Bright Investments LLC

Item 5 – Fees and Compensation

Lower fees for comparable service may be available from other sources. The exact fees and other terms
will be outlined in the agreement between you and Bright Investments.

Asset Management Services

For Asset Management Services, Bright Investments receives fees quarterly in arrears, based on a
percentage of assets under management. Annual fees are divided and billed in arrears (at the end of the
billing period) on a quarterly calendar basis and calculated based on the fair market value of your accounts
as of the last business day of the billing period. Additions and withdrawals of funds/assets during the
quarter are taken into consideration and the fee is calculated only for the days funds/assets are in the
account. Fees are prorated (based on the number of days that service is provided during the initial billing
period) for your account opened at any time other than the beginning of the billing period. If asset
management services commence in the middle of the billing period, then the prorated fee for that billing
period will be billed in arrears at the end of that billing period. Fees are subject to negotiation at Bright
Investments’ sole discretion.

Annual Fee for Bright Investments Separately Managed Accounts

Assets Under Management                                      Management Fee

First $1 million                                             1.25%

Next $9 million                                              1.00%

Next $40 million                                             0.95%

Thereafter                                                   0.75%

Services continue until terminated by either party (i.e., Bright Investments or you) by giving thirty (30) days
written notice to the other party. Because fees are billed in arrears, Bright Investments will prorate the final

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fee payment based on the number of days that services are provided during the final period. The amount
of client assets on the termination date will be used to determine the final fee payment.

Bright Investments believes that its annual fee is reasonable in relation to: (1) services provided and (2)
the fees charged by other investment advisers offering similar services/programs. However, our annual
investment advisory fee may be higher than that charged by other investment advisers offering similar
services/programs. In addition to our compensation, you may also incur charges imposed at the mutual
fund level (e.g., internal advisory fees and other fund expenses).

The investment advisory fees will be deducted from your account and paid directly to our firm by the
custodian of your account. You will authorize the custodian of your account to deduct fees from your
account and pay such fees directly to our firm. As part of the quarterly performance report, our firm will
send you a billing invoice at the time that fee deduction instruction is sent to the custodian(s) of your
account. The billing invoice will detail the formula used to calculate the fee, the assets under management
and the time period covered. See Item 15 – Custody for more details.

You will receive account statements from the custodian. You should review these carefully to verify that the
appropriate investment advisory fees are being deducted. The custodian will not verify the accuracy of the
investment advisory fees deducted. If you find any discrepancies during your review, please notify us
promptly.

Brokerage expenses and/or transaction ticket fees charged by the custodian are billed directly to you by
the custodian. Bright Investments does not receive any portion of such commissions or fees from you or
the custodian. In addition to our compensation, you will also incur charges imposed by advisers to both
mutual funds and private funds that are separate and distinct from our fees (e.g., internal
management/advisory fees and other fund expenses). Management fees charged by Bright Investments
are separate and distinct from the fees and expenses charged by mutual funds that may be recommended
to you. A description of these fees and expenses are available in each mutual fund’s prospectus. We do
not receive any portion of the fees or expenses charged by mutual funds.

Bright Investments and our supervised persons do not accept or receive compensation based on the sale
of securities or other investment products such as asset-based sales charges or service fees from the sale
of mutual funds.

Item 7 – Types of Clients

Bright Investments generally provides investment advice to the following types of clients:

        Endowments and foundations
        Trusts, estates, or charitable organizations
        Pension and profit sharing plans
        Banks or thrift institutions

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        Corporations and business entities
        Private clients

Minimum Investment Amounts Required

The minimum amount of assets that a client must place under management to open a separately managed
account is $5,000,000, provided that the account minimum is subject to negotiation at Bright Investments’
sole discretion.