Act Two Investors LLC

Item 5. Fees and Compensation

Act Two typically holds a limited power of attorney to act on a discretionary basis with client funds.Cli-
ent funds are deposited in a brokerage account. Act Two will typically deduct management fees directly
from client accounts but may bill a client separately for such amounts.

In addition to Act Two’s management fees, each client account is responsible for its own costs and ex-
penses, including trading costs and expenses such as brokerage commissions and clearing and settlement
charges. For further information on brokerage practices see Item 12. Accounts that invest inmutual funds
and ETFs also pay asset-based fees to those funds.

Act Two receives an asset-based fee for its services.

For Focused Balanced accounts, fees are 0.90% of assets annually. Minimum fee $4,500 per year.

For Focused Equity accounts, fees are 1.25% of assets annually. Minimum fee $6,250 per year.

Fees are not negotiable. Fees may be waived and minimums modified. For clients with multiple accounts,
minimum fees are assessed by relationship, rather than by account.

Asset Based Fees are typically payable in advance in quarterly installments at the beginning of each calen-
dar quarter based on the net market value of the client’s account on the closing date of the previous calen-
dar quarter.

If a client contributes capital to the Account, including its initial capital, on a date other than the first day
of a calendar quarter, the Account will be charged a prorated portion of the Asset Based Fee for that cal-
endar quarter with respect to such contribution, based on the number of days remaining in that calendar
quarter and based on the net market value of the contributed capital on the opening of trading on the date

of such contribution. Such fees will be added to and payable with the Asset Based Fee for the following
quarter.

If a client withdraws assets from the Account on any date other than the last day of a calendar quarter, the
Asset Based Fee previously paid with respect to that calendar quarter shall be prorated based on the num-
ber of days elapsed in that quarter prior to the withdrawal, and the unearned portion shall be deducted
from the next quarterly Asset Based Fees.

In calculating Account value at quarter end, Act Two utilizes trade date accounting where margin debt, if
any, is not deducted from the value of the Account.

Except as may be otherwise negotiated in particular cases, a client or Act Two may terminate such an ac-
count by giving written notice. If either terminates an Account on any date other than the last day of a
calendar quarter, any Asset Based Fee previously paid with respect to that calendar quarter shall be pro-
rated based on the number of days elapsed in that quarter prior to the termination, and the unearned por-
tion shall be refunded. If fees are deducted from the Account, the refund will be credited to the Account.
If the refund cannot be credited to the account or fees are paid by check, the Client will receive a refund
check.

Item 7. Types of Clients

Act Two provides portfolio management for individuals, retirement accounts, trusts, family offices, and
others through separately managed client accounts.