Augustine Asset Management Inc

5. FEES AND COMPENSATION

Augustine’s fees are based on the market value of assets managed, as follows:

                              Private Client Advisory Fee Schedule

                                   Minimum assets of $2 million

                           Incremental Assets               Annual Fee
                           First $2 million                 1.00%
                           Next $8 million                  0.80%
                           Above $10 million                0.65%

                     Institutional Investment Management Fee Schedules

                                   Minimum assets of $15 million

                                           Global Equity
                                              0.70%

                                      Core Plus Fixed Income
                                              0.35%

                                     Short Term Fixed Income
                                              0.30%

                                     Passive Optimized Equity
                                              0.07%

                  Fees or minimums may be negotiated in certain circumstances.

The fee schedules are applied incrementally to the market value of the account, computed quarterly,
billed at one-fourth the annual rate above, and subject to negotiation in certain circumstances. Fees
are payable in arrears at the end of a quarter.

The above fee schedule and client fee contracts do not include commissions, fees, margin interest,
and other charges which may be levied directly by custodians or executing brokers and charged
directly to the client’s account.

The firm has no formal relationships with third parties for the purpose of compensating a third party
in exchange for recommending potential clients to Augustine.

7. TYPES OF CLIENTS

Augustine serves high net worth individuals and families and institutions such as corporations,
retirement plans, and charitable nonprofit entities. Our account minimum is $2,000,000 for private
client advisory services and $15,000,000 for institutional services.

              8. METHOD OF ANALYSIS, INVESTMENT STRATEGIES,
                            AND RISK OF LOSS

INVESTMENT PHILOSOPHY

Our team of portfolio managers and analysts follow a research-oriented investment process. We
emphasize fundamental analysis of capital markets, industries, and individual securities to identify
attractively valued investment opportunities and to manage portfolio risk.

While aware of the market indices against which clients judge our performance, we believe attractive
risk-adjusted returns are best achieved by focusing on select countries, industries, and companies.
We measure our success by meeting or exceeding the goals mutually agreed upon with our clients.

We customize client portfolios with an active view toward asset allocation. Client-specific factors
including long-term financial objectives, risk tolerance, cash flow requirements, and tax sensitivity
are combined with our analysis of the economic cycle and capital markets to form an asset allocation
strategy that is dynamic and specific to both client needs and market conditions.

INVESTMENT STRATEGIES

Augustine’s investment team manages proprietary strategies based on its research on the economy,
capital markets, and individual securities. The firm customizes client-specific portfolios by allocating
assets among the following strategies:

 Strategy                       Objective & Characteristics

 Global Equity                  Capital appreciation. Globally diverse and focused on securities
                                that exhibit attractive relative valuation, quality of reported
                                earnings, and improvement in fundamentals.
 Core Plus Fixed Income         Income. Low volatility. Active credit and interest rate strategy
                                focused on securities that offer attractive risk-adjusted yield per
                                unit of interest rate risk.
 Short-Term Fixed Income        Income. Very low volatility. Active credit strategy focused on
                                securities that have short-term maturity and offer attractive risk-
                                adjusted yield per unit of interest rate risk.
 Balanced Allocations           Any combination of the above strategies to fit client objectives.

INVESTMENT PROCESS: EQUITY STRATEGIES

Augustine manages equity strategies with active decisions on security selection, sector allocation,
and regional positioning. We apply an investment process based on systematic screening, on
fundamental research of individual securities, sectors, industries, capital markets, and the
economy, and on portfolio construction that aims to produce excess returns with controlled
risk. We favor securities that exhibit a combination of traits conducive to capital appreciation and
risk control: quality, value, and improving fundamentals. Portfolios hold between 30 and 50
securities, an amount suitable for diversification and risk management while having high conviction
investments.

INVESTMENT PROCESS: FIXED INCOME STRATEGIES

Augustine manages benchmark-differentiated fixed income strategies which follow a systematic
investment approach combining top-down macroeconomic views with bottom-up fundamental
research. The fixed income strategies are active regarding duration, credit quality, and sector
exposure based on the investment team’s expectations for the economy, interest rates, inflation,
credit spreads, and repayment performance. The integration of fundamental market, and data
analysis produces security-level conviction regarding value and risk. We focus on finding relative
value and seek to exploit inefficiencies in different sectors of the fixed-income market.