Portfolio Advisory Council LLC

Fees and Compensation
Typically, the fee for this service is one point two percent (1.2%) (for accounts over 1
million dollars the fee may be negotiated) per year based on the invested assets under
management. The fee will be payable quarterly in arrears and valued at the end of each
quarter. (The 1.2% management fee charged by Portfolio Advisory Council, L.L.C. is in
addition to any mutual fund fee charged by a mutual fund manager.) The initial fee is paid
for portfolio analysis and consulting with the client. Consulting services are also available
for $250.00 hourly with a $500.00 minimum or on a fixed fee basis.

General Information: Agreement in writing though it may be modified by verbal
agreement with client. Negotiability of Advisory Fees and Minimum Requirements: In
certain circumstances, account minimums and advisory fees may be negotiable.
Management fees for pension plans are individually negotiated. Investment policy is
contained in the advisory agreement.

Fee Calculation: PAC, LLC does not charge a performance fee. The fee charged is calculated
as described above and is not charged on the basis of a share of capital gains upon or
capital appreciation of the funds or any portion of the funds of an advisory client (Section
205(a)(1) of the Advisers Act). If the custodian charges transaction costs they are paid
directly by the client to the custodian.
Termination of Advisory Relationship: A client agreement may be canceled at any time, by
either party, for any reason upon receipt of written notice. The client has the right to
terminate an agreement without penalty within five business days after entering into the
agreement.

Mutual Fund Fees: All fees paid to PAC, LLC for investment advisory services are separate
and distinct from the fees and expenses charged by mutual funds to their shareholders.
These fees and expenses are described in each fund's prospectus. These fees will generally
include a management fee, other fund expenses, and a possible distribution fee. A client
could invest in a mutual fund directly, without the services of PAC, LLC. In that case, the
client would not receive the services provided by PAC, LLC which are designed, among
other things, to assist the client in determining which mutual fund or funds are most
appropriate to each client's financial condition and objectives.

The specific manner in which fees are charged by Portfolio Advisory Council, L.L.C. is
established in a client’s written agreement with Portfolio Advisory Council, L.L.C. Clients
may also elect to be billed directly for fees or to authorize Portfolio Advisory Council, L.L.C.
to directly debit fees from client accounts. Management fees shall not be prorated for each

capital contribution and withdrawal made during the applicable calendar quarter (with the
exception of de minimis contributions and withdrawals). Accounts initiated or terminated
during a calendar quarter will be charged a prorated fee. Upon termination of any account,
any prepaid, unearned fees will be promptly refunded, and any earned, unpaid fees will be
due and payable.

Portfolio Advisory Council, L.L.C. fees are exclusive of custodian 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, 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 fee, and Portfolio
Advisory Council, L.L.C. shall not receive any portion of these commissions, fees, and costs.
PAC, LLC. reviews the quality and cost of custodian services annually.

Performance-Based Fees and Side-By-Side Management
Portfolio Advisory Council, L.L.C does not accept performance-based fees or other fees based
on a share of capital gains or capital appreciation of the assets of a client.

Types of Clients
Portfolio Advisory Council, L.L.C. provides portfolio management services to individuals,
corporations, high net worth individuals, corporate pension and profit-sharing plans, Taft-
Hartley plans, charitable institutions, foundations, and endowments.

Methods of Analysis, Investment Strategies and Risk of Loss
Portfolio Advisory Council, L.L.C. utilizes several methods of analysis to select investments
and structure client portfolios. We use fundamental analysis to determine current and
future earning potential of company securities; we use technical analysis and charting to
determine market momentum and over sold situations. We also use cyclical analysis to
determine medium to longer term trends in the market. Research is conducted utilizing
financial publications such as the Wall Street Journal, Barons Financial Weekly, and other
financial publications. Portfolio Advisory Council, L.L.C. subscribes to research from
Morningstar Rating Services, Charles Schwab & Co., Inc , Thomson Reuters stock reports,
CFRA stock reports, and other sources.

Portfolio Advisory Council, L.L.C. investment strategy does not rely on high frequency
trading. We are growth and income managers; we utilize bonds, stocks, REITs, ETF’s,
mutual funds and other investments to generate regular income and possible capital
appreciation. All our investment recommendations include some risk, market risk, sector
risk, interest rate risk and other unforeseen risk.