BAC Capital Advisors LLC

Fees and Compensation (Item 5)
This section of the brochure describes how we are compensated for the services we offer.

Compensation Methodology and Rates
Assets Under Management
Clients are charged for our asset management services based on a percentage of the assets
being managed. The following fee schedule is our standard fee schedule for investment
supervisory services. Your specific annual fee arrangement will be described in the written
Investment Advisory Agreement entered into between BAC Capital Advisors and you.
Investment advisory fees charged by us are negotiable at our sole discretion. All clients do
not pay the same fee.

                Assets Under Management                            Annual Rates
                      $0 to $300,000                                  1.00%
                   $300,001 to $500,000                               0.90%
                    $500,001 and above                                0.85%

The annual fee for our services is billed quarterly, either in advance or arrears, based on
the value of the account at the end of the quarter. The billing method, forward or arrears is
described in the written Investment Advisory Agreement. If the management agreement
does not span the entire quarterly billing period, the fee will be pro-rated based on the
number of days the account is open during the billing period. Your qualified account
custodian will send client statements, at least quarterly, showing all disbursements for the
account including the amount of the advisory fee, if deducted directly from the account. It is
the shared responsibility of BAC Capital Advisors and you to verify the accuracy of the fee
calculation as the account custodian will not determine whether the fee has been properly
calculated. See Brokerage Practices (Item 12) in this brochure for more information about
your account custodian(s).

You may terminate the Investment Advisory Agreement without fee or penalty by
providing written notice to BAC Capital Advisors within five (5) business days from the
execution of the agreement. Thereafter, either party may terminate the Investment
Advisory Agreement by providing written notice. Any fees collected in advance of services
being performed will be returned to you on a pro rata basis.

Third Party Sub-Advisor Fees
We have entered into an agreement with a third party advisor to provide ongoing portfolio
management and advice. The Sub-Advisor provides us with investment advice regarding

clients’ investment portfolios. This investment advice includes ongoing research and due
diligence for each investment and portfolio asset allocation. The Sub-Advisor is responsible
for recommending when investment or allocation changes are appropriate and
communicating their advice to us. We then review and determine any changes to the
clients’ investment portfolio. You are not charged a separate fee for the Sub-Advisor’s
services. We pay the Sub-Advisor a portion of the fee you pay us or an hourly fee.

Fixed Fees
You may enter into an Investment Advisory Agreement where the fee for services is
determined through negotiations and agreement between you and BAC Capital Advisors.
Fixed fees are not necessarily based upon the value of assets managed or time expended
providing services. Fixed fees are normally agreed to for one year, then renegotiated and
agreed to for future periods. If you are paying a fixed fee you may pay a fee higher or lower
than one based upon the value of assets managed. In the event a fixed fee engagement is
terminated, unearned fees will be returned to you on a pro rata basis.

How Clients Pay Advisory Fees
Fees are generally deducted directly from your account. You must provide your qualified
account custodian with written authorization to have fees deducted from your account and
paid to BAC Capital Advisors. Some pension plan clients have made arrangements to pay
advisory fees by check.

Other Types of Fees and Expenses
In addition to the investment advisory fees you pay to us, you will pay transaction fees
(commissions) to your custodian or broker-dealer for executing securities transactions and
charges for special services elected by you or BAC Capital Advisors. These fees may include:

   •   custodian fees
   •   periodic distribution fees
   •   electronic fund and wire transfer fees
   •   certificate delivery fees
   •   reorganization fees
   •   account transfer fees (outbound)
   •   returned check fees
   •   international security transfer fees
   •   overnight mail and check fees
   •   Rule 144 transfer fees
   •   transfer agent fees

This list is not meant to be all inclusive. Any fee on a special service incurred by the client
will be fully disclosed. Please refer to Item 12 of this brochure for an explanation of our

Types of Clients (Item 7)
This section of the brochure describes who we generally provide our services to.

Individuals
BAC Capital Advisors provides advisory services to a variety of types of clients including
individuals, trusts, individual retirement accounts, and retirement plan trustees.

Pension Plans
BAC Capital Advisors provides advisory services to pension plans. These services include
recommendations to the plan which are then approved by the pension plan sponsor. In
some cases we will serve as a discretionary advisor to the plan. You are encouraged to ask
your plan sponsor what services we are providing the plan.

Methods of Analysis, Investment Strategies, and Risk of Loss