Sage Investment Counsel LLC

Item 5 Fees and Compensation

A) How we are compensated for our services

We are compensated by charging asset‐based fees on accounts that we manage, oversee, consult upon,
or monitor for performance. (In other words, our fees are based on a percentage of assets under
management, consultation, or review.) These asset‐based fees generally differ depending on the job we
are hired to do. We clearly delineate the nature of each fee we charge and the service provided for the
fee.

Our fees are negotiable, and we generally take into account portfolio size, and/or “familial relationship”
(Where we group several clients together in order to provide a common discount.)

We charge a maximum annual fixed fee of 1.5% of assets under management, payable quarterly, in arrears
or in advance, for accounts that we manage with discretion.

Performance measurement services are billed at a lower rate than investment management services.

B) How we bill for our fees

Our clients pay us quarterly fees. Clients may pay by check or have us invoice the custodian to deduct it
from the accounts.

If your fees are due in arrears, we calculate quarterly fees on the ending value of your account for the
relevant calendar quarter. For example, the fees for the first quarter (i.e., January, February, and March)
are based on the ending account value as of March 31 and are due in April. Conversely, if your fees are
due in advance, we calculate quarterly fees based on the ending value of your account as of the last day
of the previous quarter. For example, fees for the first quarter (i.e., January, February, and March) are
based on the account value as of December 31 and are due in January. Fees for partial periods will be
prorated based on the number of days for which you were a client.

When management fees are billed directly, payment is due within 30 days of the invoice. Where agreed
upon, we will deduct our fees directly from the designated account; we typically will invoice your
custodian in the first month following the recently completed calendar quarter. We will deduct our
advisory fee only when the following requirements are met:
    •       You provide our firm with written authorization permitting the fees to be paid directly from
            your account held by the qualified custodian.
    •       The qualified custodian agrees to send you a statement, at least quarterly, indicating all
            amounts disbursed from your account, including the amount of the advisory fee paid directly
            to our firm.

We encourage you to carefully review the statement(s) you receive from the qualified custodian. If you
have questions or if you did not receive a statement from your custodian, call our main office number
located on the cover page of this brochure.

Negotiability of Fees: We allow investment adviser representatives servicing the account to negotiate the
exact investment management fees within the range disclosed in our Form ADV Part 2A Brochure. As a
result, the Associated Person servicing your account may charge more or less for the same service than
another Associated Person of our firm. Further, our annual investment management fee may be higher
than that charged by other investment advisors offering similar services/programs.

Billing on Cash Positions: The firm treats cash and cash equivalents as an asset class. Accordingly, unless
otherwise agreed in writing, all cash and cash equivalent positions (e.g., money market funds, etc.) are
included as part of assets under management for purposes of calculating the firm’s advisory fee. At any
specific point in time, depending upon perceived or anticipated market conditions/events (there being no
guarantee that such anticipated market conditions/events will occur), the firm may maintain cash and/or
cash equivalent positions for defensive, liquidity, or other purposes. While assets are maintained in cash
or cash equivalents, such amounts could miss market advances and, depending upon current yields, at

any point in time, the firm’s advisory fee could exceed the interest paid by the client’s cash or cash
equivalent positions.

Billing on Margin: Unless otherwise agreed in writing, the gross amount of assets in the client’s account,
including margin balances, is included as part of assets under management for purposes of calculating the
firm’s advisory fee. Clients should note that this practice will increase total assets under management,
used to calculate advisory fees that will, in turn, increase the amount of fees collected by our firm. This
practice creates a conflict of interest in that our firm has an incentive to use margin in order to increase
the amount of billable assets. At all times, the firm and its Associated Persons strive to uphold their
fiduciary duty of fair dealing with clients. Clients are free to restrict the use of margin by our firm.
However, clients should note that any restriction on the use of margin might negatively impact an
account’s performance in a rising market.

Periods of Portfolio Inactivity: The firm has a fiduciary duty to provide services consistent with the client’s
best interest. As part of its investment advisory services, the firm will review client portfolios on an
ongoing basis to determine if any changes are necessary based upon various factors, including but not
limited to investment performance, fund manager tenure, style drift, account additions/withdrawals, the
client’s financial circumstances, and changes in the client’s investment objectives. Based upon these and
other factors, there may be extended periods of time when the firm determines that changes to a client’s
portfolio are neither necessary nor prudent. Notwithstanding, unless otherwise agreed in writing, the
firm’s annual investment advisory fee will continue to apply during these periods, and there can be no
assurance that investment decisions made by the firm will be profitable or equal any specific performance
level(s).
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Item 7 Types of Clients

We offer investment advice to individuals, pension and profit sharing plans, trusts, charitable
organizations, and businesses.

We generally prefer that our clients have Total Investment accounts with a dollar value of at least
$2,000,000. Account minimums are negotiable and can vary depending on the clients and our willingness
at any time to undertake new business. In some cases, we would impose no minimum.