Arlington Capital Management Inc

ITEM 5 – Fees and Compensation

Arlington’s clients fall under one of the following fee schedules, although the fees are
negotiable. Arlington may enter into other fee arrangements in a case-by-case basis.
Arlington may also enter into fixed-fee consulting arrangements.

Wealth Management Services

Wealth Management Services fees are paid quarterly in advance and assessed against
assets under management, as follows:

                     Value of Assets Under Management               Annual Fee
                     Less than $2.5 million                           1.25%
                     $2.5 million to $5 million                       1.00%
                     $5 million to $10 million                        0.80%
                     Over $10 million                                 0.65%

The minimum quarterly fee for Wealth Management Services is $3,750.

Investment Management Services

Investment Management Services fees are paid quarterly in advance and assessed against
assets under management, as follows:

                     Value of Assets Under Management               Annual Fee
                     Less than $500,000                               $7500
                     $500,000 to $1 million                           1.50%
                     $1 million to $2.5 million                       1.25%
                     $2.5 million to $5 million                       1.00%
                     Over $5 million                                  0.80%

The minimum quarterly fee for Investment Management Services is $1,875.

Additional Information

While the above represents our fee schedules, certain legacy fee schedules exist for
specific clients. In addition, depending upon the client’s circumstances and needs, we
can offer a legacy fee schedule to new clients.

The above fees apply to accounts that are managed on a discretionary basis and instances
where AWM provides advice to accounts where AWM does not have trading authority.
In addition to the above management fee, the client will have transaction costs (including
brokerage fees, commissions and related costs) associated with each trade in their
custodial account to cover execution, in addition to any custodial expenses. Please refer
to Item 12 of this Firm Brochure for a discussion of Arlington’s brokerage practices.

Client assets may be invested in Mutual Funds, Exchanged Traded Funds, or other
securities that may charge fees and expenses that are in addition to the management fee
charged by Arlington. Therefore, clients whose assets are invested in shares of these
Funds or securities will pay both a direct management fee to Arlington and an indirect
management fee and any expenses charged by these Funds or securities. A complete
explanation of the fees and expenses charged by these Funds or securities is contained in
the prospectus or other offering memoranda (if one exists) for these Funds or securities,
which clients should review carefully.

For billing purposes, in cases where the account holds unregistered securities (private
placements for which a market value is not available, we value the holdings at the latest
value provided by the issuer, which in some cases may be the original cost. Original cost
may be more or less than the actual market value of the security at any given time and
may be more or less than the proceeds investors will receive upon liquidation or
termination of the security. Consequently, when original cost is used, Arlington may
charge a fee that is based on a valuation that is higher or lower than the fair market value
of the underlying investments. In these cases, clients sign a disclosure acknowledging the
value and the amount to be charged, and that the amount of the fee will not vary over the
life of the investment, though the underlying value of the private placement may fluctuate
and at liquidation may be worth more or less than the amount originally invested.

Most of our clients’ assets are invested in accordance with our strategies. Where we
manage a private placement, that investment will not be included in the strategy but its
value will be included with other assets for billing purposes. Management fees on private
placements generally will be assessed the same billing rate as other assets, but in some
cases may be assessed a different rate as specified in the advisory agreement. Also see

ITEM 7 – Types of Clients

Advisory services are generally provided to individuals. However, in some instances
Arlington will service accounts for retirement plans, pension and profit-sharing plans,
trusts, estates, charitable organizations, or other business entities.

For investment management services, the firm recommends a minimum relationship size
of $500,000. However, in certain instances, this investment minimum may be negotiated
at the discretion of Arlington.