Cloud Investments LLC

Item 5: Fees and Compensation
Method of Compensation and Fee Schedule
ASSET MANAGEMENT
Cloud Investments offers discretionary direct asset management services to advisory Clients.
Cloud Investments charges an annual investment advisory fee based on the total assets under
management as follows:
       Assets Under Management                Annual Fee                 Monthly Fee
             $0 - $250,000                      1.80%                      0.15%
          $250,001 - $499,999                   1.70%                      0.14%
          $500,000 - $999,999                   1.60%                      0.13%
        $1,000,000 - $1,999,999                 1.50%                      0.12%
            Over $2,000,000                     1.35%                      0.11%

                                       Cloud Investments, LLC
                                    200 Clinton Avenue, Suite 1020
                                         Huntsville, AL 35801

This is a tiered or breakpoint fee schedule, the entire portfolio is charged the same asset
management fee. For example, a Client with $750,000 under management would pay $12,000 on
an annual basis. $750,000 x 1.60% = $12,000.
The annual fee may be negotiable depending upon the amount of assets and client relationship.
Cloud Investments, in its sole discretion, may waive its minimum fee and/or charge a lesser
investment advisory fee based upon certain criteria (e.g., historical relationship, type of assets,
anticipated future earning capacity, anticipated future additional assets, dollar amounts of assets
to be managed, related accounts, account composition, negotiations with clients, etc.) Fees are
billed monthly in arrears based on an average daily balance of the account for the previous
month. The calculation for the average daily balance is based on the formula (A/D) x (F/P).
       A = the sum of the daily balances in the billing period
       D = number of days in the billing period
       F = annual management fee
       P = number of billing periods per year (i.e. quarterly or monthly)
For example (based on monthly billing period): the first step taken using the average-daily-
balance calculation method would be to take the average of the values of the client’s account over
the course of the entire month. For instance 25 days at $1 million plus six days at $500,000
averages out to approximately $903,226. Based on the formula (A/D) x (F/P), the example
would be: (903,226) x (.016/12) = $1,204.30.
Fees for partial months are pro-rated. Monthly advisory fees will be deducted from the clients'
account by the custodian with prior written approval from the client or will be paid direct to
Cloud Investments. Lower fees for comparable services may be available from other sources.
Clients may terminate their account within five (5) business days of signing the Investment
Advisory Agreement for a full refund. Clients may terminate advisory services with thirty (30)
days written notice. For accounts closed mid-month, Cloud Investments will be entitled to a pro
rata fee for the days service was provided in the final month. Client shall be given thirty (30)
days prior written notice of any increase in fees, and client will acknowledge, in writing, any
agreement of increase in said fees.
ERISA PLAN SERVICES
The annual fees are based on the market value of the Included Assets and will not exceed 1%.
The annual fee is negotiable and may be charged as a percentage of the Included Assets. Fees
may be charged quarterly or monthly in arrears or in advance based on the assets as calculated
by the custodian or record keeper of the Included Assets (without adjustments for anticipated
withdrawals by Plan participants or other anticipated or scheduled transfers or distribution of
assets). If the services to be provided start any time other than the first day of a quarter or
month, the fee will be prorated based on the number of days remaining in the quarter or month.
If this Agreement is terminated prior to the end of the billing cycle, Cloud Investments shall be
entitled to a prorated fee based on the number of days during the fee period services were
provided or Client will be due a prorated refund of fees for days services were not provided in
the billing cycle.
The fee schedule, which includes compensation of Cloud Investments for the services is
described in detail in Schedule A of the ERISA Plan Agreement. The Plan is obligated to pay the
fees, however the Plan Sponsor may elect to pay the fees. Client may elect to be billed directly or

                                       Cloud Investments, LLC
                                    200 Clinton Avenue, Suite 1020
                                         Huntsville, AL 35801

have fees deducted from Plan Assets. Cloud Investments does not reasonably expect to receive
any additional compensation, directly or indirectly, for its services under this Agreement. If
additional compensation is received, Cloud Investments will disclose this compensation, the
services rendered, and the payer of compensation. Cloud Investments will offset the
compensation against the fees agreed upon under the Agreement.

FINANCIAL PLANNING AND CONSULTING
Cloud Investments charges a fixed fee based on complexity and unique Client needs for financial
planning. Prior to the planning process the Client will be provided an estimated plan fee.
       FIXED FEES
       Financial Planning Services are offered based on a flat fee between $200 and $2,000.
Fees for financial plans are due upon commencement of the Advisory Agreement.
Services are completed and delivered inside of ninety (90) days contingent upon timely delivery
of all required documentation. Client may cancel within five (5) business days of signing
Agreement with no obligation and without penalty. If the Client cancels after five (5) business
days, any unearned fees will be refunded to the Client, or any unpaid earned fees will be due to
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Item 7: Types of Clients
Description
Cloud Investments generally provides investment advice to individuals. Client relationships vary
in scope and length of service.

Account Minimums
Cloud Investments does not require a minimum of to open an account.