Cumberland Investment Counsel Inc

Item 5: Fees and Compensation
CIC offers discretionary investment management services to CIC clients through separately managed
accounts. CIC is compensated for such services by charging a percentage of assets under management.
The applicable fee schedule is based on the investment strategy chosen. Typically, the maximum
Investment Management Fee is 1.5% per annum (plus applicable taxes) on a declining scale for accounts
in excess of $2 million. Groups or family accounts may be combined to take advantage of our declining
fee scale under certain circumstances.

        (i) The Capital Appreciation fee schedule applies to portfolios which have a mandate of greater than
        60% towards capital appreciation (equities).

                                       Capital Appreciation Portfolios (CAP)
                             1.5%                       p.a. on the first $2 million
                            1.125%                      p.a. on the next $2 million
                             0.75%                      p.a. on the next $3 million
                             0.50%                      p.a. on the next $3 million
                             0.40%                      p.a. over $10 million

        (ii) The Balanced/Income fee schedule applies to portfolios which have a mandate of 60% or less
        towards capital appreciation (equities).

                                         Balanced/Income Portfolios (BIP)
                            1.00%                      p.a. on the first $1 million
                            0.75%                      p.a. on the next $2 million
                            0.50%                      p.a. on the next $3 million
                            0.40%                      p.a. on the next $4 million
                            0.30%                      p.a. on the next $5 million
                            0.25%                      p.a. over $15 million

        iii) The Fixed Income fee schedule applies to portfolios which are modeled 100% towards Fixed
        Income.

                                                 Fixed Income (FI)
                            0.50%                      p.a.

CIC management fees are charged monthly in arrears based on the portfolio’s total market value at
month-end. In certain limited situations, clients may choose to be charged management fees quarterly in
arrears based on the portfolio’s total market value at quarter-end. The fee takes into consideration cash
flows into and out of the portfolio and includes accrued income during the billing period. The management
fees are generally deducted from the portfolio incurring the fee and remitted to CIC by the custodian upon
receipt of our instruction however, a client may choose to be invoiced separately and remit payment from
an external source at their discretion. In certain circumstances a client may benefit from paying fees
separately and should discuss their options with their tax advisor.

In general, CIC offers a standard fee schedule however, in certain limited situations, we may negotiate our
investment management fee schedule on a case-by-case basis. As such, certain clients will have a
management fee schedule that differs from CIC’s standard fee schedule noted above.

In addition to management fees, clients who engage CIC to provide advisory services will incur additional
fees and expenses charged by their custodian under their custodial arrangement including custody fees,
transaction related costs, interest charges on overdraft or margin balances, wiring charges etc., as
applicable. Clients will also incur brokerage costs, including minimum ticketing charges, as applicable.
Clients may refer to Item 12 for additional details relating to our brokerage practices.

CIC does not request payment of management fees in advance of services rendered nor does CIC,
including its supervised persons, receive any compensation other than management fees for advisory
services rendered in respect of our US business.

Where applicable, clients have the option to purchase investment products that CIC recommends through
other brokers or agents that are not affiliated with CIC.

An Investment management agreement may be terminated by either party upon receipt of written notice
in accordance with the terms contained in the management agreement. CIC will be entitled to
management fees earned to the date of termination. Clients shall honor all investment transactions
executed in good faith on behalf of the client’s account prior to our receipt of the termination notice.

Item 7: Types of Clients
CIC provides investment advisory services to high-net-worth individuals including estates, trusts, personal
retirement accounts, corporations and similar entities. The minimum investment required to establish a
client relationship is $1M. Under certain circumstances we may accept a lower minimum investment,
subject to management review & approval on a case-by-case basis.

Additionally, CIC provides sub-advisory or advisory services to certain Canadian prospectus and non-
prospectus funds where our related persons, CPWM or NCM, is the Canadian Investment Fund Manager.
These funds are not available to US clients.