Affinity Investment Advisors LLC

Fees and Compensation
Description
Compensation is based upon a percentage of assets under management with the fee delineated
within the respective Investment Management Agreement. The fee schedule is as follows:

 Large and Mid-Cap Equity Portfolios

             0.65% First $5,000,000
             0.60% Next $5,000,000
             0.50% Next $40,000,000
             0.45% Next $50,000,000
             0.40% Excess over $100,000,000
 Small Cap Equity Portfolios

             0.75% First $5,000,000
             0.70% Next $20,000,000
             0.60% Next $25,000,000
             0.55% Next $50,000,000
             0.40% Excess over $100,000,000
 Balanced Portfolios

             0.75% First $5,000,000
             0.50% Next $10,000,000
             0.40% Excess over $15,000,000
 International and Global Equity Portfolios

             0.75% First $5,000,000
             0.70% Next $20,000,000
             0.60% Next $25,000,000
             0.55% Next $50,000,000
             0.40% Excess over $100,000,000
 OCIO Portfolios/Relationships

             Fees are negotiable depending on asset size and scope of services. These can
              be a flat fee or an asset-based fee, or a blend of both.

Model Portfolios
Fees for these services will be based on assets under management, with the fee negotiated and
delineated within the respective Investment Management Agreement.

Sub-Advisory Relationships
Affinity has relationships with third-party advisors to provide investment management services
and may select certain third-party advisors to actively manage a portion of its clients’ assets.
Client will pay two separate management fees, one to Affinity for the portion Affinity is managing
and another fee to the third-party advisor for the portion they are managing. Fees are negotiable
with each adviser, and can be a flat fee or an asset-based fee, or a blend of both.

Fee Billing
Affinity’s fees are payable quarterly in either advance or arrears, as specified within the
Investment Management Agreement. Fees can be billed directly to the client or debited from the
client’s custodial account as requested by the client. Either party may terminate the Investment
Management Agreement at the end of a particular month by giving thirty (30) days advance written
notice to the other party. Notwithstanding the foregoing, the Client may terminate the authority of
Affinity to manage the account at any time, such termination to be effective as of the effective
date of notice to Affinity, but Affinity shall be entitled to the fees payable hereunder for thirty (30)
days thereafter. And fees paid beyond the (30) days will be refunded on a pro-rated basis.

Other Fees
Clients may incur fees in addition to the management fees paid to Affinity. This can include
brokerage commissions and other custodian, platform, and service fees. Please refer to the
section entitled Brokerage Practices for more information on Affinity’s selection of brokers.

Affinity may invest client assets in the ETF managed by Affinity if such investments are consistent
with the investment objectives and policies of the client accounts involved. If Affinity makes such
an investment on behalf of its clients, those clients will be responsible, indirectly as investors in
the ETF, for a portion of the operating expenses and investment advisory fees. Affinity does not
charge an additional management fee on the portion of a client’s account invested in the Affinity
World Leaders Equity ETF, for which Affinity serves as the sub-advisor. Affinity pays a fee to
feature the WLDR ETF on various investment platforms; this fee is not passed along to the end
client.

Performance-Based Fees & Side-by-Side
Management
Sharing of Capital Gains or Capital Appreciation
The Firm does not currently receive performance-based fees.

Types of Clients
Description
The Firm’s clients include Individuals, High Net-Worth Individuals, Pension and Profit-Sharing
Plans, Trusts, Estates, Charitable organizations, Corporations, State and Municipalities and
Investment Companies.

Account Minimums
The Firm’s recommended account minimum for individuals is $250,000, which may be lowered
on a case-by-case basis. Wrap sponsors advised by the firm may set lower minimums. For
institutional clients, the account minimum is $5,000,000 though may be lowered on a case-by-
case basis.

Methods of Analysis, Investment
Strategies, and Risk of Loss
Investment Strategies
The Firm’s investment strategy employs a quantitative approach to initial portfolio construction
coupled with qualitative analysis to ensure data quality and to leverage the portfolio manager’s
experience. The proprietary model utilizes a number of fundamental factors, i.e., dividend
payouts, earnings, and price movements in evaluating securities for inclusion in the portfolio. The
strategy has a long only orientation which will include both long- and short-term purchases. We
currently offer the following strategies:

   •   Large Cap Core
   •   Large Cap Value
   •   Large Cap Growth
   •   Small Cap Core
   •   Small Cap Value
   •   Mid Cap
   •   Mega Cap
   •   SMID
   •   International
   •   Global

Risk of Loss
Although Affinity makes every effort to preserve each client’s capital and achieve real growth of
wealth, investing in the stock markets involves risk of loss that each client should be prepared to
bear. The portfolios consist of small, mid, and large capitalization stocks (equities) which by their
nature carry a risk of loss.

Risks of stock investing

Stocks generally fluctuate in value and may decline significantly over short time periods. The
value of a stock in which a portfolio invests may decline due to general weakness in the stock
market or because of factors that affect a company or a particular industry. Investments in small-
sized companies pose greater risks than those typically associated with larger, more established
companies such as increased volatility of earnings and prospects, higher failure rates, and limited
markets, product lines or financial resources.