SAOS Capital LLC

Fees and Compensation

Broker-dealers and other financial institutions that hold client accounts are referred to as
custodians (“custodian"). Your custodian determines the values of the assets in your
portfolio.

We offer our services on a fee-only basis. You must authorize us in writing to have the
custodian pay us directly by charging your account. If the Account does not contain
sufficient funds to pay advisory fees, we have the limited authority to sell or redeem
securities in sufficient amounts to pay advisory fees. You may reimburse the account for
advisory fees paid to us, except for those deducted from ERISA and IRA accounts.

Fees for the initial month are prorated based upon the number of calendar days in the
calendar month that our agreement is in effect. Thereafter, our fee is calculated and
collected in advance based upon the market value of the assets in your account at the end
of each calendar month. No fee adjustments are made for partial deposits or withdrawals.

One-twelfth of the annual fee is charged each calendar month. Your custodian provides
you with statements that show the amount paid directly to us. You should review and verify
the calculation of our fees. Your custodian does not verify the accuracy of fee calculations.

In addition to our fee, you may be required to pay other charges such as:
• custodial fees;
• brokerage commissions;
• transaction fees;
• maintenance and termination fees for IRAs, certain retirement and qualified accounts;
• internal fees and expenses charged by mutual funds or exchange traded funds (“ETFs”);
    and
• other fees and taxes on brokerage accounts and securities transactions.

                                       Saos Capital Fee Schedule
                         Advisory                                Maximum
                         Service                                 Annual Fee1
                         Asset Management                        0.75‐1.50%

1We   may change the above fee schedule upon 30-days prior written notice to you. Fees are negotiable at
               our sole discretion. Termination of services requires a 30 day notification.

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Financial planning is included at no cost as part of the asset management process.

Mutual fund companies, ETFs, and variable annuity issuers charge internal fees and
expenses for their products. These fees and expenses are in addition to any advisory fees
charged by us. Complete details of these internal fees and expenses are explained in the
prospectuses for each investment. You are strongly encouraged to read these explanations
before investing any money. You may ask us any questions you have about fees and
expenses.

If you purchase mutual funds through the custodian, you may pay a transaction fee that
would not be charged if the transactions were made directly through the mutual fund
company. Also, mutual funds held in accounts at brokerage firms may pay internal fees that
are different from funds held at the mutual fund company.

While you may purchase shares of mutual funds directly from the mutual fund company
without a transaction fee, those investments would not be part of our advisory relationship
with you. This means that they would not be included in our investment strategies,
investment performance monitoring, or portfolio reallocations.

Please be sure to read the section entitled “Brokerage Practices,” which follows later in this
brochure.

Should you terminate the advisory agreement we have entered into within five business
days from the date the agreement is executed you will receive a full refund of any fees
paid. However, you shall be responsible for any transactions executed prior to receipt of
the written notice of cancellation.

After five days termination of the account can be terminated at any time upon prior 30 day
written notification. Client will be entitled to a pro rata refund of any pre-paid monthly fee
based upon the number of days remaining in the month after termination. In the absence
of a 30 day written notice of termination, the client will be entitled to the pro rata refund of
any pre-paid monthly fee based on the termination date. Such fees will be refunded to the
Account where such fees were debited.

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Pension Consulting Services Fees

The annual fee schedule for Pension Consulting services is listed below:
                                           Fee Schedule
                       Total Assets                       Annual Fee
                       $0 - $5,000,000                    0.50% - 1.00%
                       $5,000,001 - $10,000,000           0.50%
                       $10,000,001 and Up                 0.35%

These fees are negotiable. Pension consulting fees are withdrawn directly from the client’s
accounts with client’s written authorization. Fees are quarterly in arrears.

For clients in its wrap program, we will wrap third party fees (i.e. custodian fees, brokerage
fees, mutual fund fees, transaction fees, etc.). We will charge clients one fee, and pay all
transaction fees using the fee collected from the client.

Types of Clients

We provide advisory services to charities, individuals and high net worth individuals,
including their trusts, estates and retirement accounts. We also provide services to
corporations or business entities including their pension and profit-sharing plans.

The minimum account size for starting and maintaining an advisory relationship is $50,000.
We, at our sole discretion, may accept clients with smaller portfolios or lower minimums
based upon certain factors including:

   •   anticipated future earning capacity;
   •   anticipated future additional assets;
   •   account composition;
   •   related accounts; and
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   • pre-existing client relationships.

We may consider the portfolios of your family members to determine if your portfolio meets
the minimum size requirement.

Methods of Analysis, Investment Strategies and Risk of Loss

Saos Capital conducts fundamental and technical analysis. Fundamental analysis generally
involves assessing a company’s or security’s value based on factors such as sales, assets,
markets, management, products and services, earnings, and financial structure. Technical
analysis generally involves studying trends and movements in a security’s price, trading
volume, and other market-related factors in an attempt to discern patterns.

A relative strength methodology is used for the dual aim of reducing portfolio volatility while
seeking to enhance total return. This includes a top-down process of market analysis, sector
analysis, manager or product analysis and risk management. We believe this can help with
more consistent returns and thereby create a better environment for systematic withdrawal
needs.

We buy structured notes in your portfolio, if they are suitable for your given situation. Any
guarantee that your principal will be protected—whether in whole or in part—is only as good
as the financial strength of the company that makes that promise. In other words, the
principal guarantee is subject to the creditworthiness of the guarantor, which is generally the
securities firm that structures and issues the note. In the event the issuer goes bankrupt,
investors who hold these notes are considered unsecured creditors and might recover little,
if anything, of their original investment.

Potential lack of liquidity is one of the disadvantages of structured notes with principal
protection. These products tend to be longer-term investments, tying up your money for
several years.

Some issuers might allow investors to redeem their notes before maturity under certain
circumstances, such as expiration of a “lock-up period” (a period of time during which you
cannot access your funds), payment of a redemption fee or both. Other issuers might (but
are not obligated to) provide a secondary market for certain notes. However, depending on
demand, the notes might trade at significant discounts to their purchase price and might not
return the full guaranteed amount. In addition, the value of the note before maturity might be
difficult to calculate and can vary depending a wide array of factors (including prevailing
interest rates and the volatility of the underlying asset, index or benchmark). You might also
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have to pay a penalty for early redemption, further reducing any return of your principal.

Our investment strategies may include long-term and short-term purchases. Frequent
trading can affect investment performance through increased taxes and transaction costs.
Our options, futures and currency/forex strategies are designed to be defensive in nature;
however, there is still risk involved. For instance, the writer of a covered call forgoes the
opportunity to benefit from an increase in the value of the underlying interest above the
option price, but continues to bear the risk of a decline in the value of the underlying
interest.

You may place reasonable restrictions on the strategies to be employed in your portfolio
and the types of investments to be held in your portfolio.

All investments involve risks that can result in loss:
• loss of principal,
• a reduction in earnings (including interest, dividends and other distributions), and
• the loss of future earnings.

Additionally, these risks may include:
• market risk,
• interest rate risk,
• issuer risk, and
• general economic risk.

Although we manage your portfolio in a manner consistent with your risk tolerances, we
cannot guarantee that our efforts will be successful. You should be prepared to bear the
risk of loss.