Sebetic Advisors LLC

Item 5 Fees and Compensation
ADVISORY FEES

The following information describes how Sebetic Advisors is compensated for the investment
advisory services we provide to our clients. The specific way fees are charged and the
compensation we receive may differ between clients depending upon the individual Investment
Management Agreement with each client. Sebetic Advisors reserves the right to negotiate our
compensation with clients depending on the scope of our advisory relationship, and we may charge
higher or lower fees than are available from other firms for comparable services. Sebetic Advisors
has the general discretion to waive all or a portion of our fees

Investment Management Fees – Non-Qualified and Qualified Clients. In consideration for
providing investment management services, Sebetic Advisors receives compensation based on a
specific percentage of the assets we manage, as described below.

       Management Fee - Pursuant to the Investment Management Agreement with the client,
       Sebetic Advisors charges an annualized asset-based fee equal to .5% based on the client’s
       assets under management (“AUM”), taken quarterly in arrears, based on either the average
       daily value of the account during the quarter, or the value of the account at the end of the
       quarter adjusted for capital inflows and outflows during the quarter, depending on the
       custodian where the account is held.

Investment Management and Performance Fees – Qualified Clients may choose an
alternative fee structure. In consideration for providing investment management services,
Sebetic Advisors receives compensation from our qualified clients based on (i) a specified
percentage of the assets we manage and (ii) performance achieved for the client’s account, as
described below.

       For qualified clients, if agreed upon in writing and pursuant to the terms of the Investment
       Management Agreement with the client, Sebetic Advisors will charge an annualized
       management fee of .1% based on the client’s assets under management (“AUM”) and a
       performance-based fee equal to 1/3 of the account’s investment returns in excess of the
       return on the SPDR S&P 500 ETF (SPY). However, if SPY investment returns are
       negative, the performance fee will equal 1/3 of the positive investment performance in the
       account (1/3 of account gains, not 1/3 of the excess over SPY).

       If the investment returns provided by SPY exceed the returns on the account, no
       performance fee is charged. Any shortfall or excess account performance will be carried
       forward to future years. Each annual calculation will incorporate the performance from
       that year minus any shortfall or plus excess carried forward from prior years. The
       performance fee will be calculated on December 31st of each year.

Sebetic Advisors, LLC                                                                           6
Form ADV Part 2A

          Below are 3 examples of the inception to date (ITD) performance fee calculation.

                                                                                                                                          ITD
                                              Account               Account     Account                1/3 of   ITD Perf               Account
                                 Account    ITD Return                ITD         ITD      1/3 of ITD   ITD       Fee                   Return
                                 Opening     after Mgt   SPY ITD    Excess      Positive    Excess Positive     Already    Perf Fee    After Perf
      Scenario          Year     Balance        Fee       Return     Return     Return      Return    Return      Paid     This Year     Fees

Return above SPY        Year 1    500,000      54,500     47,500       7,000      NA          2,333     NA           -         2,333      52,167
year 1 & below year 2   Year 2    552,167      70,000     64,000       6,000      NA          2,000     NA        2,333           -       67,667

Return above SPY's      Year 1    500,000      24,500    (20,000)     44,500     24,500       NA       8,167         -         8,167      16,333
negative year 1 &
equals in year 2        Year 2    516,333      54,500     10,000      44,500      NA         14,833     NA        8,167        6,667      39,667

Return below SPY        Year 1    500,000      39,500     50,000     (10,500)     NA          NA        NA           -           -        39,500
year 1 & above year 2   Year 2    539,500      79,500     70,000       9,500      NA          3,167     NA           -         3,167      76,333

Sebetic Advisors, LLC                                                                                                                         7
Form ADV Part 2A

The client will give written authorization permitting the Advisor to be paid directly from their
account held by the custodian. The custodian will send a statement at least quarterly to the client
and the Advisor will also send an invoice to the client outlining the fee calculation, time period
covered, and the amount withdrawn from the client account each time the fee deduction invoice is
sent to the qualified custodian. Clients must choose the method by which our fees will be
calculated. Sebetic Advisors does not withdraw fees directly from clients’ accounts.

Additional Fees and Expenses: Clients will incur transaction charges and/or brokerage fees when
purchasing or selling securities. These charges and fees are typically imposed by the broker-dealer
or qualified custodian through which account transactions are executed. For more information on
our brokerage practices, please refer to Item 12 of this Brochure.

The fees that clients pay to our firm for investment advisory services are separate and distinct from
the fees and expenses charged by mutual funds and/or exchange traded funds (described in each
...

TYPES OF CLIENTS

Sebetic Advisors offers investment advisory services only to individuals, high net worth
individuals, and trusts and estates. Client relationships may vary in scope and length of service.

ACCOUNT REQUIREMENTS

Sebetic Advisors generally requires a minimum account balance of $500,000 for our investment
management services. However, Sebetic Advisors in its sole discretion may waive or lower our
minimum account balance requirement based on various criteria (e.g. anticipated future additional
assets to be managed, related accounts, account composition, negotiations with the client, etc.).

For performance-based fee arrangements, clients must meet the definition of a “qualified client”
as defined under Rule 205-3 of the Investment Advisers Act of 1940.

Sebetic Advisors, LLC                                                                              9
Form ADV Part 2A