Rae & Lipskie Investment Counsel Inc

ITEM 5: FEES AND COMPENSATION

A.      Fees and Compensation

Compensation for investment management services rendered is based on assets under
management. Fees are based on a percentage of the market value of assets under management on
a sliding scale. For purposes of calculating advisory fees, the market value of assets in the
investment account consists of the market value of securities and other investments held in the
account, including cash. In very low interest rate environments, the management fee paid to us on
cash positions could exceed the yield on cash positions.

Fee Schedule (U.S. $)

Client Assets                           Investment Management Fees
First $375,000                          1.50% per annum
Next $1,100,000                         0.75% per annum
Next $750,000                           0.50% per annum
Over $2,250,000                         0.25% per annum

A minimum annual fee for investment management services of $8,500 USD is applied. The assets
held in a client’s multiple accounts are aggregated for fee calculation purposes, so that smaller
accounts achieve the benefit of scale from the overall portfolio.

Most client fees are charged according to this standard schedule, but fees are at times negotiated
within a narrow range. Factors considered in negotiation include the duration of the client
relationship, the overall size of the relationship, the nature of services offered, as well as resources
required for us to service the relationship.

B.      Deduction of Fees

Investment management fees for U.S. clients are calculated and billed monthly in arrears, using
the account’s assets under management as of the last day of the prior calendar month to calculate
the fee. Fees are prorated for partial periods. Clients have the option to have investment
management fees debited directly from their accounts each month.

C.     Other Expenses

If ETFs are held in client portfolios, their returns will be net of imbedded management expense
ratios. These expense ratios are taken into consideration during the investment decision-making
and portfolio construction process.

Stock trading costs for U.S. clients are generally a flat fee per trade but may vary based on the
client’s custodian. Bond trading costs are based on the bid-ask spread and are taken into
consideration in the management of those assets.

U.S. clients choose their own custodians and negotiate those fees separately. Where applicable,
U.S. clients may pay brokerage commissions, transaction costs, custodial fees, and other fees and
taxes which are unrelated to the fees paid to RaeLipskie. Such charges, fees and commissions are
exclusive of and in addition to RaeLipskie’s fees.

See Item 12 – Brokerage Practices for additional information about potential conflicts of interest
related to brokerage practices.

D.     Advance Fees; Refunds

Not applicable.

E.     Certain Sales Compensation

RaeLipskie and its employees do not accept compensation, including sales charges or service fees,
for the sale of securities or other investment products, including asset‐based sales charges or
service fees from the sale of mutual funds. RaeLipskie does not pay or receive fees of any kind
from a third-party; the Firm’s sole source of revenue is client fees.

ITEM 7: TYPES OF CLIENTS

As noted in Item 4 above, RaeLipskie provides discretionary investment management services to
individual investors, endowment funds, charitable foundations, corporations, estates and trusts,
and retirement funds. The Firm’s minimum account requirement for opening and maintaining an
account is $750,000 USD. RaeLipskie may waive or reduce minimum investment requirements in
its discretion, including based upon certain criteria as described in Item 5 above, and reserves the
right to decline any client in its sole discretion.