FREC Advisers LLC

Item 5: Fees and Compensation

Description and Billing

Frec Advisers offers its services on a fee basis, which includes fees based upon assets under
management. Frec Advisers’ fees are shown below for each of its different strategies:

  S&P 500® index                                                                           0.09%
  CRSP® US Large Cap index                                                                 0.10%
  CRSP® US Total Market index                                                              0.13%
  CRSP® US Large Cap Growth index                                                          0.14%
  CRSP® US Large Cap Value index                                                           0.14%
  CRSP® US Mid Cap index                                                                   0.14%
  CRSP® US Small Cap index                                                                 0.15%
  CRSP® US Small Cap Growth index                                                          0.15%
  CRSP® US Mid Cap Growth index                                                            0.15%
  CRSP® US Small Cap Value index                                                           0.15%
  CRSP® US Mid Cap Value index                                                             0.15%
  Dow Jones® US Dividend 100 index                                                         0.16%
  S&P® Developed Markets ADR index                                                         0.17%
  S&P® Emerging Markets ADR index                                                          0.19%
  S&P 500® Information Technology index                                                    0.19%
  S&P 500® Momentum index                                                                  0.20%
  Russell® 1000 index                                                                      0.22%
  Russell® 2000 index                                                                      0.26%
  S&P 100 index                                                                            0.27%
  Russell® 3000 index                                                                      0.27%
  MSCI® World ADR index                                                                    0.29%
  MSCI® ACWI ADR index                                                                     0.32%
  MSCI® EAFE ADR index                                                                     0.32%

  MVIS® US Listed Semiconductor 25 index                                                      0.35%
  S&P 500® Shariah index                                                                      0.35%
  Factor Tilt Long-Short 140/40 index                                                         0.50%
  Diversify 140/40                                                                            0.60%
  Factor Tilt Long-Short 200/100 index                                                        1.00%
  Diversify 200/100                                                                           1.10%
  Factor Tilt Long-Short 250/150 index                                                        1.30%
  Cash Management Investment                                                                  0.20%

The Firm does not currently charge a fee for its tax basis monitoring service or for ETF positions
held within its portfolio allocation feature.

Any positions transferred into or held within a Direct Index strategy (including ETF positions that
are being incorporated and risk-managed towards the target benchmark or have not yet been
transitioned into the strategy’s underlying securities) will be included in the account’s assets
under management (AUM) and charged the fee applicable to that Direct Index strategy.

Frec Advisers’ fees are prorated and charged on a monthly basis in arrears based on the net
market value of the assets being advised, including self-directed assets for which the Firm is
providing hedging and tax-loss harvesting services. Fees are charged utilizing the following
calculation: the Firm calculates a daily advisory fee, which is equal to the fee rate multiplied by
the net market value of the client’s assets being advised by the Firm (excluding cash) as of the
close of trading on the New York Stock Exchange (“NYSE”) on such day, or as of the close of
NYSE on the immediately preceding trading day for any day when the NYSE is closed, and then
divided by 365 (or 366 in any leap year). The advisory fee for a calendar month is equal to the
total of the daily fees calculated during that month (less any deductions or fee waivers). In the
event a client terminates Frec Advisers’ services, the Firm’s fees for the month will be calculated
as of the last day of service. In the event a withdrawal would result in an account value less than
the fee due for the current billing period, Frec Advisers will retain assets sufficient to cover such
fee. In addition to Frec Advisers’ fees, clients will incur other fees or expenses, including
markups payable to Frec Securities in connection with hedging transactions recommended by
the Firm.

A client’s Investment Advisory Agreement permits Frec Advisers to deduct its fees from clients’
accounts, which are custodied by Apex Clearing Corporation (“Apex”). The Firm will deduct its
fees from accounts holding advisory assets at Apex no later than the tenth business day of the
following month. Fees will be deducted from a client’s cash balance; if the client does not have
a cash balance, then the fee will be added to the client’s loan amount. The Firm’s affiliate, Frec
Securities, charges interest on customers’ margin balances. Accordingly, the Firm has an
incentive to recommend clients invest in securities rather than maintaining a cash balance in
their accounts. Apex will send a statement to the client at least quarterly, indicating all amounts
distributed from their account, including the amount of fees deducted by Frec Advisers.
...

Item 7: Types of Clients

Frec Advisers is available for use by all individuals, trusts and other entities (subject to Frec
Advisers’ approval) who are legal U.S. residents over the age of 18. There is no minimum
account size to engage Frec Advisers’ services. Frec Advisers imposes a minimum account size
requirement of $20,000.00 to open an account. In addition, Frec Advisers imposes strategy and
index-specific minimum account sizes, which are set forth on its website at
https://frec.com/pricing. The minimum account size requirement is based on the index selected
for the long-only direct-index and tax loss harvesting strategies and based on the long-short
exposure for the long-short direct index and tax loss harvesting strategies. There is no minimum
account size to participate in Frec Advisers’ cash management strategy.