LBMC Investment Advisors LLC

Item 5 – Fees and Compensation

Portfolio Management
Annual fees charged for portfolio management services generally range from 0.4% to 1.00% of
assets under management. Fees are negotiable under certain circumstances, including, but not
limited to, accounts opened for employees (including affiliated company employees) or family members. If a
client opens multiple accounts, the advisory fees are calculated based on the aggregated total of assets in the
various accounts under management. Fees are calculated based on the market value, typically obtained from
qualified custodians or other creditable sources, of the assets held in the client’s account at the end of each
calendar quarter. CASH BALANCES POLICY It is the Firm’s policy that cash and cash equivalents (i.e., money
market accounts) are an asset class. Absent approved mitigating circumstances and/or deviations, it is the
Firm’s policy to include cash balances as part of assets under management for fee billing purposes. Exceptions
or modifications shall be approved by the President. Reasons for exceptions include, but are not limited to:

    •   Segregation of cash needed for short-term purposes (i.e., house purchase, medical expenses, college
        tuition, etc.);
    •   Competition;
    •   Negotiations with the client; and,
    •   Hardship

The Firm, at its discretion, may suspend and/or modify its policy to bill on cash balances during any specific billing
quarter, including in the event that such billing would result in the client receiving a negative yield.

 Management fees are prorated for each significant ($25,000 or more individually or aggregated) capital
contribution and/or withdrawal made during the applicable calendar quarter. LBMCIA’s standard fee schedule
for portfolio management services is as follows:

For assets under management:
Account Market Value                              Annualized Rate                   Quarterly rate
On the first $2 Million($0-2MM)                   1.00%                             0.25%
On the next $2 Million($2-4MM)                    0.75%                             0.1875%
On the next $2 Million($4-6MM)                    0.65%                             0.1625%
On the next $4 Million($6-10MM)                   0.60%                             0.15%
On all amounts thereafter (over $10MM)            0.50%                             0.125%

There is a minimum quarterly fee of $500. LBMCIA has the option to waive any portion of the minimum
quarterly fee.

Clients typically grant LBMCIA the authority to deduct fees directly from the client’s account. Fees are due
quarterly in arrears based on the value of the account on the last day of the quarter with adjustments for
significant contributions or withdrawals ($25,000 or more) and for accounts with margin balances greater or
equal to $25,000 at the date fees are calculated. Both LBMCIA’s Agreement and the custodial/clearing

agreement may authorize the custodian to debit the account for the amount of LBMCIA’s investment advisory
fee and to directly remit that advisory fee to LBMCIA in compliance with regulatory procedures. In the limited
event that LBMCIA bills the client directly, payment is due upon receipt of LBMCIA’s invoice. Upon termination
of any account, any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be due
and payable. Fees for terminated accounts are calculated in a similar way to quarterly billing but are prorated to
the date of termination.

Margin Accounts: Risks/Conflict of Interest. LBMC does not recommend the use of margin for investment
purposes. A margin account is a brokerage account that allows investors to borrow money to buy securities. The
broker/custodian charges the investor interest for the right to borrow money and uses the securities as collateral.
By using borrowed funds, the customer is employing leverage that will magnify both account gains and losses.
Should a client determine to use margin, LBMCIA will include the entire market value of the margined assets when
computing its advisory fee. Accordingly, LBMCIA’s fee shall be based upon a higher margined account value,
resulting in LBMCIA earning a correspondingly higher advisory fee. As a result, the potential of conflict of interest
arises since LBMCIA may have an economic disincentive to recommend that the client terminate the use of
margin.

Please Note: The use of margin can cause significant adverse financial consequences in the event of a market
correction. Our Financial Advisors remain available to address any questions that a client or prospective client
may have regarding the use of margin.

General Information on Fees
All fees paid to LBMCIA for investment advisory services are separate and distinct from, and in
addition to, fees and expenses charged by mutual funds, independent advisers of separate accounts, or other
investment products that are used in client accounts. These fees and expenses are described in each fund’s
prospectus or other disclosure documents. LBMCIA’s fees are exclusive of brokerage commissions, transaction
fees, and other related costs and expenses which shall be incurred by the client. Clients will incur certain
charges imposed by custodians, brokers, and other third parties such as fees charged by managers, custodial
fees, deferred sales charges, odd-lot differentials, transfer taxes, wire transfer and electronic fund fees, trade
away fees, and other fees and taxes on brokerage accounts and securities transactions. Mutual funds and
exchange traded funds also charge internal management fees which are disclosed in the fund’s prospectus.
Such charges, fees and commissions are exclusive of and in addition to LBMCIA’s fee, and LBMCIA shall not
receive any portion of these commissions, fees, and costs. LBMCIA and its supervised persons do not receive
compensation for the sale of securities or other products.
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Item 7 – Types of Clients

LBMCIA provides portfolio management services to individuals, high net worth individuals, corporate entities,
and foundations.