Nellore Capital Management LLC

Item 5. Fees and Compensation

   A. For SMA accounts, each account is typically subject to a management fee equal to 1.0% of
      the sum of the Client’s total investment value.

      With respect to the Fund, the Firm charges each investor a quarterly management fee equal
      to one-quarter of 1.0% (1.0% per annum) of the sum of an investor’s total investment value
      in the Fund.

      Nellore Capital may, in its discretion, waive, reduce, or rebate all or part of the management
      fee payable. Nellore Capital also charges an incentive allocation, or performance-based
      fee, for SMA accounts and the Fund. The performance-based fee is explained in detail in the
      next section.

   B. For both SMA accounts and the Fund, the Firm deducts fees directly from investors’ assets.
      Fees are deducted on a quarterly basis in advance. Please refer to Item 15 for more
      information about this practice.

   C. For both SMA accounts and the Fund, Clients may pay for other expenses and fees in
      connection with Nellore Capital’s advisory services. Clients may incur certain charges
      imposed by third parties in connection with investments made through the account,
      including, but not limited to, annual maintenance, brokerage, clearance, custody, and
      administrative fees. Other expenses Clients may bear, particularly investors in the Fund,
      include legal, compliance, administrator, audit, accounting expenses (including third party
      accounting services), and any other services or service provider expenses deemed necessary
      by Nellore Capital on behalf of its Clients.

      Clients should note that they will incur brokerage and other transaction costs. For more
      information on brokerage costs, please refer to Item 12 of this brochure.

   D. SMA accounts and investors in the Fund are charged management fees in advance. The
      management fee with respect to the capital account investor maintains in the Fund will be
      charged to the investor initially as of the date the investor makes the capital contribution to
      the Fund and in advance quarterly thereafter.

      For both SMA accounts, management fees will be refunded for the portion of the pre-paid
      fee if the advisory contract is terminated before the end of the relevant billing period.
      Similarly, for the Fund management fee will be prorated for any period that is less than a
      full calendar quarter, with any necessary amounts rebated as appropriate.

   E. Nellore Capital does not accept compensation for the sale of securities or other investment
      products, including asset-based sales charges or service fees from the sale of mutual funds.

Item 7. Types of Clients

Nellore Capital may provide investment advice to high net worth individuals, pooled investment
vehicles, trusts, investment companies, endowments, or pension plans.

To be an SMA Client or an investor in the Fund, one must meet accredited investor status (defined
below) and qualified client status (defined above) (except in Nellore Capital’s discretion in limited
circumstances).

Investors meet “accredited” status generally if they are:
   • Persons with an annual income exceeding $200,000, or $300,000 for joint income, for the
       last two years with expectation of earning the same or higher income in the current year;
   • Persons with net worth exceeding $1 million, either individually or jointly with his spouse;
   • General partners, executive officers, directors, or a related combination thereof for
       the issuer of unregistered securities;
   • Private business development companies or organizations with assets exceeding $5
       million;
   • Entities that consist of equity owners who are accredited investors;
   • Registered brokers and investment advisors; or

   •   Persons who can demonstrate sufficient education or job experience showing their
       professional knowledge to evaluate the merits and risks of a prospective investment.

To be an investor in Nellore Capital’s Fund, the minimum subscription is $1,000,000 for initial
investments and $100,000 for additional investments. In its discretion, Nellore Capital may from
time to time waive, reduce, or increase such minimum initial and additional investment
requirements.