Addison Capital LLC

ITEM 5: FEES AND COMPENSATION

Addison Capital is compensated for advisory management services by management fees equal to a percentage
of assets under management and/or by fixed fees for consultations. Fees are negotiable and may vary based
on total Client relationships and marketing considerations.

Discussion of fees and other compensation provided below is general in nature. Fees and other compensation
that a Client pays are set forth in the Client’s relevant advisory agreement

Management Fees

Fees are negotiable and may vary based on total Client relationships and marketing considerations. The
maximum management fee is ordinarily 1.25% of a Client’s assets under management.

Consultation Fees

Addison Capital charges a fixed fee for consultations with financial institutions. These fixed consultation fees
are negotiated at time of contract signing.

Timing, Valuation and Deduction of Fees

The Adviser bills all Clients on a calendar quarterly basis, in advance. Quarterly management fees are based on
the average daily balance of assets under management for the previous quarter. Generally, fees are deducted
directly from Client accounts. Upon special request and consideration, invoices may be sent directly to the
Client. When a new account is opened, or when there are substantial deposits or withdraws in the account
(greater than $100,000), a pro-rated invoice (or credit) is generated based on the number of days left in the
calendar quarter. When an advisory agreement is terminated, the Client receives a refund of management
fees based on the number of days left in the quarter. If fees were deducted from the account, the pro-rated
refund is credited back to the same account. If the fees were paid directly by the Client, are fund check is issued.

Transaction-Based Compensation and Brokerage Fees and Expenses

The Adviser does not receive any transaction-based compensation.

The Adviser utilizes the services of broker-dealers to effect portfolio transactions and each Client will incur
brokerage and other transaction costs. Clients do not pay these brokerage and transaction costs to the Adviser.
For additional information, see the section on “Brokerage Practices,” under Item12 below.

Other Fees and Expenses

Client assets invested in mutual funds and other investment funds will ordinarily bear an additional
management fee charged by that fund, and Clients will, in effect, pay two advisory fees: a direct fee to Addison
Capital and an indirect fee charged at the fund level. Clients may also incur fees and costs if they make
transactions in ETFs, mutual funds, or other investments. Neither Addison Capital, nor any of its supervised
persons, accepts compensation for the sale of securities or other investment product. However, certain
employees of Addison Capital may receive additional compensation, including transaction-based
compensation, in connection with their employment by affiliates of Addison Capital as more fully described in
Item 10 of this Brochure.

ITEM 7: TYPES OF CLIENTS

Addison Capital offers investment advisory services to individuals, high net worth individuals, banks and
thrift institutions, pension and profit sharing plans, state or municipal government entities, trusts, estates,
charitable organizations and corporations. Addison Capital typically requires accounts to be at least
$500,000 or greater in size; however, exceptions can be made in certain circumstances at the Adviser’s
discretion.