Arbor Investment Advisors LLC

Item 5            Fees and Compensation

    A. The client can determine to engage the Registrant to provide discretionary and/or non-
       discretionary investment advisory services on a fee-only basis.

         Investment Advisory Services
         If a client determines to engage the Registrant to provide discretionary and/or non-
         discretionary investment advisory services on a fee-only basis, the Registrant’s annual
         investment advisory fee shall be based upon a percentage (%) of the market value of
         assets placed under the Registrant’s management including held-away accounts (between
         negotiable and 1.00%) as follows:
                          Market Value of Portfolio         % of Assets
                              First $1,000,000                1.00%
                              Next $2,000,000                 0.75%
                              Next $2,000,000                 0.50%
                             Next $10,000,000                 0.40%
                         Balance above $15,000,000          Negotiable

ADV Part 2A Brochure                                                                              11

         For clients with less than the Registrant’s minimum of $1,000,000, the Registrant’s
         advisory fee will be 1.25% on all assets under management. Clients under the minimum
         who also wish to engage the Registrant to provide financial planning services are subject
         to the financial planning fee as outlined below.

         Financial Planning and Consulting Services (Stand-Alone)
         To the extent specifically requested by a client, the Registrant may determine to provide
         financial planning and/or consulting services (including investment and non-investment
         related matters, including estate planning, insurance planning, etc.) on a stand-alone
         separate fee basis. Registrant’s planning and consulting fees are negotiable, but generally
         range from a flat fee of $3,000 to $7,000, depending upon the level and scope of the
         service(s) required and the professional(s) rendering the service(s). If the client chooses
         to renew the financial planning engagement in subsequent years the annual renewal fee
         will be determined at the time of reengagement. Prior to engaging the Registrant to
         provide planning or consulting services, clients are generally required to enter into a
         Financial Planning Agreement with Registrant setting forth the terms and conditions of
         the engagement (including termination), describing the scope of the services to be
         provided, and the portion of the fee that is due from the client prior to Registrant
         commencing services. It shall remain each client’s responsibility to promptly notify
         Registrant if there is ever any change in his/her/its financial situation or investment
         objectives for the purpose of reviewing/evaluating/revising our previous
         recommendations and/or services. Please Note: Registrant does not serve as an attorney,
         accountant, or insurance agent, and no portion of our services should be construed as
         same. Accordingly, Registrant does not prepare legal documents, prepare tax returns, or
         sell insurance products. To the extent requested by a client, we may recommend the
         services of other professionals for non-investment implementation purpose (i.e.
         attorneys, accountants, insurance agents, etc.). The client is under no obligation to engage
         the services of any such recommended professional. The client retains absolute discretion
         over all such implementation decisions and is free to accept or reject any
         recommendation from Registrant and/or its representatives. Please Also Note: If the client
         engages any professional (i.e. attorney, accountant, insurance agent, etc.), recommended
         or otherwise, and a dispute arises thereafter relative to such engagement, the client
         agrees to seek recourse exclusively from the engaged professional. At all times, the
         engaged licensed professional[s] (i.e. attorney, accountant, insurance agent, etc.), and not
         Registrant, shall be responsible for the quality and competency of the services provided.

    B. Clients may elect to have the Registrant’s advisory fees deducted from their custodial
       account. Both Registrant's Investment Advisory Agreement and the custodial/clearing
       agreement may authorize the custodian to debit the account for the amount of the
       Registrant's investment advisory fee and to directly remit that management fee to the
       Registrant in compliance with regulatory procedures. In the limited event that the
       Registrant bills the client directly, payment is due upon receipt of the Registrant’s invoice.

ADV Part 2A Brochure                                                                              12

         The Registrant shall deduct fees and/or bill clients quarterly in advance, based upon the
         market value of the assets on the last business day of the previous quarter.

    C. As discussed below, unless the client directs otherwise or an individual client’s
       circumstances require, the Registrant shall generally recommend that Fidelity or Schwab
       serve as the broker-dealer/custodian for client investment management assets. Broker-
       dealers such as Fidelity and Schwab charge brokerage commissions and/or transaction
       fees for effecting certain securities transactions (i.e., transaction fees are charged for
       certain no-load mutual funds, commissions are charged for exchange traded funds,
       closed end funds, individual equity and fixed income securities transactions). In addition
       to Registrant’s investment management fee, brokerage commissions and/or transaction
...

Item 7            Types of Clients

         The Registrant’s clients shall generally include individuals, pension and profit sharing
         plans, business entities, trusts and charitable organizations. The Registrant generally
         requires a minimum asset level of $1,000,000 for investment advisory services. Registrant,
         in its sole discretion, may charge a lesser investment advisory fee, waive its minimum
         asset level, and/or charge a flat fee based upon certain criteria (i.e. anticipated future
         earning capacity, anticipated future additional assets, dollar amount of assets to be
         managed, related accounts, account composition, competition, negotiations with client,
         etc.). Please Note: As result of the above, similarly situated clients could pay different fees.
         In addition, similar advisory services may be available from other investment advisers for
         similar or lower fees. Registrant’s Chief Compliance Officer, April Y. Beason, remains available
         to address any questions that a client or prospective client may have regarding advisory fees.