Addicus Advisory LLC

Item 5 Fees and Compensation
Portfolio Management Services
Our fee for portfolio management services is based on a percentage of the assets in your account and
is set forth in the following annual fee schedule:

                                     Annual Fee Schedule
           Assets Under Management                                       Annual Fee
                $0 - $3,000,000                                            1.45%
            $3,000,001 - $10,000,000                                       1.00%
           $10,000,001 - $25,000,000                                       0.85%
             $25,000,001 and above                                         0.75%

Our annual portfolio management fee is billed and payable, quarterly, or monthly, in arrears, based on
the balance at end of billing period.

If the portfolio management agreement is executed at any time other than the first day of a calendar
month, our fees will apply on a pro rata basis, which means that the advisory fee is payable in
proportion to the number of days in the month for which you are a client. Our advisory fee is
negotiable, depending on individual client circumstances.

At our discretion, we may combine the account values of family members living in the same household
to determine the applicable advisory fee. For example, we may combine account values for you and
your minor children, joint accounts with your spouse, and other types of related accounts. Combining
account values may increase the asset total, which may result in your paying a reduced advisory fee
based on the available breakpoints in our fee schedule stated above.

We will deduct our fee directly from your account through the qualified custodian holding your funds
and securities. We will deduct our advisory fee only when the following requirements are met:

    • You provide our firm with written authorization permitting the fees to be paid directly from your
      account held by the qualified custodian.
    • The qualified custodian agrees to send you a statement, at least quarterly, indicating all
      amounts dispersed from your account including the amount of the advisory fee paid directly to
      our firm.

You may terminate the portfolio management agreement upon 30 days written notice. You will incur a
pro rata charge for services rendered prior to the termination of the portfolio management agreement,
which means you will incur advisory fees only in proportion to the number of days in the month for
which you are a client.

Portfolio Management Services - Private Funds
We also provide portfolio management services on a one-time or ongoing basis to private funds,
partnerships, and limited liability companies (other than registered investment companies), some of
which may be managed by our affiliates. Our services will be subject to a written investment
management agreement (or similar governing agreement) which will specify our fees as agreed with
the client.

Financial Planning Services
We charge a fixed fee for financial planning services, which generally ranges between $2,500 and
$75,000. We may require that you pay up to 25% of the fee in advance and the remaining portion will
be billed in arrears and is payable on a scheduled basis as invoiced. If such a fee is collected in
advance, then the amount will be specified in the agreement signed by each client. The fee is
negotiable depending upon the complexity and scope of the plan, your financial situation, and your
objectives. We will not require prepayment of a fee more than six months in advance and in excess of
$1,200. Should the engagement last longer than six months between acceptance of financial planning
agreement and delivery of the financial plan, any prepaid unearned fees will be promptly returned to
you less a pro rata charge for bona fide financial planning services rendered to date.

You may terminate the financial planning agreement upon 30 days written notice to our firm. You will
incur a pro rata charge for services rendered prior to the termination of the agreement. If you have pre-
paid advisory fees that we have not yet earned, you will receive a prorated refund of those fees.

Financial Consulting Services
We charge a fixed fee for financial consulting services. Fixed fees are negotiable and range
from $2,500 and $75,000, depending on the scope and complexity of services to be rendered. We may
require that you pay up to 25% of the fee in advance and the remaining portion will be billed in arrears
and is payable on scheduled basis as invoiced. If such a fee is collected in advance, then the amount
will be specified in the agreement signed by each client. We will not require prepayment of a fee more
than six months in advance and in excess of $1,200. Should the engagement last longer than six
months between acceptance of financial consulting agreement and delivery of the agreed upon
services, any prepaid unearned fees will be promptly returned to you less a pro rata charge for bona
fide financial consulting services rendered to date.

You may terminate the advisory consulting services agreement upon 30 days written notice to our
firm. You will incur a pro rata charge for services rendered prior to the termination of the agreement. If
you have pre-paid advisory fees that we have not yet earned, you will receive a prorated refund of
those fees.

Selection of Other Advisers
Advisory fees charged by TPMMs are separate and apart from our advisory fees. Assets managed by
TPMMs will be included in calculating our advisory fee, which is based on the fee schedule set forth in
the Portfolio Management Services section in this brochure. Advisory fees that you pay to the TPMM
are established and payable in accordance with the brochure provided by each TPMM to whom you
are referred. These fees may or may not be negotiable. You should review the recommended TPMM's
brochure and take into consideration the TPMM's fees along with our fees to determine the total
...

Item 7 Types of Clients
We offer investment advisory services to individuals, high net worth individuals, and corporations or
other business entities, including private funds, partnerships, and limited liability companies.

In general, we do not require a minimum dollar amount to open and maintain an advisory account;
however, we have the right to terminate your account if it falls below a minimum size which, in our sole
opinion, is too small to manage effectively.