Blue Edge Capital LLC

Fees and Compensation
BEC charges asset based management fees which are charged quarterly in advance based on a
percentage of the client's assets under management at the end of the previous calendar quarter. The
compensation for our services, which include identifying a client’s investment objectives and
restrictions, developing and implementing investment recommendations, monitoring a client’s
investment results, and reporting to the client on a quarterly basis, is as follows:

           Assets Under Management                                     Annual Fee

             On the first $5 Million                                     0.75%
             On the next $5 Million                                      0.65%
              Above $10 Million                                          0.50%

Instead of asset based management fees, some clients pay fixed fees, such as a flat annual amount
prorated quarterly. Our investment management services begin with the effective date of the
Investment Management Agreement (“Agreement”) which is the date the client signs the
Agreement. For the first calendar quarter under management, fees will be adjusted pro rata based
upon the number of calendar days in the calendar quarter that the client account was invested.
Prorated fees will also be charged on deposits greater than $100,000 during any quarter and will be
refunded on withdrawals in excess of $100,000. Clients may elect to have fees deducted directly
from the client’s brokerage account or to be invoiced for the fees. BEC reserves the right to adjust
the fee schedule for accounts depending on the size and type of account and the services required.
In some cases, negotiation of fees may result in different fees being charged for similar services and
may be less than the stated fee in the fee schedule above.

Clients should be aware of their responsibility to verify the accuracy of the fee calculation submitted
to the custodian by BEC as the custodian will not determine whether the fee has been properly
calculated.

The fees BEC charges are separate and distinct from fees and expenses charged by ETFs, which
will be recommended to clients. A description of these fees and expenses are available in each
fund's prospectus. Additionally, our fees do not include custodial and transaction costs paid to
custodians, brokers or any other third parties. Clients should review all fees charged by us, the
custodians and brokers and others to fully understand the total amount of fees that may apply. For
further information on transaction costs, please review the Brokerage Practices section of this
document.

The Agreement may be terminated by either the client or BEC at any time by providing written
notice to the other party. The client is responsible to pay for services rendered until the termination

of the Agreement. If the Agreement is terminated before the end of a billing cycle, BEC will refund
any unearned fees to the client on a pro-rated basis based on the number of days remaining in the
billing cycle. The client can cancel the Agreement without penalty within the first five business
days after the signing of the Agreement.

Performance Based Fees and Side-by-Side Management
BEC does not charge performance based fees.

Types of Clients
BEC primarily provides customized investment management services to individual investors,
family offices, family and charitable trusts, profit sharing plans, corporations, non-profit
organizations and high net worth individuals.

Methods of Analysis, Investment Strategies and Risk of Loss
BEC’s investment strategy combines global strategic asset allocations with tactical adjustments.
BEC currently offers clients sixteen globally diversified portfolios that are constructed using
proprietary asset allocation strategies.

BEC models our investment approach after the asset allocation strategies adopted by many of the
largest and most sophisticated institutional investors such as pension funds and university
endowments. These strategies are based primarily on endowment model investing, but modified to
substantially lower cost and to provide improved liquidity, transparency, and tax efficiency. The
endowment model approach relies on the assumption that each asset class has a measurable
historical return, volatility, and historical correlation. The idea is that adding multiple asset classes
with low correlation provides diversification and lowers risk levels relative to a given investment
return. BEC believes that evaluating a security on its probability of not losing money is a better
measure of assessing risk than by solely monitoring standard deviation of returns.

BEC uses Morningstar Direct to provide the historical returns, volatility, and correlations of various
asset classes, which helps to determine our strategic allocation to various asset classes. We set
portfolio parameters for each major asset class based on the risk/return objective of the portfolio.
For example, the BEC Global Balanced portfolio may have a policy range of 40 to 80% for Global
Equities, 20 to 40% to Global Fixed Income, and 0-15% to Liquid Alternative investments. Each
major asset class will have additional sector diversification. BEC Global Equity may include a
strategic allocation to large/mid/small cap, value/growth, international/domestic, and
countries/sectors. We will make tactical over/underweights to these strategic allocations based on
our outlook for each asset class, geographic region or sector as the case may be.

Tactical shifts to the portfolio will be based on analyzing macroeconomic factors such as economic
growth, inflation, employment, financial condition and other factors like politics, tax and regulatory
policy. We will also consider quantitative measures such as absolute and relative valuation, growth
rates, and debt levels. Technical analysis including momentum, price, breadth and liquidity will
also be considered in investment decisions.

BEC believes in and employs several investment biases to portfolio construction. These include: (a)
passive management generally outperforms active management (b) value oriented equities
outperform growth oriented equities over the long-term (c) small/mid cap stocks outperform large
cap stocks over the long-term (d) international equity allocations should approximate actual global
equity capitalizations (e) the addition of liquid alternative investments to a portfolio provides
important diversification, and (f) asset class returns revert to the mean over time.

These beliefs influence the decisions made by the Investment Committee. The Investment
Committee is composed of M. Bagley Reid, Peter H. Bowles, and Churchill Young. The Committee
meets on a regular basis although informal meetings occur daily.

The BEC Investment Committee regularly monitors the strategic and tactical asset allocations for
each portfolio (with the exception of the All Cap Equity Portfolio which is solely managed by M.
Bagley Reid). The monitoring includes reviewing the asset class, sector, and geographical
exposures of each portfolio while evaluating the liquidity, strategy, and construction of the
underlying securities. Our sell discipline is implemented through our tactical asset allocation
decisions.

BEC believes that ETFs are the best investment vehicles to implement our globally diversified asset
allocation model. ETFs provide liquidity, transparency, tax efficiency, and diversification in a low
cost investment vehicle. The BEC Investment Committee systematically evaluates each ETF
investment based on liquidity, capitalization, transparency, relative cost, investment objective, tax
implications, tracking error and premium/discount to net asset value (NAV). The strategy prohibits
the use of Exchange Traded Notes (“ETNs”). The strategy does not use portfolio level margin,
leverage, derivatives or the use of 2x and 3x “ultra” ETFs. The strategy does not include direct
shorting of securities, but may employ selective use of inverse ETFs.

BEC manages sixteen ETF investment portfolios. Each is managed with an objective to reduce risk
through diversification.

BEC’s Global Equity portfolio provides broad exposure to a combination of
domestic/international, value/growth, small/large, sectors/country and liquid alternative
investments. The primary investment objective is long term capital growth.

BEC’s Global Growth portfolio provides exposure to global equities, global fixed income, and
liquid alternative investments. The primary investment objective is long term capital growth, with
current income a secondary consideration.

BEC’s Global Balanced portfolio provides exposure to global equities, global fixed income, and
liquid alternative investments. The primary investment objective is a combination of capital growth
with current income.

BEC’s Global Growth & Income portfolio provides exposure to global equities, global fixed
income, and liquid alternative investments. The primary investment objective is current dividend
and interest income, although growth of income and capital is considered.

The BEC Traditional Equity Portfolio seeks aggressive, long-term capital appreciation by
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