Birch Run Investments LLC

Item 5 – Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided by the
Advisor. Each client engaging the Advisor for services described herein shall be required to enter into a written
agreement with the Advisor.

Investment management fees are paid quarterly, either on a calendar quarter end or mid quarter basis dependent
upon the agreed upon terms in the investment management agreement with the client, pursuant to the terms of the
investment management agreement. Investment management fees are based on the average of the ending market
values of each month in the quarter or on the value determined by the custodian on last calendar day of the billing
period, again, dependent upon the agreed terms of the investment management agreement. Investment
management fees are typically based on the schedules below.

                                                               Up to $25,000,000           0.35%
                        Core Fixed Income                  $25,000,001 to $50,000,000      0.30%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.35%
                     Core Plus Fixed Income                $25,000,001 to $50,000,000      0.30%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.30%
                   Intermediate Fixed Income               $25,000,001 to $50,000,000      0.25%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.35%
                 Intermediate Fixed Income Plus            $25,000,001 to $50,000,000      0.30%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.35%
                     Tax Exempt Total Return               $25,000,001 to $50,000,000      0.30%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.25%
                    Short Term Fixed Income                $25,000,001 to $50,000,000      0.20%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.50%
                  Short Term Fixed Income Plus             $25,000,001 to $50,000,000      0.35%
                                                                Over $50,000,000         Negotiable

                                                               Up to $25,000,000           0.25%
                          Enhanced Cash                    $25,000,001 to $50,000,000      0.20%
                                                                Over $50,000,000         Negotiable

Page 6                                       Birch Run Investments, LLC
                                    211 Welsh Pool Road, Suite 234, Exton, PA 19341
                                                Phone: (610) 321-3453
                                             www.birchruninvestments.com

                             Balanced                            Over $1,000,000             0.75%

Minimum portfolio size for Core and Intermediate Fixed Income is $5,000,000. Minimum portfolio size for Short
Term Fixed, Short Term Fixed Plus, Tax Exempt Total Return, and Enhanced Cash is $500,000. Minimum
portfolio size for Balanced is $1,000,000. In certain instances, Birch Run reserves the right to make exceptions to
these stated minimums. All of the above strategies are subject to a minimum annual fee of $5,000. Investment
management fees in the first quarter of service are prorated from the inception date of the account[s] to the end
of the first quarter. Fees may be negotiable at the sole discretion of the Advisor. The client’s fees will take into
consideration the aggregate assets under management with Birch Run. All securities held in accounts managed
by Birch Run will be independently valued by the designated Custodian. Birch Run will not have the authority or
responsibility to value portfolio securities.

The Advisor’s fee is exclusive of, and in addition to, brokerage fees, transaction fees, and other related costs and
expenses which may be incurred by the client.

Investment management fees are calculated by the Advisor or its delegate and may be invoiced directly to the client
or deducted from the client’s account[s] at the Custodian, pursuant to the terms of the investment management
agreement. The Advisor shall send an invoice to the Custodian indicating the amount of the fees to be deducted
from the client’s account[s] at the respective quarter-end date. The fees can be calculated by applying the quarterly
rate (annual rate divided by 4) to an average of the ending market values of each month in the quarter or upon the
ending quarter value as described previously in Section A. Unless otherwise noted in the investment management
agreement, Birch Run will calculate fees exclusive of any accrued income. Clients will be provided with a
statement, at least quarterly, from the Custodian reflecting deduction of the investment management fee. It is the
responsibility of the client to verify the accuracy of these fees as listed on the Custodian’s brokerage statement as
the Custodian does not assume this responsibility. Clients may provide written authorization permitting Birch Run to
be paid directly from their account[s] held by the Custodian as part of the investment management agreement
...

Item 7 – Types of Clients

Birch Run offers investment management and related management services to institutional investors, high net
worth individuals, pension plans, and other types of investors. The amount of assets attributable to each type of
client is available on Birch Run’s Form ADV Part 1A. These amounts may change over time and are updated at
least annually by the Advisor.