Ballast Asset Management LP

Item 5: Fees and Compensation

Our Firm receives compensation from our Clients in the form of management fees based on the
percentage of assets we manage.

Our Firm and our affiliates do not pay asset-based fees.

Exchange-Traded Fund:

We charge our ETF client an asset-based management fee of 0.95% of their assets that we
manage, with an expense cap of 1.10%. These expenses are stated in the Prospectus and
Statement of Additional Information for the Fund. Additional fees may include portfolio
transactions and other investment-related costs (including brokerage fees and commissions);
taxes; acquired fund fees and expenses; fees and expenses associated with investments in other
collective investment vehicles; any administrative and/or shareholder servicing fees payable
pursuant to a plan adopted by the Board of Trustees; expenses incurred in connection with any
merger or reorganization; extraordinary expenses (such as litigation expenses, indemnification of
Trust officers and Trustees and contractual indemnification of Fund service providers); and other
expenses that the Trustees agree have not been incurred in the ordinary course of the Fund’s
business.

Separately Managed Accounts:

We charge our separately managed account (“SMA”) clients an asset-based management fee of
up to 1% (per annum) of the assets under management in each client account.

We deduct the asset-based management fee described above from our SMA clients’ accounts
quarterly at the beginning of each quarter. The SMA clients also receive invoices for the amounts
of our asset-based management fees reflecting the amounts deducted from their accounts. Our
SMA clients do not currently pay any performance-based fees.

Our SMA clients pay for all of their own operating expenses. These include all expenses incurred
with its account transactions, such as custodial fees, brokerage commissions, taxes, and any
applicable registration fees.

In the event that one of our SMAs pays an asset-based fee in advance and then terminates our
advisory services prior to the end of the quarter for which they have paid the fee, it is BAM’s policy
to refund any unearned fees on a pro rata basis based on the effective date of termination.

The Firm or any of its principals or employees do not receive compensation for the sale of
securities or other investment products, including charges or fees from the sale of mutual funds.

ERISA plan accounts are generally charged under the same fee schedule as similarly situated
SMA clients. BAM does not receive compensation from plan service providers, custodians, mutual
funds, or other investment products that could create prohibited transactions under ERISA.
Advisory fees for ERISA plan clients are negotiated with the appointing fiduciaries and
documented in the written investment management agreement.

For more information on brokerage transactions and costs, please see Item 9: Brokerage
Practices.

In the event that SMA assets are allocated to shares of the ETF Fund, those assets will be
excluded from the assets used to calculate the SMA’s management fee.

Model Delivery Fees:

For model-delivery arrangements, BAM is compensated by the Sponsor, and not by Sponsor
Clients, based on the assets managed pursuant to the applicable Model. BAM’s current model
fee is up to 0.40% (40 basis points) per annum, calculated on the average of the month-end
market value of the assets managed pursuant to the Model and billed quarterly in arrears. Model
fees are negotiated with each Sponsor and may vary. Sponsor Clients may pay additional
program, platform, custody, and execution fees to the Sponsor and other service providers that
are separate from, and in addition to, BAM’s model fee; those fees are disclosed by the Sponsor.

Item 7: Types of Clients

BAM provides discretionary investment management services to SMA Clients that may include
institutions, individuals, high net-worth individuals, trust, pensions and profit-sharing plans. In
order for an SMA client to open or maintain an account, we generally require the account have
sufficient assets in order to diversify holdings. The Firm maintains sole discretion when
establishing a specific account minimum with respect to any particular account, but generally, a
$1,000,000 minimum is required in order to open an SMA account. The minimum can be waived
at the discretion of the Adviser.

BAM provides discretionary investment management services to ERISA-covered retirement plans
and, when appointed, may accept designation as an ERISA §3(38) investment manager. In such
cases, BAM acknowledges its fiduciary responsibility and discretionary authority with respect to
plan assets as defined under ERISA.

BAM also provides non-discretionary investment models to unaffiliated sponsor firms that operate
model-delivery or unified managed account programs. For these arrangements, the Sponsor is

BAM’s client; BAM does not enter into an advisory relationship with the Sponsor’s underlying
clients. See Item 4: Advisory Business.

Our ETF Fund is an “investment company” under the Investment Company Act of 1940, as
amended. Accordingly, our ETF Fund is registered as an investment company with the Securities
and Exchange Commission. Investors in our ETF Fund may purchase and sell shares freely on
the NYSE exchange. Investors in the ETF Fund include, but are not limited to, individuals, trusts,
investment advisers, pension and profit-sharing plans, charitable organizations and business
entities.

Item 8: Method of Analysis, Investment Strategies And Risk of Loss