Miller Global Investments LLC

Item 5. Fees and Compensation

Fees

We charge a quarterly management fee based on assets under management values. Clients shall
pay to Manager an amount per year (an “Asset Based Fee”) equal to the following based on the
total net market value of the accounts under management.

0.90% on the first $3 million of total net market value
0.70% on the next $2 million of total net market value
0.50% on the next $5 million of total net market value
0.30% on the balance in excess of $10 million of total net market value

The Asset Based Fee shall be payable quarterly in advance at the beginning of each calendar
quarter based on the net market value of the account at the close of trading on that business day.

General

We are currently not charging any management fee with respect to cash and cash equivalents in
client accounts; however, we may in the future charge management fees with respect to cash and
cash equivalents in accordance with the above schedule, or as otherwise provided in your
investment management agreement with the Adviser. We calculate quarterly management fees
in advance as of December 31, March 31, June 30, and September 30. We send the custodian a
report for all fees payable to us. We include the client fees on the quarterly appraisal report.
Generally, the custodian debits each client’s account for the fees. If the advisory contract is
terminated before the end of the billing period, we will refund a pro rata portion of the quarterly
fee.

Expenses

All accounts utilize the custodial services of Charles Schwab & Co., Inc. (“Schwab”). Schwab
does not charge a custody fee. In the cases where we utilize money market funds to invest cash
balances in accounts, managed accounts will pay management fees to the custodian for
management of the money market funds. Furthermore, any exchange traded funds (“ETFs”) or
mutual funds held in a portfolio will result in additional management fees on those assets.
Clients will incur certain charges imposed by third-parties (custodians, broker-dealers, and other
third parties) regarding investments made in the accounts. These commissions, fees and charges
may include but not limited to the following: brokerage commissions/mark ups and mark downs;
transaction, exchange, trade away and clearing fees; wire transfer fees; margin interest; custodial
fees; administration and termination fees; and other costs and expenses. These expenses are
charged separately. For additional information regarding brokerage expenses, please see Item 12 below.

Item 7. Types of Clients

Our clients include individuals, trusts, privately held corporations, and retirement accounts for
individuals to which we provide advice through managed accounts as described in Item 4. The
minimum account size for separately managed accounts is generally $2,000,000, but we will
occasionally accept smaller accounts at our sole discretion.

Item 8. Method of Analysis, Investment Strategies, and Risk of Loss

Investing in securities involves risk of loss that you should be prepared to bear. There can be no
assurance that clients will achieve their investment objectives or that investments will be
successful. Our investment strategies involve a degree of risk, including risk of complete loss.
Clients understand that investment decisions made for the client’s account by Miller Global
Investments are subject to various market, currency, economic, political, and business risks, and
that those investment decisions will not always be profitable.
Miller Global Investments’ Method of Analysis

We follow a typical “bottom-up” fundamental approach to individual security selection along
with technical analysis.

Even the highest quality companies are not immune to the impact of the overall market.
Therefore, we analyze the overall market using various “top down” technical approaches and
macroeconomic variables to try to determine when the potential downside market risk might
warrant a more defensive approach.

Investment Strategies and Risk Factors

To meet the diverse investment objectives and risk profiles of our clients, we offer seven
different investment strategies. Depending on the client’s investment guidelines, we will allocate
to any or all of these strategies as the client deems appropriate in consideration of their objectives
and risk tolerance.

Our investment strategies are as follows:

1. Cash

       a. Strategy:

               We invest in money market funds, bank deposits, short-term Treasury Bills, and
               ultra-short-term bond funds.

       b. Risks:

               If short-term interest rates rapidly spike upward, then the money market funds
               might drop slightly below their $1.00 net asset value. A rapid increase in short-
               term interest rates could cause a slight price decline in short-term Treasury Bills.
               Because of changes in regulations, we believe that the probabilities of a money
               market fund dropping below $1.00 net asset value are relatively low. Since we
               are only buying short-term Treasury Bills, we could hold the investment until
               maturity. Bank deposits via Schwab are insured up to $250,000 by the Federal
               Deposit Insurance Corporation (FDIC) and another $900,000 by Lloyd’s of
               London insurance company. Ultra-short-term bond funds holding investment

             grade rated bonds could experience widening of credit spreads in times of
             economic stress causing the funds to experience slight price declines, but the short
             duration offers protection against interest rate risk.

2. Fixed Income:

      a. Strategy:

             Within fixed income, we buy taxable securities or tax-exempt securities as is
             appropriate for the client’s tax status. We buy U.S. government bonds, agency
             bonds, corporate bonds, municipal bonds, asset backed securities, and agency
             mortgage-backed securities (mortgage-backed securities issued by government-
             sponsored enterprises such as Ginnie Mae, Fannie Mae, Freddie Mac or the
             Federal Home Loan Banks). We position portfolios along the yield curve
             consistent with our views of the potential risk and rewards at a point in time. As
             our outlook changes, we adjust the portfolio. Thus, we do not necessarily hold
             bonds to maturity. In the fixed income market, we primarily focus on the quality
             end of the spectrum but will sometimes buy lower rated corporate credits. We
             buy bullet bonds with a fixed maturity along with hybrid bonds encompassing a
             fixed-to-floating rate coupon structure. We also may own funds that invest in
             other areas of fixed income such as asset-backed securities, mortgage-backed
             securities, and high yielding debt.

      b. Risks:

             Fixed income securities are designed to provide periodic returns and the eventual
             return of the principal at the end of the term. Fixed income securities are generally
             subject to three types of risks including credit risk, interest rate risk, and
             reinvestment risk. Interest rate risk is the change in the bond price due to the
             changes in interest rates throughout the yield curve. The value of fixed-income
             securities changes in response to interest rate fluctuations and market perception
             of the issuer’s ability to pay off its obligations. Credit risk pertains to the risk that
             their issuer may be unable to make interest or principal payments on its
             obligations. Reinvestment rate risk is the risk due to changes in interest rates
             throughout the yield curve. Note that interest rate risk and reinvestment rate risk
             will somewhat offset each other.

             Mortgage-Backed Securities. Investments in mortgage-backed securities involve
             the same interest rate risk, credit risk, and reinvestment risk but also include
             prepayment risk and extension risk. Prepayment risk (contraction risk) is the risk
             of receiving principal (par) back quicker than expected as interest rates decrease
             and homeowners refinance their mortgages. Extension risk is the risk of receiving
             principal (par) back slower than expected as interest rates rise.

3. Equity Income-U.S.

      a. Strategy:
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