Sheets Smith Investment Management LLC

Item 5 – Fees and Compensation
Sheets Smith Investment Management’s fees are predominantly based on Assets Under
Management (AUM). All of the Firm’s fees are (1) agreed upon when the written advisory
agreement is signed, and (2) generally billed in arrears.

Sheets Smith Investment Management’s standard fee schedule in US dollars is as follows:
1.00% annually on the first $5 million, 0.75% on the next $5 million and 0.50% on
amounts over $10 million. Asset-based fees are payable quarterly in advance or arrears
and are based on the account value at quarter-end. For the clients who participate in
wrap programs, SSIM’s management fees vary from 0.25% to 0.75% of the assets
managed, payable in advance or arrears depending on custodian and service rendered.
Various factors dictate whether higher or lower fees are appropriate. These factors
include the size of the account, frequency of trading, the amount of client contact
necessary, the nature of the account, and the ease of administration. The Firm attempts
to tailor both its services and its fees to fit the needs and desires of clients. Depending on
client preferences and where the account is custodied, Sheets Smith Investment
Management may bill clients or invoice the custodian which will deduct its fees directly
from client accounts.

Commission based clients (those not paying wrap fees) may incur custodial fees and/or
broker fees for trades. If client assets are custodied at Schwab Institutional, they do not
pay custodial fees, and as of October 1, 2019, they do not pay brokerage fees for trades.
For investments in mutual funds, the Firm generally utilizes no-load mutual funds in
client accounts. For Schwab Institutional clients, the Firm also attempts to minimize

transaction costs by utilizing Schwab OneSource no-load funds that do not carry a
transaction fee.

Clients who invest in mutual funds are advised that they are paying the mutual fund
management fees in addition to the fees charged by the Firm. Clients who invest in ETFs
are also advised that they will also be paying management fees with the ETF as well as
fees charged by the Firm.

Clients often incur other minimal fees when securities are purchased or sold on their
behalf. The Firm does not receive, directly or indirectly, any of these fees, which are
typically paid directly to the client’s broker-dealer, custodian, or mutual fund. These fees
include, but are not limited to, exchange fees and SEC fees.

Termination: Either the Client or the Adviser may terminate the Investment Advisory
Agreement by giving thirty (30) days’ prior written notice of termination to the other;
provided, however, such termination of the Agreement will not affect: (a) the validity of
any actions the Adviser has previously taken; (b) the Client’s or the Adviser’s liabilities
or obligations for transactions started before termination; or (c) any provision,
obligation or right that is specifically designated herein to survive such
termination. Upon termination, any fees owed to the Adviser will be paid by the Client
on a prorated basis as of the effective date of termination, and any fees paid by the Client
that have not been earned will be refunded to the Client on a prorated basis as of the
effective date of termination.

Item 7 – Types of Clients
Sheets Smith Investment Management clients and prospective clients generally include
individuals, trusts, foundations, endowments, and retirement plans.