Sea Otter Advisors LLC

Item 5.          Fees and Compensation

Advisory Fees

The Fund

The specific manner in which Sea Otter charges fees to the Fund is established and described in
greater detail in the LLC Agreement. Fund investors should refer to the LLC Agreement for a
complete understanding of how Sea Otter is compensated for its advisory services. The information
contained herein is a summary only and is qualified in its entirety by such document.

The Firm will be compensated for its investment management services to the Fund with a
performance-based fee (the “Performance Fee”) a percentage of the Fund’s net capital appreciation
is allocated as an incentive allocation, which will accrue monthly and be payable at the end of each
performance period. The Performance Fee and further details of the performance period is described
and defined further in the LLC Agreement.

SMA Clients

Should the Firm be retained to manage a future SMA Client account, the advisory fees to be charged
to such SMA Client, including the amount, payment terms and method of payment, will be subject
to negotiation and will be established in accordance with any investment management agreement
implemented with such SMA Client.

Other Expenses

The expenses paid by the Fund are set forth in the LLC Agreement. Fund investors and prospective
Fund investors should therefore review the applicable advisory agreement or LLC Agreement
carefully because such documents, and not the summary in this brochure, describe more specifically
the expenses such investors will bear.

Should the Firm be retained to manage a future SMA Client account, such accounts may also be
subject to fees charged by such SMA Client’s custodian; interest expenses; taxes, duties and other
governmental charges; transfer and registration fees or similar expenses; costs associated with
foreign exchange transactions (if any); other portfolio expenses; and, costs, expenses and fees
(including investment advisory and other fees charged by other investment advisers with, or funds
in, which the SMA Client’s account invests) associated with products or services that may be
necessary or incidental to such investments or accounts.

Client assets may be invested in money market mutual funds, exchange-traded funds (“ETFs”),
CEFs, or other registered investment companies. In these cases, unless otherwise provided, the client
will bear its pro rata share of the relevant investment management and other fees imposed by the
specific fund but ultimately borne by fund investors (and are separate from the Performance Fee
disclosed above with respect to the Fund or any advisory fee negotiated with a future SMA Client).

Item 7.         Types of Clients

Sea Otter provides portfolio management services to its sole private fund client, the Fund. As noted
in Item 4, the Firm may offer investment advisory services to SMA Clients that are institutional
clients.