Adams Asset Advisors LLC

Item 5: Fees and Compensation

For all discretionary equities and fixed income fee based accounts, the Advisor shall be
compensated on management fees payable quarterly in advance based upon the following Fee
Schedule:

                                   Equities                                           Fixed Income

Less than $1mm                     1.25%                    Less than $1mm            .40%
$1 to $5mm                         1.00%                    $1 to $5mm                .30%
Greater than $5mm                  0.75%                    Greater than $5mm         .20%

Accounts are charged an initial fee on existing assets and whenever assets are deposited into the
account during a quarter based on the value of those assets, prorated to cover the period from
the deposit date until the last day of the calendar quarter. Thereafter, quarterly fees are based on
the value of assets on the last business day of the last month of the previous quarter. Quarterly
fees are charged in advance the first week of the first month of the new quarter. Additional
deposits made during a quarter are charged a prorated fee as previously discussed. Fees will be
deducted directly from the managed account. Because of the quarterly frequency of fee
calculation, no refunds will be credited if an advisory contract is terminated or a portfolio is
liquidated before the end of a billing period.

All equities transactions in discretionary fee based accounts are currently executed through
Fidelity Investments at a commission rate of three cents per share, capped at $400 per trade,
with a $30 minimum. Fidelity uses a portion of these equities commissions (“soft dollars”) as a
credit to pay for some of the Advisors’ costs for technology expense and research. The Advisor
is not required to generate any minimum level of commission with Fidelity, and benefits in no
other way from this arrangement and receives no cash compensation. Soft dollars are discussed
in more detail under Item 12 below.

Fixed Income transactions will be executed on a best efforts basis using either the Fidelity
Investments trading desk or through a prime brokerage transaction. For discretionary fee based
accounts, there is a nominal charge (about $50) to cover ticket processing on brokerage trades
and no fees or commissions are earned by the Advisor or any affiliates of the Advisor in any way.

For securities purchased or sold on the same day, with rare exception, the Advisor will aggregate
the purchases or sales of that security for multiple clients in a single transaction. In this instance,
our policy is to average price for all accounts and then allocate the number of shares
proportionate to the purchase amount relative to each account. It is likely, for a variety of
reasons, that securities of the same issuer will be purchased or sold before or after the day that
an allocated block trade occurs. This will result in some clients receiving better or worse prices
than that block trade, depending on execution price on that different day.

The Advisor may consider special factors and negotiate fees other than those listed above. For
clients that choose to have the Advisor recommend mutual funds or other money managers
versus a portfolio of individual securities, fees for allocation, selection and monitoring are
negotiable and may differ from the schedule above, typically 0.75% of account value.

Item 7: Types of Clients

The majority of our assets are from clients that are very high net worth individuals, typically over
$20mm in net worth. We generally do not engage new relationships unless there is potential to
manage this level of assets. We do accept smaller clients if they are satisfied to invest in our
recommended ETF’s versus having a portfolio of individual securities.