Meliora Capital LLC

Item 5 Fees and Compensation

Meliora Capital, LLC is compensated based upon a set percentage of the market value
of the assets of the client account. Clients are billed on a quarterly basis, in arrears,
based upon the value of the assets in the client account on the last business day of the
previous quarter. The standard fee rate is 1% annually (0.25% each quarter). The
firm reserves the right to make its management fee rate negotiable at its discretion.
When clients engage the firm on a consulting basis, hourly fees range from $150-
$400/hour.

Management fees will be deducted directly from the assets in client accounts.
However, on a limited and case-by-case basis, the firm may, at its discretion,
alternatively choose to bill clients for the balance due. Clients may also incur
brokerage transaction costs as investment securities are purchased and sold. See
Section 9 for more information regarding brokerage transactions. Clients may also
be subject to custodial fees and mutual fund fees.

None of our supervised persons accept compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from
the sale of mutual funds.

Item 7 Types of Clients

Meliora Capital, LLC’s clients and prospective clients primarily include individuals,
trusts and foundations and institutions of various types including endowments,
pension plans and corporations.

The firm’s minimum initial portfolio size is $250,000 for investment advisory clients.
The firm’s Private Client Services minimum portfolio size is $5,000,000. The firm
reserves the right to amend and to provide exceptions to these minimum portfolio
amounts.