Islay Capital Management LLC

Item 5.        Fees and Compensation

 Portfolio Management Services

 We charge an annual fee based on a percentage of assets under our management, in accordance with the
 following tiered billing schedule:

 Assets Under Management ($)                                 Annual Fee (%)

 Up to $1,000,000                                                   1.00%
 $1,000,001 to $5,000,000                                           0.75%
 $5,000,001 & up                                                    0.50%

Pooled Investment Vehicle

MCM CCP/Baypine, LP does not charge a management fee. An annual 10% performance fee is charged
after initial capital has been returned.

Islay Multifactor Fund I, LP charges a 20% performance fee after a 5% hurdle. All fees are calculated by
the fund administrator.

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When determining the breakpoints for fee billing, we will combine the value of household accounts.

Institutional and charitable accounts range from 0.50% to 0.60% based on assets and complexity of
investment policy statement. Some legacy clients have negotiated fees that differ from the above fee
schedule.

 We will generally directly debit client custodial accounts for portfolio management fees.

 Portfolio management fees are billed quarterly in arrears at the end of each calendar quarter, based upon
 the portfolio value on the last day of that calendar quarter, pro-rated for additions and withdrawals.

 Consulting Services

 Clients receiving consulting services are billed at an hourly rate of $250. Consulting services fees are
 due and payable once we deliver the contracted-for work product to the client.

 Financial Planning Fees
 We offer financial planning services starting at $1,000 per year, billed bi-annually in arrears. Fees vary
 based on time and complexity.

 Financial planning annual fees may be waived for clients with over $150,000 in assets under
 management. Fees are billed at the client’s direction either Annually, Quarterly or Monthly.

 Fees in General

 Fees and account minimums for all services are negotiable based upon certain criteria and are at
 McDonald’s discretion (i.e. anticipated future earning capacity, anticipated future additional assets,
 dollar amount of assets to be managed, related accounts, account composition, negotiations with client,
 competitive considerations, etc.). Discounts, not generally available to our advisory clients, may be
 offered to family members and friends.

 We may group certain related client accounts for the purposes of determining the account size and/or
 annualized fee.

 Certain legacy client agreements may be governed by fee schedules different from those listed above.

 Any legacy holdings that are deemed to be unsupervised by our firm may be included in the client
 reporting package and client will not pay a management fee on those assets.

 Account Termination

 Clients will have a period of five (5) business days from the date of signing the agreement to
 unconditionally rescind the agreement and receive a full refund of all fees. Thereafter, the client may
 terminate the agreement by providing us with a 30-day written notice at our principal place of business.
 Upon termination of any account, any prepaid, unearned fees will be promptly refunded, and any earned,
 unpaid fees will be due and payable.
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Mutual Fund and ETF Fees and Expenses: All fees paid to our firm for investment advisory services
are separate and distinct from the fees and expenses charged by mutual funds and ETFs to their
shareholders. These fees and expenses are described in each fund's prospectus. These fees will
generally include a management fee, other fund expenses, and a possible distribution fee. A client
could invest in a mutual fund or and ETF directly, without the services of our firm. In that case, the
client would not receive the services provided by us which are designed, among other things, to assist
the client in determining which mutual fund or funds or ETFs are most appropriate to each client's
financial condition and objectives. Accordingly, the client should review both the fees charged by the
funds and ETFs and the fees charged by us to fully understand the total amount of fees to be paid by
the client and to thereby evaluate the advisory services being provided.

Brokerage and Custodial Fees

In addition to advisory fees paid to our firm, clients will also be responsible for all transaction,
brokerage, trade-away and custodial fees incurred as part of their account management. Please see Item

Item 7.          Types of Clients

Our firm generally provides advisory services to individuals, high net worth individuals, pension and
profit sharing plans, trusts, estates, charitable organizations, corporations, other business entities and
pooled investment vehicles.

We generally impose a minimum relationship size under the respective client service segments.
   •      Separately Managed Accounts. The minimum relationship size is $250,000 and/or a minimum
          annual fee of $2,500 as of March 1, 2009. However, no client's fee will exceed 3% of assets under
          management per annum.
   •      Retirement Plan Services. There is no current minimum relationship size for this client group.
          Under no circumstance will a client's fee exceed 2% per annum or exceed a fee amount governed
          by retirement plan provision.
   •      Consulting Clients There is currently no minimum relationship size or minimum annual fee for
          these clients.