Investment Management of Virginia LLC

Fees and Compensation
Investment Management of Virginia, LLC (“IMVA”) is compensated for investment advisory
services provided to its direct investment management clients by receiving a fee based on the fair
market value of assets under management. The standard fee schedule is as follows:

Asset Value of Client’s Account               Fee as Percentage of Assets

On the first $1,000,000 of assets             1.00% per annum
On assets greater than $1,000,000             0.75% per annum

Fees are negotiable. There are some accounts that are charged a fixed management fee. There are
also a few accounts in which IMVA provides only a reporting service to clients, where it will
collect information on brokerage accounts controlled by clients and report such information to
clients in a user-friendly format.

Pursuant to this payment schedule, individual security transactions (commissions) will be paid
by the client at the time of each transaction, if applicable. Commissions on trades placed by
IMVA as part of our investment advisory agreement with the client are charged directly to the
client’s custodial account; if the client has specified directed trading, the commission rate is
determined by agreement between the client and the respective custodian.

Under this fee schedule, the client fee will be based on the cash in the account (including accrued
dividends and interest) plus the fair market value of the securities in the account managed by
IMVA (“Supervised Assets”). The value of the Supervised Assets will be determined on the last
business day of each quarter, using security prices provided by custodians or outside pricing
sources, if necessary. The fee for the next quarter will be based on this amount and billed in
advance. Unsupervised Assets such as client assets that are held in the client’s account that are
not managed or supervised by IMVA, will not be included in the management fee calculation.
Assets deposited into a new client account opened during any calendar quarter will be charged a
pro-rated IMVA fee based on the number of days remaining in the calendar quarter versus the
total number of days in the calendar quarter. No adjustment will be made to the IMVA fee for
appreciation or depreciation in the value of the account during any quarter for which the IMVA
fee has already been charged to the client. The client has the choice to pay the investment
advisory fee directly to IMVA or instruct IMVA to mail the fee invoice to the custodian to pay
from the account under management. In the instance that the invoice is sent to the custodian to
be paid out of the account, a copy will be sent to the client disclosing the fee and its calculation
for their records, permitting the client to verify the amount of the invoice in advance. It is the
client’s responsibility to verify the accuracy of the fee calculation, and unless the client has made
other arrangements with the custodian, the client should not expect the custodian to determine
whether the fee is properly calculated.

Advisory fees charged by IMVA are separate and distinct from fees and expenses charged by
custodians or charged by mutual fund companies, if mutual funds are recommended to clients. A
description of these fees and expenses is available in each mutual fund’s prospectus.

Neither IMVA nor any of its supervised persons accept compensation for the sale of securities or
other investment products, including asset-based sales charges or service fees from the sale of
mutual funds.

There may be instances in which clients may be able to purchase investment products through
brokers or agents that are not affiliated with IMVA.

IMVA will not be compensated on the basis of a share of capital gains upon or capital
appreciation of the funds or any portion thereof.

A full refund will be provided to the client should they terminate the investment advisory
agreement within five business days of signing an Investment Management Agreement with
IMVA.

In the event of termination of the investment management agreement, any prepaid fees will be
refunded on a pro-rated basis to the date such cancellation takes effect and IMVA ceases to
supervise the client assets unless otherwise agreed. However, there will be no refund of prepaid
IMVA fees with respect to client withdrawals of cash and/or securities.

It is further understood and agreed that the IMVA fee schedule in effect for any account shall
continue until thirty (30) days after IMVA has notified the client in writing of any change in the
fee schedule that is applicable to a client account, at which time the new schedule will become
effective unless the client notifies IMVA that the account is not to be continued under the revised
IMVA fee schedule.

Assets in the Schwab Managed Account Access Program are calculated and collected by the
program.

IMVA is compensated directly by Schwab for their investment management services in this
relationship.

Performance Based Fees and Side-by-Side Management
IMVA does not offer performance-based fees to its clients. The standard fee schedule can be
found under item 5.

Types of Clients
Investment Management of Virginia, LLC (“IMVA”) currently provides investment advisory
services directly to the following types of clients:

   •   Individuals including high-net worth individuals
   •   Pension and Profit Sharing Plans
   •   Trusts and Estates
   •   Charitable Organizations
   •   Corporations

The minimum account size for a new account is $500,000, but this amount is negotiable. Clients
introduced to IMVA through certain wrap program sponsors often benefit from lower
minimums.

IMVA also provides services to clients of other investment or brokerage firms through wrap fee
arrangements, and other programs, where IMVA is not aware of the final client and is not
responsible for the implementation of its recommendations by the program provider.

Methods of Analysis, Investment Strategies and Risk of Loss
Large Capitalization Core Equity Portfolio
The Large Capitalization Core Equity Portfolio's equity investment style emphasizes high
quality, large capitalization companies. Potential equity investments should exhibit
good/consistent earnings growth, solid financial position, high-quality management, product or
service leadership relative to peers, and reasonable valuation relative to its own growth rate and
the comparable metrics for the S&P 500.

Methods of analysis include fundamental research based on company filings/publications,
conference calls and presentations, industry experts and publications, and in-house and external
macro and company specific research.

Risks in investing in the Large Capitalization Core Equity Portfolio:
The portfolio may not perform as intended.
Past performance is no guarantee of future results.
Individual positions and/or the portfolio as a whole may produce short-term and /or long-term
losses.
The portfolio is concentrated and may not provide adequate diversification.
Results may be volatile.

Large Capitalization Balanced Portfolio
The Large Capitalization Balanced Portfolio includes a blend of high-quality equity securities
and fixed income instruments. Potential equity investments should exhibit good/consistent
earnings growth, solid financial position, high-quality management, product or service leadership
relative to peers, and reasonable valuation relative to its own growth rate and the comparable
metrics for the S&P 500. The fixed income style emphasizes investment grade securities with
short to intermediate maturity and duration and comparable metrics for the Barclay's Capital
Intermediate Treasury Index.

Methods of analysis include fundamental research based on company filings/publications,
conference calls and presentations, industry experts and publications, and in-house and external
macro and company specific research.

Risks in investing in the Large Capitalization Balanced Portfolio:
The portfolio may not perform as intended.
Past performance is no guarantee of future results.
Individual positions and/or the portfolio as a whole may produce short-term and /or long-term
losses.
The portfolio is concentrated and may not provide adequate diversification.
Results may be volatile.

Select Equity Income Portfolio
The Select Equity Income Portfolio is conservatively managed with a primary goal of capital
appreciation through consistent, absolute returns while generating an attractive level of dividend

income. The portfolio's guiding principle is to invest in high quality small, medium, and large
capitalization companies that have strong positions within their markets and, in general, an
attractive and increasing dividend. ETFs can also be used. Companies considered for investment
generally will have an excellent balance sheet, a consistent record of profitability, sizable free
cash flow, and an experienced management team. The Select Equity Income Portfolio uses the
S&P 500 and the Russell 3000 Value indices.

Methods of analysis include fundamental research based on company filings/publications,
conference calls and presentations, industry experts and publications, and in-house and external
macro and company-specific research. A variety of screens are also used to identify promising
companies/investments.

Risks in investing in the Select Equity Income Portfolio:
The portfolio may not perform as intended.
Past performance is no guarantee of future results.
Individual positions and/or the portfolio as a whole may produce short-term and /or long-term
losses.
The portfolio is concentrated and may not provide adequate diversification. This portfolio is
expected to underperform during strong markets and outperform during weak markets.
Results may be volatile.

Small Capitalization Portfolio
The Small Capitalization Portfolio seeks an attractive total return through capital appreciation in
small capitalization companies, including the use of ETFs. Typical investment attributes for new
purchases normally include relatively low valuation metrics on projected earnings, cash flow,
sales and/or book value, strong or improving profit margins, a solid financial position, high-
quality management, and “out of favor” investor sentiment. Corporations generating increasing
levels of free cash flow where management owns significant equity interests in the business are
particularly favored. The Small Capitalization Portfolio uses the Russell 2000 for its index.

Methods of analysis include fundamental research based on company filings/publications,
conference calls and presentations, industry experts and publications, and in-house and external
macro and company-specific research. A variety of screens are also used to identify promising
companies/investments.

Risks in investing in the Small Capitalization Portfolio:
The portfolio may not perform as intended.
Past performance is no guarantee of future results.
Individual positions and/or the portfolio as a whole may produce short-term and /or long-term
losses.
The portfolio is concentrated and may not provide adequate diversification.
Results may be volatile.
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