Capital Management LLC

Item 5        Fees and Compensation
                              PORTFOLIO MANAGEMENT SERVICES FEES

The annualized fee for Portfolio Management Services is charged as a percentage of assets under
management, according to the following tiered schedule:
                         Assets Under Management                    Annual Fee

                          Less Than $250,000.00                            1%

                       $250,000.00-$2,000,000.00                          80 BPS

                        $2,000,001.00-$5,000,000.00                       65 BPS

                        $5,000,001.00-$10,000,000.00                      50 BPS

                        $10,000,01.00-Greater                             35 BPS

Capital Management, LLC. bills in arrears at the end of each calendar quarter.

A minimum of $250,000.00 of assets under management is required for this service. This account size
may be negotiable under certain circumstances. Capital Management, LLC may group certain related
client accounts for the purposes of achieving the minimum account size and determining the annualized
fee.

Limited Negotiability of Advisory Fees: Although Capital Management, LLC has established the
aforementioned fee schedule(s), we retain the discretion to negotiate alternative fees on a client-by-
client basis. Client facts, circumstances and needs are considered in determining the fee schedule. These
include the complexity of the client, assets to be placed under management, anticipated future
additional assets; related accounts; portfolio style, account composition, reports, among other factors.
The specific annual fee schedule is identified in the contract between the adviser and each client.

We may group certain related client accounts for the purposes of achieving the minimum account size
requirements and determining the annualized fee.

Discounts, not generally available to our advisory clients, may be offered to family members and friends
of associated persons of our firm.

                                  RETIREMENT PLAN CONSULTING FEES

Our fees for Pension Consulting Services are based on a percentage of assets under advisement,
according to the following tiered schedule:

                       Assets Under Management                         Annual Fee
                           Less Than $250,000.00                              1%

                        $250,000.00-$2,000,000.00                            80 BPS

                        $2,000,001.00-$5,000,000.00                          65 BPS

                        $5,000,001.00-$10,000,000.00                         50 BPS

                        $10,000,01.00-Greater                                35 BPS

Plan sponsors are invoiced in arrears at the end of each calendar quarter.

A total minimum fee of $1,500.00 is required. This minimum fee may prevent Capital Management, LLC
from providing services to very small ERISA plans.

                                       FINANCIAL PLANNING FEES

Capital Management, LLC's Financial Planning fee is determined based on the nature of the services
being provided and the complexity of each client's circumstances. All fees are agreed upon prior to
entering into a contract with any client.

Our Financial Planning fees are calculated and charged on a fixed fee basis, depending on the specific
arrangement reached with the client.

We may request a retainer upon completion of our initial fact-finding session with the client; however,
advance payment will never exceed half of the total payment for work that will not be completed within
six months. The balance is due upon completion of the plan.

Financial Planning Fee Offset: Capital Management, LLC reserves the discretion to reduce or waive the
hourly fee and/or the minimum fixed fee if a financial planning client chooses to engage us for our
Portfolio Management Services.

Financial planning fees are billed half upfront when the plan is stated and the remainder when the plan
is complete Management personnel of our firm is licensed as an insurance agent in his separate
capacity, this individual is able to implement investment recommendations for advisory clients for
separate and typical compensation. This presents a conflict of interest to the extent that this individual
recommend that a client invest in a security which results in a commission being paid to the individual.
Clients are not under any obligation to engage this individual when considering implementation of
advisory recommendations. The implementation of any or all recommendations is solely at the
discretion of the client.

                                         GENERAL INFORMATION

Termination of the Advisory Relationship: A client agreement may be canceled at any time, by either
party, for any reason upon receipt of a written notice. Upon termination of any account, management
fees will be prorated for the days managed during the quarter. Capital Management, LLC. bills in
arrears.

Mutual Fund Fees: All fees paid to Capital Management, LLC for investment advisory services is separate
and distinct from the fees and expenses charged by mutual funds and/or ETFs to their shareholders.
These fees and expenses are described in each fund's prospectus. These fees will generally include a
management fee, other fund expenses, and a possible distribution fee. If the fund also imposes sales
charges, a client may pay an initial or deferred sales charge. A client could invest in a mutual fund
directly, without our services. In that case, the client would not receive the services provided by our firm
which are designed, among other things, to assist the client in determining which mutual fund or funds
are most appropriate to each client's financial condition and objectives. Accordingly, the client should
review both the fees charged by the funds and our fees to fully understand the total amount of fees to
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Item 7        Types of Clients

Capital Management, LLC provides advisory services to the following types of clients:

    •   Individuals (other than high net worth individuals)
    •   High net worth individuals
    •   Retirement and profit-sharing plans (other than plan participants)
    •   Endowment Funds