Carolinas Wealth Consulting LLC

Fees and Compensation
CWC 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
(the “Agreement”).

CWC offers the following Wrap Fee Programs which are administered through Schwab or Fidelity. Fee
schedules for these programs are detailed in a separate wrap fee brochure provided by CWC:

    •   Separate Account Network
    •   Managed Account Solutions
    •   CWC Advisory Program
    •   CWC 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 CWC. A description of these and other expenses are available in each fund’s
prospectus.

CWC 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 CWC, for the services detailed
under “Advisory Business”, an annual fee in accordance with the following standard fee schedules, which
are negotiable:

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 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.

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 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.

CWC Advisory Program
CWC 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 specified account to CWC based
upon the value of the account on the date of acceptance of the Agreement and prorated through the end
of the calendar quarter. Thereafter, the quarterly fee shall be paid to CWC after 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
Agreement and the client authorizes CWC and the custodian 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 CWC may liquidate assets to cover fees. The service fee schedule may be changed upon written
notification from CWC to the client.

CWC 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 CWC is established in a client’s written agreement. CWC
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
negotiated.

Managed Account Select
Managed Account Access
Managed Account Marketplace
      Total Household Value                                 Annualized Fee
      Up to $1,000,000                                      1.10%
      $1,000,001 to $2,500,000                              1.00%
      Over $2,500,000                                       Negotiable

For Schwab programs, clients pay CWC an overall advisory fee, and will pay a separate Manager’s Fee for
...

Types of Clients
CWC 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 Managed Account Select, Managed Account Access and Managed
Account Marketplace Programs is generally $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.

CWC 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, CWC utilizes other sources of
information such as Schwab Advisor Services website, 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. During periods of financial stress, the inability to meet loan obligations may result in
        bankruptcy and/or a declining market value.