Sage Capital Management LLC

Item 5:          Fees & Compensation

Compensation for Our Advisory Services.

    Asset Management.

                 Assets Under Management          Annual Percentage of Assets Charge
                         Any Assets                          Up to 1.25%

    Individual fees are comprised of the percentage of total assets under management of a client’s
    aggregate portfolio. The ultimate fee breakdown will be detailed in the signed Asset Management
    Agreement.

    Our firm’s annualized fees are billed on a pro-rata basis quarterly in arrears based on the average
    account balance of the last day of each month within the previous quarter with securities valuations
    reflective of their respective trade dates. Fees are negotiable and will be deducted from your
    account. In some cases, we will agree to direct bill clients.

    Clients can elect to be billed on a flat fee for asset management services. The flat fee shall be
    negotiated between the adviser and client not to exceed 1.25%.

    Fees will generally be deducted from your account. As part of this process, the client is made aware
    of the following:

     •    Your independent custodian sends statements at least quarterly to you showing the market
          values for each security included in the Assets and all disbursements in your account
          including the amount of the advisory fees paid to us;

     •    You provide authorization permitting us to be directly paid by these terms. Debit fees
          directly to the custodian; and

     •    We send a copy of our invoice to you, it will include a legend urging you to compare
          information provided in our statement with those from the qualified custodian.

    Financial Planning & Consulting.

     Our firm charges on an hourly basis for financial planning and consulting services. The total
    estimated fee, as well as the ultimate fee charged, is based on the scope and complexity of our
    engagement with the client. The maximum hourly fee to be charged will not exceed $500. The fee-

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    paying arrangements will be determined on a case-by-case basis and will be detailed in the signed
    consulting agreement. Our firm will not require a retainer exceeding $1,200 when services cannot
    be rendered within 6 months.

    Retirement Plan Consulting.

    Our Retirement Plan Consulting services are billed on as a fee based on the percentage of Plan
    assets under management. The total estimated fee, as well as the ultimate fee charged, is based on
    the scope and complexity of our engagement with the client. Fees based on a percentage of
    managed Plan assets will not exceed 1.25%. The fee-paying arrangements will be determined on a
    case-by-case basis and will be detailed in the signed consulting agreement.

Other Types of Fees & Expenses.

Clients will incur transaction charges for trades executed in their accounts. These transaction fees
are separate from our fees and will be disclosed by the firm that the trades are executed through.
Fidelity recently eliminated transaction fees for U.S. listed equities and exchange traded funds for
clients who opt into electronic delivery of statements or maintain at least $1 million in assets at
Fidelity. Also, clients will pay the following separately incurred expenses, which we do not receive
any part of: charges imposed directly by a mutual fund, index fund, or exchange traded fund which
shall be disclosed in the fund’s prospectus (i.e., fund management fees and other fund expenses).

Termination & Refunds.

Either party may terminate the advisory agreement signed with our firm for Asset Management
services in writing at any time. Upon notice of termination pro-rata advisory fees for services
rendered to the point of termination will be charged. If advisory fees cannot be deducted, our firm
will send an invoice for due advisory fees to the client.

Financial Planning & Consulting clients may terminate their agreement at any time before the
delivery of a financial plan by providing written notice. For purposes of calculating refunds, all work
performed by us up to the point of termination shall be calculated at the hourly fee currently in
effect. Clients will receive a pro-rata refund of unearned fees based on the time and effort expended
by our firm.

Commissionable Securities Sales.

We do not sell securities for a commission in our advisory accounts.

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Item 7:        Types of Clients & Account Requirements

We have the following types of clients:

 •    Individuals and High Net Worth Individuals;

 •    Trusts, Estates or Charitable Organizations;

 •    Pension, 401(k) and Profit Sharing Plans;

 •    Corporations, Limited Liability Companies and/or Other Business Types

We do not impose requirements for opening and maintaining accounts or otherwise engaging us.