Glasgow & Associates LLC

Item 5.     Fees and Compensation                             Advisory Fees are not based upon a share of capital
                                                              gains or capital appreciation (known as
This section provides additional details regarding the        “performance fees”), nor are they collected for
Firm’s services along with descriptions of each               services to be performed more than six months in
service’s fees and compensation arrangements. It              advance. The Firm generally does not provide
should be noted that lower fees for comparable                investment advice regarding variable annuities and
service may be available from other sources. The              does not actively monitor performance of same.
exact fees and other terms will be outlined in the            However, clients should feel free to contact the Firm
agreement between the client and the Firm.                    if they desire advice on annuities.

                                                              For client accounts managed using Pontera,
A. Fees and Compensation             for   Investment
                                                              Masonboro is charged a quarterly “Platform Fee” to
   Management Services
                                                              be paid by Masonboro to Pontera from the Advisory
Masonboro charges clients an Advisory Fee for                 Fees. This Platform Fee that Masonboro pays is
investment management services. The Advisory Fee              0.30% per annum. The Platform Fee is covered by
based upon a percentage of the assets under                   and paid from the Advisory Fee the Client pays
management. The Advisory Fee will not exceed 1.5%             Masonboro.
per year. Each client’s Advisory Fee will be clearly
indicated in the Investment Advisory Agreement.

                                                                                                Masonboro Advisors

Investment management clients will also pay an                   In the event of termination, any prepaid Sub-
administrative fee of $250 per year per account. See             Advisory Fees will be prorated through the date of
“Administrative Fee,” below.                                     termination and any prepaid remaining balance will
                                                                 be returned to the sub-advised client, as
                                                                 appropriate.
B. Fees and Compensation for Financial Planning
Financial planning services are billed on a flat-fee or
                                                                 D. Yield Enhancement Strategy (Y.E.S.)
hourly basis. Fees will be quoted in advance of
services and range from $1,500 to $10,000,                       Y.E.S. does not have an independent fee. If the
depending on the scope and complexity of the work.               program is being accessed through a Sub-Advisory
The quote will be based on estimated time spent on               relationship, the Sub-Advisor Fee applies. If the
the project which is calculated at a rate not to exceed          program is deployed in the management of a
$250 per hour. If a client elects hourly billing, the rate       Masonboro client’s portfolio, Masonboro is
will not exceed $250 per hour. Masonboro will                    compensated through its Advisory Fee.
provide the client with an estimate of fees prior to
beginning any work. Should additional time be
required in order to complete the plan, the client               E. Other Fees, e.g. Other Types of Fees
shall be notified and made aware that additional                 The aforementioned Advisory Fees and Sub-Advisory
charges may apply. It is Masonboro’s policy to                   Fees represent fees for advisory services only.
receive approval for financial planning fees prior to            Brokerage commissions, transaction charges,
the initiation of work. One half of the estimated                handling fees, custodial fees, service charges, ticket
financial planning fee is due at the beginning of the            charges and other similar charges, if any, are not
services with the remaining balance due upon                     included in our fees and must generally be paid by
completion.                                                      the client. Clients will also typically pay, indirectly,
                                                                 charges imposed directly by the manager of a mutual
Fees for financial planning services are separate and            fund, index fund or exchange traded fund, which
in addition to our Advisory Fees. Clients are under no           shall be disclosed in the fund’s prospectus. Examples
obligation, contractually or otherwise, to act upon              include fund management fees, initial or deferred
the recommendation contained in the financial plan               sales charges, mutual fund sales loads, 12b-1 fees,
and are not obligated to purchase any securities                 surrender charges, annuity fees, IRA and qualified
through any person or entity affiliated with our Firm.           retirement plan fees, and other fund expenses.
                                                                 Examples of other types of fees a client remains
C. Sub-Advisory Investment Management Fees                       responsible to pay include mark-ups and mark-
                                                                 downs, spreads paid to market makers, wire transfer
When serving as a sub-adviser to other investment
                                                                 fees, ADR fees, overnight check fees, close-out fees,
advisers, Masonboro receives an annual sub-
                                                                 activity assessment fees and taxes on brokerage
advisory fee (“Sub-Advisory Fee”) that is typically
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