AFT Forsyth & Sober LLC

Item 5 – Fees and Compensation
The fee for portfolio management services is billed monthly in arrears based on the asset
value at the end of the month. Fees may be assessed on a pro rata basis in the event
the portfolio management agreement is executed at any time other than the first day of
a month. The payment of fees for portfolio management services will be made via a direct
debit by the qualified and independent custodian holding the clients’ funds and securities.
AFS’ fees for portfolio management services are subject to negotiation and are based
upon the complexity of the account and the client goals and objectives. Therefore, clients
with similar assets under management and investment objectives may pay significantly
higher or lower fees than other clients.

Aft, Forsyth & Sober, LLC charges each account a flat/non-graduated management fee
based upon the value of the account, which may be grouped by relationship. Fees may
be adjusted and are based on several factors: the Long-Term Asset Allocation, complexity
of the account structure, investment strategy employed, Long Term account goals and
objectives and whether the account is discretionary or non-discretionary, and other
factors that are requested by the client. Fees are based on the Investment Strategy
Employed, the “Line in the Sand” or Flexible Asset Allocation Strategy and the Long-Term
Asset Allocation Goal and Objective. Investment accounts/allocations are monitored on
a monthly/weekly/daily basis depending on market conditions.

The base Fee Schedule is as follows:

Fee Schedule
                                  Line in the Sand/Disaster Protection
                                    Flexible Asset Allocation Strategy
100 Mil+                                       0.55 %
50 to 100 Mil                                  0.65 %
25 to 50 Mil                                   0.75 %
10 to 25 Mil                                   0.85 %
5 to 10 Mil                                    1.00 %
1 to 5 Mil                                     1.10 %

The investment management contract shall remain in effect until terminated by either
party giving a 30-business day written notice, or other time frame that is mutually agreed
upon, in which case, Aft, Forsyth & Sober, LLC may prorate the fees for the final period
based on the end of the month market value.

Fees are charged monthly in arrears. Aft, Forsyth & Sober, LLC may from time-to-time
adjust fees if management determines that a deviation from the fee schedule is
appropriate.

Payment of AFS’ management fees will be made by the qualified custodian holding the
client’s funds and securities provided the client supplies a written authorization permitting
the fees to be paid directly from the account. AFS will not have access to client funds for
payment of fees without written consent from the client. Further, the qualified custodian
agrees to deliver a monthly account statement directly to the client, showing all
disbursements from the account, client investments and other pertinent client asset
information. The client is required to review all account statements for accuracy.

Neither AFS nor any of its employees receive compensation for the purchase and/or sale
of securities or any other investment products.

Item 7 – Types of Clients
AFS generally provides investment advice for individuals, trust accounts and foundations.

The typical client generally has an investable net worth of $25,000,000 to open and
maintain an advisory account. However, this minimum may be waived at the discretion of
AFS.