Carriage Services Investment Advisors Inc

Fees and Compensation

Carriage Services Advisors is customarily compensated on the basis of fees calculated as a
percentage of assets under management. Our annual fee is 2.00% of assets under management.
All such fees are subject to negotiation from time to time.

Carriage Services Advisors’ fees are assessed and payable monthly in advance, based on the value
of assets under management at the end of the previous calendar month. In the event that the
Fund or deathcare trusts choose to cancel any advisory agreement with us before the end of a
billing period, any prepaid fees will be prorated through the end of the period and refunded to
the client.

Administrative and recordkeeping expenses associated with our investment advisory services to
our clients are generally paid by us out of our fees. Third-party administration fees, custodial
fees, brokerage fees and investment management fees are paid directly by our clients (including
the Fund). The Fund currently has an Administration Agreement with Regions Bank. Carriage
Services Advisors does not receive any fee or commission from the sale of investment products
that we recommend to our clients, nor do we participate in wrap fee programs. Managing assets
on a fee basis, and performing ancillary services also on a fee basis, is our sole business.

No Performance-Based Fees

Carriage Services Advisors’ fees are based on the value of portfolio assets at the end of each
calendar month. We do not receive any fees or other compensation based upon the investment
performance of accounts.

Types of Clients We Serve

Carriage Services Advisors provides investment management services to pooled investment
vehicles (other than registered investment companies), specifically to the Fund, and to deathcare
trusts affiliated with CSI.

Methods of Analysis, Investment Strategies, and Risk of Loss

Carriage Services Advisors’ management team has retained sub-advisors with experience in
traditional portfolio management. Through Carriage Services Advisors and through sub-advisors,

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we employ various methods of investment analysis to assist us in formulating investment
strategies. Broadly speaking, these methods include fundamental, technical, quantitative and
qualitative analysis.

Carriage Services Advisors’ primary activities involve the direct management of the assets and
supervision of service providers to the Fund and deathcare trusts. The analysis undertaken is
primarily based upon investment guidelines, investment manager selection, due diligence into
specific investment assets, and performance monitoring.

In sum, our overall investment approach is geared toward generating strong long-term
investment returns without assuming undue risk, while ensuring that we manage investment
assets in compliance with any applicable state laws. Risk is inherent in any investment program
and, as a result, the investment returns on assets will fluctuate and may lose value.