized investment advice regarding particular or private securities
that would require a significant amount of additional time of up to 1.25%. All fees will be disclosed to the
client(s) prior to engagement.

The private client schedule above is not a graduated fee schedule. Once a client’s total assets under
management with Granite Group exceed a dollar value threshold, the fee assessed will be calculated based
on total assets with Granite Group and the lowest applicable fee is applied to each account. In addition,
clients may request access to certain administrative and performance reporting tools which, among other
things, aggregate a client’s holdings and manager allocations in a single place. Clients will be charged
additional fees of three basis points multiplied by the market value of their assets under management to access
such services.
Granite Group’s fees for private clients do not include brokerage commissions, transaction fees, exchange
fees, SEC fees and other related trading costs and expenses which are charged directly to the client account.
Clients may also incur certain charges imposed by custodians, brokers and other financial service firms such
as custodial fees, odd-lot differentials, transfer taxes, margin interest, deferred sales charges on mutual funds,
wire transfer and electronic fund fees, advisory and administrative fees charged by mutual funds and ETFS,
and other fees and taxes on brokerage accounts and securities transactions. Granite Group Advisors does not
receive any of the potential fees described in this paragraph; such fees are charged by other service providers.
Clients will also bear the fees of third-party portfolio managers and other fees assessed by mutual funds,
exchange traded funds and private investment funds (which typically include investment management fees
and/or other operational expenses). Annual fees for traditional equity managers managing client assets in a
separate account may vary, but typically range from between 0.40% to 0.95%. Annual fees for traditional
fixed income managers managing client assets in a separate account may vary, but typically range from 0.15%
to 0.25%. Fees of non-traditional investment managers (e.g., hedge fund and other private fund managers)

typically consist of an asset-based management fee ranging from 0.5%-2.5% per year of assets under
management, and a performance-based fee or allocation ranging from 10%-25% of net profits achieved by
the private fund or separate account during a particular year, typically on a cumulative high-water mark basis,
but vary from fund to fund. In some cases, a private investment fund may also bear its allocable share of the
expenses of its investment manager or sponsor. The foregoing fees charged by the manager are incurred by
the client and in addition to the fees charged by Granite Group Advisors. We do not receive referral fees from
any independent manager, private investment fund, mutual fund or ETF issuer or distributor. We actively
advocate on behalf of the client for the most favorable institutional rate fees available in the marketplace.
Our annual investment management fee is prorated and paid quarterly, in advance. The quarterly fee will be
based upon the market value of the assets on the last business day of the previous calendar quarter. Granite
Group, in the rare event and in its discretion, may charge an administrative setup fee for its research,
allocation and investment guideline services, if a client terminates our Investment Management Agreement
prior to the one-year anniversary. Any such administrative setup fee may be either the balance of the annual
management fee, an hourly rate or a fee based on the client assets, depending on the nature of the client
relationship and extent of our firm’s services. In addition, if provided for in a client’s Investment
Management Agreement, Granite Group charges a performance-based fee of 5% of profits on private equity
investments. This fee will be assessed when the investment is liquidated or transferred and will be charged
pursuant to our Investment Management Agreement with the applicable client.
Our Investment Management Agreement and the custodial/clearing agreement the client enters into with the
custodian may authorize the custodian to debit the account for the amount of our investment advisory fee
and to directly remit such fee to us. Although Granite Group carefully reviews client billing, and clients
receive invoices for their fees, clients should always verify that the advisory fee deducted by the custodian
and shown on their statement from their account is correct. In the limited event that we bill the client directly,
payment is due upon receipt of our invoice.

Investment management fees may be separately negotiated with specific clients, subject to many factors. We
may waive our account minimums and/or investment management fees, in our sole discretion and charge
different investment management fees based upon certain criteria. For example, we may consider anticipated
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Item 7.         Types of Clients
Granite Group’s services are generally available to individuals, including high net worth individuals, trusts,
estates and charitable organizations, business entities and pension and retirement plans. Granite Group
generally requires an account minimum of $5,000,000 for both discretionary and non-discretionary private
client investment management services. Granite Group generally requires a $3,000,000 minimum for
retirement plan clients. Granite Group may waive minimum requirements.