Malatai Capital LLC

Item 5 Fees and Compensation

ADVISORY FEES

The following information describes how Malatai Capital is compensated for the advisory services
we provide to our clients. The specific manner in which fees are charged and the compensation
we receive may differ between clients depending upon the individual Investment Management
Agreement or Financial Planning Agreement with each client. Malatai Capital reserves the right
to negotiate our compensation with clients depending on the scope of our advisory relationship,
and we may charge higher or lower fees than are available from other firms for comparable
services. Malatai Capital has the general discretion to waive all or a portion of our fees, but
typically only exercises this discretion for our employees.

Investment Management Fees. In consideration for providing investment management services,
Malatai receives compensation based on the performance achieved for the client’s account.

Malatai Capital LLC                                                                               5
Form ADV Part 2A

Pursuant to the terms of the Investment Management Agreement with the qualified client,
Malatai Capital charges a quarterly performance-based fee equal to 25% of the client’s quarterly
net realized and unrealized profits, as valued by the qualified custodian, Interactive Brokers, LLC
(“Interactive Brokers”). The performance-based fee is subject to a loss carry-forward provision,
also known as a “high water mark.”

As such, performance-based compensation will only be deducted when the client’s account value
at the end of the quarter, measured and calculated on a quarterly basis and net of any losses
exceeds the highest historic fiscal (December 31) year-end account value.

Once the high-water mark is achieved, the performance-based allocation is applied to all net
quarterly profits in the client’s account within the look-back period. Should the client’s profits
not exceed the applicable criteria or drop in value, then Malatai Capital will not receive a
performance-based fee.

As such, performance-based compensation will only be deducted when the client’s account
performance at the end of the quarter, measured and calculated on a quarterly basis, exceeds
the high-water mark. In other words, the client’s account must recover its past losses and return
to its high-water mark before any additional performance fee is earned.

Performance-based fees are available to “qualified clients” who meet all requirements of Section
205-3 of the Investment Advisers Act of 1940, including either 1) demonstrating a net worth of
at least $2,200,000 or 2) having at least $1,100,000 under management immediately after
entering into an Investment Management Agreement with Malatai Capital.

Clients may authorize the deduction of our fees from their managed accounts by the qualified
custodian, Interactive Brokers, and choose the method by which our fees will be calculated.
Clients may elect to have our advisory fees calculated by our firm or Interactive Brokers and
deducted from their managed account(s). Malatai Capital does not withdraw fees directly from
the client’s accounts. The client makes this election when the client first opens his or her account
with Interactive Brokers or at any time. The client may cancel the existing arrangement at any
time.

Any advisory fees deducted from the client’s account will be reflected on the client’s periodic
activity statements, as well as the client’s account management window when he/she logs into
his/her account. The periodic activity statement also specifies the calculation method. Moreover,
our firm will instruct Interactive Brokers to send each client an invoice each time a fee is charged.
This invoice reflects the fee charged, the fee calculation methodology, and the period covered by
the fee. Please refer to Item 15 of this Brochure for more information.

Additional Fees and Expenses. Clients will incur transaction charges and/or brokerage fees when
purchasing or selling securities. These charges and fees are typically imposed by the broker-
dealer or qualified custodian through which account transactions are executed. For more

Malatai Capital LLC                                                                               6
Form ADV Part 2A

information on our brokerage practices, please refer to the “Brokerage Practices” section of this
Brochure.

The fees that clients pay to our firm for investment advisory services are separate and distinct
from the fees and expenses charged by mutual funds and/or exchange traded funds (described
in each fund’s prospectus) to their shareholders. The fees charged directly by mutual funds and
exchange traded funds will typically include a management fee and other fund expenses.

To fully understand the total costs associated with their investment portfolio, clients should
review all the fees charged by mutual funds, exchange traded funds, our firm and others.

Termination. The Investment Management Agreement or Financial Planning Agreement with our
clients may be terminated by either party at any time upon thirty (30) days written notice. Upon
termination of our status as the client’s investment adviser, Malatai Capital will not take any
further action with respect to the client’s account(s) unless specifically notified by the client in
writing. Clients will be responsible for instructing their custodian and monitoring their account
for the final disposition of assets.

Refunds. Upon receipt of a proper notice of termination from the client, as described in the
Investment Management Agreement or Financial Planning Agreement, any earned unpaid fees
will be billed on a pro-rata basis based on the amount of work performed by us up to the point
of termination.

Brokerage Commissions. Malatai Capital does not receive brokerage commissions from the sale
of securities or other investment products. Our compensation for recommending securities and
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TYPES OF CLIENTS

Malatai Capital offers investment advisory services to a diversified group of clients including
individuals, high net worth individuals, trusts, estates, pension and profit-sharing plans (other
than plan participants), charitable/non-profit organizations, and corporations and other
business entities. Client relationships may vary in scope and length of service.

ACCOUNT REQUIREMENTS

Malatai Capital generally requires a minimum account balance of $500,000.00 for our investment
management services. However, Malatai Capital in its sole discretion may waive or lower our
minimum account balance requirement based on various criteria (i.e., anticipated future
additional assets to be managed, related accounts, account composition, negotiations with the
client, etc.).