The Cypress Funds LLC

Item 5. Fees and Compensation

Cypress’s compensation is negotiable and varies, but typically, each investor in a
Fund pays a quarterly management fee in advance of 0.25% of the net asset value
of that investor’s Fund interest and a performance allocation of 15% of net profits
(including both realized and unrealized gains and losses) otherwise allocable to
that investor. An investor who withdraws or redeems from a Fund on a date other
than the last day of a quarter does not receive a refund of the management fee
previously paid.

Some legacy investors in the Funds pay lower management fees and performance
allocations. Cypress is not currently offering these terms to new investors. In
addition, Cypress has reduced or waived management fees and performance
allocations for employees of its affiliate, Oakmont Corporation (“Oakmont”).

Performance allocations are made annually in arrears (and on withdrawals during
the year with respect to the amount withdrawn) and are applied only to profits that
exceed an investor’s so-called highwater mark.

Cypress complies with Rule 205-3 under the Investment Advisers Act of 1940, if
applicable. Performance compensation creates an incentive for Cypress to make
riskier and speculative investments than it would otherwise make.

Cypress typically deducts management fees and performance compensation
directly from the Funds.

Cypress believes that its fees are competitive with fees charged by other
investment advisers for comparable services, but comparable services may be
available from other sources for lower fees than Cypress charges.

The disclosure in this Item 5, together with the disclosure in Item 12, allow a plan
that is subject to the Employee Retirement Income Security Act of 1974 and that
invests with Cypress to use the “alternative reporting option” to report Cypress’s
compensation as “eligible indirect compensation” on the Schedule C of the plan’s
Form 5500 Annual Return/Report of Employee Benefit Plan.

Expenses
The Funds typically are responsible for their own costs and expenses, including
trading costs and expenses (such as brokerage commissions, expenses related to
short sales, and clearing and settlement charges), ongoing legal, tax, accounting
and bookkeeping fees and expenses. The Funds are also responsible for any fund
administrator expenses for their accounting, bookkeeping and other services and
may also be responsible for research-related travel expenses. Cypress bears its own
operating, general, administrative and overhead costs and expenses, other than the
expenses described above. All or part of these costs and expenses may be paid,
however, by securities brokerage firms and futures commission merchants that
execute the Funds’ securities trades, as discussed in Item 12.

If Cypress manages any separately managed account, such account is expected to
bear the costs and expenses of winding down any portfolio positions. Cypress does
not expect to charge any such account any other fees, although it may agree to do
so with each investor on a one-off basis.

Item 7. Types of Clients

Cypress provides investment advice to the Funds. Investors in the Funds are
required to invest a minimum of $5,000,000. Cypress has waived this minimum
for certain investors, however. Cypress would accept a separately managed
account only under exceptional circumstances and does not have a minimum
opening balance for these accounts.