Palisade Investments LLC

Item 5 – Fees and Compensation

In addition to the information provide in Item 4 – Advisory Business, this section provides
additional details regarding our firm’s services along with descriptions of each service’s fees and
compensation arrangements.

The specific manner in which fees are charged by Palisade Investments is established in a
client’s written agreement with Palisade Investments. Palisade Investments, LLC bills its fees on
a quarterly basis. Clients will be billed either in advance of each calendar quarter or in arrears.
Clients may also elect to be billed directly for fees or to authorize Palisade Investments to
directly debit fees from client accounts. Accounts initiated during a calendar quarter will be
charged a prorated fee. Institutional contracts may be terminated at the end of any quarter with
30 days advanced written notice. Since Institutional contracts go through the end of a quarter,
refunds are not applicable. Retail contracts are cancellable at any time with 30 days-notice by
either party. Any refund of fees due the client is prorated based on the termination date and the
remaining days left in the calendar quarter: refund = (days left in the calendar quarter after
termination date/days in the calendar quarter) x Fees paid by the client for the quarter. The
refund of fees is due to the client 30 days after the termination date.

All Palisade Investments, LLC fees are negotiable and can typically range from 0.10% to 2.0%
per annum if based on a percentage of assets or can be a fixed fee arrangement based on services
provided and assets managed or a combination of the two. Palisade Investments’ fees are

Palisade Investments, LLC                                                            Disclosure Brochure

exclusive of brokerage commissions, transaction fees, and other related costs and expenses
which shall be incurred by the client. Clients may incur certain charges imposed by custodians,
brokers, third party investment and other third parties such as fees charged by managers,
custodial fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and
electronic fund fees, and other fees and taxes on brokerage accounts and securities transactions.
Mutual funds and exchange traded funds also charge internal management fees, which are
disclosed in a fund’s prospectus. Such charges, fees and commissions are exclusive of and in
addition to Palisade Investments’ fee, and Palisade Investments shall not receive any portion of
these commissions, fees, and costs.

Fees are negotiable based on the size of account, market environment, number of locations,
agreed upon workload, and other factors determined from time to time as important to the
provision of service by Palisade Investments, LLC. Some clients may be charged more or less
than other similar clients. Accounts may also be subject to minimum or maximum fees. Fees are
typically based on the assets under advisement. The assets under advisement are based quarterly
on the last business day balance of the account(s) each quarter. In general, our fees typically do
not exceed 2.0% of assets advised though there could be exceptions.

In cases where minimum fees are imposed on qualified plan clients, Palisade Investments
recommends fees are paid directly by the client. Ultimately, it is the responsibility of the client to
choose how to pay the fees.

When required by a regulatory agency, Clients will receive invoices for each billing. The invoice
will include (a) the fee formula (b) the time period use to calculate the fee, (c) the dollar amount
of assets used to calculate the fee and (d) the qualified custodian will be notified of the amount to
be deducted.

From time to time, negotiation of fees may result in a ‘fixed fee’ arrangement. The fixed fees
that are not a result of either minimums or higher asset values in qualified plans are the result of
negotiation. A reason for fixed fees may be, but is not limited to, a more limited scope of
services.

Item 12 further describes the factors that Palisade Investments considers in selecting or
recommending broker-dealers for client transactions and determining the reasonableness of their
compensation (e.g., commissions).

Item 7 – Types of Clients

Palisade Investments, LLC generally provides investment advice to the following types of
clients:

    •    Individuals
    •    High-Net Worth Individuals
    •    Banks or thrift institutions
    •    Investment companies
    •    Pension and profit sharing plans
    •    Trusts, estates, or charitable organizations
    •    Corporations or business entities other than those listed above

All clients are required to execute an agreement for services in order to establish a client
arrangement with Palisade Investments, LLC and/or the sponsor of third-party money manager
platforms.

Minimum Investment Amounts Required

Depending upon services required, there may be minimum investment amounts or conditions
required for establishing an account managed by Palisade Investments, LLC. All clients are
required to execute an agreement for services prior to commencing any work.