Colbert Investment Management Co

Item 5     Fees and Compensation

Our fees for portfolio management are calculated as a percentage of assets under management
(“AUM”). There are two fee schedules, which depend on whether the account is equity/balanced or
fixed income. The fees listed in the schedules below are on a blended annualized percentage basis:

For DISCRETIONARY equity or balanced accounts:

AUM                                   Annual Fee (%)
First $1,000,000                      1.95%
Next $1,000,000                       1.75%
Next $1,000,000                       1.50%
Next $2,000,000                       1.25%
$5,000,000 and over                   1.00%

For DISCRETIONARY fixed income accounts:

AUM                               Annual Fee (%)
First $250,000                       0.90%
Next $250,000                        0.85%
Next $500,000                        0.75%
Next $1,000,000                      0.70%
Next $1,000,000                      0.65%
$3,000,000 and over                  0.55%

All fees may be amended by our firm upon thirty (30) days' written notice to the client. In our sole
discretion, we may negotiate lower fees and account minimums.

Clients authorize their custodian financial institutions to pay Colbert’s advisory fees. We charge our
clients quarterly fees in arrears. The quarterly fee is based upon the value, as determined by the
client’s custodian or other independent third party (market value or fair market value in the absence
of market value, plus any credit balance or minus any debit balance and including cash balances) of
the client's account on the last business day of the preceding calendar quarter. The client may be
charged a pro rata fee if the client's service is terminated on a day other than the last business day of
the calendar quarter. In that event, the pro rata fee will be due and payable upon termination of the
service. Unless otherwise agreed, the client's account will be debited for the advisory fees described
above. We are paid fees from the amount of any contribution or transfer from available cash in the

client's account or by liquidating the client's assets held in the client's account in an amount equal to
the fees that are due.

Colbert may waive, adjust, or rebate fees in certain situations. At Colbert’s discretion, Colbert may
combine the account values of family members to determine the applicable advisory fee. Colbert may
also waive or discount fees for employees’ and family members' accounts. Clients are advised that
other clients with similar assets may pay different fees. Clients should also be aware that the same or
similar investment services may be available from other investment advisors for a lower fee.

Our fees are exclusive of brokerage commissions, transaction fees, and other costs or expenses
incurred directly by the client. In addition to the advisory fees charged by our Firm, clients may incur
additional fees. Commissions, sales loads, sales charges, management fees, administrative fees,
account maintenance fees, odd-lot differentials, transfer taxes, wire transfer and electronic funds fees,
and other fees and taxes on brokerage account and securities transactions and other fees may be
charged by the broker or dealer selected for execution of the securities transactions in the accounts,
by the custodian, and/or by the distributor, issuer or fund issuing the securities purchased and sold
within the accounts. The client is solely responsible for paying all such charges.

In addition to all other fees and expenses incurred in managing an advisory account, client accounts
that use margin strategies will also incur interest charges. Our firm does not charge fees on any margin
balance or on any non-purpose loan balance extended by the custodian.

Mutual funds and ETFs charge management fees, which are disclosed in the funds’ or ETFs’ prospectus
(i.e., fund management fees, initial or deferred sales charges, mutual fund sales loads, 12b-1 fees,
surrender charges, individual retirement account (“IRA”) and qualified retirement plan fees, and other
fund expenses). Colbert’s policy is to offer clients funds with the lowest cost and most favorable share
class based on the client’s individual needs. Certain offshore funds available only to non-US persons
may often charge higher fees and expenses. To the extent that the client's portfolio has investments
in mutual funds or ETFs, the client will pay two levels of advisory fees for the advisory service: one to
Colbert and the other indirectly to the managers of the mutual funds and ETFs held in the portfolio. A
client could invest in a mutual fund directly, without our firm's services. In that case, the client would
not receive the services provided by our Firm, which are designed, among other things, to assist the
client in determining which funds are most appropriate to the client in light of the client's financial
profile and objectives. Accordingly, clients should review both the fees charged by the funds and the
fees charged by our Firm to assess the total cost of the investment and value of advisory services.
Please refer to Item 12, “Brokerage,” for more information.

Clients may terminate the advisory agreement with our Firm at any time by providing written notice.
Upon notice of termination, pro rata advisory fees for services rendered up to the point of termination

will be charged. If advisory fees cannot be deducted, Colbert will send an invoice for the advisory fees
due.

Item 7     Types of Clients

We generally provide investment advice to individuals (including retirement accounts and IRAs),
companies, trusts, banks, insurance companies, and other institutional clients. We generally require a
minimum account value of $250,000 to engage our advisory services; however, in certain
circumstances, we may reduce this minimum requirement at our discretion.