Two Prime Inc

ITEM 5. FEES AND COMPENSATION

A.      Collecting Our Advisory Fees

The Firm receives different types of compensation for providing advisory services to its Clients, depending
on the type of client. Two Prime compensation can take the form of an asset-based fee or spread and
a performance-based fee or allocation, if applicable as described in each Client’s MSA.

For Client accounts, compensation structures are established for each Client on a case-by-case basis ,
with asset-based fees paid quarterly in arrears. All fees and expenses are fully outlined in each Client’s
MSA.

B.      Other Non-Advisory Fees and Expenses You May Incur

Fees and Expenses

The fees paid by Clients to Two Prime will not include any custodian’s fee (if any); the Client shall be
responsible for custodian, brokerage, legal, accounting, tax advisory, and other administrative services
engaged by the Manager in connection with the advisory services performed. These additional charges,
as applicable, will be billed to the Client by Two Prime upon Two Prime’s receipt of invoices for such
services.

ITEM 7. TYPES OF CLIENTS

Currently the Firm’s Clients include SMAs for high net worth individuals, corporations, other investment
advisers as well as pooled investment vehicles. Two Prime may become investment adviser to other funds
or accounts in the future.