Parthenon LLC

Fees and Compensation

                                                                                          Form ADV Part 2A, Item 5

We are compensated by a fee for managing our clients portfolios based on the assets we manage, and we
receive no other form of compensation. Our fee schedule is 1% on the first $2 million of assets under
management (subject to a $10,000 minimum annual fee), 0.75% on the next $3 million of assets under
management, and 0.50% on amounts over $5 million. Fees are occasionally negotiated based on portfolio size.

We typically have our management fees deducted from our client’s accounts, which are custodied by outside
qualified custodians. However, clients may choose to have their fees invoiced and then submit payment. All
clients receive copies of invoices, even if their fees are being deducted from their account. Fees are billed or
deducted quarterly, in advance.

Parthenon advisory clients may pay custodian, trustee or other expenses depending upon the specific situation.
Clients may also incur transaction costs, including brokerage commissions. Please see the section of this
document referring to “Brokerage Practices”.

Fees are paid in advance, based on the previous calendar quarter’s ending market value. For accounts that
terminate during a calendar quarter, fees will be refunded based on the number of days fees were paid but not
earned.

No Parthenon employees receive compensation from Parthenon other than the fee compensation discussed
above.

                    Performance-Based Fees and Side-By-Side Management

                                                                                            Form ADV Part 2A, Item 6

Parthenon is advisor and general partner for Fort Nelson. As general partner and advisor, we may receive
performance fees only for that account provided certain thresholds for performance are met. This practice could
create a conflict of interest between Fort Nelson and advisory clients of Parthenon. Trading and account activity
of Fort Nelson is carefully monitored to ensure that it receives no advantages over advisory clients of Parthenon.
Fort Nelson is generally treated, for conflict of interest purposes, as a client of Parthenon alongside our other
advisory clients and is therefore not afforded any advantages in the purchase or sale of securities. Fort Nelson
owns and may own securities in the future that are also held by Parthenon clients.

Types of Clients

                                                                                           Form ADV Part 2A, Item 7

Parthenon provides investment management services for individuals, families, trusts, family limited partnerships,
retirement accounts such as profit-sharing accounts, and institutional clients. We also are the general partner
and investment advisor for Fort Nelson. Our minimum account size is $1 million, however we reserve the right
to accept a lesser amount .

               Methods of Analysis, Investment Strategies and Risk of Loss

                                                                                          Form ADV Part 2A, Item 8

                                              Equity Approach

We believe that companies with consistent and enduring earning power outperform the broad markets. We
further believe that the long-term ownership of these companies will ultimately provide superior investment
returns, while minimizing the volatility of a portfolio.

We conduct our own research. We are originators, not recipients, of investment ideas, and use selected outside
research sources only for information on companies and industries.

We narrowly focus our research on businesses that can be understood with a reasonable amount of study, due
diligence and thought. We seek to own companies with consistently high returns on assets and equity, typically
derived from a competitive advantage that we have identified.

While diversification is used to reduce risk, outperformance of the indices will come from concentrations in
securities with above-average operating characteristics purchased at discounts to intrinsic value.

We are long-term owners of the companies in which we invest. Our average holding period is over four years,
leading to a portfolio turnover ratio of less than 25% annually.

We believe that company-specific security analysis offers the best potential for superior returns. Therefore, we
do not replicate indices or allocate funds by industry group, nor do we attempt to time the markets.

We seek to purchase companies at a discount to their estimated true worth, believing that the market will
ultimately recognize superior operating characteristics with an appropriate valuation.

We consider multiple market capitalizations in our research, believing that the characteristics we seek may be
found in companies of any size.

                                          Fixed Income Approach

We structure each portfolio based on the client’s investment objectives. Portfolios are designed to maximize
after-tax returns, meet liquidity requirements and address income needs.

Portfolio maturities are adjusted in anticipation of changes in interest rates, economic activity, inflation
expectations, Federal Reserve policy and money demand and supply characteristics.

Specific sectors are emphasized based on relative attractiveness. The portfolio mix of US Treasury, government
agency, corporate, mortgage and asset-backed securities and municipal securities will be adjusted to reflect
changing spread and risk characteristics.

We utilize only high-quality securities, including those rated “A” or better by Moody’s or Standard & Poor’s. No
holdings other than US Treasury and government agency securities will exceed 5% of a portfolio’s value.

Careful analysis is conducted when utilizing mortgage securities and asset-backed securities. All mortgage
securities utilized will have government agency collateral.

No exotic derivatives or foreign debt are utilized.

Clients should realize that investing in securities involves risk of loss of principal.

Investing in equity and fixed income assets creates the potential for loss of principal. Occasionally,
concentrations in certain equity securities may heighten that risk. Risk of loss in equity securities may come
from a variety of sources, including general market risk, but also security specific risk. Various risks in fixed
income securities may occur from changes in interest rates, downgrades in ratings from credit ratings agencies,
and material changes in company characteristics.