Channel Investment Partners LLC

Item 5 – Fees and Compensation

In addition to the information provided in Item 4 – Advisory Business, this section provides additional
details regarding our firm’s services along with descriptions of each service’s fees and compensation
arrangements. It should be noted that 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 Channel
Investment Partners.

Investment Company Management Services

Channel Investment Partners is paid an annual fee of 0.40% based on the amount of assets held in the
Fund. The annual fee is divided and paid quarterly in arrears based on the average daily balance of the
Fund. Channel Investment Partners believes that its fees are competitive with those fees charged by
other investment advisers for comparable services; however, fees of Channel Investment Partners may
be higher or lower than fees charged by other investment advisors.

In addition, shareholders will pay other annual fund operating expenses such as distribution and service
(12b-1) fees, shareholder servicing plan fees, acquired fund fees and expenses, and certain other fees
(“Annual Fund Operating Expenses”).

The Fund’s Board of Directors has selected Unified Financial Securities, LLC, member FINRA/SIPC, to
serve as broker/dealer to the Fund responsible for executing all securities transactions. As broker/dealer,
Unified Financial Securities, LLC, member FINRA/SIPC, will receive typical and normal brokerage
compensation. We do not lower or offset our management fee by the amount of compensation received
by Unified Financial Securities, LLC, member FINRA/SIPC. Payment to Unified Financial Securities, LLC,
member FINRA/SIPC will come from the Annual Fund Operating Expenses.

Asset Management Services

Fees charged for our Asset Management Services are charged based on a percentage of assets under
management, 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 account as of the last business day of the current billing
period. Fees are prorated (based on the number of days 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

Channel Investment Partners LLC                    Page 8                       Form ADV Part 2A: Firm Brochure

management services are commenced 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 charged for our Asset Management Services are negotiable based on the type of client, the
complexity of the client's situation, the potential for additional account deposits, the relationship of the
client with the investment adviser representative, and the total amount of assets under management for
the client.

For our Asset Management Services, client will be charged the following annual fee based upon the
amount of assets under management:

         Assets Under Management                                            Annual Fees
         $1,000,000 – $10,000,000                                           0.45%
         $10,000,001 – $25,000,000                                          0.40%
         $25,000,001 and Above                                              0.35%

         (This is not a “blended” annual fee schedule in which each tier of assets is charged a different
         rate under the annual fee schedule creating the effect of a blended fee rate used at the time of
         billing. Under our fee schedule described above, only one rate is charged against all of the
         client’s assets under management in this program.)

Channel Investment Partners 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., advisory fees and other fund expenses).

The investment advisory fees will be deducted from your account and paid directly to our firm by the
qualified custodian(s) of your account. You will authorize the qualified custodian(s) of your account to
deduct fees from your account and pay such fees directly to our firm.

You should review your account statements received from the qualified custodian(s) and verify that
appropriate investment advisory fees are being deducted. The qualified custodian(s) will not verify the
accuracy of the investment advisory fees deducted.

Brokerage expenses and/or transaction fees charged by the qualified custodian are billed directly to you
by the qualified custodian. Channel Investment Partners does not receive any portion of such
commissions or fees from you or the qualified custodian. In addition, you will incur certain charges
imposed by third parties other than Channel Investment Partners in connection with investments made
through your account including, but not limited to, mutual fund sales loads, 12b-1 fees and surrender
charges, variable annuity fees and surrender charges, IRA and qualified retirement plan fees, and
charges imposed by the qualified custodian(s) of your account. Management fees charged by Channel
Investment Partners are separate and distinct from the fees and expenses charged by investment
company securities that may be recommended to you. A description of these fees and expenses are
available in each investment company security’s prospectus.

Asset Management Services continue in effect until terminated. You may terminate the services by
providing Channel Investment Partners with notice. Channel Investment Partners may terminate the
...

Item 7 – Types of Clients

Channel Investment Partners generally provides investment advice to the following types of clients:

    •    Individuals
    •    High net worth individuals
    •    Banks or thrift institutions
    •    Investment companies
    •    Pension and profit-sharing plans
    •    Other pooled investment companies (e.g. hedge funds)
    •    State or municipal government entities
    •    Trusts, estates, or charitable organizations
    •    Insurance companies
    •    Other investment adviser firms
    •    Corporations or business entities other than those listed above

You are required to execute a written agreement with Channel Investment Partners specifying the
particular advisory services in order to establish a client arrangement with Channel Investment Partners.

Minimum Investment Amounts Required

We require a minimum investment amount of $1,000,000 to establish an account managed by Channel
Investment Partners through our Asset Management Services.

There is a minimum account size of $100,000 for our Investment Model Consulting Services.

However, all clients are required to execute an agreement for services in order to establish a client
arrangement with Channel Investment Partners.