X Cubed Capital Management LLC

Item 5 - Fees and Compensation

X Cubed generally receives a management fee (the “Management Fee”) monthly in arrears According
to the terms of the relevant agreement with each Client. The Management Fee shall be prorated for
partial periods. X Cubed may waive, reduce, or modify any or all of the Management Fee or agree to a
management fee arrangement that differs from that set forth in the Governing Documents.

Unless otherwise agreed upon with a Client, Management Fees and performance-based compensation
are generally debited directly from Fund accounts and are generally billed to separated managed
accounts.

As more fully described in each Fund’s respective Governing Documents and the investment
management agreement establishing each separately managed account. The Fund and the separately
managed accounts, shall pay such costs and expenses, directly or indirectly to carry on its business and
realize its objective (and shall reimburse the manager associates for any such costs and expenses
incurred by them on behalf of the Fund or separately managed accounts) (collectively, “Expenses”),
including, as applicable: (i) all costs and expenses in connection with purchasing, holding, valuing,
selling or exchanging securities or other assets (whether or not ultimately consummated), including,

but not limited to, brokerage fees, private placement fees, finder’s fees and other execution and clearing
services, interest on borrowed money, costs and expenses associated with short sales, costs and
expenses in connection with the registration of investments under applicable securities laws and related
legal, accounting and other fees and expenses; (ii) all borrowing and other leverage costs including
interest and other fees and expenses; (iii) all fees and expenses in connection with the opening and
maintenance of bank, brokerage or custodial accounts; (iv) all legal, accounting, outside director,
administration, valuation, auditing, bookkeeping, tax return and K-1 preparation and other professional
and consulting fees and expenses, including the fees and expenses charged by any administrator for the
Fund; (v) all director and officer, errors and omissions, fidelity bond and other insurance premiums for
insurance for the benefit of the Fund, X Cubed, the manager parties and their affiliates to the extent
related to their respective management of the Fund; (vi) the costs of research products and services that
are of benefit to the Fund and separately managed accounts and not otherwise provided by brokers,
including the costs of Bloomberg and other research subscriptions, software products and services, live
market data feeds, pricing and valuation data and services and other research products and services;
(vii) the costs of internet and other line charges, data storage, transfer and backup and record retention;
(viii) information technology systems, services, consulting and software, including without limitation
systems, consulting and software for portfolio and order management, pre- and post-trade compliance,
portfolio reconciliations and accounting, risk management and other activities of the Fund; (ix) all
expenses in connection with meetings of and communications with the investors and prospective
investors; (x) all costs and expenses related to the maintenance and legal and regulatory compliance of
the Fund, X Cubed and its affiliates to the extent related to its management of the Fund, including all
costs and fees relating to preparation and filing of required regulatory filings and reports (including
without limitation filings under the 1933 Act, such as Form D, filings under the 1934 Act, such as
Section 13 filings, investment company related filings under the 1940 Act and the Advisers Act, such
as Form PF, filings under the CE Act and state “blue sky” filings) and all registered agent and office
and other regulatory costs and expenses; all investment- and operations-related travel expenses; (xi) all
taxes applicable to the Fund on account of their operations; (xii) all costs and expenses arising out of
the Fund’s indemnification obligations, including those arising under the limited partnership
agreement; (xiii) all extraordinary or non-recurring charges such as litigation expenses; (xiv) all
organizational costs, fees and expenses in connection with the formation and organization of the Fund;
(xvi) all costs, fees and expenses in connection with the liquidation of the Fund and its assets; and all
expenses attributable to the formation, operation or administration of any Feeder Fund or restructuring
of the Fund for it to serve as a “master fund”; and (xvii) a Fund’s audited financial statements.

The Adviser, in its sole discretion, reserves the right to reimburse the Fund for, or itself to bear, any or
all Fund Expenses that would otherwise be allocable to the Fund. X Cubed’s decision to bear or
reimburse any such Fund Expenses should not at any point be taken to imply that the Managing Member
will do so in the future.

X Cubed is responsible for all of its own overhead costs, including office space and equipment, utilities,
telephone and telecopier costs and other similar items.

Item 7 - Types of Clients

The Adviser provides investment advice to the Funds and separately managed accounts, as described
above. The Adviser also offers investment management services to sophisticated investors on a
discretionary basis through SMAs and sub-advised clients. X Cubed is under no obligation to accept
any client and may decline acceptance of a client in its sole discretion.

Although the Adviser generally seeks minimum investments from its Funds’ investors (depending on
the fund and Series subscribed as disclosed in the Funds’ legal documents), the Adviser can waive such
minimums in its discretion.

For information regarding minimum investment amounts in any SMA, please refer to the relevant
investment management agreement.

Item 8 - Investment Objective, Strategy and Certain Risk Factors

 X Cubed pursues opportunistic, low-beta investment strategies utilizing a multi-strategy investment
approach, there are no material limitations on the investment strategies pursued or the financial
instruments acquired. Among other things, the Adviser seeks to capture “arbitrage” profits that arise
out of different templates for prices based on economic factors across diverse markets. X Cubed trades
risk reversals and conversions in both indexes and individual stocks, often in combination, as well as
long/short index options against short/long options on a representative basket of individual components.
The Adviser may, among other things, trade options on the yield curve and forward yield curve,
treasuries versus swaps and short/long credit against long/short equity options or shares.

X Cubed intends to take an opportunistic approach in sourcing investment opportunities, and such
flexibility is an essential element to the Fund’s overall investment approach.

The Adviser may utilize leverage through bank borrowings, swaps and other derivatives as well as
trading stocks on margin, repurchase agreements, futures and other means, subject to the availability
of leverage in the marketplace on acceptable terms.

X Cubed’s activities for each Fund are further described in each Fund’s Offering Documents. Such
documents also detail the various investment restrictions on types of investments in a Fund, if any.

Please note that the use of the term “investor” in this section may refer to either an investor in a Fund
or an account holder of a separately managed account.

Investing in securities involves risk of loss that Clients should be prepared to bear. The investment
performance and the success of any investment strategy or particular investment can never be predicted
or guaranteed, and the value of a Client’s investments will fluctuate due to market conditions and other

factors. The investment decisions made and the actions taken in managing Client assets are subject to
various market, liquidity, currency, economic, political and other risks, and investments may lose value.

The information contained in this Brochure cannot disclose every potential risk associated with an
investment strategy, or all of the risks applicable to X Cubed or a particular security or investment.
Rather, it is a general description of the nature and risks of the advisory services provided by X Cubed
and the related investments. This summary is qualified in its entirety by reference to the Governing
Documents that apply to each of the Funds or the investment management agreements for separately
managed accounts managed by X Cubed. Investors should carefully read such documentation before
making an investment and should refer to the applicable Offering Documents for a particular Fund for
the risk factors associated with that Fund or the investment management agreement of a separately
managed account.

Possible Loss of Capital; Risk of Ruin. An investment involves a high degree of risk, including the
risk that an investor may lose all or substantially all of its investment.

Nature of Investments. X Cubed has broad discretion in making investments. There can be no
assurance that the Adviser will correctly evaluate the nature and magnitude of the various factors that
could affect the value of, and return on, investments. No guarantee or representation is made that the
investment objective will be achieved. Securities prices may be volatile, and securities price movements
are influenced by many unpredictable factors. Investors may experience heightened volatility during
turbulent market periods.

General Economic Conditions. The success of any investment activity is influenced by general
economic and financial conditions that may affect the level and volatility of equity prices, interest rates,
general levels of economic activity, and the extent and timing of investor participation in the markets
for both equity and interest-rate-sensitive securities. Unexpected volatility, illiquidity, governmental
action, currency devaluation, or other events in global markets in which Clients directly or indirectly
holds positions, or national and international circumstances (such as terrorist acts, wars, or security
operations) or acts of God (including tornadoes, hurricanes, epidemics, and earthquakes), could impair
the ability of X Cubed to carry out its business and could cause its Clients to incur substantial losses.
In recent years, U.S. and non-U.S. securities markets and exchanges experienced high volatility, market
disruption and substantial losses and resulted in governmental reform affecting the hedge fund industry.
Prospective investors should be aware that similar market conditions in the future may present
significant challenges to investors, including managers with past success under other market conditions.
Private investment funds are likely to be further impacted by the recent events in financial markets
around the world.

Acts of God and Geopolitical Risks. The performance of our Clients could be impacted by acts of God
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