Triad Investment Management LLC

ITEM 5 – FEES AND COMPENSATION
Fee Schedule

Investment Management Services
Triad charges advisory fees for investment management services. Triad‘s advisory fees are charged
based on a percentage of the fair market value of the portfolio, per the following schedule:

 Assets Under Management              Annual Fee
 Initial $2,500,000                   1.50%
 Next $2,500,000                      1.30%
 Over $5,000,000                      1.10%

Some accounts are under different fee schedules honoring prior agreements. Our standard fee
schedules may be negotiable based on a number of factors, which include but are not limited to
“grandfathered” accounts, related accounts, and other structures that we may consider in special
situations. We also waive advisory fees for Triad employee and related accounts.

Participant Account Management
Triad’s management fees for held-away accounts (see description in Item 4 – Advisory Business, above)
will be charged to the client either by (1) debiting another client brokerage account also managed by
Triad; or (2) direct invoice. Triad is not affiliated with the third-party platform in any way and receives no
compensation from them for using their platform; however, Triad pays a fee to the third-party platform
provider for use of the service. Clients do not pay an additional fee for use of this service.

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Billing Method

Investment Management Services
Triad’s advisory fees are payable quarterly in advance at the beginning of each calendar quarter. The
formula used for the calculation is as follows: (Annual Rate) x (Total Portfolio Value at Quarter-End) x (#
of Days in Advance Quarter / # Days in Current Year). For new client accounts, the first payment is a pro-
rata calculation due upon execution of the advisory agreement. The calculation will take into
consideration the number of days remaining in the quarter and the initial value of the portfolio. The
formula used to calculate the initial advisory fee is as follows: (Annual Rate) x (Initial Portfolio Value) x
(Number of Days in Current Quarter/Days in Current Year).

Triad aggregates client accounts that have family relationships with each other for purposes of
calculating the advisory fees applicable to each client. We generally waive fees for our personnel and
their family members.

With client authorization, Triad will automatically withdraw Triad’s advisory fee from the client’s
account held by an independent custodian. Typically, the custodian withdraws advisory fees from the
client’s account during the first month of each quarter based on Triad’s instruction. All clients will
receive brokerage statements from the custodian no less frequently than quarterly. The custodian
statement will show the deduction of the advisory fee. Triad will send a statement to each client who
authorizes us to instruct the custodian to withdraw fees directly from the account. The statement will
show the amount of the fee, the value of the client’s assets upon which we based the fee, and the rate
used to calculate the fee. It is the client’s responsibility to verify the accuracy of the fee calculation. The
custodian will not determine whether the fee is properly calculated.

Triad generally purchases securities with readily available market prices for its clients and typically uses
the securities prices provided by the client’s custodian to value client account securities.

Triad’s Chief Compliance Officer (CCO) periodically spot checks the custodian prices against another
pricing source. Triad considers the risk of mispricing of securities to be higher for some securities over
others. For example, the fixed income securities that do not trade on a daily basis are at greater risk of
being stale than highly liquid equity securities that trade daily. Consequently, greater focus will be
placed on the review of securities Triad perceives at greater risk of mispricing. In the event a security is
not priced by the client’s custodian or the CCO believes that the custodian’s price does not adequately
represent investment value, Triad will price the security using what we believe to be the best
information available to us at that time.

Other Fees and Expenses

Triad’s fees do not include custodian fees. Clients pay all brokerage commissions, stock transfer fees,
and/or other similar charges incurred in connection with transactions in accounts from the assets in the
account, which are in addition to the fees clients pay to Triad. See Item 12 – Brokerage Practices below
for more information.

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In addition, any fund shares held in a client’s account are subject to fund-related expenses and, if
applicable, 12b-1 fees and/or early redemption fees on mutual funds. Each fund’s prospectus fully
describes the fees and expenses. All fees paid to Triad for investment advisory services are separate and
distinct from the fees and expenses charged by funds. Funds pay advisory fees to their managers, which
are indirectly charged to all holders of the fund shares.

Termination

Investment Management Services
Either party may terminate the advisory agreement at any time by providing written notice to the other
party. Triad will refund any prepaid, unearned advisory fees based on the effective date of termination.
Upon termination of the agreement, we will send the client a prorated refund of unearned advisory fees
using the following formula: (Fees Paid) x (Days Remaining in Quarter)/(Total Number of Days in
Quarter).

In the event the client terminates the investment advisory agreement, Triad will not liquidate any
securities in the account unless authorized in writing by the client to do so. In the event of client’s death
...

ITEM 7 – TYPES OF CLIENTS
Triad offers discretionary investment advisory services to individuals, including high net worth
individuals. In addition, we provide advisory services to foundations and businesses.

Account Requirements

Generally, Triad requires clients to maintain a minimum relationship of $1,000,000. Significant funds
withdrawal may result in a request for additional fund deposits to continue with management of
accounts. We generally combine family accounts to meet the account size minimum. Triad may reduce
or waive the account minimum requirements at our discretion.

Triad Investment Management                          10                                      Part 2A Brochure