Principium Investments LLC

Item 5                 Fees and Compensation
Principium Investments offers its services on a fee basis, which generally entails a fee based upon
a percentage of assets under management for investment management relationships, as well as a
fixed and/or hourly fee for certain consulting engagements.

Investment Management Fees

Individual Accounts

Principium Investments generally charges an annual asset-based fee for accounts maintained at its
recommended custodians and for held-away accounts in accordance with the following flat fee
schedule:

   ASSETS UNDER MANAGEMENT (AUM)                                  ANNUAL FLAT FEE
  Under $500,000                                                       1.50%
  $500,001 - $1,000,000                                                1.25%
  Over $1,000,000                                                      1.00%

Principium Investments’ annual fee is prorated and charged quarterly in advance and is based upon
the market value of the assets, including any margin amount, being managed by the Firm on the
last day of the previous quarter. Clients retain the ability to make account deposits or withdrawals
at any time, provided that investment management fees will be adjusted to reflect partial inflows
and outflows of more than $100,000 that occur after the inception of a billing period. These inflows
and outflows to the account are billed using the following formula: 1) asset value on the last day
of the previous quarter, 2) multiplied by the applicable annual fee rate, 3) divided by the number
of days in a year (365/366), and 4) multiplied by the number of relevant calendar days in a quarter
(90-92). For the initial term of an engagement, the fee is calculated on a pro rata basis. In the event
the Agreement is terminated, the fee for the final billing period is prorated through the effective
date of the termination and the unearned portion is refunded to the client, as appropriate.
Principium Investments’ annual fee is exclusive of, and in addition to, custodial fees, transaction
fees, and other related costs and expenses that are incurred by the client at the custodian.
Principium Investments does not, however, receive any portion of these fees and costs.

Group Retirement Plans under ERISA

     ASSETS UNDER MANAGEMENT (AUM)                                  ANNUAL FLAT FEE
  All Asset Levels                                                       0.50%

The fee is billed to the Plan monthly in arrears by the Recordkeeper and then passed directly
to Principium Investments. The monthly portion of the fee is calculated by applying the
following formula: 1) average daily balance of Plan assets on the recordkeeping system for
the billed month, 2) multiplied by the applicable annual fee rate, 3) divided by the number of
days in a year (365/366) and 4) multiplied by the number of relevant calendar days in the

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month (28-31). For this purpose, Plan assets mean all assets (including assets held in
unallocated accounts) other than Company Stock and Self-Directed Brokerage Accounts.

Financial Planning Fees

Principium Investments normally provides financial planning services to its investment
management clients at no extra cost. Principium Investments reserves the right to charge
consulting fees (see Consulting Fees) for financial plans of individuals or families that are not
investment management clients or require unusually extensive financial planning services.

Estate Planning Fees

Principium Investments normally provides non-legal estate planning services to its investment
management clients at no extra cost. Principium Investments reserves the right to charge
consulting fees (see Consulting Fees) for non-legal estate planning advice in cases where no
investment management relationship exists, or unusually extensive non-legal estate planning
services are required. All legal estate planning services are provided through a licensed estate
attorney chosen by the client. Principium Investments does not receive any portion of legal estate
planning fees.

Consulting Fees

Principium Investments may charge a fixed fee and/or hourly fee to provide clients with stand-
alone consulting services. These fees are largely determined by the scope and complexity of the
agreed upon services and generally range from $250 to $500 on an hourly basis, and $5,000 to
$10,000 per month on a fixed fee basis.

The specific terms and fee structure are negotiated in advance and set forth in the Agreement with
Principium Investments. Generally, Principium Investments requires one-half of the consulting fee
payable upon execution of the Agreement and the balance due at the time the financial plan is
delivered, or the underlying services are rendered to completion. Depending on the arrangement,
if the client engages Principium Investments for additional investment advisory services,
Principium Investments may offset all or a portion of its fees for those services based upon the
amount paid for the financial planning and/or consulting services.

Fee Discretion

Principium Investments, in its sole discretion, may negotiate to charge a lesser fee based upon
certain criteria, such as anticipated future earning capacity, anticipated future additional assets,
dollar amount of assets to be managed, related accounts, account composition, pre-existing client
relationship, account retention, client referrals, public charity status and pro bono activities. Lower
fees for similar services may be available elsewhere.

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Additional Fees and Expenses

In addition to the fee paid to Principium Investments, clients may also incur certain charges
imposed by other third parties, such custodians, trust companies, banks and other financial
institutions (collectively “Financial Institutions”). These additional charges may include
transaction fees, custodial fees, charges imposed directly by a mutual fund or ETF in a client’s
...

Item 7         Types of Clients
Principium Investments offers its services to individuals, trusts, estates, charitable organizations,
corporations and other business entities, as well as group retirement plans such as 401(k) and profit
sharing plans.

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Minimum Account Requirements

Principium Investments does not impose a stated minimum portfolio value for starting and/or
maintaining an investment advisory relationship.