Lincoln Douglas Investments LLC

Item 5 – Fees and Compensation

Compensation for investment advisory services provided by LDI is derived as fee
income, based on a percentage of the assets under management and charged monthly in
advance based on a percentage of the client’s assets under management at the end of the
prior month. The compensation method is explained and agreed with clients in advance
before any services are rendered. The amount of the fee can be negotiated on a case-by-
case basis with the client, and is determined based upon a number of factors including the
amount of work involved, the assets placed under management and the attention needed
to manage the account. Generally, the annual fee ranges from 2.00 to 2.75% depending
on the complexity of a client’s account, value of account, the developing and
implementing of an investment policy and objectives, formulating a quantitatively driven
asset-allocation analysis and recommendation, and monitoring a client’s investment
results, are subject to negotiation.

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LDI standard pricing grid below:

LDI PRICING ($90 Annual Minimum Fee)
Pricing based on assets under              Standard Fee %     Client Fee%
Management tiered fee schedule
First $0 to $250,000           ________       2.75%           _______
Next $250,001-$500,000         ________       2.50%           _______
Next $500,001-$1,000,000       ________       2.25%           _______
Next $1,000,001-$2,500,000     ________       2.00%           _______
Next $2,500,001-$5,000,000     ________       1.75%           _______
Next $5,000,001-$10,000,000    ________       1.5%            _______
Over 10,000,000                ________       1.25%           _______

Fees will be billed in advance at the beginning of each calendar quarter. The amount of
the fees is calculated on the value of the client’s account on the last day of the preceding
calendar quarter.

Advisory fees charged by LDI are separate and distinct from fees and expenses charged
by mutual funds, which may be recommended to clients. A description of these fees and
expenses are available in each fund’s prospectus. Additionally, LDI advisor programs
have a $15 charge per transaction. This charge is in addition to Advisory Fees and
offsets transactions and mailing expenses. LDI may receive a portion of this fee above
the cost of the clearing firm. Any contributions and/or withdrawals made during a
calendar quarter may cause an adjustment to the advisory fee. Fees will generally be
deducted directly from the client’s brokerage account pursuant to a written agreement.
Investment advisory services begin with the effective date of the agreement, which is the
date the client signs the Investment Advisory Agreement. For that calendar quarter, fees
will be adjusted pro rata based upon the number of calendar days in the calendar quarter
that the agreement was in effect.

The Investment Advisory Representative may receive Rule 12b-1 distribution fees with
respect to mutual funds or money market funds held in the account. LDI may receive
Rule 12b-1 fees, shareholder servicing, or administrative fees with respect to cash
awaiting investment or reinvestment or money market funds held in the account. LDI
may have an incentive to purchase mutual funds or money market funds which pay 12b-1
fees. LDI also receives non-brokerage related fees such as margin interest, and money
market fund and administrative fees along with reduced clearance and settlement fees
from certain fund companies.

Either LDI or the client may terminate the agreement at any time. Notice of termination
must be given to the other party in writing. Upon termination, the fees charged for
advisory services will be pro-rated and a refund for any unearned fees will be issued.
The client is responsible to pay for services rendered until the termination of the
agreement. The client can cancel the agreement without penalty within the first five days
after signing the agreement.

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Evergreen Ridge Advisory Program

LDI offers the Evergreen Ridge Advisory Program in which LDI will manage the
Client’s Account on a discretionary basis, consistent with the Account’s Suitability
Information, to seek to achieve the Account’s investment objective. Under the ER
Advisory Program, LDI will act in the capacity of the broker-dealer to affect all
transactions in the Account and NFS will also serve as custodian. The Client will pay an
investment management fee, plus a separate transaction fee, as described in the ER
Advisory Agreement.

Financial Planning Fee
Each Representative establishes the fee schedule for financial planning services he or she
provides. You and the Representative will negotiate the fee schedule before entering into
an Advisory Agreement. Financial planning services may be charged on an hourly or
fixed fee arrangement. LDI’s standard rate is $200.00/hour. Ongoing consultation fees
may be calculated as a percentage of assets and collected as a percentage of assets and
collected quarterly. Fee discounts are allowable and will vary depending upon 1) the
particular Representative who provides the services; 2) the complexity of your situation
and the services to be provided; 3) prior or anticipated relationships; and 4) the possibility
for additional business, as determined by the Representative within his or her discretion.
All Advisory Agreements must be approved by Lincoln Douglas Investments, LLC.
Financial planning services terminate upon completion of the services described in the
Advisory Agreement. You may terminate the Advisory Agreement at any time, and will
receive a prorated refund of the Fee based on the proportion of the total services that the
Representative has performed through the date LDI receives written notice of such
termination. Consultation services end when LDI receives written notice of your desire to
terminate the arrangement.

Item 7 – Types of Clients
LDI provides investment advice to individuals, pension and profit sharing plans, trusts,
and corporations or business entities. There are no minimum requirements for opening
accounts, but minimum fees may apply and will be disclosed in the written management
agreement depending on the program selected.