Fairbanks Capital Management Inc

ITEM 5 – FEES AND COMPENSATION

 Fee Schedule and Billing Method

Investment Management Services

Generally, we charge up to 1.75% per year, assessed monthly, if total managed relationship assets
are under $500,000; lower fees shall apply to higher amounts of relationship assets. Fixed Income
may be assessed at half the rate of equities. Cash assets and money market securities are included
in the fee calculation at the rate that reflects whether cash will be used to invest in equities or
fixed income.

We generally deduct fees from accounts either monthly in arrears or quarterly in the middle of
the quarter. Fees are calculated on the asset value of accounts at the end of the preceding
calendar period. For example, in the case of monthly fees, the fee is charged in the first week of
the month based on account value at the end of the preceding month. In the case of quarterly
billing, the fee is charged in the middle of the subject quarter, based on account value at the end
of the preceding quarter. The formula used for fee calculation is (annual rate x total assets under

management at end of the preceding period divided by the number of fee periods per year.

Not all clients will be charged as described and in certain circumstances fees are subject to
negotiation. Please refer to each client’s investment management agreement, confidential offering
memorandum, or similar document for a complete description of fees.

 Other Compensation

FCM’s fees do not include custodian fees. Clients pay all brokerage commissions, stock transfer
fees, margin charges, foreign exchange and settlement fees, and/or other charges incurred in
connection with transactions in accounts, from the assets in the account. These charges are in
addition to the fees the client pays to FCM; however, FCM does not determine or participate in
these fees charged by the custodian. See Item 12 - Brokerage Practices below for more
information

 Termination

Either party may terminate the Discretionary Investment Management Agreement upon thirty
days written notice. We will refund any prepaid unearned management fees based on the
effective date of termination. In the event that termination takes place before our mid-quarter
billing, earned but unpaid management fees will be charged upon receipt of notice of
termination.

ITEM 7 - TYPES OF CLIENTS

Our clients include individuals, corporations, foundations, trusts, charities, retirement funds, IRAs,
529B plans, 401K plans and pooled vehicles.