KB & Partners Management Co LLC

ITEM 5:          Fees and Compensation

We provide investment advisory and management services to the Partnership with full discretion.

As the Partnership’s investment adviser, we are compensated by a management fee that is based upon a
percentage of total portfolio assets in the Partnership’s portfolio at the time of assessment. Our Special
Limited Partner, which services our investors, also receives a management fee calculated under the same
methodology. In our capacity as general partner, we may also receive a performance-based allocation or
incentive allocation that is calculated based on the investment performance of the Partnership’s account
over the period assessed. The Special Limited Partner may also receive a performance-based allocation
or incentive allocation under the same methodology. The Partnership pays these fees after the close of
each quarter. The timing of a Limited Partner withdrawal or redemption request does not affect how these
fees impact the Limited Partner’s capital account.

        Management Fee
Our and the Special Limited Partner’s management fees are both assessed at the close of each fiscal
quarter of the Partnership at a rate of 1/8th of 1% (0.00125) of the Partnership’s total net assets at the time
of assessment and before such fees are accrued. One half of the fee is remitted to us, and one half is
remitted to the Special Limited Partner. The management fees are deducted directly from the Partnership’s
account at its custodian, Charles Schwab & Co., Inc.

        Incentive Allocation
Our and the Special Limited Partner’s incentive allocations, if any, are determined at the end of each fiscal
year of the Partnership. To the extent that the net profits allocated to the capital account of a Limited Partner
exceed the net losses allocated to the Limited Partner’s capital account for the fiscal year, the Partnership
reallocates as of the end of the fiscal year to our and the Special Limited Partner’s capital accounts — or
to any other account(s) or entity(ies) that the Special Limited Partner has instructed us in writing should
receive their allocation — one-half of an amount equal to 25% of such excess. The incentive allocation is
subject to a loss carryforward provision.

        Partnership Expenses
Prior to joining the Partnership, all prospective Limited Partners receive the Governing Documents and are
made aware of the fee structure and the terms of the Partnership by us or the Special Limited Partner.

The Partnership will incur certain fees or expenses, including but not limited to, custodian fees or mutual
fund expenses charged by outside institutions in connection with the services offered by us, in addition to
other costs and expenses incurred in connection with the formation, operation and management of the
Partnership.

We and our affiliated businesses do not provide our employees with special compensation for the sales
practice of promoting particular securities or investment products.

When acting as investment adviser or in other fiduciary capacities, we may hold or invest the Partnership’s
assets in mutual funds, money market funds, annuities or other pooled investments (“Funds”). Such funds
are generally bought and sold at net asset value, resulting in no direct sales charge to the client account.
The fund management companies and their affiliates charge various commissions or management fees for
their services, as described in their prospectuses. These commissions and fees are separate from, and in
addition to, the fees that you pay to us.

In the event that we invest in Funds for which there are more than one share class available on the
brokerage platform, we will take measures to ensure the appropriateness of the Fund share class selection,
based upon the Partnership’s investment objectives and any other appropriate considerations relevant to
such share class selection. In taking such measures, we will seek to place the Partnership’s funds in the
share class with lower fees, absent extenuating factors that make a higher fee share class more appropriate
for the Partnership.

A Limited Partner is entitled to request a withdrawal of funds from its capital account as of the last business
day of each fiscal year upon 60 days’ prior written notice to us or by such other date and by such other
notice and/or terms as we, in our sole discretion, may determine and permit. We may charge a fee equal
to 5 percent of the amount being withdrawn by a Limited Partner who has not been a partner for at least
three years. Such fee may be waived or reduced by us, at our sole discretion.

ITEM 7:          Types of Clients

We provide investment advisory services to the Partnership, subject to our direction and control as the
General Partner and the investment adviser, and not individually to Limited Partners. Limited Partners may
include individuals and high net worth individuals and their families with personal, retirement, trust, charitable,
and other assets, and business and institutional clients, which may include pension funds and profit sharing plans,
foundations, endowments, investment partnerships, and other types of institutional and corporate investors,
among other types of investors that meet the requirements to be accredited investors under U.S. securities
laws.

The Partnership has entered into an agreement with a strategic investor (such investor collectively with its
affiliates, the “Strategic Investor”). The Strategic Investor facilitates the introduction and servicing of certain
prospective Limited Partners to the Firm for a potential interest in the Partnership. In consideration for such
investment, the Strategic Investor has been has been designated a Special Limited Partner and is entitled
to be allocated a portion of certain Limited Partners’ management fees and incentive allocation. The Firm
does not compensate the Special Limited Partner for the introduction of prospective Limited Partners. The
Special Limited Partner has no ownership or interest in the General Partner.

All new investors are admitted into the Partnership at our and the Special Limited Partner’s discretion.
Although we have no formal restrictions on the size of new investments into the partnership, we prefer
incoming investors to have a minimum of mid-seven-figures in investable assets. We may waive this policy
at our and the Special Limited Partner’s discretion. Our new investor policies allow us to continue to provide
our current investors with personalized service and valuable one-on-one meetings with our investment
management team.