Eagle Capital Advisors LLC

FEES AND COMPENSATION                  Item 5

Eagle is compensated by the fees paid by our clients. These fees are based on the assets under
our management. Our standard annual fees are 1% on the first $3 million of assets under
management and ¾ of 1% on the balance, payable quarterly. We retain the discretion to
negotiate alternative fees on a client-by-client basis. Client circumstances are considered in
determining the fee schedule, including the complexity of the relationship, the specific assets to
be placed under management, anticipated future additional assets, and related accounts, among
other factors. The specific annual fee schedule is described in the contract between the adviser
and each client.

We may group certain related client accounts for the purposes of determining fees.

Fees are normally deducted directly from accounts. Our fees are paid within thirty days
following the beginning of the quarter for which said fees will be incurred, based on the account
value on the last day of the previous quarter.

Clients may incur additional expenses for investment, brokerage, and custody services charged
by third parties. Examples of fees that could be incurred include but are not limited to the
following:

•Brokerage fees paid directly to the brokers for specific transactions
•Mark ups/mark downs on fixed income transactions by the broker
•Custodial fees paid to the client’s custodian
•Mutual fund fees and expenses charged within the funds
•Wire transfer fees
•Early settlement charges
•Margin interest

At the inception of the relationship and each quarter thereafter, we will notify your custodian of
the amount of the fee due and payable to us through our fee schedule and contract. The
custodian does not validate or check our fee, its calculation, or the assets on which the fee is
based. They will “deduct” the fee from your account(s) or, if you have more than one account,
from the account you have designated to pay our advisory fees.

Each month, you will receive a statement directly from your custodian showing all transactions,
positions, and credits / debits into or from your account; the statements after the quarter-end
will reflect these transactions, including the advisory fee paid by you to us.

                              ACCOUNT CLOSURE             Item 6

Eagle or the client may terminate the Investment Advisory Agreement at any time by written
notice. We don’t charge account cancellation fees and all prepaid fees are returned on a pro-
rata basis.

             PERFORMANCE-BASED FEES AND SIDE-BYSIDE                       Item 7

Eagle does not charge any performance-based fees (fees based on a share of returns).

TYPES OF CLIENTS Item 8

We provide our services to a range of clients:
   • High net worth individuals and their related entities. Related entities include personal,
      trust, IRA, and retirement accounts. We may also manage family limited partnerships,
      family foundations and employee benefit plans related to a client’s business. Trust
      accounts include revocable trusts, irrevocable trusts, estates, and guardianships.
   • Endowments, foundations, and other charitable organizations
   • Corporations and other businesses
   • Pension and profit sharing plans

METHODS OF ANALYSIS, INVESTMENT STRATEGIES & RISK OF LOSS Item 9

Investment Philosophy
Why do investors invest? We believe that protecting and growing the real (inflation –adjusted)
purchasing power of our client’s assets and future cash flow streams is a core objective. With
that premise as a starting point, we work hard to understand the individual goals and unique
circumstances of our clients, and we incorporate that understanding into each decision we
make. At the outset of each relationship, we discuss these objectives and recommend how we
would approach achieving them, so that our experience together is based upon a shared
understanding of what we can offer and what the client can expect.

We further believe that asset allocation explains the bulk of a portfolio’s forecasted and actual
volatility and return. Armed with a clear understanding of each client’s goals and constraints,
we are in a better position to design an investment policy that creates an efficient combination
of risk and expected return, within the context of those goals and constraints. Once we’ve
defined appropriate asset allocation ranges for each asset class, the exact mix of assets at any
point in time will be based on our judgment of the current relative attractiveness of each asset
class. Then, once our best security ideas are identified, we apply portfolio construction
disciplines that help us produce the combination of those ideas that represent an efficient
balance between expected excess return and risk. Security selection will be the primary source
of returns relative to the corresponding index, but portfolio strategy will also incorporate
portfolio manager’s views on industry, style, and size biases consistent with each client’s overall
risk tolerance.

In some cases, if the size of the portfolio or a particular portfolio segment is small, that portfolio
or segment may be constructed using mutual funds or some other type of collective fund.
This is done to maximize diversification and control transaction costs when the use of
individual issues would be inefficient.

Primary Risks: Our market assumptions may be wrong. Returns may not meet client objectives
and actual losses may result.

Equity Investment Strategy
At the core of our approach to investment management is a commitment to rigorous
quantitative and qualitative research. In our opinion, thoughtful security selection, driven by a
disciplined and consistently applied research process, is a reliable and repeatable way to
achieve desirable results over time for our clients. Our experience combined with our process
produces independent insight and gives us the confidence to challenge the consensus.
We seek favorable results by consistently and objectively apply our selection criteria to help us
identify and evaluate leading companies in growing industries. We employ a systematic
approach to looking at ideas. We combine fundamentally driven portfolio manager insight with
a quantitative ranking process that includes quality, valuation, and momentum based factors.
Although the public equity market tends to be efficient over time, it is possible to gain an
advantage through disciplined stock selection and portfolio construction.

When evaluating a company for potential investment, we find it helpful to deconstruct its
‘value chain’ from suppliers to end markets. This granular view of a business’s environment
forms the basis necessary to make judgments regarding a company’s expected growth and
profitability. We pay particular attention to the ‘quality’ of a company’s’ revenue growth – its
consistency, the degree to which it is recurring, and the degree to which the opportunity is
penetrated, etc. We seek free cash flow growth and capital discipline as much as we do earnings
growth. The combination of above average free cash flow yield and above average return on
invested capital interests us. We compare our judgment of the sustainability of these key
advantages with that implied by the stock’s valuation. By understanding what assumptions are
required by the market, we can assess whether they are reasonable. Without this understanding,
it is difficult to put news flow in the proper context and evaluate the appropriateness of market
reaction.

We attempt to arbitrage differences in time horizons between our clients and the short-term
reactionary herd approach of many institutions. As they chase short term performance,
institutions can be prone to overreacting, positively or negatively, to information that has little
or no bearing upon the long term prospects of a business. Our client’s time horizons are
normally longer than a quarter or two, and this mismatch can create valuation anomalies that
we can attempt to identify and capitalize on for our clients.

Primary Risks: The analysis of the company or stock may overlook or deemphasize factors that
may ultimately impact performance. Historical information may not be useful in evaluating
future results. Expectations for company performance or economic conditions may be incorrect.
Information provided by individual companies, data providers or analysts may be inaccurate
either deliberately or inadvertently. Our investment style may become out of favor; companies
with fundamental operating and financial strength may not provide superior returns in some
market environments when lower quality, cyclical companies are being favored.
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