OBRA Fund Management LLC

Item 5. Fees and Compensation
In respect of its investment advisory services for the Funds, OFM receives as
compensation from each Fund a management fee equal to an annualized rate of the
average daily net assets of such Fund. In general, management fees charged by OFM to
the Funds range up to 0.63% per annum of the average daily net assets of each Fund.
The management fee shall generally be calculated as of the last business day of each
month based upon the average daily net assets of such Fund. Fees are paid out of the
assets of each Fund typically on a monthly basis (as described in the Fund’s prospectus
and advisory agreement). We do not require or solicit prepayment of advisory fees from
Fund shareholders.

Fees are not negotiated with individual shareholders. Any change to the fee would require
approval as required under the Investment Company Act of 1940, as amended (the “1940
Act”) and the advisory agreement.

OFM and its affiliates generally pay all their own operating and overhead costs and
expenses, including salaries, benefits and rent. In addition to the management fees
payable to OFM, the Funds bear all Funds related operating fees and expenses, which
typically include, and are not limited to, brokerage commissions; legal and compliance
costs; research expenses; audit and accounting fees; commitment fees and interest
expenses associated with credit facilities established for the Funds; and administrative,
audit, tax and custodial fees and expenses.

Allocation of Expenses

OFM’s allocation of fees, costs, and expenses involves the exercise of judgement and
discretion and may give rise to conflicts of interest. Certain fees, costs and expenses
may be the obligation of one particular account, Fund, or client, and may be entirely
borne by such entity, or fees, costs and expenses may be allocated among multiple
accounts, Funds or clients. The allocation of fees, costs and expenses is generally
governed by a Fund’s prospectus and as set forth herein. Each Fund will generally be
reliant on the determinations of OFM with regard to the allocation of investment
expenses and any common expenses as between the Client and any other Fund. Such

allocations require judgments as to methodology that OFM makes in its sole
discretion. Such allocation determinations inherently give rise to conflicts of interest due
to the inherent biases in the process and could result in a greater expense to the Funds.
To the extent not explicitly addressed in a Fund’s prospectus, OFM can use a variety of
methodologies to allocate expenses among clients, depending on the circumstances
which will apply, where and when OFM deems appropriate in its sole discretion, taking
into account factors such as sales to and negotiations with investors (including expense
and liability limitations or caps negotiated with such investors and/or relating to clients,
regardless of how those limitations or caps are structured including, but not limited to,
reimbursement of investors’ and clients’ fees, costs and expenses), counterparties,
service providers or others and operational efficiencies and historical practices. In
addition, a Fund will bear more or less of a particular expense based on the methodology
used.

Each Fund’s prospectus generally sets forth the basic principles of how OFM intends to
allocate the Fund’s expenses and provides the advisor with discretion to determine the
manner in which such expenses are allocated. By providing OFM with broad discretion, a
Fund’s investors are consenting to OFM making decisions in connection therewith that (i)
can vary over time and from time to time; (ii) can be inconsistent with other decisions
such persons have made or will make with respect to other types of expenses, or with
respect to the allocation of any expenses among some or all investors in the relevant
Fund or in other clients; and (iii) can lead to disparate treatment among different clients
and the investors therein than would have resulted had alternative allocation
methodologies had been adopted or if the relevant allocation methodologies been more
consistently applied.

Insurance Expenses

The Funds may bear expenses related to insurance policies that OFM determines are
necessary or appropriate in connection with the operation of the Funds. Such insurance
policies may cover the Funds and may also cover OFM, its affiliates, and their respective
personnel in connection with Fund-related activities. The Funds may bear their allocated
portion of the costs associated with obtaining and maintaining such insurance, including
premiums and related expenses. A Fund’s share (as determined by OFM in its sole
discretion) of costs, fees and expenses incurred in connection with obtaining and
maintaining any such insurance policy or policies, including any commissions and
premiums and any expenses incurred in connection with the investigation, prosecution,
defense, judgment or settlement of litigation related to such insurance policies, will be
borne by the relevant Funds.
See Item 12. Brokerage Practices below for additional information regarding transaction
costs and Item 14. Client Referrals below for additional information.

Specific management fee and related expense information may be found in the prospectus
and any statements of additional information for each Fund, which should be read carefully
before investing.

Item 7. Types of Clients
As discussed in Item 4. Advisory Business above, OFM provides investment advisory
services to ETFs. Each ETF is a non-diversified, open-ended management investment
company registered under the 1940 Act. Investment advice is provided directly to the
Funds, subject to the general supervision of the Trustees, and not individually to the
investors in each Fund.

OFM may in the future provide investment advisory services to pooled investment
vehicles, separately managed accounts, or other individual or institutional clients, which
may include investment partnerships and corporations, foundations, banks, pension plans,
insurance companies, endowments, and high net worth individuals. In respect of such
other clients, OFM may establish investment minimums and/or other eligibility criteria.