Carolinas Investment Consulting LLC

Fees and Compensation
CIC may charge a fixed fee for investment advisory, financial planning, family office or consultation
services. These fees are negotiable, but generally range from $2,500 to $50,000 annually, depending upon

the agreed upon level and scope of the services provided. Fixed fees will be billed quarterly in advance
based upon a signed Investment Consulting Services Agreement or Carolinas Family Office Agreement.

CIC offers the following Wrap Fee Programs which are administered through First Clearing LLC, Schwab or
Fidelity. Fee schedule for these programs are detailed in a separate wrap fee brochure provided by CIC:

       Private Advisor Network Program;
       Masters Investment Consulting Program;
       Separate Account Network
       Managed Account Solutions
       Custom Choice / Fund Source Program;
       The Pathways Program;
       Asset Advisor Program; and
       PIM (Private Investment Management);
       CIC Advisory Program
       CIC Horizons Advisory Program

For these wrap fee programs, advisory fees charged are separate and distinct from the fees and expenses
charged for mutual funds that may be recommended to Clients. Clients may incur certain charges imposed
by third parties other than CIC. A description of these and other expenses are available in each fund’s
prospectus.

CIC will not be compensated on the basis of a share of capital gains or on capital appreciation of the funds
or any portion of the funds of the Client.

Fees are billed and paid in advance of service. The client agrees to pay CIC, for the services detailed under
“Advisory Business”, an annual fee in accordance with the following standard fee schedules, which are
negotiable:

Private Advisor Network Program*
Separate Account Network*
        Total Household Value                             Maximum Annualized Fee
        Up to $1,000,000                                  1.10%
        $1,000,001 to $2,500,000                          1.00%
        Over $2,500,000                                   Negotiable

*Under the Private Advisor Network Program and Separate Account Network Program, clients will pay a
separate Manager’s Fee for participation in the program, which may cause the effective program fee
(expressed as a percentage) to be greater than the fee rates shown above. The Manager’s Firm Brochure
contains important information regarding fees, conflicts of interest, risks, and other information that
prospective investors should review and consider.

Masters Investment Consulting Program*
Managed Account Solutions*
       Total Household Value                              Maximum Annualized Fee
       Up to $1,000,000                                   1.10%
       $1,000,001 to $2,500,000                           1.00%
       Over $2,500,000                                    Negotiable

*Under the Masters Investment Consulting Program and Managed Account Solutions Program, clients will
pay a separate Manager’s Fee of not more than .55% for participation in the program, which may cause
the effective program fee (expressed as a percentage) to be greater than the fee rates shown above.

Custom Choice / Fund Source Program
The Pathways Program
Asset Advisor Program
PIM (Private Investment Management)
CIC Advisory Program
CIC Horizons Advisory Program

        Total Household Value                             Maximum Annualized Fee
        Up to $1,000,000                                  1.10%
        $1,000,001 to $2,500,000                          1.00%
        Over $2,500,000                                   Negotiable

The account value for these wrap programs is calculated as the market value of all long and short securities
positions in the account. Although the fees listed above are “default” fees, they may, in some
circumstances, be negotiable. The fee encompasses all transaction related costs associated with the
execution of the transaction. The client shall pay an initial fee from the account to CIC on the date of
acceptance of the contract based upon the value of the account on the date of acceptance and prorated
through the end of the calendar quarter. Thereafter, the quarterly fee shall be paid to CIC on the first
business day of each succeeding calendar quarter based upon the value of the account on the last business
day of the prior calendar quarter. In the case of a net capital contribution or withdrawal, fees will be
prorated and charged or refunded if the net addition or net withdrawal would generate a fee or refund
of at least $40 for that quarter. No fee adjustment will be made during any fee period for appreciation or
depreciation in the market value of assets in the account during that period. Accounts initiated or
terminated during a calendar quarter will be charged a prorated fee. Upon termination of any account,
any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be due and
payable. Client will maintain or deposit sufficient funds in the account to cover payment of all fees
authorized by the contract and the client authorizes CIC and clearing firm to debit the account balances
or redeem money market fund shares in the amount equal to the fee that is due. If there are not funds
to cover the fees, then CIC may liquidate assets to cover fees. The service fee schedule may be changed
upon written notification from CIC to the client.

CIC offers the following non-wrap Managed Account Programs which are administered through Schwab
Advisor Services, a division of Charles Schwab & Co, Inc.:

       Managed Account Select;
       Managed Account Access; and
       Managed Account Marketplace

The specific manner in which fees are charged by CIC is established in a client’s written agreement. CIC
will bill its fees on a quarterly basis in advance. Fees will be debited directly from the client’s account, are
based on the assets under management found on the fee schedule below and in some instances, may be
...

Types of Clients
CIC provides portfolio management services to individuals, pension and profit-sharing plans, charitable
institutions, foundations, endowments, estates, trusts, and corporations and business entities.

The minimum initial account value for the Private Advisor Network and Masters Investment Consulting
Program is $100,000, the Pathways Program and the PIM Program is $50,000 and the Custom Choice / Fund
Source Program and the Asset Advisor Program is $25,000; which are set by the program sponsor/manager.
The Managed Account Select, Managed Account Access and Managed Account Marketplace Programs
generally have a minimum initial account value of $100,000; certain managers may require a higher minimum
as disclosed in the individual manager’s Firm Brochure. Under certain circumstances, the minimum may be
waived, including related accounts that may be combined to meet the minimum if the services involved may
otherwise be provided.

Methods of Analysis, Investment Strategies and Risk of Loss
Our investment strategy begins with an understanding of a client’s financial goals. Advisors use
demographic and financial information provided by the client to assess the client’s risk profile and
investment objectives in determining an appropriate plan for the client’s assets. Investment strategies
ordinarily include long- or short-term trading of stock portfolios, including ETFs, mutual funds, fixed
income securities and options.

Investment recommendations are based on an analysis of the client’s individual needs, and are drawn
from research and analysis. Security analysis methods may include fundamental analysis, technical
analysis, charting and cyclical analysis. Information for this analysis may be drawn from financial
newspapers and magazines; inspections of corporate activities; research materials prepared by others;
annual reports, corporate filings and prospectuses; company press releases; and corporate ratings
services.

CIC may also seek the opinion of third party money managers for security analysis. This information will
be considered in conjunction with other analysis methodology. In addition, CIC utilizes other sources of
information such as Schwab Advisor Services website or First Clearing LLC’s Advisory Services Department,
which consists of Due Diligence Reports on Money Managers and Research Alerts to notify us of changes
occurring on Money Managers.

It is important to note that investing in securities involves a risk that clients should be prepared to bear.
For any risks associated with Investment Company products, please refer to the prospectuses for
additional details about these risks. Our investment approach constantly keeps the risk of loss in mind.
These risks include, but are not limited to:

       Interest-rate Risk: Fluctuations in interest rates may cause investment prices to fluctuate. For
        example, when interest rates rise, yields on existing bonds become less attractive, causing their
        market values to decline.
       Market Risk: The price of a security, bond, or mutual fund may drop in reaction to tangible and
        intangible events and conditions. This type of risk is caused by external factors independent of a
        security’s particular underlying circumstances. For example, political, economic and social
        conditions may trigger market events.
       Inflation Risk: When any type of inflation is present, a dollar today will not buy as much as a dollar
        next year, because purchasing power is eroding at the rate of inflation.
       Reinvestment Risk: This is the risk that future proceeds from investments may have to be
        reinvested at a potentially lower rate of return (i.e. interest rate). This primarily relates to fixed
        income securities.
       Business Risk: These risks are associated with a particular industry or a particular company within
        an industry. For example, oil-drilling companies depend on finding oil and then refining it, a
        lengthy process, before they can generate a profit. They carry a higher risk of profitability than an
        electric company, which generates its income from a steady stream of customers who buy
        electricity no matter what the economic environment is like.
       Liquidity Risk: Liquidity is the ability to readily convert an investment into cash. Generally, assets
        are more liquid if many traders are interested in a standardized product. For example, Treasury
        Bills are highly liquid, while real estate properties are not.
       Financial Risk: Excessive borrowing to finance a business’ operations increases the risk of
        profitability, because CIC must meet the terms of its obligations in good times and bad. During
        periods of financial stress, the inability to meet loan obligations may result in bankruptcy and/or
        a declining market value.