Hodges Capital Management Inc

Item 5: Fees and Compensation
FEE SCHEDULE:

INVESTMENT ADVISORY SERVICES:
Hodges Capital Management is compensated through an annualized asset-based fee (“advisory fee”), which is
paid on a quarterly basis in advance or arrears. Clients invested in a Hodges Free Style Portfolio may choose to
have the fees billed to them via an invoice or deducted directly from their account. Clients invested in a Hodges
Private Client Portfolio will have the fees deducted directly from their account. Fees are payable within thirty (30)
days of the last day of the billing period. Fees are charged based on the number of days the account is under
management during the period for any advisory agreement that comes into effect or is terminated mid-period.
Although many fees are individually negotiated, the fees typically range from 0.30% (e.g., “model delivery”) to
1.50% (individual management). Hodges Capital may also charge a different fee based on the asset class of
securities held in an account. The amounts and specific way fees are charged is memorialized in our contract with
the Client.

A portion of the asset-based fees paid to Hodges Capital Management is in turn paid to the Hodges Capital
Management Investment Adviser Representative responsible for managing the account.

FEES FOR MANAGEMENT DURING PARTIAL QUARTERS OF SERVICE
New accounts that are opened intra-quarter are charged an Advisory fee that is pro-rated for the period of time
from when the account is opened until the end of the quarter. Upon termination of an Agreement intra-quarter,
any prepaid, unearned Advisory Fees will be promptly refunded, and any earned, unpaid Advisory Fees will be due
and payable. For some clients, if a client contributes capital or withdraws assets from their account, equal to or
greater than $50,000.00, on a date other than the first day of a calendar quarter for a contribution or the last day
of a calendar quarter for a withdrawal, some accounts will be charged a pro-rated portion of the fees for that
calendar quarter.

The agreement between the Firm and the client will continue in effect until terminated by either party pursuant
to the terms of the agreement.

FEES FOR ADVISORY SERVICES TO THE HODGES MUTUAL FUNDS:
For our services to the Funds, each of the Hodges Mutual Funds pays Hodges Capital Management a monthly
management fee at an annual rate of between 0.65% and 0.85% of the Funds’ average daily net assets. Fees and
charges paid and borne by the Funds as described in greater detail in the Funds’ current effective combined
prospectus.

Hodges Capital Management uses a portion of its own resources to pay for various promotional activities relating
to the Funds that are undertaken by Hodges Capital Management or its personnel. Hodges Capital Management
is reimbursed for a portion of those expenditures out of the 12b-1 marketing fees paid by the Funds to the Funds’
distributor, which are in turn paid to Hodges Capital Management as permitted under the Funds’ 12b-1 Plan, as

                                                                                     Hodges Capital Management
                                                                                          Form ADV Part 2A | 8

well as information about unreimbursed promotional expenditures relating to the Funds made by Hodges Capital
Management out of its own resources.

TERMINATION WITH RESPECT TO THE HODGES FUNDS:
The Investment Advisory Agreement between Hodges Capital Management and the Northern Lights Fund Trust II
P(“Trust”) with respect to the Hodges Mutual Funds shall, unless terminated as provided in the agreement,
continue in effect from year to year, but only so long as such continuance is specifically approved at least annually
by the Trust’s Board of Trustees, including the vote of a majority of the Trustees who are not parties to the
agreement or “interested persons” (as defined in the Investment Company Act of 1940) of any such party cast in
person at a meeting called for the purpose of voting on such approval, or by the vote of the holders of a “majority”
(as so defined) of the outstanding voting securities of the Fund and by such a vote of the Trustees.

The Investment Advisory Agreement may be terminated by Hodges Capital Management at any time without
penalty upon giving the Trust sixty (60) days’ written notice (which notice may be waived by the Trust) and may
be terminated by the Trust at any time without penalty upon giving Hodges Capital Management sixty (60) days’
written notice (which notice may be waived by Hodges Capital Management), provided that such termination by
the Trust shall be directed or approved by the vote of a majority of all its Trustees in office at the time or by the
vote of the holders of a majority (as defined in the Investment Company Act of 1940) of the voting securities of
the Trust at the time outstanding and entitled to vote. The agreement shall automatically terminate in the event
of its assignment (as so defined). Upon termination, fees payable to Hodges Capital Management will be prorated
for any partial period as appropriate.

FEES FOR PORTFOLIO MANAGEMENT SERVICES IN SPONSORED PROGRAMS:
Sponsored programs come in a wide variety of forms and arrangements. Most often, for programs in which
Hodges Capital Management participates, the client pays fees to the Sponsor, and the Sponsor pays Hodges Capital
Management’s fee. In addition, clients may or may not be subject to brokerage fees or commissions on the trades
effected in their account or subject to other fees or charges from the Sponsor in connection with their account. If
the program is a “wrap fee” program, clients will typically pay an all-inclusive (or “wrap”) fee to the Sponsor
covering the portfolio management services provided by Hodges Capital Management, as well as brokerage,
custodial, performance monitoring and/or other services provided by the Sponsor. More specific information
...

Item 7: Types of Clients:
CLIENT BASE:
Our customer base consists of individuals, institutions, trusts, estates, charitable organizations, corporations and
pension and profit-sharing plans. We service these types of clients, but we may not have all these types as current
clients.

CONDITIONS FOR ACCOUNT MANAGEMENT:
Hodges Capital Management’s account minimum varies based on the Advisory Program selected, but typically is
$100,000 to establish a Hodges Private Client Free Style Portfolio account and $500,000 to establish a Hodges
Private Client Strategy Portfolio account. Hodges Capital Management has accepted accounts that are smaller and
reserves the right to do so in the future, in its discretion. The minimum account size for accounts Hodges Capital
Management manages through unaffiliated Sponsors’ Wrap Fee or other programs varies by program but are
typically not less than $100,000. Hodges Capital Management has accepted accounts that are smaller and reserves
the right to do so in the future at its discretion.