Lincoln Capital Corporation

Item 5: Fees and Compensation

Compensation – Portfolio Management Services
Our fee schedule, at annual rates, is as follows for all household assets:

                          Assets Under Management            Annual Fee
                                 First $500,000                1.00%
                          From $500,000 - $1,000,000           0.85%
                         From $1,000,000 - $3,000,000          0.65%
                         From $3,000,000 - $5,000,000          0.55%
                            In excess of $5,000,000          Customized

Related accounts may be aggregated for fee calculations and certain client-directed holdings
may be deducted from the account value for billing purposes. Fees are charged quarterly in
arrears based on the account value as valued by the custodian at the end of each calendar
quarter including accrued income.

The specific manner in which fees are charged by Lincoln Capital is established in a client’s
written agreement with Lincoln Capital. Accounts initiated or terminated during a calendar
quarter will be charged a prorated fee. Upon termination of any account, any unpaid fees will
be due and payable.

Compensation – Financial Planning Services
Lincoln Capital may charge a fixed fee for standalone financial planning services. These fees are
negotiable but generally range from $1,200 to $5,000 on a fixed fee basis depending upon the
level and scope of the services and the professional engaged to render the services. If the client
engages Lincoln Capital for additional investment advisory services, Lincoln Capital may credit
all or a portion of its fees for those services based upon the amount paid for the financial
planning services.

Prior to engaging Lincoln Capital to provide financial planning services, the client is required to
enter into a written agreement with Lincoln Capital setting forth the terms and conditions of
the engagement. Generally, Lincoln Capital requires the payment of the fixed fee upon
completion of the financial plan.

Other Fees
Lincoln Capital’s fees are exclusive of brokerage commissions, transaction fees, and other
related costs and expenses which shall be incurred by the client. Clients may incur certain
charges imposed by custodians, brokers, third party investment 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, 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 a fund’s prospectus.

Such charges, fees and commissions are exclusive of and in addition to Lincoln Capital’s fee, and
Lincoln Capital does not receive any portion of these commissions, fees, and costs.

Cash Balances
Some of your assets may be held as cash and remain uninvested. Holding a portion of your
assets in cash and cash alternatives, i.e., money market fund shares, may be based on your
desire to have an allocation to cash as an asset class, to support a phased market entrance
strategy, to facilitate transaction execution, to have available funds for withdrawal needs or to
pay fees or to provide for asset protection during periods of volatile market conditions. Your
cash and cash equivalents will be subject to our investment advisory fees unless otherwise
agreed upon. You may experience negative performance on the cash portion of your portfolio if
the investment advisory fees charged are higher than the returns you receive from your cash.

Retirement Plan Rollover Recommendations
As part of our investment advisory services to our clients, we may recommend that clients roll
assets from their employer’s retirement plan, such as a 401(k), 457, or ERISA 403(b) account
(collectively, a “Plan Account”), to an individual retirement account, such as a SIMPLE IRA, SEP
IRA, Traditional IRA, or Roth IRA (collectively, an “IRA Account”) that we will advise on the
client’s behalf. We may also recommend rollovers from IRA Accounts to Plan Accounts, from
Plan Accounts to Plan Accounts, and from IRA Accounts to IRA Accounts.

If the client elects to roll the assets to an IRA that is subject to our advisement, we will charge
the client an asset-based fee as set forth in the advisory agreement the client executed with our
firm. This creates a conflict of interest because it creates a financial incentive for our firm to
recommend the rollover to the client (i.e., receipt of additional fee-based compensation).
Clients are under no obligation, contractually or otherwise, to complete the rollover. Moreover,
if clients do complete the rollover, clients are under no obligation to have the assets in an IRA
advised on by our firm. Due to the foregoing conflict of interest, when we make rollover
recommendations, we operate under a special rule that requires us to act in our clients’ best
interests and not put our interests ahead of our clients’.

Under this special rule’s provisions, we must:

   •   meet a professional standard of care when making investment recommendations (give
       prudent advice);
   •   never put our financial interests ahead of our clients’ when making recommendations
       (give loyal advice);
   •   avoid misleading statements about conflicts of interest, fees, and investments;
   •   follow policies and procedures designed to ensure that we give advice that is in our
       clients’ best interests;
   •   charge no more than a reasonable fee for our services; and
   •   give clients basic information about conflicts of interest.

Many employers permit former employees to keep their retirement assets in their company
plan. Also, current employees can sometimes move assets out of their company plan before
they retire or change jobs. In determining whether to complete the rollover to an IRA, and to
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Types of Clients
Lincoln Capital is a registered investment adviser providing advice to individuals, high net worth
individuals, pension and profit-sharing plans, trusts, estates and charitable organizations.

Account Minimums
Lincoln Capital may require a minimum account size of $500,000 for investment advisory
clients, although this may be negotiable in certain circumstances. Lincoln Capital may group
related client accounts for the purposes of achieving the minimum account size.