Forest Capital Operating Company LLC

Item 5: Fees and Compensation

FC bases its fees on a percentage of assets under management, fixed advisory fees, or an hourly
rate.

FC, in its sole discretion, can waive its minimum fee and/or charge a lesser investment advisory
fee based upon a number of criteria (e.g., historical relationship, type of assets, anticipated future
earning capacity, anticipated future additional assets, dollar amounts of assets to be managed,
related accounts, account composition, negotiations with clients, etc.). All fees are subject to
negotiation.

Investment Advisory Services Fee
Fees are based on a percentage of assets under management and are charged quarterly in arrears.
The end of the billing period is typically the end of each calendar quarter. Fees will depend on the
type and size of the account and the specific investment strategy employed. Fees are assessed in
arrears. If an account is closed or transferred, FC has the right to prorate fees for the period the
assets are under management.

While fees are individually negotiated, clients will generally pay fees based on a percentage of
assets under management in accordance with one of the following standard schedules:

 Fixed Income Bond Account                                                              Annual Fee
 Up to and including $1,000,000                                                           0.60%
 Greater than $1,000,000                                                                  0.40%
 Balanced & Equity Strategies                                                           Annual Fee
 Up to and including $1,000,000                                                           0.80%
 Greater than $1,000,000                                                                  0.60%

Advisory Consulting Agreement
In some circumstances, an advisory consulting agreement is executed in lieu of an investment
advisory agreement when it is more appropriate to work on a fixed fee or hourly basis. The annual
fee or hourly rate for such an agreement is entirely negotiable based upon the scope of the advisory
work involved.

Additional Fees
From time to time, to the extent consistent with the client’s investment objectives and strategies,
FC will invest client assets in unaffiliated investment vehicles, such as mutual funds and/or
exchange traded funds. In addition, clients can choose to participate in a custodian’s sweep
program, which will offer commingled investment vehicles such as money market mutual funds.
All such funds typically incur fees for investment advisory, administrative and distribution services.
Client accounts invested in such funds that are unaffiliated with us will pay two levels of advisory
fees - one through the unaffiliated fund to its investment adviser and one to FC.

A client will, when applicable, incur transaction charges and/or brokerage fees when securities are
purchased or sold for the client’s account. These charges and/or fees are typically imposed by the
broker-dealer or custodian through which the transactions are executed. For additional information
with respect to FC’s brokerage practices, see Item 12 below.

Custodians of client assets, especially in cases of accounts designated as a retirement account (i.e.,
IRA, Roth IRA, 401k, etc.), can charge a fee to cover the cost associated with the additional tax
reporting these accounts require. This fee is charged and collected by the custodian.

Other fees will also be charged by the custodian in special situations, such as for legal transfers, wire
requests, check re-orders, insufficient funds, and other service-related fees. These fees are charged
and collected by the custodian and are in addition to the fees charged by FC.

The fees charged by such funds or managers are disclosed in each fund’s prospectus or Manager’s
Form ADV Part 2A. The management fee also does not cover fees and charges in connection with
debit balances, margin interest, odd-lot differentials, IRA fees, transfer taxes, exchange fees, wire
transfers, extensions, non-sufficient funds, mailgrams, legal transfers, bank wires, postage, costs
associated with exchanging foreign currencies, and SEC fees or other fees or taxes required by
law.

Regulatory agencies or other governing bodies may also assess fees.

Payment
Generally, fees are debited directly from specified client accounts unless other arrangements are
made and mutually agreed to. Clients must consent in advance in writing to direct debiting of their
investment accounts.

Termination Upon Death
Upon notification of the death of a client, Forest Capital will notify the custodian, Charles Schwab.
No additional trading or liquidations will occur, and the account will be frozen until the necessary
documents are provided to transfer the account to the individual’s estate, joint owner, or
beneficiary, as applicable based on the account type and instructions set up by the client. In
addition, all POAs will be cancelled.

Item 7: Types of Clients

FC provides investment advice to individuals, investment companies, pension and profit-sharing
plans, trusts, estates, or charitable organizations, captive insurance companies and corporations or
business entities. Client relationships vary in scope and length of service.

The minimum account size is $250,000 of assets under management. FC has the discretion to
waive the account minimum.