Delta Investment Management LLC

ITEM 5: FEES AND COMPENSATION
Investment management services, including subadvisory services, are provided for an asset-based fee
ranging from 1.00% to 1.85%, based on the value of the assets being managed. The negotiated fee
takes into account use of third party strategy provider(s), the scope and complexity of the services
provided, account size, and account history with Delta including duration and services provided.

The annual fee on all accounts are billed quarterly, in advance, based on the account’s net asset value on
the last day of the previous billing cycle, as reflected in the ELECTRONIC DATA transmitted to us by the
custodian of the account. In the event the Delta Advisor Agreement is executed and the account funded
at any time other than the first day of a calendar quarter, the advisory fee is payable in proportion to the
number of days in the quarter for which you are a client. “Net asset value” = long market value – short
market value + credit balance – debit balance + money market fund balance.

Fees cover Delta’s investment advisory, reporting, and account-related services. Fees do not cover any
execution-related expenses, commissions, if any, securities exchange fees, or other fees required by law
or charged by the broker-dealer with custody of the account. Clients are responsible for commissions,
fees, and other charges, if any, associated with such transactions and the maintenance of their
account(s). Fees are negotiable in limited circumstances.

Financial Planning services are included in the above fees, excluding accounts for which Delta solely
provides subadvisory services.

On all of our accounts, we generally request that you provide authorization for us to deduct our fees
directly from your investment account. Important information about the deduction of management fees:

       You must provide written authorization for us to deduct fees by checking the appropriate section
        of our contract.

       You will receive a statement from your custodian which shows all transactions in your account,
        including the deduction of our fees.

       You are responsible for reviewing the accuracy of the fees being billed, as the custodian will not
        do so.

You may elect to pay by check rather than having payment deducted directly from your account.

You may terminate an advisory account by providing written notice. If an account is terminated before the
last day of a calendar quarter, we will prorate the advisory fees earned through the termination date and
send you a refund of the prepaid, unearned portion of your fee. We process refund payments within 30
days of the termination date and will send you a check or refund your investment account.

Other Costs Involved

In addition to our advisory fee shown above, you are responsible for paying fees associated with investing
for your account. These fees include:

       mutual fund loads (if applicable). These charges are paid to brokers as a form of commission.

       management fees for ETFs and mutual funds. These are fees charged by the managers of the
        ETF or mutual fund and are a portion of the expenses of the ETF or mutual fund.

       management fees and other operating expenses paid for alternative investments. These fees are
        charged by the manager of the alternative investment and fully disclosed in the offering materials
        provided before investing.

       brokerage costs and transaction fees for any securities or fixed income trades. These are
        generally charged by your custodian and/or executing broker. In the case of alternative assets,
        these fees may be substantially higher than they are on standard, listed securities.

       Schwab Advisor Services charges $5 for each account included in a block order when certain
        order types are used or special handling for a block order is requested by Delta.

Additional information about brokerage costs and services is provided in “Item 12: Brokerage Practices.”

We believe the fees mentioned above are competitive; however you may be able to obtain similar
services from other sources at a lower price.

Several individuals who provide investment advice to our clients are also affiliated with various insurance
agencies. If you elect to implement insurance recommendations through one of these individuals, that
person will receive the normal and customary commissions. In these situations, a conflict of interest
exists between the interests of the client and Delta. In these instances, these individuals have an
incentive to recommend products based on the compensation they receive, rather than on client’s needs.
Clients of Delta are under no obligation to implement insurance recommendations through one of these
individuals.

Clients may purchase insurance products and services from individuals other than those affiliated with
Delta.

ITEM 7: TYPES OF CLIENTS
Generally, Delta's minimum account size on the date of account opening is $50,000. We reserve the right
to waive this minimum account size requirement at our sole discretion. Our clients include entities who
are able to invest $50,000 and who are in compliance with AML regulations. We generally provide
advisory services to individuals, institutions, trusts and pension plans.