SBB Research Group LLC

Item 5 – Fees and Compensation

In consideration of the investment management services provided to the Funds, typically each Investor
pays to SBBRG a monthly management fee unless otherwise waived or negotiated as noted below.
Management fees are payable in advance and generally equal to 1% of each Investor’s annual capital
commitments (or account value, in the case of SMAs). SBBRG does not maintain a standardized fee
schedule for SMAs. Management and performance-based fees applicable to each SMA are negotiated at
the time of account formation and may be modified thereafter. Unless SBBRG, in its sole discretion,
elects to waive a fee for a given period or account, any negotiated management fee is calculated without
regard to, and prior to, the accrual or payment of any applicable performance-based fee. Management
fees are prorated for any period of less than a full calendar month, unless otherwise agreed. Assessed
management fees may differ from one Client to another, as well as among Investors in the same Fund.
Such differences can arise from the size of an Investor’s commitment to a Fund, different investor
classes, provisions in side letter agreements, or other negotiated terms. Fees are sometimes waived for
SBBRG employees, their families and affiliates investing in a Client. To the extent that family trusts
invest in Funds sponsored and managed by SBBRG, the trusts shall bear their proportionate share of
those Funds’ fees, expenses, and, if applicable, performance-based compensation to SBBRG. This
creates an additional conflict because SBBRG receives fees and/or compensation from the Funds, which
benefits SBBRG and the control person.

SBBRG manages certain nondiscretionary SMAs for a flat fee. The precise amount of, and the manner
and calculation of, the management fees for each Client are set forth in their respective Governing
Documents.

Each Fund’s Investors are responsible for all legal and accounting service fees and expenses, investment-
related expenses (e.g., commissions, clearing fees, fees, interest, and other costs on margin accounts or
other financings or re-financings), expenses incurred by SBBRG in connection with the initial and
continuous offering of Fund interests, extraordinary expenses, and other similar expenses. Investors are
charged brokerage commissions, other transaction costs and expenses in connection with trading and
investment activities, and any custodian fees for assets held in cash or securities at banks, broker-dealers
and other financial institutions. Fees and expenses for SMAs are negotiated on an account-by-account
basis. More information about each Fund’s or SMA’s fees is described more fully in their relevant
Governing Documents.
Neither SBBRG nor any supervised person accepts compensation for the sale of securities or other
products.

Item 7 – Types of Clients

Each Fund and SMA generally limits its investors to persons who are both “accredited investors,” as
defined in the Securities Act of 1933, as amended, and “qualified clients,” as defined in the Investment
Advisers Act of 1940, as amended (the “Advisers Act”) or “qualified purchasers,” as defined in the
Investment Company Act of 1940, as amended. Minimum contributions for investment in a Fund or
SMA typically range from $1 million to $5 million, but SBBRG may accept commitments of less than
$1 million, in its discretion.

Investors in the Funds are U.S. investors, which may include, among others, high net worth individuals,
estate planning trusts, family limited partnerships, family limited liability companies, and corporations.
In addition, employees and other persons associated with SBBRG may make capital contributions to the
Funds.