DC Capital Management LLC

Fees and Compensation

                                                                               Form ADV Part 2A, Item 5

In relation to financial planning fees, an hourly fee of between $150-$400 per hour or a flat fee of
between $1,000-$10,000 shall be charged based upon the facts and circumstances of the case and based
upon the anticipated complexity of the case. A retainer fee of one-half of the anticipated full fee will be
required with the balance due and owing upon completion of the financial planning process.

Firm shall base its asset advisory fees upon a percentage of assets under management. All such asset
management fees shall be payable quarterly in advance. All advisory fees shall be negotiable. No
advisory fee shall be based upon capital gains or upon capital appreciation of assets. The professional
relationship may be terminated at will by either the Firm or the advisory client upon thirty days’ written
notice served upon the other party. In the event that there should be any unearned or unapplied fees,
Firm will refund such fees at once to the advisory client.

The adviser may allow the use of margin accounts. If the adviser uses margin accounts, this will result
in a client paying additional fees for securities bought on margin. When clients pay an asset management
fee based on assets under management as opposed to the net value of an account, they will pay additional
fees for securities bought on margin and the adviser has a conflict of interest when securities are bought
on margin because this will increase advisory fees.

Clients will be required to pay other types of fees and expenses in connection with our advisory services
such as custodial fees and/or mutual fund expenses. Clients will incur brokerage and other transaction
costs. The client is hereby directed to Item 12 of this narrative which addresses our firm’s brokerage
practices.

Firm’s investment supervisory fees shall generally be deducted directly from the client’s account, shall
be due quarterly in advance, shall be based on the net value of the account as of the last day of the
previous quarter, and shall be based upon a percentage of assets under management as follows:
                                                         Annual Fee

                                         Investment            Investment Management
              Amount of Assets         Management Only          and Financial Planning

              $0-$500,000                     1.00%                       1.10%
              Next $500,000                   0.90%                       1.00%
              Next $1,500,000                 0.80%                       0.90%
              Next $2,500,000                 0.70%                       0.80%
              Over $5,000,000                 0.60%                       0.70%

                     Performance-Based Fees and Side-By-Side Management

                                                                             Form ADV Part 2A, Item 6
None.

Types of Clients

                                                                              Form ADV Part 2A, Item 7
Individuals, pension plans, profit sharing plans, trusts, estates, charitable organizations, corporations
and other business entities.

Firm requires minimum assets under management of $500,000 for its asset management services.

                    Methods of Analysis, Investment Strategies and Risk of Loss

                                                                               Form ADV Part 2A, Item 8

The following methods will be used by Firm to analyze securities: charting, fundamental, technical and
cyclical.

Charting analysis involves the gathering and processing of price and volume information for a
particular security. This price and volume information is analyzed using mathematical equations. The
resulting data is then applied to graphing charts, which is used to predict future price movements based
on price patterns and trends. Charts may not accurately predict future price movements. Current prices
of securities may not reflect all information about the security and day-to-day changes in market prices
of securities may follow random patterns and may not be predictable with any reliable degree of
accuracy.

Fundamental analysis involves analyzing individual companies and their industry groups, such as a
company’s financial statements, details regarding the company’s product line, the experience, and
expertise of the company’s management, and the outlook for the company’s industry. The resulting data
is used to measure the true value of the company’s stock compared to the current market value. The risk
of fundamental analysis is that information obtained may be incorrect and the analysis may not provide
an accurate estimate of earnings, which may be the basis for a stock’s value. If securities prices adjust
rapidly to new information, utilizing fundamental analysis may not result in favorable performance.
Technical analysis involves using chart patterns, momentum, volume, and relative strength in an effort
to pick sectors that may outperform market indices. However, there is no assurance of accurate forecasts
or that trends will develop in the markets we follow. In the past, there have been periods without
discernible trends and similar periods will presumably occur in the future. Even where major trends
develop, outside factors like government intervention could potentially shorten them.
Furthermore, one limitation of technical analysis is that it requires price movement data, which can
translate into price trends sufficient to dictate a market entry or exit decision. In a trendless or erratic
market, a technical method may fail to identify trends requiring action. In addition, technical methods
may overreact to minor price movements, establishing positions contrary to overall price trends, which
may result in losses. Finally, a technical trading method may under perform other trading methods when
fundamental factors dominate price moves within a given market.
Cyclical analysis is a type of technical analysis that involves evaluating recurring price patterns and
trends based upon business cycles. Economic/business cycles may not be predictable and may have
many fluctuations between long term expansions and contractions. The lengths of economic cycles may
be difficult to predict with accuracy and therefore the risk of cyclical analysis is the difficulty in
predicting economic trends and consequently the changing value of securities that would be affected by
these changing trends.

The following investment strategies will be used by Firm:

DCCM has developed five proprietary portfolios that are chosen based on a client’s risk aversion, return
expectations, liquidity needs, time horizon, tax implications, legal considerations, and any unique
factors:

Preservation: to protect your initial investment from significant loss of principal.

Conservative: to provide current income rather than long-term growth of principal.

Moderate: to provide current income and long-term growth of principal.

Aggressive: to increase principal over time while assuming higher volatility.

Speculative: to increase principal over time while assuming a high level of volatility.

Material Risks Involved

All investing strategies we offer involve risk and may result in a loss of your original investment
which you should be prepared to bear. Many of these risks apply equally to stocks, bonds,
commodities and any other investment or security. Material risks associated with our investment
strategies are listed below.
Market Risk: Market risk involves the possibility that an investment’s current market value will fall
because of a general market decline, reducing the value of the investment regardless of the success of
the issuer’s operations or its financial condition.
Strategy Risk: The Adviser’s investment strategies and/or investment techniques may not work as
intended.
Small and Medium Cap Company Risk: Securities of companies with small and micro market
capitalizations are often more volatile and less liquid than investments in larger companies. Small and
medium cap companies may face a greater risk of business failure, which could increase the volatility
of the client’s portfolio.
Turnover Risk: At times, the strategy may have a portfolio turnover rate that is higher than other
strategies. A high portfolio turnover would result in correspondingly greater brokerage commission
expenses and may result in the distribution of additional capital gains for tax purposes. These factors
may negatively affect the account’s performance.
Limited markets: Certain securities may be less liquid (harder to sell or buy) and their prices may at
times be more volatile than at other times. Under certain market conditions we may be unable to sell or
liquidate investments at prices we consider reasonable or favorable or find buyers at any price.
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