Conestoga Capital Advisors LLC

Fees and Compensation
Investment management fees are based on a percentage of assets under management and are
collected quarterly in advance. A client may elect to be invoiced for fees or have fees directly
debited from the client’s custodial accounts. Payments for invoiced fees are due within thirty (30)
days of receipt of bill. The following rates are used to determine annual fees based on client assets
at the time a new account is opened. The initial rate shall remain in effect unless specifically revised
under the terms of the advisory agreement.

Equity Portfolios:

           1.00% up to $25,000,000
           Negotiated over $25,000,000

Fixed Income and Balanced Portfolios:

           Negotiated

The fee shall be paid quarterly at the commencement of each calendar quarter, based on the value
of assets as of the beginning of such quarter. The first billing shall be calculated on the market
value of the assets at the close of business prior to the effective date of management. Should the
time span be less than a calendar quarter, the fee will be prorated based on the actual number of
days the account was managed by CCA. If assets added or subtracted to the account exceed 10% of
the market value of the account before assets are added or subtracted, or if such a transaction exceeds

$50,000, whichever is greater, an adjustment will be made to reflect these additions or subtractions
to the assets under management used for calculating the amount to be billed.

From time to time, CCA may enter into alternative fee arrangements, primarily with institutional
clients that will be negotiated on a case-by-case basis. Certain managed accounts may request to be
billed in arrears based on the value of assets at the close on the last day of the quarter or on the daily
or monthly average asset value in accordance with the client’s investment management agreement.
Additionally, CCA may provide investment advisory services for a fixed fee in limited
circumstances.

The quarterly fees for the investment model services are based on the percentage asset allocation
(the “Asset Allocation Percentage”), on the date as of which the fee is calculated, to CCA’s
investment strategies selected by the investment manager and each client. The quarterly fee is paid
in advance and is equal to the product of (i) the Asset Allocation Percentage, times (ii) the fair
market value (determined by the investment manager) of the assets invested in each client account,
valued on the date as of which the fee is calculated, times (iii) the percentages fee agreed to between
CCA and investment manager.

In addition to CCA’s investment management fees, clients bear trading costs and custodial fees. To
the extent that clients’ accounts are invested in mutual funds including money market funds, these
funds pay a separate layer of management, trading, and administrative expenses.

There are no termination dates in CCA’s contracts. Either CCA or the client may terminate with
thirty days written notice. The thirty-day notice requirement may be waived or negotiated at CCA’s
discretion. Any advisory fees paid in advance by clients that terminate intra-quarter will be refunded
based on the number of days the account was open during the quarter.

Investors generally may redeem/withdraw from the Fund by providing written notice to Adviser.
The Fund’s governing documents specify how soon an Investor’s redemption/withdrawal will take
effect after notice is received (e.g. 90 days after notice is received). In each case,
redemptions/withdrawals will be subject to significant conditions and restrictions (e.g. restrictions
on the amount that may be redeemed/withdrawn, timing and method of payment of such
redemption/withdrawal, redemption/withdrawal fees) which are also set forth in the relevant Fund’s
governing documents. Redemption/withdrawal requests are irrevocable.

CCA does not receive compensation for the sale of securities or other investment products.
However, Mr. Riggs and Ms. Dewey are Registered Representatives of ACA Foreside and may
recommend mutual funds that pay commissions (including 12(b)-1 fees, “trails”, or other
compensation) from the product sponsor, CCA. CCA and ACA Foreside monitor, Mr. Rigg’s and
Ms. Dewey’s activities to mitigate any actual or potential conflicts of interest. CCA clients that are
invested in the Conestoga Funds are not billed an additional advisory fee on the assets invested in
the Conestoga Funds.

Performance Based Fees and Side-by-Side Management
CCA does not charge performance fees nor does it intend to in the immediate future.

Types of Clients
CCA primarily provides customized investment supervisory services to individuals and associated
trusts, estates, and charitable organizations, pension and profit-sharing plans, banks or thrift
institutions, investment companies, and other corporations or business entities. In addition, CCA
provides sub-advisory services to a collective trust and separate account relationships. CCA may
also provide sub-advisory services to registered investment companies

Methods of Analysis, Investment Strategies and Risk of Loss
CCA generally uses an investment process based upon fundamental business and credit analysis;
capital structure and liquidation analysis, a review of all legal documentation surrounding an
issuer’s securities and identification of an investment catalyst.

In making its investment decisions, CCA will rely on internally generated research, derived from
annual reports, prospectuses, filings with the SEC, corporate press releases, inspections of corporate
activities, conversations with the firm and/or competitors, financial newspapers, magazines and
other sources. CCA may also use research materials prepared by others in making an investment
decision. During the research process, CCA makes an assessment, of the quality of the security in
question by examining among other things financial metrics of the relevant company, the integrity
and strategic vision of the management team and the ability to execute such strategy, as well as the
attractiveness and risks of the company’s industry.

CCA reviews companies that meet its criteria, and if according to CCA’s analysis a company has
the potential to appreciate at least 100% over a three-to-five year period then CCA will make a
decision to buy the security. Client portfolios are fully invested and diversified across industries.
CCA will allow successful companies to grow while attempting to control portfolio risk and will
remove companies that fail to meet CCA’s expectations. Performing this combined qualitative and
quantitative approach to stock selection encompass the majority of CCA’s daily activity

Investing in securities is inherently risky. An investment in individual securities or in a portfolio of
securities could lose money. The investments selected by CCA should be deemed speculative
investments and are not intended as a complete investment program. These types of investments are
designed for sophisticated investors who fully understand and are capable of bearing the risk of loss
of their entire investment. CCA cannot give any guarantee that it will achieve its investment
objectives or that any client will receive a return of its investment.

An investment in a Fund also entails a high degree of risk and is suitable only for sophisticated
institutions and individuals for whom an investment in a Fund does not represent a complete
investment program. An investment in a Fund requires the financial ability and willingness to accept
the substantial risks and lack of liquidity inherent in such investment. Investors in a Fund must be
prepared to bear such risks for an indefinite period of time. Prospective Investors to a Fund should
carefully review the applicable governing documents. Prospective Investors are also encouraged to
consult their own legal, investment, tax, and other advisers, and the applicable offering documents,
as to whether an investment in a Fund is appropriate for them.

Bankruptcy of a broker or custodian could cause excessive costs or loss of investor funds. If a
broker with whom CCA has an account becomes insolvent or bankrupt, CCA may be unable to
recover all or even a portion of the assets maintained by clients with that broker. Similarly, if a
custodian housing a client’s securities or other assets becomes bankrupt or insolvent, the client may
be unable to recover all or even a portion of the assets held by the custodian.

CCA may fail to identify successful companies. Identifying undervalued securities and other assets
is difficult, and there are no assurances that such a strategy will succeed. Furthermore, clients may
be forced to hold such investments for a substantial period-of-time before realizing any anticipated
value.

Investing in small and micro-cap companies entails unique risks. The value of small and micro-cap
company securities may be subject to wider price fluctuations and may be difficult or impossible to
sell. Low trading volume in a company’s securities means that CCA may have to sell holdings at a
discount from quoted prices or make a series of small sales over an extended period-of-time. In
addition, small and micro-cap companies may generate less information on which to base
investment decisions. Small and micro-cap companies are often subject to risks related to lack the
management experience, lack of financial resources, reliance on a single product and the inability
to compete with better capitalized companies with more experienced managers.

Cyber Security Breaches and Identity Theft
With the increased use of technologies such as the Internet and the dependence on computer systems
to perform business and operational functions, portfolios and their service providers may be prone
to operational and information security risks resulting from cyber-attacks and/or technological
malfunctions. In general, cyber-attacks are deliberate, but unintentional events may have similar
effects. Cyber-attacks include, among others, stealing or corrupting data maintained online or
digitally, preventing legitimate users from accessing information or services on a website, releasing
confidential information without authorization, and causing operational disruption. Successful
cyber-attacks against, or security breakdowns of, CCA, any of its investment funds/clients or a
custodian, or other affiliated or third-party service provider may adversely affect a fund/client and
its investors. For instance, cyber-attacks may interfere with the processing of transactions, affect a
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