Bernzott Capital Advisors

Item 5 - Fees and Compensation

Investment Management Services
Bernzott is compensated by a percentage of assets under management. We do not require
prepayment of fees. We do not offer any wrap fee programs. We do not receive or pay fees for any type

of referral.

Institutional Clients
Asset-based Fee
The asset-based fee is generally paid quarterly, in arrears based upon the prior quarter-end statement
value of the account as computed by the account custodian, according to the following tiered fee
schedule:

                             Assets Under Management         Annual Fee
                             First $10 million               0.90%
                             Next $15 million                0.80%
                             Next $25 million                0.75%
                             Above $50 million               0.65%

Private Clients
Asset-based Fee
The asset-based fee is generally paid quarterly, in arrears based upon the prior quarter-end statement
value of the account as computed by the account custodian, according to the following tiered fee
schedule:

                             Assets Under Management         Annual Fee
                             First $2 million                1.00%
                             Next $3 million                 0.75%
                             Above $5 million                0.50%

In special circumstances, and in our sole discretion, we may negotiate a lower management fee based
upon certain criteria (i.e., the amount of work involved, amount of assets placed under our
management, attention required in managing the account, etc.).

Multiple accounts for any single client relationship can be combined for the purpose of determining
fee breaks. Assets under management for less than one quarter are charged on a pro rata basis.

Our fees are set forth in the advisory agreement with each client. Bernzott Capital Advisors does not
impose a minimum annual fee, and we do not charge any fees to establish an account or terminate an
account. We charge our fees in arrears, which means that we do the work for the quarter and then
charge our fees afterward. If a client relationship is terminated prior to a quarter-end, Bernzott Capital
Advisors will assess a final billing that is prorated for the number of days in the quarter that the
account was under Bernzott Capital Advisors management.

Bernzott Capital Advisors does not receive any brokerage commissions, dealer spreads or other
transaction fees for trading in a client’s account. We do not have any hourly charges. Our asset-based

fees are the sole source of compensation we receive from our clients.

Clients frequently authorize Bernzott Capital Advisors to collect our management fees by deducting
the fee directly from the client’s account. If a client prefers, we can also collect our management fees
by sending the client an invoice. While we do our best to accurately calculate our fees, the custodian
will not separately determine whether fees have been properly calculated. Clients receive a statement
from the custodian that shows the deduction of our quarterly fees, and each client should be aware
of their responsibility to verify the accuracy of the fee calculations.

Investment Models
Bernzott offers provides non-discretionary investment model portfolio services to an unaffiliated
third-party Principal Advisor for a 0.40% fee.

Additional Fees and Expenses
Clients may also pay other fees in connection with the advisory services we provide. Bernzott’s fees
do not include brokerage commissions, dealer spreads, or other costs associated with the purchase or
sale of securities, custodian fees, interest, taxes, and other account expenses. These are not fees
earned by Bernzott Capital Advisors, but they may contribute to the overall cost of an investment
program.

Clients may also incur fee charges imposed directly by a mutual fund, index fund, or exchange-traded
fund, fees imposed by variable annuity providers, and certain deferred sales charges, odd-lot
differentials, or transfer taxes. Bernzott and/or its advisory representatives do not receive any portion
of these fees. Bernzott does not receive any fees from these mutual funds or closed-end funds
pursuant to a fund’s Rule 12- b1 plan. Part of our job is to help clients reduce the outside fees and
transaction costs that could otherwise erode their account performance over time.

Item 7 - Types of Clients

We offer investment advisory services to individuals and multi-employers (Taft-Hartley), union or
governmental employee pension or benefit plans, banks or thrift institutions, investment companies,
UMAs, trusts, estates, separately managed accounts, charitable organizations or other corporations
or entities.

Discretionary investment supervisory services are provided to institutional and private clients with
minimum relationship sizes of $10 million and $1 million, respectively. However, at our discretion,
we may waive this minimum account size. For example, exceptions may be made if a smaller amount
is part of a relationship exceeds the minimum or if there is a reasonable expectation that funds will
be added in the near future that will bring the total amount over the minimum. Other exceptions may
apply to our employees and their relatives, or relatives of existing clients.