Ballast Inc

Item 5 Fees and Compensation
The following paragraphs detail the fee structure and compensation methodology for services provided
by Ballast. Each client shall sign an investment advisory agreement, financial planning agreement, or
consulting agreement that details the responsibilities of Ballast and the client.

Fees for Advisory Services

Investment Management Services Fees

Ballast will receive an annualized investment management fee, paid quarterly, in advance of each
calendar quarter, pursuant to the terms of the investment advisory agreement. Investment
management fees are based on a tiered range from 1.75% to 1.15%. The following schedule is
negotiable based upon certain circumstances, at the discretion of the advisor: in certain circumstances,
Ballast will grandfather certain clients whose accounts were opened and remain effective through the
newly executed advisory contract.

       Assets Under Management Maximum Fee
      $0 - $100,000.00                 1.75%
      $100,000.01 - $250,000.00        1.60%
      $250,000.01 - $500,000.00        1.50%
      $500,000.01 - $1,000,000.00      1.35%
      $1,000,000.01 - $3,000,000.00 1.25%
      $3,000,000.01 - $5,000,000.00 1.15%
      $5,000,000.01+                   Negotiable

Clients have provided Ballast with written permission to direct qualified custodians to directly debit fees
from clients' accounts held with the qualified custodian. Under separate agreement, some clients may
have fees directly invoiced, where direct debiting would not be considered. Investment Management
Fees will be calculated and paid to Ballast each calendar quarter in advance based on the value of the
Portfolio on the last business day of the previous quarter. The Management Fee will be prorated for
deposits and withdrawals of $100,000 or more. If management of the Portfolio begins after the start of
a quarter, the Investment Management Fee will be prorated accordingly. Either Client or Adviser may
terminate the agreement upon 30 days written notice. In the event of termination, any paid but
unearned fees will be promptly refunded to the client based on the number of days that the Portfolio
was managed, and any fees due to the Adviser will be invoiced or deducted from the assets in the
Portfolio prior to termination. The client's fees will take into consideration the aggregate assets under
management with Advisor.

The University of Kentucky requires that all negotiated fees of University of Kentucky Non-ERISA
Plans be capped at a stated percentage. Ballast will adhere to the stated maximum fee and will not
charge more than the maximum fee on those specific accounts. As these accounts have a built-in cap,
the accounts will not be included for household breakpoint calculation of assets outside of the

University of Kentucky plan. For purposes of the Investment Management Fee calculations, "value of
the Portfolio" means the sum of the fair market value of all of the billable holdings in the Portfolio.
Equity securities listed or traded on a national securities exchange or quoted on the over-the-counter
market are valued at the last sales price on the day of valuation or, if no sale price is reported, at the
last bid price. Other assets and securities for which market quotations are not readily available are
valued at fair market value as determined in good faith by the Adviser.

Accounts may be "householded" for billing purposes to help a client achieve a breakpoint in Ballast
fees. House- holding includes all accounts for a client and the client's family members, as indicated by
Ballast. Exceptions may occur at our sole discretion.

Clients should be aware that the investment management fee does not include transfer fees, or margin
interest and any commissions and mark-ups/mark-downs on transactions directed to other
broker/dealers as well as any specialized custodial account charges such as IRA account fees. This
amount may vary in special situations and will be disclosed to client. The fees charged are negotiable
in situations where client's portfolio size begins outside our published fee brackets or in other situations
deemed appropriate by us in our sole discretion.

Pension and Retirement Consulting Fees

In connection with its pension consulting services, Ballast charges annual asset-based fees, subject to
the fee schedule above, which is negotiable. Ballast's advisory fees for these customized services will
be negotiated with the plan sponsor or named fiduciary on a case-by-case basis. Negotiated fees are
generally based on the value of the plan's assets and the complexity of the plan. In lieu of asset-based
fees, we may agree to a fixed fee structure for pension consulting services, when specifically
requested by the Plan or as directed in plan documents.

You may terminate the pension consulting services agreement upon 30-day written notice to our firm.
You will incur a pro rata charge for services rendered prior to the termination of the agreement, which
means you will incur advisory fees only in proportion to the number of days in the quarter for which you
are a client. If you have pre-paid advisory fees that we have not yet earned, you will receive a prorated
refund of those fees.

As previously noted, fees are negotiated based on the size and complexity of the plan, among other
things. These fees are either directly debited from the Client's account by the record-keeper, TPA, or
custodian or billed directly to the Client, and are payable in advance or in arrears, as separately
negotiated with each client.

Participants in plans should note that the Plan's Third-Party Administrator ("TPA") or qualified
custodian sends a statement that includes the value of a participant's investments, our advisory fee,
and how it is calculated. TPAs and custodians do not verify the accuracy of fee calculations. Clients
should review these statements and compare them with the agreement to verify the accuracy of
calculation of our fees.
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Item 7 Types of clients
Ballast provides investment advisory services to the following types of clients:

            • Individuals - private investors, investing their personal assets;
            • High Net-Worth Individuals - such as accredited investors, endowments, trusts and
              estates;
            • Corporations and Businesses - taxable business entities, investing cash reserves; and
            • Pensions and Profit-Sharing Plans - not limited to 401k, 403b and 457b.
            • Charitable Organization - Non-Profit Organization and Foundations
            • 529 Plans

Ballast generally does not impose a minimum account size for establishing a relationship.